Vanguard Dividend Appreciation ETF (VIG): Complete Beginner's Guide
Vanguard Dividend Appreciation ETF (VIG) is a u.s. large-cap dividend growth ETF from Vanguard with an expense ratio of 0.06% and $86.0B in assets under management. Our Beginner Suitability Score: 9/10 (Great for Beginners). 5-year annualized return: 13.10%.
Last updated: April 2026
Vanguard • U.S. Large-Cap Dividend Growth
Expense Ratio
0.06%
AUM
$86.0B
Dividend Yield
1.70%
Inception
2006
Beginner Score
9/10
What is Vanguard Dividend Appreciation ETF?
VIG invests in U.S. companies that have increased their dividends for at least 10 consecutive years, focusing on dividend growth rather than high current yield. This approach tends to select financially healthy companies with sustainable business models. Beginners who want quality companies that regularly reward shareholders will appreciate VIG's focus on consistent dividend growers.
VIG is managed by Vanguard and has been available since 2006. With $86.0B in assets under management, it's a well-established fund with strong institutional backing. The fund charges an expense ratio of 0.06%, which means for every $10,000 you invest, you pay approximately $6 per year in management fees.
VIG at a Glance — Key Metrics
| Expense Ratio | 0.06% |
| Total Holdings | 338 |
| P/E Ratio | 23.1 |
| Beta | 0.88 |
| Dividend Yield | 1.70% |
| AUM | $86.0B |
| Inception Year | 2006 |
| Issuer | Vanguard |
Top 10 Holdings in VIG
VIG holds 338 different securities. Here are the largest positions that make up the core of this fund:
| # | Company | Ticker | Weight |
|---|---|---|---|
| 1 | Apple Inc. | AAPL | 4.90% |
| 2 | Microsoft Corp. | MSFT | 4.60% |
| 3 | Broadcom Inc. | AVGO | 4.40% |
| 4 | JPMorgan Chase & Co. | JPM | 3.70% |
| 5 | UnitedHealth Group Inc. | UNH | 3.30% |
| 6 | Visa Inc. | V | 2.80% |
| 7 | Mastercard Inc. | MA | 2.60% |
| 8 | Home Depot Inc. | HD | 2.30% |
| 9 | Procter & Gamble Co. | PG | 2.20% |
| 10 | Costco Wholesale Corp. | COST | 2.10% |
VIG's top holding is Apple Inc. (AAPL) at 4.90%, followed by Microsoft Corp. (MSFT) at 4.60% and Broadcom Inc. (AVGO) at 4.40%. The top 10 holdings account for 32.90% of the fund's 338 total positions.
View data table
| Rank | Company | Ticker | Weight |
|---|---|---|---|
| 1 | Apple Inc. | AAPL | 4.90% |
| 2 | Microsoft Corp. | MSFT | 4.60% |
| 3 | Broadcom Inc. | AVGO | 4.40% |
| 4 | JPMorgan Chase & Co. | JPM | 3.70% |
| 5 | UnitedHealth Group Inc. | UNH | 3.30% |
| 6 | Visa Inc. | V | 2.80% |
| 7 | Mastercard Inc. | MA | 2.60% |
| 8 | Home Depot Inc. | HD | 2.30% |
| 9 | Procter & Gamble Co. | PG | 2.20% |
| 10 | Costco Wholesale Corp. | COST | 2.10% |
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VIG Performance History
Here's how VIG has performed over different time periods. Remember that past performance doesn't guarantee future results, but it gives you a sense of the fund's track record:
YTD
2.50%
1 Year
19.80%
3 Year
8.90%
5 Year
13.10%
10 Year
11.90%
VIG has returned 13.10% annualized over 5 years and 11.90% over 10 years. YTD return is 2.50%.
View data table
| Period | Return |
|---|---|
| YTD | 2.50% |
| 1 Year | 19.80% |
| 3 Year | 8.90% |
| 5 Year | 13.10% |
| 10 Year | 11.90% |
Beginner Suitability Score: 9/10
Our proprietary Beginner Suitability Score evaluates ETFs based on five factors that matter most to new investors: fees, volatility, diversification, dividend history, and track record length.
VIG scores 9/10 because it has very low fees, shows lower-than-average volatility, offers broad diversification across 338 holdings, and has been available since 2006, giving it a proven track record.
How to Buy VIG — Step by Step
- Open a brokerage account — We recommend Fidelity, Charles Schwab, or Vanguard for ETF investing. All offer $0 commissions on ETF trades.
- Fund your account — Transfer money from your bank. You can start with as little as $1 if your broker offers fractional shares.
- Search for "VIG" — Use the search bar in your brokerage platform to find Vanguard Dividend Appreciation ETF.
- Place your order — Choose "Market Order" for simplicity or "Limit Order" if you want to set a specific price. Enter how many shares (or dollar amount) you want to buy.
- Set up automatic investing — Most brokers let you schedule recurring purchases (e.g., $100/month on the 1st). This is dollar cost averaging in action.
VIG Sector Allocation
Here's how VIG distributes its investments across different sectors of the economy:
VIG's largest sector allocation is Information Technology at 23.5%, followed by Financials at 19.5% and Health Care at 14.2%.
View data table
| Sector | Weight |
|---|---|
| Information Technology | 23.5% |
| Financials | 19.5% |
| Health Care | 14.2% |
| Industrials | 12.5% |
| Consumer Staples | 10.8% |
| Consumer Discretionary | 8.5% |
| Communication Services | 3.8% |
| Energy | 3.2% |
| Materials | 2.5% |
| Utilities | 1.5% |
Dollar Cost Averaging Into VIG
Here's what consistent monthly investing could look like over time, assuming an average annual return of 8% (approximate historical stock market average):
| Monthly | 10 Years | 20 Years | 30 Years |
|---|---|---|---|
| $100/mo | $18,417 | $59,295 | $150,030 |
| $250/mo | $46,041 | $148,237 | $375,074 |
| $500/mo | $92,083 | $296,474 | $750,148 |
*Projections assume 8% average annual return with monthly compounding. Actual returns will vary. Past performance doesn't guarantee future results.
Fee impact: With VIG's expense ratio of 0.06%, a $10,000 investment would lose approximately $515 to fees over 20 years compared to a zero-fee investment. This is a reasonable fee level for the value provided.
VIG's expense ratio of 0.06% costs $516 on a $10,000 investment over 20 years (assuming 8% annual return). Without fees, the investment would grow to $46,610 instead of $46,094.
View data table
| Year | Without Fees | With Fees | Fee Cost |
|---|---|---|---|
| 0 | $10,000 | $10,000 | $0 |
| 5 | $14,693 | $14,653 | $40 |
| 10 | $21,589 | $21,470 | $119 |
| 15 | $31,722 | $31,458 | $264 |
| 20 | $46,610 | $46,094 | $516 |
Pros and Cons of VIG
Pros
- ✓Selects companies with 10+ years of consecutive dividend increases, ensuring financial quality
- ✓More diversified than SCHD with over 300 holdings across multiple sectors
- ✓Includes some growth-oriented dividend growers like Apple and Microsoft
- ✓Lower volatility than the broad market with a beta below 1.0
Cons
- ✗Lower current dividend yield (1.7%) than pure income ETFs like SCHD
- ✗May underperform in speculative growth rallies when non-dividend stocks surge
- ✗Tech-heavy weighting means it behaves more like a growth fund than traditional dividend funds
VIG vs Similar ETFs
See how VIG stacks up against similar funds:
Frequently Asked Questions
Is VIG a good ETF for beginners?▾
VIG has a Beginner Suitability Score of 9/10 on our scale. This makes it a strong choice for new investors due to its low fees and broad diversification.
What is the expense ratio of VIG?▾
VIG has an expense ratio of 0.06%. This means for every $10,000 you invest, you pay approximately $6 per year in fees. This is considered very low and cost-efficient.
How much money do I need to invest in VIG?▾
You can invest in VIG with as little as $1 through brokers that offer fractional shares (like Fidelity, Schwab, or Robinhood). There is no minimum investment required beyond the share price itself, which changes daily. Dollar cost averaging — investing a fixed amount regularly — is a popular strategy.
Does VIG pay dividends?▾
Yes, VIG pays dividends with a current yield of approximately 1.70%. Dividends are typically paid quarterly and can be reinvested automatically through most brokers.
What are the top holdings in VIG?▾
The top holdings in VIG include Apple Inc. (4.90%), Microsoft Corp. (4.60%), Broadcom Inc. (4.40%), and more. The fund holds 338 total positions, providing broad diversification across many companies.
What sectors does VIG invest in?▾
VIG's largest sector allocations are Information Technology (23.50%), Financials (19.50%), Health Care (14.20%). This sector distribution shows a focus on information technology stocks.
How much do VIG's fees cost over time?▾
With an expense ratio of 0.06%, a $10,000 investment in VIG would lose approximately $515 to fees over 20 years (assuming 8% annual returns). This is a reasonable fee level.