Vanguard Dividend ETF struggles as rising Treasury yields challenge dividend growth appeal.

The Vanguard Dividend Appreciation Index Fund ETF (VIG) has posted a modest 5% gain year-to-date, underperforming the broader market due to rising long-term Treasury yields, which compete with dividend yields. While dividend growth continues, investor demand is pressured as cash yields rise. The fund's performance heavily depends on Broadcom's strong AI-driven revenue growth, with its upcoming Q2 earnings report on June 3, 2026, seen as critical. If Treasury yields remain high and Broadcom's growth slows, VIG could face significant challenges despite ongoing dividend increases from other holdings.