Key insights
- The Vanguard Dividend Appreciation ETF (VIG) is highlighted as a potential vehicle for long-term portfolio growth, aiming for a $1 million target. While not focused on immediate high income, its growth tilt and weighting methodology make it suitable for total return strategies. This suggests a positive outlook for dividend growth stocks within a broader equity market context.
The Vanguard Dividend Appreciation ETF (VIG +0.43%) is one of the largest and most popular dividend ETFs. Because it focuses on long-term dividend growers and eliminates the top 25% of yields from immediate consideration, it's not an income machine.
That doesn't mean it doesn't have value in a portfolio. Because of its weighting methodology, which focuses on company size rather than any particular dividend characteristic, the fund has a growth tilt that many similar funds don't offer.
In other words, it may not be ideal if you're looking for big monthly dividend checks. But it can work on a total return basis if your goal is to build your portfolio to $1 million or more.
This Card Just Received a Rare 5-Star Rating
Our team of credit card pros don’t just recommend this card—they actually use it. Motley Fool Money calls it a top pick for a reason.
When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor’s total average return is 959%* — a market-crushing outperformance compared to 210% for the S&P 500.
They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor.
For investors seeking a $1 million portfolio, this ETF is a great vehicle for getting there.