VIG

The Vanguard Dividend Appreciation ETF (VIG) is an exchange-traded fund that seeks to track the performance of an index composed of U.S. companies with a consistent record of increasing dividends over time. The ETF is managed by Vanguard and trades under the ticker VIG on NYSE Arca.

Classified as a U.S. equity ETF with a focus on quality dividend growth, VIG aims to reflect, before fees and expenses, the aggregated performance of the stocks included in its benchmark index. 

To achieve this objective, the fund employs a passive management strategy, maintaining a portfolio that seeks to replicate the composition and weighting of the index.

VIG’s benchmark index is the Nasdaq US Dividend Achievers Select Index, comprised of U.S. companies that have historically increased their dividends for a sustained period, weighted by float-adjusted market capitalization and periodically reviewed.

Diversification and sector exposure

VIG provides exposure to the U.S. equity market with a focus on dividend growth, including companies across sectors such as:

• Information technology.

• Health care.

• Consumer discretionary.

• Consumer staples.

• Industrials.

• Financials.

Structure and costs

Shares of VIG are traded on the secondary market, while creation and redemption of shares are carried out by authorized participants, a mechanism that helps keep the ETF’s market price close to its net asset value (NAV).

The fund features a low and competitive expense ratio, typical of Vanguard’s passive ETFs, and does not charge a performance fee. VIG makes periodic income distributions, derived from dividends paid by companies in its portfolio. The ETF has a single share class and trades exclusively under the ticker VIG.

History and evolution of the ETF

The Vanguard Dividend Appreciation ETF was launched in 2006, amid growing investor interest in strategies that emphasize companies with stable and rising dividend histories in the U.S. market.

Since its inception, VIG has been widely used by institutional and individual investors as a way to achieve growing income over time, focusing on quality companies with consistent dividend practices.

Between 2020 and 2024, the ETF reflected market cycles characterized by volatility and economic recovery, adjusting to macroeconomic policy changes and shifting investor demand for defensive, dividend-growth equities, while maintaining high liquidity and broad adoption as a quality income vehicle.