VIG is the Vanguard Dividend Appreciation ETF. It tracks the S&P US Dividend Growers Index, holding approximately 300+ US companies that have raised their dividends for at least 10 consecutive years. The expense ratio is 0.06% as of 2026.

Is VIG better than SCHD?

VIG and SCHD are both dividend growth ETFs but with different selection criteria. VIG selects companies that have raised dividends for 10+ consecutive years, resulting in a higher-quality, more growth-oriented portfolio with a lower current yield. SCHD selects for 10+ years of dividends plus fundamental quality screens, resulting in a higher current yield. Historically SCHD has delivered stronger total returns; VIG has lower volatility.

What is VIG's dividend yield?

VIG's trailing 12-month dividend yield typically ranges from 1.6% to 2.2%, lower than SCHD (3.0%–3.8%) and VYM (2.8%–3.5%). This is because VIG's selection criteria emphasise consistent dividend growth over high current yield, favouring growth-oriented companies that pay lower but steadily increasing dividends.

Is VIG a good ETF for retirement income?

VIG is well-suited for the accumulation phase of retirement planning — its dividend growth focus means income rises over time, providing inflation protection. For investors already in retirement who need high current income, SCHD or VYM may provide more immediate cash flow. VIG's lower volatility makes it suitable for conservative investors nearing retirement.

VIG ETF 2026 Review — Vanguard Dividend Appreciation ETF Guide

The Vanguard Dividend Appreciation ETF (ticker: VIG) is the gold standard for dividend growth investing. It holds approximately 300+ US companies that have increased their dividends for at least 10 consecutive years — filtering for commitment to growing shareholder payments over time. At a 0.06% expense ratio, VIG provides a lower-yield, higher-quality alternative to high-dividend ETFs like SCHD and VYM.

What Is VIG?

VIG tracks the S&P US Dividend Growers Index, maintained by S&P Dow Jones Indices. The index selects US companies that:

Have increased dividends for at least 10 consecutive years
Meet minimum liquidity standards
Exclude REITs (which have special dividend structures)

This 10-year filter produces a portfolio of financially disciplined companies — businesses that have consistently grown dividends through recessions, bear markets, and interest rate cycles.

Key VIG facts (2026):

Metric	Detail
Ticker	VIG
Expense ratio	0.06%
Index tracked	S&P US Dividend Growers Index
Number of holdings	~300+
Dividend frequency	Quarterly
Trailing yield	~1.6%–2.2%
Inception date	April 2006
Exchange	NYSE Arca

VIG Holdings: What Kind of Companies Qualify?

Companies in VIG are typically financially strong, mature businesses with competitive moats. Common VIG holdings include names like:

Microsoft (technology)
Apple (technology)
UnitedHealth Group (healthcare)
JPMorgan Chase (financials)
ExxonMobil (energy)
Johnson & Johnson (healthcare)
Visa (financials)
Procter & Gamble (consumer staples)

These companies don’t necessarily have the highest dividend yields — but they’ve been growing dividends for a decade or more, demonstrating management’s commitment to shareholder returns.

Top sector weights (approximate 2026):

Sector	Weight
Technology	22–26%
Financials	18–22%
Healthcare	15–18%
Industrials	12–15%
Consumer Staples	8–10%
Energy	4–6%

VIG vs. SCHD vs. VYM: Which Dividend ETF?

Feature	VIG	SCHD	VYM
Expense ratio	0.06%	0.06%	0.06%
Holdings	~300+	~100	~400+
Selection criterion	10+ years dividend growth	Quality + 10-year record	High current yield
Current yield	~1.6%–2.2%	~3.0%–3.8%	~2.8%–3.5%
Dividend growth rate	Moderate (~7–9%/yr)	High (~10–12%/yr)	Moderate (~4–6%/yr)
Volatility	Lower	Moderate	Moderate
Tech exposure	Higher	Lower	Lower

VIG’s niche: Lower current yield, lower volatility, and higher tech exposure than SCHD or VYM. VIG behaves somewhat like a blend between a total market fund and a dividend ETF — more growth-oriented than pure dividend plays.

VIG’s Historical Performance

VIG launched in 2006, giving it history through the 2008 financial crisis:

Period	VIG approx. total return
5-year (2021–2025)	~10–13%
10-year (2016–2025)	~11–14%
Since inception (2006–2025)	~9–12%

VIG typically underperforms SCHD slightly on total return but holds up better in high-volatility periods due to the quality of its underlying companies.

VIG Dividends: Slower Growth, Consistent Income

VIG’s dividend yield is lower than SCHD’s — but its dividends grow consistently:

Year scenario	Initial $100K in VIG at 1.8% yield	Initial $100K in SCHD at 3.5% yield
Year 1 income	$1,800	$3,500
Year 10 income (VIG ~8%/yr growth)	~$3,890	~$9,070 (SCHD ~10%/yr)

SCHD still wins on income growth due to its higher growth rate and higher starting yield. VIG is the choice for investors who prioritise quality and lower volatility over maximum income.

VIG in a Roth IRA or Taxable Account?

Roth IRA: VIG’s qualified dividends and long-term growth compound tax-free. Its 10-year dividend growth filter makes it a strong long-term hold — the quality screen helps avoid dividend cuts that erode income.

Taxable account: VIG’s lower yield generates less annual taxable dividend income than SCHD or VYM, which is a tax efficiency advantage. Its qualified dividends are taxed at 0%, 15%, or 20% depending on your income.

VIG vs. SCHD: The Bottom Line

Choose VIG if you want lower volatility, higher-quality companies, and lower current yield (more growth-oriented)
Choose SCHD if you want higher current income, faster dividend growth, and stronger historical total returns
Hold both if you want the quality screens of both and are happy with the overlap

Many investors hold VIG + SCHD as their core dividend equity positions — VIG for quality/lower volatility; SCHD for income/growth.

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Bottom Line

VIG is an excellent dividend ETF for investors who prioritise quality and consistency over maximum yield. Its 10-year dividend growth requirement filters for financially strong, disciplined companies. Its 0.06% cost is low, and its portfolio is inherently defensive while still including technology names. For long-term investors who want dividend income that grows steadily with inflation — and are willing to accept a lower starting yield — VIG is one of the most elegant solutions available.

This article is for educational purposes only and does not constitute personalised investment advice. All investments carry risk, including the possible loss of principal.

Written by WealthVieu

WealthVieu researches and writes data-driven personal finance guides using primary sources including the IRS, Bureau of Labor Statistics, Federal Reserve, and Census Bureau.

The content on Wealthvieu is for informational purposes only and should not be considered financial, tax, or investment advice. Consult a qualified professional before making financial decisions. Full disclaimer · Editorial policy