Core Viewpoint - The Vanguard Dividend Appreciation ETF is a well-balanced investment option that combines growth, income, and value stocks, making it appealing for investors seeking diversified exposure [2][10]. Investment Strategy - The ETF targets companies that are not only capable of paying dividends but also have a track record of growing their earnings, which supports future dividend increases [4][11]. - Unlike typical dividend-focused funds, the Vanguard Dividend Appreciation ETF includes tech giants like Broadcom, Apple, and Microsoft, which have low yields but strong growth potential [6][7]. Holdings Overview - The top holdings in the ETF include Broadcom (6.1% of the fund, 0.7% yield), Microsoft (5.2%, 0.6%), JPMorgan Chase (4.1%, 1.8%), and Apple (3.4%, 0.4%), among others [5]. - Eight of the ten largest holdings have yields under 1%, yet they represent industry leaders across various sectors, including technology, financials, and healthcare [5][8]. Valuation Comparison - The Vanguard Dividend Appreciation ETF has a price-to-earnings (P/E) ratio of 25.7 and a yield of 1.7%, which is more attractive compared to the Vanguard S&P 500 ETF's P/E of 27.8 and yield of 1.2% [9]. - The ETF's larger holdings consist of blue-chip stocks with higher yields and reasonable valuations, contributing to its overall attractive valuation [9]. Long-term Appeal - The ETF's focus on dividend quality over quantity is particularly appealing to long-term investors who prefer not to invest in lower-quality companies for higher yields [11]. - The fund is positioned as a balanced option for investors looking to gain exposure to both megacap growth stocks and blue-chip dividend-paying value stocks, potentially making it a better choice than the Vanguard S&P 500 ETF [12][13].

Core Viewpoint - The Vanguard Dividend Appreciation ETF (VIG) is not the highest-yielding dividend ETF, but it focuses on investing in stocks that are likely to consistently increase their dividends over time, creating a growing income stream [1][6]. Group 1: ETF Overview - The Vanguard Dividend Appreciation ETF tracks the S&P U.S. Dividend Growers Index, which includes large-cap stocks with a history of annual dividend growth, comprising a total of 337 stocks [2]. - The ETF has a very low expense ratio of 0.05%, meaning that for every $10,000 in assets, the annual investment cost is only $5, which is reflected in long-term performance [4]. Group 2: Investment Strategy - The ETF is not focused on high current yields, allowing for greater exposure to fast-growing companies. For instance, Broadcom, the top holding, has a current dividend yield of about 1% but has increased its payout by 82% over the past five years [5]. - Microsoft, with a 23-year streak of dividend increases, is the second-largest holding in the ETF [5]. Group 3: Long-term Potential - Although the current yields of the stocks in the ETF may not be the highest, they have the potential to provide significantly higher payouts in the future, making it suitable for investors who are a decade or more away from needing income from their portfolios [6].