10 Best Stocks for 2014: #6, Vanguard Dividend Appreciation ETF (VIG)
Investor: Brendan Conway
YTD Return: +1%
Brendan Conway is a columnist at Barron’s who runs the Focus on Funds blog. In our Best Stocks for 2014 contest, he has picked a favorite among investors everywhere: the Vanguard Dividend Appreciation ETF (VIG), which boasts roughly $19 billion in assets and ranks as one of the 20 largest exchange-traded funds on Wall Street.
Of course, the idea of a Vanguard ETF is about diversification and low cost — not necessarily outperformance. And as a result, Brendan’s pick has largely tracked the S&P 500 year-to-date.
Focused on large-cap dividend payers like consumer staples giant Procter & Gamble (PG) and healthcare stock Abbott Laboratories (ABT), you can be sure that even if the VIG fund doesn’t blow the doors off with gains, it will hang tough in any market.
If things get choppy for stocks thanks to geopolitical unrest in Crimea or an emerging-market meltdown, Brendan’s pick may move to the head of the pack later in 2014.
As he wrote in a recent update on his pick, “If the market gets rockier, you can expect investors to flock to megacap stocks and dividend payers.”