“Since its inception, the [VIG] has also exhibited slightly less volatility than the S&P 500, and investors should expect a lower risk profile in the future,” Rawson added.
For long-term investors, VIG offers a cheap 0.10% expense ratio, which is 91% lower than funds with similar holdings.
Additionally, there are a number of alternative quality dividend ETFs that focus on companies with consistent dividend growth. For instance, the Schwab US Dividend Equity ETF (NYSEArca: SCHD), which includes 100 stocks with consistent dividend payouts for at least 10 consecutive years, has a 2.58% 12-month yield and a dirt cheap 0.07% expense ratio. The SPDR S&P Dividend ETF (NYSEArca: SDY), which holds firms that have a minimum dividend increase streak of 20 years for inclusion, comes with a 2.20% 12-month yield and a 0.35% expense ratio. Lastly, the ProShares S&P 500 Aristocrats ETF (NYSEArca: NOBL), which includes companies that have increased their dividends for at least 25 consecutive years, has a 1.57% 12-month yield and a 0.35% expense ratio. [Quality Dividend ETFs with Consistent Yields]
For more information on dividend stocks, visit our dividend ETFs category.
Max Chen contributed to this article.