VIG is Vanguard's dividend growth ETF. VOO and VTI are their broad market index funds for the S&P 500 Index and total U.S. stock market, respectively. Let's compare them.

// TIMESTAMPS:

00:00 - Intro
00:10 - Methodologies
00:29 - VIG
01:07 - VOO
01:24 - VTI
01:55 - Comparison
02:45 - Performance
02:54 - AUM and Fees
03:19 - Conclusion & Outro

// SUMMARY:

We can compare VIG to both VOO and VTI at the same time, as VTI is the total U.S. stock market and VOO, being the S&P 500, is a sufficient barometer for the entire U.S. stock market, and the 2 perform nearly identically. I delved into comparing VOO and VTI here.

VIG, established in 2006, is the Vanguard Dividend Appreciation ETF. As the name implies, this ETF captures dividend growth stocks, companies with a historically increasing dividend. VIG seeks to track the S&P U.S. Dividend Growers Index. These are U.S. companies with a growing dividend over at least the past 10 years.

VOO is the Vanguard S&P 500 ETF.
VTI is the Vanguard Total Stock Market ETF.

All three of these funds only hold stocks in the United States. Both VOO and VTI include REITs, while VIG does not.

Sector weightings are naturally very different for VIG than for VOO or VTI.

Thus, in my opinion, VIG alone would not be sufficient as a core holding for a diversified investment portfolio, and should probably only be used to tilt, or overweight, dividend growth stocks in one’s portfolio. This may be attractive for dividend investors; I’m not a dividend investor, but I did design a dividend-focused portfolio that incorporates VIG.

Though all three of these funds are highly liquid and very popular, Vanguard’s VOO and VTI are much more popular than VIG with over $550 billion and $900 billion in assets, respectively, compared to about $60 billion for VIG.

VIG has an expense ratio of 0.06%, while both VOO and VTI cost half that with an expense ratio of 0.03%.

In conclusion, investors seeking broad, diversified exposure to the U.S. stock market should use VOO or VTI as a core holding. VIG is basically holding U.S. large-cap dividend growth stocks with robust Profitability and a conservative investment approach. Also remember VIG either excludes or underweights Energy, Telecom, and Real Estate stocks.

VOO and VTI have outperformed VIG going back to VIG’s inception in 2006 on both a general and risk-adjusted basis.

VOO and VTI are also more popular and slightly cheaper than VIG.

Read the blog post here: https://www.optimizedportfolio.com/vig-vs-voo/

#dividendgrowth #dividendgrowthinvesting #dividendgrowthstocks

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