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Vanguard Dividend Appreciation ETF highlights lower risk vs S&P 500

Over the decade ended Aug. 4, the ETF showed lower annualized volatility and a smaller maximum drawdown than the S&P 500, according to the article.

Sunday, August 9, 2026 · Written up by our desk · ETFs

Housing those dividend-growth criteria in an exchange-traded structure, the Vanguard Dividend Appreciation ETF, or VIG, is framed as a long-term option designed to navigate different market cycles.

The article notes that dividends have tended to lag during periods when no- or low-yielding growth stocks lead, and it cautions that dividend funds still do not fully protect investors during bear markets.

According to the piece, VIG posted lower annualized volatility and a lower maximum drawdown than the S&P 500 over the decade ending Aug. 4, and it also ranks among the category’s more durable long-term performers.

It says the fund tracks the S&P U.S. Dividend Growers index, which includes companies with dividend increase streaks of at least 10 years and excludes the top 25% highest-yielding names to avoid concentration in potential “yield traps.”

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