VIG, which had $29.6 billion in assets under management at the end of April, holds 188 stocks. Industrials are by far the ETF’s largest sector weight at 31.5% while both consumer sectors combine for just over 30% of VIG’s weight. Interest rate-sensitive telecom and utilities stocks combine for barely more than 2% of VIG’s roster.
“At 1.96 percent, VIG is yielding less than the 10-year Treasury note and around the same as the S&P 500 Index, according to data compiled by Bloomberg,” reports the news agency.
That yield is not much higher than what investors will find on the S&P 500 and well below the yields on some rival dividend ETFs. VIG’s popularity, in part, can be attributed to its low fees.
In May, Vanguard said VIG’s annual expense ratio was slightly lowered by one basis point to 0.08%, the equivalent of $8 per year on a $10,000 investment. That makes VIG less expensive than 92% of rival funds, according to Vanguard data.
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