Vanguard Dividend Appreciation ETF
It’s a no-brainer but worth rehashing: Dividends remain one of the most powerful ways to give your portfolio long-term upside and mitigate short-term risks of a market pullback in stable, cash-rich stocks.
The Vanguard Dividend Appreciation ETF (VIG) is the most popular way to tap into this trend with a whopping $19.1 billion under management, making it the largest dividend ETF by assets under management.
The strategy is simple, focusing on more than 100 securities that have a record of increasing dividends for each of the past 10 years or more. Mainstay blue chips like PepsiCo (PEP), Coca-Cola (KO) and and Procter & Gamble (PG) make up its top holdings right now.
And as is typical of Vanguard, the cost is dirt-cheap. A gross expense ratio of just 0.1% means a mere $10 a year on $10,000 is all it costs you for this built-in diversification and income-focused fund.