Vanguard Dividend Appreciation Fund remains a buy with steady dividend growth and tech-driven potential.

The Vanguard Dividend Appreciation Index Fund (VIG) is recommended as a buy for investors seeking exposure to high-quality dividend-growing stocks with a technology focus. Despite a modest 1.5% yield, VIG offers consistent dividend growth, with a 5-year CAGR of 8.14% and a 10-year CAGR of 6.91%, making it attractive for long-term investors. The fund is well-positioned to benefit from AI-driven digital transformation and may outperform if capital shifts from technology to value sectors. However, it may lag during strong bull markets due to excluding non-dividend-paying stocks.