#5 in the Best Stocks for 2014 Contest: Vanguard Dividend ETF (VIG)
Investor: Brendan Conway
YTD Return: -7%
For expert Brendan Conway, choosing a non-aggressive play for the 10 Best Stocks for 2014 race has put him exactly where one would expect: in the middle of the pack. Conway chose the Vanguard Dividend Appreciation ETF (VIG), figuring it would protect him from steep losses and come out ahead of any busted momentum stocks.
So far, though, tapering and the expectation of rising interest rates has sent many investors fleeing dividend funds like VIG. Year-to-date, the dividend ETF has fallen 5% … slightly wider than S&P 500’s losses.
That’s not to say this dividend ETF couldn’t get back on track, especially considering it’s more than just a bundle of stodgy old income plays. But VIG does have a hole to dig itself out of just to break even … and a lot of moving to do if it wants to catch the leading momentum play in our Best Stocks for 2014 contest.