Vanguard's VIG ETF focuses on companies with rising dividends, offering growth over yield for long-term investors.

The Vanguard Dividend Appreciation ETF (VIG) targets companies that have increased dividends for at least 10 years, emphasizing dividend growth over high current yield. With a modest 1.55% yield, VIG aims for steady income compounding alongside capital appreciation, holding over 400 stocks mainly in tech, financials, and healthcare. Notable holdings include Coca-Cola, Microsoft, and Johnson & Johnson, all with long histories of dividend increases. While VIG may lag during strong growth rallies, it offers lower volatility and a growing income stream, making it suitable for patient investors focused on long-term dividend growth rather than immediate income.