The Best Dividend ETF to Buy as Washington Stalls

Core Viewpoint - The Vanguard Dividend Appreciation ETF is positioned as a strong investment option during government shutdowns, providing a reliable income stream and solid performance despite market uncertainties [3][12]. Group 1: Market Context - Government shutdowns can lead to significant disruptions, affecting federal employees and essential services, but historically, the stock market tends to remain stable during such periods [1][2]. - Travelers are experiencing delays and cancellations at airports due to the shutdown, highlighting the broader impact on services [2]. Group 2: Vanguard Dividend Appreciation ETF Overview - The Vanguard Dividend Appreciation ETF is based on the Nasdaq US Dividend Achievers Select Index, which includes companies that have increased dividends for at least 10 consecutive years and excludes high-yield, unstable companies [4][5][6]. - The ETF focuses on blue-chip stocks, with the top 10 holdings representing a diverse mix across technology, industrial, and financial sectors, accounting for 64% of the fund [6][7]. Group 3: Performance Metrics - The ETF's top holdings include Broadcom, Microsoft, and JPMorgan Chase, with one-year returns ranging from -5.3% to 91.2%, showcasing a mix of performance [8]. - The Vanguard Dividend Appreciation ETF has achieved a one-year performance gain of 10% and offers a dividend yield of 1.6%, providing a favorable total return [9][10]. Group 4: Cost Efficiency - The ETF features a low expense ratio of 0.05%, equating to $5 annually per $10,000 invested, making it a cost-effective option for investors [13].