Gain detailed insights into the trading activity of Congress members for VIG on our government trades page. Stay updated on how elected officials are investing in VIG.

VIG - Government Trades

Vanguard Div Appreciation ETF

Technology

Financial Services

Healthcare

Industrials

Consumer Cyclical

Consumer Defensive

Basic Materials

Energy

Utilities

Communication Services

Other

The fund employs an indexing investment approach designed to track the performance of the Nasdaq US Dividend Achievers Select Index, which consists of common stocks of companies that have a record of increasing dividends over time. The adviser attempts to replicate the target index by investing all, or substantially all, of its assets in the stocks that make up the index, holding each stock in approximately the same proportion as its weighting in the index.

Apple Inc

Microsoft Corp

Broadcom Inc

Jpmorgan Chase & Co.

Exxon Mobil Corp - Common

Unitedhealth Group Inc.

Visa Inc

Procter & Gamble Company

Costco Wholesale Corp.

Mastercard Inc

Vanguard Dividend Appreciation ETF

Massive Stake Reduction In Apple

News

Tech

Trading Ideas

AAPL

BIDU

ITOT

IDC predicts global smartphone shipments to rise by 5.8% in 2024, driven by budget Android phones in China and Apple&#39;s use of generative AI technology.

Apple&#39;s Market Share Poised To Gain, GenAI And iPhone 16 Lead the Way: IDC

IBM stock

Government

Regulations

Emerging Markets

Media

IBM to lay off 1,000 employees as it closes research division in China. Plans to serve private enterprises and move R&amp;D to India.

IBM Shuts Down China Operations, Shifts Research to Global Offices: Report

Broadcom, Shutterstock

AVGO

Broadcom launched Catalyst, a program expanding partnerships with elite ESG partners to enhance go-to-market strategies for Symantec and Carbon Black.

Broadcom Launches Catalyst Initiative To Grow Its Cybersecurity Market Presence

Etf,Exchange,Traded,Fund,Stock,Market,Trading,Investment,Financial,Concept.

Coverage of Bitcoin, Etherum, Ripple and all the latest digital currencies.

Cryptocurrency

Equities

Broad U.S. Equity ETFs

Specialty ETFs

ETFs

Vanguard is a leader in ETFs, known for stability and low costs. Despite its impressive portfolio, it does not offer a Bitcoin ETF.

5 Things You Need To Know About Vanguard ETFs: Why There&#39;s No Bitcoin ETF In Their Lineup?

Economics

Federal Reserve

Markets

XLRE

The SPDR S&amp;P 500 ETF Trust (NYSE: SPY) is off to a shaky start to 2022, down 5.1% year-to-date.

What The Fed&#39;s Balance Sheet Reduction Will Mean For The S&amp;P 500

Bonds

Education

General

Stock trading is fraught with risks, and it exposes traders to situations where they can end up losing all their money -- or end up laughing all the way to the bank.

A Strange Year Prompts the Question: How To Survive A Stock Market Crash?

Analyst Color

Long Ideas

Dividends

Analyst Ratings

CMCSA

MSFT

Time To Appreciate This Cheap Vanguard Dividend ETF

Emerging Market ETFs

VIGI

A Cost-Effective Idea For International Dividends

A Golden Dividend ETF

iShares Dow Jones US Health Care Provides Index Fund

iShares Trust Barclays 20+ Year Treasury Bond Fund

Prolonged Shutdown Raises Recession Risk: ETFs To Consider

Vanguard International Dividend Appreciation ETF

Vigil Neuroscience Inc

International Data Corporation (IDC) rekindled optimism in smartphone makers like Apple Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) with its latest market update. It expects global smartphone shipments to climb by 5.8% to 1.23 billion units in 2024, recuperating from two challenging <a target="_blank" href="https://www.idc.com/getdoc.jsp?containerId=prUS52550324" rel="noreferrer noopener">years</a>.
The research firm flagged the popularity of budget Android smartphones in China and emerging markets and the luxury markets&#8217; acceptance of generative artificial intelligence smartphones as potential catalysts.
IDC expects Android to grow nine times faster at 7.1% than Apple iOS due to higher competition in China.
However, IDC highlighted GenAI&#8217;s success with the upcoming iPhone 16 and Apple&#8217;s capability to forge <a target="_blank" href="https://www.benzinga.com/markets/asia/24/06/39434301/apples-ai-strategy-faces-hurdles-in-china-talks-with-local-firms-are-ongoing" rel="noreferrer noopener">local AI partnerships</a> in China as potential growth drivers for Apple.
IDC expects the iOS trajectory to improve in 2025 with 4% year-over-year growth courtesy of Apple Intelligence.
IDC expects GenAI smartphones to win an 18% market share by 2024, driven by the premiumization trend.
In&nbsp;2023,&nbsp;Apple&nbsp;<a target="_blank" href="https://www.benzinga.com/government/24/06/39164337/apples-streaming-ambitions-in-china-continue-despite-geopolitical-tensions" rel="noreferrer noopener">ramped up its</a> China-based suppliers and manufacturing sites&nbsp;and launched a new&nbsp;Apple store in Shanghai, reflecting its keenness in the market.
CEO Tim Cook attended the China Development Forum in Beijing. Apple&nbsp;also discussed integrating&nbsp;Baidu Inc&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BIDU#NASDAQ">BIDU</a>) advanced generative AI technology into&nbsp;its devices within China.
Apple stock gained 27% in the last 12 months. Investors can gain exposure to Apple through Vanguard Div Appreciation ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VIG#NYSE">VIG</a>) and iShares Core S&amp;P Total U.S. Stock Market ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ITOT#NYSE">ITOT</a>).
<h2 class="wp-block-heading">Will Apple Stock Go Up?</h2>
When trying to assess whether or not Apple will trade higher from current levels, it's a good idea to take a look at analyst forecasts. 
Wall Street analysts have an average 12-month price target of $240.54 on Apple. The Street high target is currently at $300.0 and the Street low target is $164.0. Of all the analysts covering Apple, 38 have positive ratings, 7 have neutral ratings and 3 have negative ratings.
In the last month, 16 analysts have adjusted price targets. Here's a look at recent price target changes <a href="https://www.benzinga.com/quote/AAPL/analyst-ratings">[Analyst Ratings]</a>. Benzinga also tracks Wall Street's most accurate analysts. Check out how analysts covering Apple have performed in recent history. 
Stocks don't move in a straight line. The average stock market return is approximately 10% per year. Apple is 22.83% up year-to-date. The average analyst price target suggests the stock could have further upside ahead.
For a broad overview of everything you need to know about Apple, visit <a href="https://www.benzinga.com/quote/AAPL">here</a>. If you want to go above and beyond, there's no better tool to help you do just that than <a href="https://pro.benzinga.com/">Benzinga Pro</a>. Start your free trial today.
Price Action: AAPL shares traded higher by 0.13% at $228.32 premarket at the last check on Wednesday.
Image via Shutterstock

Apple's Market Share Poised To Gain, GenAI And iPhone 16 Lead the Way: IDC

International Business Machines Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IBM#NYSE">IBM</a>)&nbsp;is laying off 1,000 employees as it shutters a fundamental research division in China.
The company is shuttering two business lines specializing in research, development, and testing, Bloomberg <a target="_blank" href="https://www.bloomberg.com/news/articles/2024-08-26/ibm-to-shut-china-r-d-in-move-affecting-1-000-staff-yicai-says?srnd=phx-technology&amp;sref=TBDibEcD" rel="noreferrer noopener">reports</a>.
IBM proposes to serve private enterprises and select multinationals operating in China.
Also Read: <a target="_blank" href="https://www.benzinga.com/markets/equities/24/08/40166316/ibm-leverages-generative-ai-to-boost-cybersecurity-services-details" rel="noreferrer noopener">IBM Leverages Generative AI To Boost Cybersecurity Services: Details</a>
The shutdown of operation mirrors that of a host of companies reducing exposure to China, grappling with a weak domestic economy and regulatory scrutiny.
IBM plans to migrate its Chinese R&amp;D functions to offices elsewhere, the Wall Street Journal <a target="_blank" href="https://www.wsj.com/business/ibm-shuts-china-r-d-operations-in-latest-retreat-by-u-s-companies-b37cd9a0?mod=tech_lead_story" rel="noreferrer noopener">reports citing</a> Jack Hergenrother, a company vice president. The company is also looking for more engineers and researchers in places like Bangalore, India.
IBM&#8217;s move follows intensifying semiconductor sanctions on China by the U.S. backed by the retaliation from China.
In July, IBM reported <a target="_blank" href="https://www.benzinga.com/news/earnings/24/07/39943619/ibm-shares-climb-on-strong-q2-results-heres-the-details" rel="noreferrer noopener">second-quarter sales</a> of $15.8 billion, up by 2.1% year-on-year, beating the analyst estimate of $15.6 billion.&nbsp;EPS of $2.43 topped the consensus estimate of $2.19.
IBM stock is up over 34% in the last 12 months. Investors can gain exposure to the stock through Vanguard Div Appreciation ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VIG#NYSE">VIG</a>) and Vanguard High Dividend Yield ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VYM#NYSE">VYM</a>).
Price Action: IBM stock is down&nbsp;0.11%&nbsp;at&nbsp;$195.89 premarket at the last check Monday.
Also Read:
<ul>
<li><a href="https://www.benzinga.com/markets/equities/24/08/40125849/ibm-backed-japanese-startup-rapidus-to-begin-test-production-of-2-nanometer-semiconductors-in-ap" target="_blank" rel="noreferrer noopener">IBM-Backed Japanese Startup Rapidus To Begin Test Production Of 2-Nanometer Semiconductors In April, Revitalizing Japan&#8217;s Chip Industry</a></li>
</ul>
Photo via Shutterstock

Broadcom Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>) has announced the launch of Catalyst, an Accelerate Program expansion designed to enhance the go-to-market strategies and customer relationships for its <a href="https://www.benzinga.com/pressreleases/24/08/g40337700/broadcom-introduces-catalyst-initiative-to-better-serve-symantec-and-carbon-black-customers-turboc" target="_blank" rel="noreferrer noopener">Symantec and Carbon Black portfolios</a>. The stock is trading higher Tuesday.
The global initiative involves critical partnerships with elite Enterprise Security Group (ESG) partners, who will take on primary roles in specific regions. The initial Catalyst Partners include TD SYNNEX for the Americas; Arrow Electronics for North, Central, and Southern Europe; MBCOM Technologies for Emerging Markets; Westcon-Comstor for the Asia Pacific; and Carahsoft Technology Corp. for the U.S. Federal Government, State, Local, and Education sectors.
The Catalyst initiative leverages Broadcom&#8217;s product innovation and a suite of enablement tools to help these partners drive substantial profit growth.
The program empowers local technical experts to provide value-added services and Tier 1 and Tier 2 support to customers using Symantec and Carbon Black security solutions.
Broadcom will continue to support these partners with product management, marketing, and sales operations resources, ensuring their success. Additionally, Broadcom will offer advanced Tier 3 customer support and engineering resources to maximize the benefits of its ESG solutions.
This initiative signifies Broadcom&#8217;s commitment to expanding its influence in the cybersecurity market through strategic partnerships.
JPMorgan analyst Harlan Sur predicted that Broadcom will have an artificial intelligence (AI) silicon market opportunity <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/07/39793230/broadcom-has-over-150b-of-ai-silicon-opportunity-over-next-5-years-says-analyst" target="_blank" rel="noreferrer noopener">of over $150 billion</a> in the next five years.
Broadcom&nbsp;stock gained over 74% in the last 12 months. Investors can gain exposure to Broadcom through Vanguard Div Appreciation ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VIG#NYSE">VIG</a>) and SPDR Select Sector Fund &#8211; Technology (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>).
Price Action: AVGO shares traded higher by 2.58% at $152.45 at last check Tuesday.
Read Next:
<ul>
<li><a href="https://www.benzinga.com/markets/equities/24/08/40339059/wall-street-set-to-rally-on-mild-producer-inflation-data-as-traders-boost-bets-on-bigger-fed-rat">Wall Street Set To Rally On Mild Producer Inflation Data As Traders Boost Bets On Bigger Fed Rate Cut: 5 ETFs To Watch Tuesday</a></li>
</ul>
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo: Shutterstock

Vanguard has become a towering figure <a href="https://www.benzinga.com/etfs">in the world of exchange-traded funds (ETFs)</a>. 
As investors increasingly turn to ETFs for their diversification, lower costs, and liquidity, understanding the offerings and strategies of major players like Vanguard is essential. 
Yet, amidst this expansive array of financial instruments, one notable absence in Vanguard&#8217;s portfolio raises eyebrows: the lack of a <a href="https://www.benzinga.com/topic/bitcoin-etf">Bitcoin ETF. </a>
Here, we delve into the five critical factors about Vanguard ETFs, also explaining why a Bitcoin ETF is deliberately missing from their portfolio lineup.
<h3 class="wp-block-heading">Vanguard&#8217;s Status In The ETF Arena</h3>
Vanguard ranks as the second-largest ETF issuer globally, overseeing a diverse portfolio of over a hundred ETFs and boasting an impressive $2.5 trillion in assets under management (AUM), just shy of BlackRock Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BLK#NYSE">BLK</a>), which leads with $2.7 trillion AUM.
The Vanguard S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOO#NYSE">VOO</a>), with $426 billion in AUM as of Mar. 14, 2024, is not only Vanguard&#8217;s flagship fund but also the world&#8217;s second-largest ETF, trailing slightly behind the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) at $503 billion. 
Top 7 Vanguard&#8217;s ETFs By AUM
<figure class="wp-block-table is-style-stripes"> 
<table>
<thead>
<tr>
<th>ETF</th>
<th>AUM (bn)</th>
</tr>
</thead>
<tbody>
<tr>
<td>Vanguard S&amp;P 500 ETF </td>
<td>426.87 </td>
</tr>
<tr>
<td>Vanguard Total Stock Market ETF </td>
<td>385.48 </td>
</tr>
<tr>
<td>Vanguard FTSE Developed Markets ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VEA#NYSE">VEA</a>)</td>
<td>130.07 </td>
</tr>
<tr>
<td>Vanguard Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VUG#NYSE">VUG</a>)</td>
<td>119.81 </td>
</tr>
<tr>
<td>Vanguard Value ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VTV#NYSE">VTV</a>)</td>
<td>115.14</td>
</tr>
<tr>
<td>Vanguard Total Bond Market ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BND#NYSE">BND</a>)</td>
<td>105.94</td>
</tr>
<tr>
<td>Vanguard Div Appreciation ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VIG#NYSE">VIG</a>) </td>
<td>77.92</td>
</tr>
</tbody>
</table>
</figure>
<h3 class="wp-block-heading">Champion of Low Fees</h3>
In the competitive ETF marketplace, cost efficiency is a significant battleground. Vanguard emerges as a victor here, offering the lowest average expense fees among its funds—an AUM-weighted average expense ratio of a mere 0.05%, according to data from VettaFi. 
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Issuers</td>
<td>Expense Rank</td>
<td>Avg. Expense Ratio (%)</td>
</tr>
<tr>
<td>Vanguard</td>
<td>1</td>
<td>0.05%</td>
</tr>
<tr>
<td>BNY Mellon</td>
<td>2</td>
<td>0.05%</td>
</tr>
<tr>
<td>Charles Schwab</td>
<td>3</td>
<td>0.08%</td>
</tr>
<tr>
<td>Bondbloxx Investment Management Corp.</td>
<td>4</td>
<td>0.10%</td>
</tr>
<tr>
<td>GAMCO Investors, Inc.</td>
<td>5</td>
<td>0.11%</td>
</tr>
<tr>
<td>Humankind USA LLC</td>
<td>6</td>
<td>0.11%</td>
</tr>
<tr>
<td>State Street</td>
<td>7</td>
<td>0.12%</td>
</tr>
<tr>
<td>Deutsche Bank AG</td>
<td>8</td>
<td>0.13%</td>
</tr>
<tr>
<td>Goldman Sachs</td>
<td>9</td>
<td>0.15%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Data: VettaFi</figcaption></figure>
The cheapest ETFs issued by Vanguard are the Vanguard S&amp;P 500 ETF, Vanguard Total Stock Market ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VTI#NYSE">VTI</a>), and the Vanguard Total Bond Market ETF, all screening an expense ratio of just 0.03%.
<h3 class="wp-block-heading">Leading The 2024 Inflow Race</h3>
In 2024, Vanguard outshines its competitors in attracting investment flows. The issuer has seen a staggering $75 billion in inflows over the past three months, eclipsing BlackRock&#8217;s $55.7 billion, thereby securing its position as the top performer in fund flows thus far this year.
The Vanguard S&amp;P 500 ETF has attracted $21 billion over the past three months, topping the ranking among its peers. 
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Issuers</td>
<td>Fund Flow Rank</td>
<td>3-Month Fund Flow ($MM)</td>
</tr>
<tr>
<td>Vanguard</td>
<td>1</td>
<td>$70,097.57</td>
</tr>
<tr>
<td>BlackRock, Inc.</td>
<td>2</td>
<td>$55,791.59</td>
</tr>
<tr>
<td>Invesco</td>
<td>3</td>
<td>$20,380.07</td>
</tr>
<tr>
<td>State Street</td>
<td>4</td>
<td>$16,097.65</td>
</tr>
<tr>
<td>Dimensional</td>
<td>5</td>
<td>$9,362.99</td>
</tr>
<tr>
<td>JPMorgan Chase</td>
<td>6</td>
<td>$9,263.38</td>
</tr>
<tr>
<td>Fidelity</td>
<td>7</td>
<td>$9,240.89</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Data: VettaFi</figcaption></figure>
<h3 class="wp-block-heading">A Conservative Product Range</h3>
Unlike some of its peers, Vanguard has opted for a more conservative route in its ETF offerings. The company does not offer leveraged ETFs, sticking strictly to equity and fixed-income products. 
This strategic choice highlights Vanguard&#8217;s focus on traditional investment vehicles over speculative or alternative assets. Vanguard&#8217;s portfolio notably lacks any commodities, currency, or Bitcoin-related ETFs.
<h3 class="wp-block-heading">Absence of Bitcoin and Crypto ETFs</h3>
This absence isn&#8217;t due to oversight but a deliberate decision. Vanguard has explicitly stated it has no plans to introduce a Bitcoin ETF or any other crypto-related products, distinguishing itself from other major ETF issuers — such as BlackRock, VanEck, Franklin Templeton, WisdomTree, Invesco, Fidelity, Global X, 21 Shares and ProShares – who have embraced the crypto bandwagon.
Why No Bitcoin ETF? Vanguard&#8217;s Reasoning
Vanguard&#8217;s stance on Bitcoin and cryptocurrencies is grounded in a cautious approach to investment merit and client needs. Janel Jackson, global head of ETF Capital Markets and broker &amp; index relations at Vanguard, has expressed skepticism about the role of cryptocurrencies in long-term portfolios. 
Citing crypto&#8217;s speculative nature, lack of inherent economic value, and potential to disrupt portfolio stability, Vanguard sees crypto as an &#8220;immature asset class.&#8221; 
Instead, the company invests its interest in blockchain technology for its potential to enhance capital market efficiency, steering clear of cryptocurrencies as investment products.
Now Read: <a href="https://www.benzinga.com/markets/cryptocurrency/24/03/37712624/tightening-the-tap-regional-banks-tech-stocks-bitcoin-brace-for-liquidity-crunch-as-fed-li">Tightening The Tap: Regional Banks, Tech Stocks, Bitcoin Brace For Liquidity Crunch As Fed Lifeline Ends</a>

5 Things You Need To Know About Vanguard ETFs: Why There's No Bitcoin ETF In Their Lineup?

The SPDR S&amp;P 500 ETF Trust (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/spy#NYSE">SPY</a>) is off to a shaky start to 2022, down 5.1% year-to-date.
Investors are rightfully concerned about the potential for Federal Reserve interest rate hikes starting as soon as March, but history suggests the Fed&#39;s plan to begin reducing its balance sheet could be even more of a bearish catalyst for stock prices than rising rates.
Balance Sheet Expansion: The Federal Reserve&#39;s <a href="https://www.federalreserve.gov/monetarypolicy/bst_recenttrends.htm">balance sheet</a> roughly doubled in size to an unprecedented $9 trillion during the pandemic thanks to aggressive monthly bond and mortgage-backed security purchases. That buying has contributed to elevated inflation levels and high stock market valuations.
The Fed has hinted it will begin its &quot;quantitative tightening&quot; process in the near future, but the last time the Federal Reserve sold assets, it didn&#39;t go well for stock market investors.
Prior to the financial crisis in late 2008, The Fed held less than $1 trillion in assets on its balance sheet. From Sept. 15, 2008 to Jan. 15, 2015, the Fed increased its balance sheet holdings to $4.51 trillion. During that same stretch, the S&amp;P 500 gained 65.7%.
<img alt="" src="https://www.benzinga.com/files/u81483/fed_assets_and_sp500.png" style="height:366px; width:625px" />
The Fed began its &quot;balance sheet normalization&quot; process in October 2017, allowing bonds <a href="https://money.usnews.com/investing/news/articles/2022-01-24/fed-could-resort-to-outright-asset-sales-to-reduce-balance-sheet-credit-suisse">to mature</a> without reinvesting the repaid principal into new securities. That process continued through Aug. 26, 2019, reducing the Fed&#39;s balance sheet to around $3.76 trillion. During that previous stretch of tightening, the S&amp;P 500 gained just 12.1%.
Related Link: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/22/02/25422060/us-adds-467-000-jobs-in-january-good-for-the-economy-but-not-for-markets">US Adds 467,000 Jobs In January: &#39;Good For The Economy, But Not For Markets&#39;</a>
Sector Performance: Some sectors of the market struggled during the previous tightening period more than others. The Utilities Select Sector SPDR Fund (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/xlu#NYSE">XLU</a>) more than doubled the S&amp;P 500&#39;s return during the previous tightening period, generating a total return of 30.6%. The Real Estate Select Sector SPDR Fund (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/xlre#NYSE">XLRE</a>) was also a top performer, generating a total return of 27.9%. On the other end of the spectrum, the Energy Select Sector SPDR Fund (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/xle#NYSE">XLE</a>) generated a negative total return of 23.3% during quantitative tightening, while the Materials Select Sector SPDR Fund (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/xlb#NYSE">XLB</a>) generated a negative total return of 6.3%.
Growth and dividend stocks outperformed during the period. The <a href="https://www.benzinga.com/money/vanguard-review/">Vanguard</a> Growth Index Fund ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/vug#NYSE">VUG</a>) generated a total return of 22.7%, while the Vanguard Dividend Appreciation Index Fund ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/vig#NYSE">VIG</a>) produced a 24.2% total return.
Small-cap stocks and value stocks underperformed during the previous balance sheet run-off. The Vanguard Value Index Fund ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/vtv#NYSE">VTV</a>) generated just a 9.8% total return, while the Vanguard Small-Cap Index Fund ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/vb#NYSE">VB</a>) generated an 8.1% total return.
Benzinga&#39;s Take: The biggest difference between the upcoming Fed tightening cycle and the previous one may happen if the Fed actually sells assets rather than simply letting them mature and run off naturally. Asset sales could drain bank balance sheet liquidity and potentially pressure both the credit market and stock market valuations, according to Credit Suisse.

What The Fed's Balance Sheet Reduction Will Mean For The S&P 500

Stock trading is fraught with risks, and it exposes traders to situations&nbsp;where they can end up losing all their money -- or end up laughing all the way&nbsp;to the bank.
Uncertain Backdrop: The current macroeconomic and geopolitical environment has created a fluid environment. Notwithstanding the uncertainties, the market has continued to grind higher despite the COVID-19 pandemic and sneak&nbsp;into record territory.
The broader S&amp;P 500 Index, which plunged sharply earlier this year amid the onset of the pandemic, has rebounded nicely after hitting a bottom in late-March. Since scaling a peak of 3,588.11 in early September, the broader gauge has gone into&nbsp;consolidation mode, assimilating the strong gains.
With the uncertainty surrounding the U.S. presidential election and the bickering among lawmakers on stimulus to kickstart the sagging economy, stocks began moving southwards in mid-October. This has conjured up visions of an imminent pullback, which could precipitate a crash. While the outcome of the election has lifted markets, rising COVID-19 cases could put a scare into the markets once again.
How should you prepare for a sudden downtown?
Identifying a Crash:&nbsp;A bear market is a pullback in excess of 20% from a recent high. A stock market crash can broadly be defined as a sudden and steep decline in stock prices within a very short interval of time. When stocks begin to fall, the already-weak investor sentiment worsens further. Fear becomes the dominant emotion, taking over from greed, and this leads to incessant selling, wiping away millions in market value from stocks.
History of Stock Market Crashes: Among the biggest recorded stock market crashes in the history of the U.S. are:
The stock market crash of 1929 
The stock market crash of 1987 
The dotcom bubble burst of 1999-2000 
The 2008 crash in the wake of the Great Recession that followed the<a href=" https://www.benzinga.com/news/20/09/14437130/this-day-in-market-history-lehman-brothers-collapses">&nbsp;Lehman Brothers&nbsp;bankruptcy</a>.
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For those jittery investors, panicking over potential losses, here are a few guidance points that can help you to stay sane amid the pandemonium.
Allow the Turn of Events to Run Its Course: Having a clear mind is very important in investing. Knee-jerk reactions, which burn a hole in the pocket, should be avoided at any cost. Fear and panic should be kept in check.
It is better to keep in mind the maxim &quot;buy low and sell high.&quot;
Panicking and pressing the sell button at a time when the stock market crashes will only leave an investor poorer, shutting them&nbsp;out of the opportunity of capitalizing on a market rebound.
If we go back in history, stock markets around the globe have survived some serious crashes and have emerged stronger.
The most recent crash amid the Great Recession saw the S&amp;P 500 hitting a low of 666.79 on March 6, 2009. Cut to a little over a decade from there, the index has added more than 400%.
It&#39;s just a matter of waiting out the adversity with ample patience.
Stay Immune to the Noise Around: With the mushrooming of the so-called stock market pundits, who have an opinion at every turn of the stock market, it is quite natural to be swayed by their recommendations and warnings.
At least, in times of crises such as a market crash, it is advisable to shut out of the cacophony. Heeding the advice of every expert only lends to&nbsp;more confusion, making it harder&nbsp;to think rationally.
Instead, stay focused on investment goals and look at a longer time horizon to ride out the volatility.
Turn Adversity Into Opportunity: As the saying goes, an optimist finds opportunity even amid adversity. Be that optimist who still sees the rosier side of dark times. Here are some things an investor can do to capitalize on a market downturn:
Scout for stocks of profitable companies that pay out dividends. Dividends make for a steady stream of income that accrues to an investor. It is paid out of the net income earned by the company. Apart from coming in handy for meeting expenses, dividends can also be used for reinvesting.
One can invest in a fund or ETF investing purely in <a href=" https://www.benzinga.com/trading-ideas/long-ideas/20/03/15697866/7-safe-dividend-plays-for-2020"> dividend-paying stocks </a> such as the Vanguard Dividend Appreciation Index Fund ETF Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/vig#NYSE">VIG</a>) and SPDR S&amp;P Dividend ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/sdy#NYSE">SDY</a>).
Consider bonds. Bonds also fetch fixed income in the form of interest.
Buy recession-proof or defensive stocks such as consumer staples that can withstand the stock market sell-off.
Diversify your risk by investing in a portfolio or an ETF.
Avoiding herd mentality, maintaining one&#39;s sanity in the face of adversity, cutting out noise and devising a prude investment plan for the down time will serve an investor well during times of a stock market crash.
Related Link: <a href=" https://www.benzinga.com/analyst-ratings/analyst-color/20/03/15518424/how-to-play-the-2020-stock-market-crash-like-1987-2000-or-2008"> How To Play The 2020 Stock Market Crash: Like 1987, 2000 Or 2008? </a>

A Strange Year Prompts The Question: How To Survive A Stock Market Crash?

With interest poised to remain low and payout growth likely to expand this year, dividend stocks and the related exchange traded funds could be set to deliver for investors again in 2020.
<h3>What Happened</h3>
Enter the Vanguard Dividend Appreciation ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/vig#NYSE">VIG</a>), the largest U.S. dividend ETF by assets. At the end of last year, <a href="https://investor.vanguard.com/etf/profile/portfolio/vig">VIG had $42.1 billion</a> in assets under management. Two of the primary reasons for VIG&#39;s popularity are its low fee and its emphasis on dividend growth stocks.
The Vanguard fund charges just 0.06% per year, or $6 on a $10,000 investment, making it one of the least expensive funds its category. Additionally, VIG follows the NASDAQ US Dividend Achievers Select Index, which requires that member firms have dividend increase streaks of at least 10 years.
That combination of low costs and an emphasis on dividend growth helps VIG earn <a href="https://www.cfraresearch.com/">CFRA Research&#39;s</a> focus ETF for February honors.
<h3>Why It&#39;s Important</h3>
&ldquo;Overall, CFRA&rsquo;s equity analysts find the stocks inside VIG to be attractively valued using CFRA STARS. Nine of the top-ten holdings at the end of 2019 were Buy or Strong Buy recommendations, including Abbot Laboratories&nbsp;and Comcast,&rdquo; said CFRA Director of ETF &amp; Mutual Fund Research Todd Rosenbluth in a note out Monday. &ldquo;In addition, the portfolio is deemed to incur low risk considerations based on consistent earnings, as well as dividend, records.&rdquo;
Home to 182 stocks, VIG allocates 26.70% of its weight to the industrial sector while the consumer services and healthcare sectors combine for 32% of the ETF&#39;s roster.
For now, VIG&#39;s tech exposure is just 9.40%, with over half that allocated to Microsoft (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/msft#NASDAQ">MSFT</a>), but the fund&#39;s weight to that sector should increase as more technology stocks meet the 10-year payout hike requirement.
<h3>What&#39;s Next</h3>
&ldquo;VIG also stands out for owning more than a strong collection of holdings. The fund charges a minuscule 0.06% expense ratio and trades over one million shares daily with a tight bid/ask spread,&rdquo; said Rosenbluth. &ldquo;While the fund is designed to be a low volatility strategy, VIG&rsquo;s standard deviation is relatively low compared to its equity category.&rdquo;
CFRA has an Overweight rating on the Vanguard dividend fund. That&#39;s the highest rating the research firm assigns to ETFs in its coverage universe.
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Plenty of dividend investors know about the Vanguard Dividend Appreciation ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/vig#NYSE">VIG</a>), the largest domestic dividend exchange traded fund by assets. VIG has a noteworthy international counterpart: the Vanguard International Dividend Appreciation ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/vigi#NASDAQ">VIGI</a>).
<h3>What Happened</h3>
VIGI, which is more than three years old, follows the NASDAQ International Dividend Achievers Select Index. Components in the international payout fund must have minimum dividend increase streaks of seven years, less than the 10 years required by the domestically-focused VIG&#39;s underlying index.
VIGI &ldquo;applies additional filters to eliminate stocks that may not be able to sustain their dividend growth,&rdquo; said Morningstar <a href="https://www.morningstar.com/articles/934959/a-growthfocused-dividend-strategy.html">in a recent note</a>. &ldquo;The index weights its holdings by market capitalization to help mitigate turnover and trading costs. It also limits individual stocks to 4% of the portfolio at the annual rebalance to improve diversification.&rdquo;
<h3>Why It&#39;s Important</h3>
VIGI is home to 400 stocks and the fund&#39;s selection universe includes developed and emerging markets equities, making the all-country world ex-U.S. indexes relevant comparisons. Year-to-date, the Vanguard fund is beating the MSCI ACWI ex USA Index by 643 basis points.
VIGI devotes 23.50% of its weight to emerging markets stocks and nearly 48% of its weight to European equities, <a href="https://investor.vanguard.com/etf/profile/portfolio/vigi">according to issuer data</a>. Those allocations, particularly the hefty Europe exposure, give the fund something of a value tilt because developing economies and European stocks trade at significant discounts to U.S. equity benchmarks.
&ldquo;Overseas companies that have a history of increasing their dividend payments are also likely to be those that have been consistently growing profitably,&rdquo; said Morningstar. &ldquo;These stable businesses should be less volatile than the broader market and are likely to hold up better during market downturns.&rdquo;
<h3>What&#39;s Next</h3>
VIGI has potential for long-term investors seeking international exposure, but there are some risks with this fund.
&ldquo;Screening for stocks with seven years of dividend growth is a strict hurdle that provides a big advantage,&rdquo; according to Morningstar. &ldquo;It indirectly targets companies that not only have the capacity to make dividend payments but also a willingness to do so. But this screen does have some downsides. It doesn&rsquo;t consider other metrics, such as debt levels and analyst earnings growth estimates, which may be indicative of a firm&rsquo;s capacity to continue making payments.&rdquo;
Morningstar has a Bronze rating on VIGI.
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Home to $32.8 billion in assets under management at the end of the first quarter, the Vanguard Dividend Appreciation ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/vig#NYSE">VIG</a>) is the largest U.S. dividend exchange traded fund.
VIG has attained that massive following due part to its emphasis on dividend growth stocks. The fund&#39;s underlying index, the NASDAQ US Dividend Achievers Select Index, requires member firms to have boosted payouts for at least 10 consecutive years.
<h3>What Happened</h3>
Over the past three years, VIG is lagging the S&amp;P 500 by 200 basis points, but the dividend fund has been less volatile than broader domestic equity benchmarks over that period. While dividend strategies will lag the broad market from time-to-time, VIG&#39;s focus on steady payout growth comes with plenty of advantages for income investors.
&ldquo;This strategy focuses on dividend growth rather than dividend yield,&rdquo; said Morningstar <a href="https://www.morningstar.com/articles/926589/a-dividendgrowth-fund-to-ride-out-market-downturns.html">in a recent note</a>. &ldquo;This approach reduces the fund&#39;s exposure to firms with weak fundamentals that may not be able to sustain their dividend payments, which is a risk that often accompanies a narrow focus on yield.&rdquo;
<h3>Why It&#39;s Important</h3>
VIG is home to 185 stocks with a median market capitalization <a href="https://investor.vanguard.com/etf/profile/portfolio/vig">of $87.7 billion</a>, accentuating the fund&#39;s status as large/mega-cap fund. With the 10-year dividend increase streak requirement, VIG is lightly allocated to some sectors that are traditionally viewed as high-yield destinations, sectors that have only recently started boosting dividends and groups that have recently negative dividend action -- think banks during the financial crisis or energy companies during the 2015 oil bear market.
Industrial and consumer staples stocks combine for 47.6 percent of VIG&#39;s weight while the financial services and health care sectors combine for 23.6 percent. VIG&#39;s top 10 holdings combine for 34.1 percent of the fund&#39;s weight. Six of those stocks, including the top five, are members of the Dow Jones Industrial Average.
&ldquo;As of this writing, the strategy&#39;s dividend yield of 2 percentage points annually matches the dividend yield of the Russell 1000 Index,&rdquo; according to Morningstar. &ldquo;But the strategy&#39;s tilt toward more-stable stocks has helped it shine during market downturns. Its drawdown during the bear market from October 2007 through March 2009 measured 9 percentage points less than the Russell 1000 Index&#39;s drawdown.&rdquo;
<h3>What&#39;s Next</h3>
To be precise, VIG yields 1.96 percent, which is close to the dividend yields on the S&amp;P 500 and the Russell 1000 Index. Focusing on dividend growth over yield, however, can lead to a portfolio with companies sporting better balance sheets than high yielders and, as VIG proves, less volatility.
Morningstar has a Gold rating on VIG.
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With the government shutdown now in its fourth week&nbsp;and 800,000 federal workers on furlough, the risk of recession has increased significantly. The shutdown occurred due to lack of progress in passing a spending bill, wherein Trump demanded funding for $5.7&nbsp;billion for a border wall that is being opposed by the Democrats.
With the average pay loss being $5,000 for 800,000 federal employees, the shutdown has begun to harm the economy through&nbsp;lower consumer spending and investment. Additionally, tax refunds and mortgage applications have been delayed, hampering the housing sector. Public companies are struggling to get approval to raise capital, the Women, Infants, and Children nutrition program went unfunded, and the Food and Drug Administration delayed approval of drugs and medical devices.
The Trump administration&#39;s revised estimates have&nbsp;doubled the cost of the government shutdown. It now projects the closure will subtract 0.1 percentage point from growth every week compared with the previous projection of 0.1 percentage point reduction every two weeks. Jamie Dimon, the CEO of J.P. Morgan Chase believes that the partial shutdown could wipe out growth from the world&#39;s biggest economy if it continues through the first quarter of the year.
<iframe allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" frameborder="0" height="315" src="https://www.youtube.com/embed/kKQvfzDnofY?rel=0" width="560"></iframe>
Apart from the shutdown, U.S.-China trade tensions and global growth worries added to fears of recession. Additionally, growth in the world&#39;s biggest economy has started to slow down as gauges of manufacturing and consumer sentiment have fallen in the recent weeks.
Deutsche Bank warned&nbsp;that the combination of the U.S.-China trade war and government shutdown may result in recession as soon as this year. According to a <a href="https://www.wsj.com/articles/ceos-say-recession-is-top-worry-for-2019-11547672460">new survey</a> of chief executives from the Conference Board, the possibility of a global recession ranks as the top concern on the minds of corporate leaders as they head into 2019. Analysts surveyed by Bloomberg put the risk of a U.S. recession at the highest in more than six years. They see a 25 percent&nbsp;chance of a slump in the next 12 months, up from 20 percent&nbsp;in the December survey.
In such a backdrop, investors should stash their cash in some conventionally secure and recession proof corners of the broad market. Below, we have highlighted a few ETFs from these areas:
SPDR Gold Trust ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gld#NYSE">GLD</a>)
In difficult market environments, gold is considered a great store of value and hedge against market turmoil. With AUM of $33.2 billion, the ultra-popular GLD tracks the price of gold bullion measured in U.S. dollars, and kept in London under the custody of HSBC Bank USA. It charges 40 bps in fees per year from investors and trades in heavy volume of nearly 8 million shares a day. The fund has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook.
iShares 20+ Year Treasury Bond ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/tlt#NASDAQ">TLT</a>)
Though the fund was out of investors&#39; favor due to rising yields last year and has an unfavorable Zacks ETF Rank #5 (Strong Sell) with a High risk outlook, the recession risk has brought back some lure. This is because the products tracking the long end of the yield curve often provide a safe haven. TLT provides exposure to long-term Treasury bonds by tracking the ICE U.S. Treasury 20+ Year Bond Index. It is one of the most popular and liquid ETFs in the bond space with AUM of $9.3 billion and average daily volume of 8.9 million shares. Expense ratio comes in at 0.15 percent.
Utilities Select Sector SPDR (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/xlu#NYSE">XLU</a>)
Being the low-beta sector, utility is relatively protected from large swings (ups and downs) in the stock market and is thus considered a defensive investment or safe haven amid economic or political turmoil. While there are several options in the space, the ultra-popular XLU seems a good bet. With AUM of $8.4 billion, it provides exposure to a small basket of 29 securities by tracking the Utilities Select Sector Index. The product charges 13 bps in annual fees and sees heavy volume of around 19 million shares on average. XLU has a Zacks ETF Rank #3 with a Medium risk outlook.
iShares U.S. Healthcare Providers ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ihf#NYSE">IHF</a>)
Healthcare generally outperforms during periods of low growth and high uncertainty. The demand for healthcare services remains intact even in the deteriorating economic fundamentals. IHF follows the Dow Jones U.S. Select Healthcare Providers Index with exposure to companies that provide health insurance, diagnostics and specialized treatment. In total, the fund holds 45 securities in its basket and has amassed $863.6 million in its asset base. Volume is good at about 116,000 shares per day on average. The product charges 43 bps in annual fees and has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook.
Consumer Staples Select Sector SPDR Fund (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/xlp#NYSE">XLP</a>)
The consumer staples sector is also viewed as defensive as it includes a variety of items like food &amp; beverages, non-durable household goods, hypermarkets and consumer supercenters that are essential for daily needs. These products see steady demand even during an economic downturn due to their low level of correlation with economic cycles. This is the most-popular consumer staples ETF with AUM of $9.6 billion and follows the Consumer Staples Select Sector Index. It holds about 33 securities in its basket and charges 13 bps in fees per year from investors. The fund trades in heavy volume of nearly 18.2 million shares a day and has a Zacks ETF Rank #3 with a Medium risk outlook.
Vanguard Dividend Appreciation ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/vig#NYSE">VIG</a>)
Dividend paying securities are the major source of consistent income for investors to create wealth when returns from the equity market are at risk. Dividend-focused products offer safety in the form of payouts while at the same time providing stability as mature companies are less volatile to large swings in stock prices. VIG is the largest and most popular ETF in the dividend space with AUM of $30 billion and average&nbsp;daily volume of about 1.1 million shares.&nbsp;It holds 182 securities in the basket and charges 8 bps in annual fees. The product has a Zacks ETF Rank #1 (Strong Buy) with a Medium risk outlook.
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The S&amp;P 500 closed lower on an annual basis in 2018, weighing on dividend exchange traded funds in the process, but it was still a good year for dividend growth.
S&amp;P 500 dividends hit a record $14.19 per share on a quarterly basis, or $119.80 billion. The SPDR S&amp;P 500 ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/spy#NYSE">SPY</a>), the world&#39;s largest ETF, has a trailing <a href="https://us.spdrs.com/en/etf/spdr-sp-500-etf-SPY">12-month dividend yield </a>of 2.04 percent.
<h3>What Happened</h3>
With the Federal Reserve having raised interest rates four times in 2018, it&#39;s unsurprising that some dividend stocks and ETFs struggled. The upside to that scenario is that some companies may have been compelled to boost dividends to compete with the higher yields offered by less risky U.S. government debt.
The &ldquo;average Q4 2018 dividend increase in the S&amp;P 500 was 10.24 percent, down from 10.41 percent&nbsp;during Q4 2017; 2018 average is 13.48 percent, up from 2017&rsquo;s 11.36 percent,&rdquo; <a href="http://www.indexologyblog.com/">according to S&amp;P Dow Jones Indices</a>.
Last year, the aggregate dividend increase was slightly off 2017&#39;s level, but so were dividend cuts.
&ldquo;For Q4 2018, aggregate increases amounted to $11.9 billion, down from Q4 2017&rsquo;s $12.4 billion,&rdquo; said S&amp;P Dow Jones. &ldquo;Aggregate dividend cuts decreased to $4.5 billion from $7.9 billion for Q4 2017.&rdquo;
<h3>Why It&#39;s Important</h3>
Amid 2018&#39;s backdrop of rising interest rates, dividend growth ETFs fared less poorly than their high dividend counterparts. The Vanguard Dividend Appreciation ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/vig#NYSE">VIG</a>) and the SPDR S&amp;P Dividend ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/sdy#NYSE">SDY</a>) posted an average loss of 2.4&nbsp;percent last year.
VIG requires member firms to have dividend increase streaks of at least a decade, while SDY components must have dividend increase streaks of <a href="https://us.spdrs.com/en/etf/spdr-sp-dividend-etf-SDY">at least 20 years</a>.
Conversely, the Vanguard High Dividend ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/vym#NYSE">VYM</a>) and the iShares Select Dividend ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/dvy#NASDAQ">DVY</a>) &mdash; both high dividend strategies &mdash; posted an average annual decline of about 6 percent last year.
High dividend ETFs could find some support this year if the Federal Reserve slows its pace of rate hikes or if investors embrace defensive sectors&nbsp;such as consumer staples and utilities. Utilities stocks account for nearly a third of DVY&#39;s weight.
<h3>What&#39;s Next</h3>
The stage is set for more dividend growth in 2019.
&ldquo;Based on their current payout policies, S&amp;P 500 2019 dividends already have a 3.5-percent&nbsp;tailwind built in, setting the stage for potentially another record year, with the increase again expected to outpace wage growth and inflation,&rdquo; said Howard Silverblatt, senior index analyst at S&amp;P Dow Jones Indices.
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iShares Dow Jones Select Dividend Index Fund

Dividends Eclipsed More Records In 2018 Even As ETFs Fell

Volatility and uncertainty surrounding global economic growth and rising yields have made investors defensive. This has increased the appeal for products that provide safety and stability in a rocky market.
Dividend-focused products offer both safety in the form of payouts and stability in the form of mature companies that are less volatile to the large swings in stock prices. The dividend-paying securities are the major sources of consistent income for investors when returns from equity markets are at risk. Further, these products are proven outperformers over the long-term.
While there are plenty of options in the dividend ETF world, honing in on the &quot;dividend aristocrats&quot;&nbsp;could be the most beneficial way to ride out the current market volatility, resulting from political and geopolitical worries.<iframe allow="autoplay; encrypted-media" frameborder="0" height="315" src="https://www.youtube.com/embed/GpC1-r4xYsQ?rel=0" width="560"></iframe>
<h3>Why Dividend Aristocrats?</h3>
Dividend aristocrats are&nbsp;blue-chip dividend-paying companies, which have a long history of raising dividend payments each year. These generally act as a hedge against economic uncertainty and provide downside protection by offering outsized payouts or sizable yields on a regular basis. Additionally, aristocrats tend to skew the portfolio to less volatile sectors and mature companies.
Investors should note that the dividend aristocrat funds offer more dividend growth opportunities when compared to the other products in the space but might not necessarily have the highest yields. Further, these products lead to a healthy portfolio with a greater scope of capital appreciation as opposed to simple dividend paying stocks or those with high yields.
As a result, these products provide a nice combination of annual dividend growth and capital appreciation opportunity and are mainly suitable for risk adverse long-term investors. For them, we have highlighted some popular ETFs that could be excellent choices:
Vanguard Dividend Appreciation ETF&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/vig#NASDAQ">VIG</a>)
This is the largest and most-popular ETF in the dividend space with AUM of $28.9 billion and average daily volume of about 596,000 shares. The fund follows the NASDAQ US Dividend Achievers Select Index, which is composed of high quality stocks that have a record of raising dividend every year. It holds 182 securities in the basket, with none accounting for more than 4.5% share. The fund charges 8 bps in annual fees.
iShares Select Dividend ETF&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/dvy#NASDAQ">DVY</a>)
This fund provides exposure to the companies with a consistent 5-year history of dividend payments. It follows the Dow Jones U.S. Select Dividend Index and holds 98 securities in its basket with each accounting for less than 2.6% of assets. The ETF has AUM of $16.7 billion and average daily volume of more than 489,000 shares. It charges 39 bps in fees per year from investors.
SPDR S&amp;P Dividend ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/sdy#NYSE">SDY</a>)&nbsp;
With AUM of $15.4 billion and average daily volume of 377,000 shares, this fund provides a well-diversified exposure to 111 U.S. stocks that have been consistently increasing their dividends every year for at least 20 years. This can be done by tracking the S&amp;P High Yield Dividend Aristocrats Index. Each firm accounts for less than 2.5% of assets. The fund charges 35 bps in fees.
Schwab U.S. Dividend Equity ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/schd#NYSE">SCHD</a>)
With AUM of $7.8 billion, this product offers exposure to 108 high-dividend yielding U.S. companies that have a record of consistent dividend payments supported by fundamental strength based on financial ratios and ample liquidity. This can be easily done by tracking the Dow Jones U.S. Dividend 100 Index. The fund is well spread across components, with none holding more than 4.8% of assets. It charges 7 bps in annual fees and trades in solid volume of around 758,000 shares a day.
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SCHD

An Investors' Guide To Dividend Aristocrat ETFs

S&amp;P 500 member firms delivered some solid dividend growth numbers in the first half of 2018.
&ldquo;Aided by strong earnings and corporate management&#39;s confidence in the future, more than 40 percent of the S&amp;P 500 constituents raised their dividends in the first half of 2018,&rdquo; said <a href="https://newpublic.cfraresearch.com/">CFRA Research</a> Director of ETF &amp; Mutual Fund Todd Rosenbluth in a note out Wednesday. &ldquo;Dividend hikes occurred in various sectors, highlighting the benefits of using diversified funds to gain equity income exposure.&rdquo;
<h3>What To Know</h3>
With the Federal Reserve boosting interest rates twice in the first half of the year, some dividend exchange traded funds struggled relative to the broader market. The Vanguard Dividend Appreciation ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/vig#NYSE">VIG</a>) and the SPDR S&amp;P Dividend ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/sdy#NYSE">SDY</a>) are up 2.3 percent and 1 percent, respectively, year-to-date.
VIG and SDY are two of the largest U.S. dividend ETFs and both focus on dividend growth. SDY follows the High Yield Dividend Aristocrats Index, which requires member firms to have minimum dividend increase streaks of at least 20 years. VIG&#39;s underlying index has a minimum dividend hike streak requirement of a decade.
<h3>Why It&#39;s Important</h3>
&ldquo;According to Howard Silverblatt, Senior Index Analyst of S&amp;P Dow Jones Indices, there have been 216 dividend increases by S&amp;P 500 companies, with 84 occurring in the second quarter,&rdquo; said Rosenbluth. &ldquo;The average second quarter increase was 14 percent, up from 12 percent a year earlier, indicating greater optimism.&rdquo;
More than 400 members of the S&amp;P 500 pay dividends. As of July 10, the S&amp;P 500 <a href="https://us.spdrs.com/en/etf/spdr-sp-500-etf-SPY">yielded 1.90 percent</a>, a level surpassed by some sectors and lagged by others. Health care is an example of a sector that yields less than the S&amp;P 500 (1.8&nbsp;percent), but is also home to robust dividend growth.
SDY devotes 5.81 percent of its weight to health care stocks while that sector represents 12.1&nbsp;percent of VIG making it the Vanguard fund&#39;s third-largest sector allocation.
<h3>What&#39;s Next</h3>
With U.S. companies sitting on mountains of repatriated cash following last year&#39;s tax reform legislation, buybacks and dividends are proving to be among the strategies for deploying some of that cash.
More interest rate hikes could weigh on dividend ETFs, but VIG is lightly allocated to rate-sensitive sectors as utilities and telecommunications names combine for just 3.2&nbsp;percent of the fund&#39;s weight.
CFRA has Overweight ratings on both SDY and VIG.
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Dividend Growth Provides A Spark For These ETFs

E*TRADE Financial Corp. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/etfc#NASDAQ">ETFC</a>) said Wednesday it added 46 exchange traded funds to commission-free platform.
With the latest additions, E*TRADE now offers more than 250 ETFs on a commission-free basis. The 46 newly added funds come from six issuers: Direxion, iShares, Janus Henderson, NuShares, Reality Shares and Vanguard.
<h3>What Happened</h3>
With more and more advisers and investors embracing ETFs, <a href="https://www.benzinga.com/investing/best-brokers-for-etfs/">brokerage firms</a> are getting on the act, offering significant amounts of ETFs without commissions. E*Trade and rivals such as Fidelity and Charles Schwab Corp. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/schw#NASDAQ">SCHW</a>) have been expanding their commission-free ETF plans to attract new clients.
Earlier this year, Firstrade Securities Inc. said it would offer <a href="https://www.benzinga.com/pressreleases/18/04/r11488349/firstrade-offers-largest-commission-free-etf-program-with-more-than-70">more than 700 ETFs </a>on a commission-free basis, by far the largest such platform in the domestic brokerage business.
<h3>Why It&#39;s Important</h3>
&ldquo;These additions can fill a tactical void for a multitude of strategies&mdash;from tracking broad indexes to seeking higher returns to defending against changing market conditions to pursuing factor-based sector exposure&mdash;while providing commission-free access to some of the most active, well-known ETFs available today,&rdquo; said E*TRADE Vice President Rich Messina <a href="https://www.businesswire.com/news/home/20180620005607/en/E*TRADE-Adds-Today's-Popular-ETFs-Commission-Free-ETF">in a statement.</a>
Among the 46 additions to the E*TRADE commission-free suite are 32 Vanguard funds, including the Vanguard S&amp;P 500 ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/voo#NYSE">VOO</a>), the Vanguard Dividend Appreciation ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/vig#NYSE">VIG</a>) and 10 of the issuer&#39;s popular sector ETFs.
<h3>What&#39;s Next</h3>
Three iShares funds were also added to the E*TRADE platform. iShares and Vanguard are the two largest U.S. ETF sponsors.
Other well-known products now available with no commissions on E*TRADE include the Direxion Nasdaq-100 Equal Weighted Index Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/qqqe#NYSE">QQQE</a>), Reality Shares Nasdaq NexGen Economy ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/blcn#NASDAQ">BLCN</a>) and the Vanguard FTSE Developed Markets ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/vea#NYSE">VEA</a>).
Disclosure: The author owns shares of VEA.
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E*TRADE Adds Almost 50 ETFs To Commission-Free Plan

With Treasury yields rising, some dividend strategies are being pressured. Bond-like sectors &mdash; such as real estate, telecommunications and utilities &mdash; are lagging broader equity benchmarks this year.
That does not mean investors should abandon dividend stocks and exchange traded funds altogether. Some dividend funds can weather the storm of rising interest rates. While it is not setting the world on fire, the Vanguard Dividend Appreciation ETF (NYSE: <a class="ticker" href="/stock/vig#NYSE">VIG</a>), is up 1 percent this year.
<h3>
	What Happened</h3>
VIG follows the NASDAQ US Dividend Achievers Select Index, which requires that member firms have dividend increases spanning at least 10 years. The Vanguard fund had over $27 billion in assets under management at the end of April, making it the largest dividend ETF trading in the U.S.
VIG has long been a favorite with dividend investors due in part to its low fee. The fund&#39;s annual expense ratio is just 0.08 percent, or $8 on a $10,000 investment, making it less expensive than 92 percent of rival strategies, <a href="https://personal.vanguard.com/us/funds/snapshot?FundId=0920&amp;FundIntExt=INT&amp;funds_disable_redirect=true">according to Vanguard data</a>.
&ldquo;Focusing on dividend growth reduces the fund&#39;s exposure to firms that have weak fundamentals and may not be able to sustain their dividend payments, which is a risk that often accompanies a narrow focus on yield,&rdquo; Morningstar said&nbsp;<a href="http://www.morningstar.com/articles/866824/this-highquality-dividendgrowth-fund-can-serve-as-.html">in a Wednesday note</a>.
<h3>
	Why It&#39;s Important</h3>
VIG is a large-cap strategy, as highlighted by the median market value of $65.9 billion for the ETF&#39;s 182 holdings. What&#39;s notable is VIG&#39;s lack of exposure to high-yield sectors. The fund features no real estate exposure, and the telecommunications and utilities sectors combine for just over 3 percent of VIG&#39;s roster.
&ldquo;This portfolio favors profitable companies with durable competitive advantages,&rdquo; according to Morningstar. &ldquo;Because it doesn&#39;t pursue the highest-yielding names, its dividend yield lands near the Russell 1000 Index&#39;s. But it has been able to avoid some firms that have cut their dividend payments.&rdquo;
<h3>
	What&#39;s Next</h3>
VIG has the potential to remain durable even as the Federal Reserve continues its tightening cycle. The fund&#39;s sector-level positioning tilts toward cyclical groups, with industrial and consumer discretionary names combining for over half of its weight.
VIG&#39;s &ldquo;tilt toward profitable names is evident in its portfolio composition,&quot; according to Morningstar. &quot;As of this writing, the fund&#39;s return on invested capital measured 14.3 percent compared with an average measure of 9.9 percent for the Morningstar Category.&quot;&nbsp;
The research firm has a Gold rating on VIG.
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A Vanguard Dividend ETF To Lean On

With just a day away to the month of May, investors have turned cautious given that seasonality will play a huge role in pushing stocks down for the next six months, as per the old adage &quot;Sell in May and Go Away.&quot; According to this investment saying, the stock market has a long history of weak performance during the summer months (May to October).
	Will May 2018 Pen the Same Story?
	After a blockbuster start, the U.S. stock market was hit by a series of hurdles including inflationary pressures, a faster-than-expected rates hike, political instability in Washington, geopolitical tension, technology sector turmoil and rising yields.
	Additionally, the signal from European Central Bank to end the cheap money era policy anytime soon and the latest round of domestic economic data added to the weakness.
	This is especially true as America&#39;s economic growth slowed to start the year with 2.3% in the first quarter compared with 2.9% in fourth-quarter 2017 driven by weak consumer spending in nearly five years. Domestic demand rose 1.7% -- the slowest in two years -- after rising at a brisk 4.8% pace in the final three months of 2017.
	However, tightening labor market conditions, lower tax rates, strong earnings expectations and increased government spending are expected to spur economic growth in the coming months, thereby resulting in a bullish condition for the stock market. In particular, the massive $1.5-trillion tax cut will create an economic surge, boosting job growth in manufacturing and other sectors, increasing inflation and interest rates. Additionally, it would lead to higher earnings, increased buyback activities and fat dividends.
	Against such a backdrop, it might be foolish to quit the stock market altogether. Instead, investors could follow some ideas that could lead to a winning portfolio during this soft six-month period.
	Focus on Low Volatility ETFs
	As weak historical trends and volatility are expected to play foul in the stock market, low volatility ETFs appear sensible choices. This is because these have the potential to outpace the broader market in bearish-to-neutral market conditions, providing significant protection to the portfolio. These funds include more stable stocks that have experienced the least price movement in their portfolio. Further, these allocate more to defensive sectors that usually have a higher distribution yield than the broader markets.
	While there are several options in the space, the two most popular ones are PowerShares S&amp;P 500 Low Volatility Portfolio&nbsp;(NYSE: <a class="ticker" href="/stock/splv#NYSE">SPLV</a>) and iShares Edge MSCI Min Vol USA ETF&nbsp;(BATS:USMV).
	Emphasis on Value ETFs
	Value stocks have proven to be outperformers over the long term and are less susceptible to trending markets. These stocks have strong fundamentals &mdash; earnings, dividends, book value and cash flow &mdash; that trade below their intrinsic value and are undervalued. These have the potential to deliver higher returns and exhibit lower volatility compared with their growth and blend counterparts.
	Some of the Zacks ETF Rank #2 ETFs are Vanguard Value ETF&nbsp;(NYSE: <a class="ticker" href="/stock/vtv#NYSE">VTV</a>), Schwab U.S. Large-Cap Value ETF&nbsp;(NYSE: <a class="ticker" href="/stock/schv#NYSE">SCHV</a>), Vanguard Mega Cap Value ETF&nbsp;(NYSE: <a class="ticker" href="/stock/mgv#NYSE">MGV</a>) and PowerShares Dynamic Large Cap Value Portfolio&nbsp;(NYSE: <a class="ticker" href="/stock/pwv#NYSE">PWV</a>).
	Overweight Dividend ETFs
	The dividend-paying securities are the major sources of consistent income for investors when returns from the equity market are at risk. This is especially true as these stocks offer the best of both these world&#39;s &mdash; safety in the form of payouts and stability in the form of mature companies that are less volatile to the large swings in stock prices. The companies that pay dividends generally act as a hedge against economic uncertainty and provide downside protection by offering outsized payouts or sizable yields on a regular basis.
	While the dividend space has been crowded, ETFs with stocks having a strong history of dividend growth seem to be good picks. Vanguard Dividend Appreciation ETF&nbsp;(NYSE: <a class="ticker" href="/stock/vig#NYSE">VIG</a>) and ProShares S&amp;P 500 Aristocrats ETF&nbsp;(BATS:NOBL) have a Zacks ETF Rank #2.
	Invest in Defensive ETFs
	Investors could try out safer avenues and rotate into defensive sectors, like utilities, healthcare, and consumer staples, which generally outperform during periods of low growth and high uncertainty. Additionally, this is a much better option than holding cash. Guggenheim Defensive Equity ETF&nbsp;(NYSE: <a class="ticker" href="/stock/def#NYSE">DEF</a>)&nbsp;could be an excellent choice. This fund offers equal-weight exposure to all the stocks in the index, resulting in a more balanced and diversified portfolio. It helps the portfolio to better weather periods of volatility, while remaining positioned to take advantage of market upswings.
	The other popular ETFs include Consumer Staples Select Sector SPDR Fund&nbsp;(NYSE: <a class="ticker" href="/stock/xlp#NYSE">XLP</a>), Vanguard Consumer Staples ETF&nbsp;(NYSE: <a class="ticker" href="/stock/vdc#NYSE">VDC</a>), SPDR Health Care Select Sector SPDR Fund&nbsp;(NYSE: <a class="ticker" href="/stock/xlv#NYSE">XLV</a>), Vanguard Health Care ETF&nbsp;(NYSE: <a class="ticker" href="/stock/vht#NYSE">VHT</a>) and iShares Dow Jones U.S. Healthcare Sector Index Fund&nbsp;(NYSE: <a class="ticker" href="/stock/iyh#NYSE">IYH</a>).

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Don't Sell In May And Go Away: Follow These ETF Strategies

The Federal Open Market Committee meets this week, and many bond market participants expect the Fed to raise interest rates after having done so three times in 2017.
Expectations of higher borrowing costs have previously been seen as detrimental to dividend stocks and exchange traded funds, but that tide could be turning if last week&#39;s ETF inflows paint an accurate picture. Each of the top 10 asset-gathering ETFs for the trading week ended March 16 were equity funds, and three of those products were dividend funds.
The iShares Select Dividend ETF (NASDAQ: <a class="ticker" href="/stock/dvy#NASDAQ">DVY</a>) added $3.54 billion in new assets last week, good for the second-best total among all U.S.-listed ETFs.
<h3>
	The DVY Surprise</h3>
Against the backdrop of rising interest rates, it is perhaps surprising that DVY would be the top asset gatherer among dividend ETFs. With last week&#39;s haul, DVY has added $2.97 billion in new assets this year, tops among all dividend ETFs and good for the sixth-best total among all ETFs.
DVY, which tracks the Dow Jones U.S. Select Dividend Index, holds 97 stocks, <a href="https://www.ishares.com/us/products/239500/?referrer=tickerSearch">over 26 percent </a>of which hail from the rate-sensitive utilities sector. As the Fed boosted borrowing costs three times last year, DVY trailed the S&amp;P 500 and suffered outflows of $848.5 million.
While DVY allocates almost 15 percent of its weight to financial services stocks, a sector believed to benefit from higher interest rates, it&#39;s not nearly enough to offset its utilities exposure. The utilities sector is already reflecting the specter of multiple interest rate increases this year as the Utilities Select Sector SPDR (NYSE: <a class="ticker" href="/stock/xlu#NYSE">XLU</a>), the largest ETF tracking the sector, is down 4.5 percent year-to-date.
<h3>
	Other Prolific Asset Gatherers</h3>
Last week, the Schwab U.S. Dividend Equity ETF (NYSE: <a class="ticker" href="/stock/schd#NYSE">SCHD</a>) and the Vanguard Dividend Appreciation ETF (NYSE: <a class="ticker" href="/stock/vig#NYSE">VIG</a>) also packed on the assets. Investors added $2.33 billion to SCHD and $1.89 billion to VIG. That sent SCHD&#39;s year-to-date inflows to $2.72 billion, putting it just behind DVY on the list of 2018&#39;s top 10 asset-gathering ETFs.
Neither SCHD nor VIG feature large utilities weights. For example, VIG, the largest U.S. dividend ETF by assets, has utilities exposure <a href="https://personal.vanguard.com/us/funds/snapshot?FundId=0920&amp;FundIntExt=INT&amp;funds_disable_redirect=true#tab=2">of just 1.5 percent</a> compared with its largest sector exposure of 34 percent to industrials.
SCHD devotes just 5.3 percent to utilities stocks, making that the ETF&#39;s third-smallest sector weight. The ETF&#39;s largest sector allocation is 20.5 percent to financial services.
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Investors Renew Affinity For Dividend ETFs

With the growth and momentum factors soaring this year, it is not surprising that some dividend-oriented strategies are lagging or barely keeping pace with the S&amp;P 500. That does not mean investors should throw in the towel on dividend stocks and chase sexier fare, such as the FANG quartet.
One dividend ETF that is outperforming the S&amp;P 500 and has recently been notching a series of record highs is the WisdomTree U.S. Quality Dividend Growth Fund (NASDAQ: <a class="ticker" href="/stock/dgrw#NASDAQ">DGRW</a>). DGRW follows the fundamentally-weighted WisdomTree U.S. Quality Dividend Growth Index. That benchmark marries the <a href="https://www.wisdomtree.com/etfs/equity/dgrw">growth and quality factors</a> by evaluating long-term earnings growth trends along with return on assets and return on equity.&nbsp;
&ldquo;While most dividend ETFs covered by CFRA are trailing the 11.7 percent year to date return for the S&amp;P 500 index, CFRA&#39;s Overweight ranked WisdomTree US Quality Dividend Growth Fund is a bright spot rising 13.3 percent over the same time horizon,&rdquo; said <a href="https://newpublic.cfraresearch.com/">CFRA Research</a> Director of ETF &amp; Mutual Fund Research Todd Rosenbluth in a note out Monday. &ldquo;Relative to other dividend-growth ETFs, some of which we will highlight below, DGRW contains more exposure to technology (20 percent) and consumer discretionary (17 percent) assets in the portfolio through May.&rdquo;
<h3>It&#39;s What&#39;s Inside That Matters</h3>
To be precise, technology is DGRW&#39;s largest sector weight while consumer discretionary places fourth. With a combined allocation of over 37 percent to those two sectors, DGRW almost looks like a growth ETF. And it is, but it is a source of dividend growth. The healthcare and industrial sectors combine for almost 39 percent of DGRW&#39;s roster.
&ldquo;While DGRW has performed well this year, it&#39;s what&#39;s inside the fund that CFRA likes,&rdquo; said Rosenbluth. &ldquo;CFRA Strong Buy recommended Apple Inc.&lt; (NASDAQ: <a class="ticker" href="/stock/aapl#NASDAQ">AAPL</a>), Buy recommended Home Depot Inc. (NYSE: <a class="ticker" href="/stock/hd#NYSE">HD</a>) and Buy recommended McDonald&#39;s Corporation (NYSE: <a class="ticker" href="/stock/mcd#NYSE">MCD</a>) are among the top holdings in these sectors.&rdquo;
Investors are flocking to DGRW. The ETF, which pays a monthly dividend, now has $1.68 billion in assets under management, of which about $468 million has flowed into the fund this year.
<h3>A Rival</h3>
A familiar rival to DGRW is the Vanguard Dividend Appreciation ETF (NYSE: <a class="ticker" href="/stock/vig#NYSE">VIG</a>). VIG focuses on U.S. large-caps that have boosted payouts for at least 10 consecutive years. Year to date, DGRW is topping VIG by more than 200 basis points, and over the past 36 months, the gap grows to 670 basis points in favor of the WisdomTree ETF.
CFRA has an overweight rating on VIG as well.
Disclosure: Todd Shriber owns shares of DGRW.
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DGRW

A Star Among Dividend Growth ETFs

International dividend payers offer some advantages. Those perks include, in many cases, higher dividend yields than their U.S. counterparts and the potential to trim some of the volatility associated with investing in ex-U.S. markets.
<h3>Happy First Anniversary</h3>
Two exchange-traded funds that are coming up on their first anniversaries help investors generate income with ex-U.S. developed markets equities. The Vanguard International Dividend Appreciation ETF (NASDAQ: <a class="ticker" href="/stock/vigi#NASDAQ">VIGI</a>) and the Vanguard International High Dividend Yield ETF (NASDAQ: <a class="ticker" href="/stock/vymi#NASDAQ">VYMI</a>) <a href="https://www.benzinga.com/trading-ideas/long-ideas/16/12/8848483/a-boss-among-new-etfs">were the only new ETFs</a> introduced by Pennsylvania-based Vanguard, the second-largest U.S. ETF issuer, last year.
<h3>VIGI And VYMI</h3>
VIGI and VYMI have some well-known relatives. VIGI is the international equivalent of the Vanguard Dividend Appreciation ETF (NYSE: <a class="ticker" href="/stock/vig#NYSE">VIG</a>), the largest U.S. dividend ETF, while VYMI is the developed markets cousin to the Vanguard High Yield Dividend ETF (NYSE: <a class="ticker" href="/stock/vym#NYSE">VYM</a>).
VIGI &ldquo;emphasizes stocks exhibiting dividend growth and seeks to track the Nasdaq International Dividend Achievers Select Index, which comprises more than 200 all-cap developed and emerging markets stocks with a track record of increasing annual dividend payments,&rdquo; according to Vanguard.
&ldquo;Both these funds&#39; underlying indexes share similar methodologies to those underpinning their U.S. cousins. VYMI, for example, is tied to the FTSE All-World Ex-US High Dividend Yield Index. The index uses the FTSE All-World Index as its starting point,&rdquo; said <a href="http://news.morningstar.com/cover/videocenter.aspx?id=791459">Morningstar</a> in a recent note.
VIGI is neither an ex-North America ETF nor does it exclude emerging markets. Canada is the ETF&#39;s largest country allocation at 16.6 percent while India, China and South Africa combine for 19.6 percent of the ETF&#39;s geographic weight. VIGI holds just over 300 stocks with a median market cap of nearly $43 billion.
VYMI does not exclude Canadian stocks either, though the country is much smaller in this ETF than in VIGI. The U.K. is VYMI&#39;s largest country exposure at 16.7 percent. This new high yield dividend ETF also features emerging markets exposure as 18 developing economies, at varying weights, are found among VYMI&#39;s geographic lineup.
&ldquo;VYMI and VIGI are terrific options for investors looking for low-cost, diversified exposure to international dividend-paying stocks,&rdquo; added Morningstar.
At the end of last year, VYMI and VIGI had $243.4 million and $244.2 million in assets under management, respectively, making each among the most successful ETFs to come to market in 2016.

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As has been the case in years past, 2016 has seen hundreds of new exchange-traded funds come to market. And as in previous years, many new ETFs are struggling to garner investors&#39; assets.
That does not mean all new ETFs are destined for failure. Sometimes it takes a while for a new ETF&#39;s concept to come into style or for investors to unearth the value in rookie ETFs. Still, new ETFs face an <a href="http://www.benzinga.com/trading-ideas/long-ideas/16/11/8740683/gender-diversity-powers-a-rookie-etf">increasingly competitive landscape</a>, one that makes identifying the winners in terms of assets gathered among this year&#39;s infant ETFs easier.
A scant amount of this year&#39;s new ETFs have reached the much ballyhooed $100 million in assets under management mark. An even smaller amount have topped $200 million. One rookie ETF that dwells in the latter category is the Vanguard International Dividend Appreciation ETF (NASDAQ: <a class="ticker" href="/stock/vigi#NASDAQ">VIGI</a>).
<h3>Giving VIGI A Second Look</h3>
VIGI debuted in March alongside the Vanguard International High Dividend Yield ETF (NASDAQ: <a class="ticker" href="/stock/vymi#NASDAQ">VYMI</a>), marking the <a href="https://www.benzinga.com/trading-ideas/long-ideas/16/03/6791939/vanguard-adds-international-editions-of-its-popular-dividend-">only two new ETFs</a> launched by Pennsylvania-based Vanguard this year.
VIGI &ldquo;emphasizes stocks exhibiting dividend growth and seeks to track the Nasdaq International Dividend Achievers Select Index, which comprises more than 200 all-cap developed and emerging markets stocks with a track record of increasing annual dividend payments,&rdquo; according to Vanguard.
At the end of November, VIGI had $230.5 million in assets under management, easily making it one of this year&#39;s most successful new ETFs and putting it among just a handful of rookie ETFs to attract more than $200 million in assets.
<h3>Comparing VIGI To VIG</h3>
VIGI had some advantages when it came to market, not the least of which is the ETF is the international equivalent of the Vanguard Dividend Appreciation ETF (NYSE: <a class="ticker" href="/stock/vig#NYSE">VIG</a>), the largest U.S. dividend ETF.
&ldquo;As is the case with VIG, the fund&#39;s underlying index--the Nasdaq International Dividend Achievers Select Index--looks to home in on stocks that have a long history of paying and growing their dividends. As is also the case with VIG&#39;s index, the methodology document for this fund&#39;s bogy is lacking detail. What we know for sure is that in both cases, the result of the process defined by the indexes&#39; guiding principles is a portfolio of high-quality stocks,&rdquo; said Morningstar <a href="http://news.morningstar.com/articlenet/article.aspx?id=785928&amp;SR=Yahoo&amp;yptr=yahoo">in a recent note</a>.
VIGI, which blends developed markets exposure with a nearly 23 percent allocation to emerging markets dividend payers, has other positives.
&ldquo;As of the end of October, the stocks in VIGI&#39;s portfolio had an average return on invested capital of 13.62 percent, versus 10.44 percent for the average fund in its category. Additionally, 80.2 percent of VIGI&#39;s portfolio was invested in stocks that our analysts deem to have wide or narrow Morningstar Economic Moat Ratings, versus 69.6 percent for its average peer. Economic moats are evidence of a high-quality firm with sustainable competitive advantages,&rdquo; noted Morningstar.

A Boss Among New ETFs

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Investing in ETFs that hold companies with high income and provide long-term growth have significant potential and can effectively diversify the portfolio. Thus, it could be wise to invest in robust tech equities ETFs Vanguard Growth Index Fund ETF Shares (VUG), Vanguard Dividend Appreciation Index Fund ETF Shares (VIG), and Schwab U.S. Dividend Equity ETF (SCHD) for potential gains. Read more... Investing in ETFs which invest in regular income generating and wide growth opportunities stocks can be an efficient strategy to have balanced exposure and invest in different sectors without having to pick individual stocks. They typically hold a broad range of companies that pay dividend regularly.
Given the backdrop, let's look at some of the best-performing ETFs Vanguard Growth Index Fund ETF Shares (<a href="https://stocknews.com/stock/VUG/">VUG</a>), Vanguard Dividend Appreciation Index Fund ETF Shares (<a href="https://stocknews.com/stock/VIG/">VIG</a>), and Schwab U.S. Dividend Equity ETF (<a href="https://stocknews.com/stock/SCHD/">SCHD</a>) for a balanced and income oriented portfolio.
Most investors sought for investment alternates which combining growth and regular income prospects and provide balanced exposure. In such case, large cap investments with regular dividend payments emerge as a suitable choice.
With falling prices, inflation pressures are easing leading to reduced fears. However, the current job market has raised concerns in the market. Recently, the Bureau of Labor statistics reported that the <a href="https://www.nbcnews.com/business/markets/us-recession-fears-international-selloff-markets-nikkei-rcna165119">U.S. unemployment rate</a> had increased to 4.3% with the economy adding just 114,000 jobs.
However, for of the second quarter of 2024, the <a href="https://www.statista.com/statistics/188185/percent-change-from-preceding-period-in-real-gdp-in-the-us/#:~:text=As%20of%20the%20second%20quarter,a%20certain%20period%20of%20time.">GDP of the U.S. grew by 2.8%</a> from the first quarter of 2024 raising hopes for the upcoming quarters supported by rising consumer spending, and business investments. Also, the expected <a href="https://www.forbes.com/sites/dereksaul/2024/08/12/only-one-interest-rate-cut-expected-by-september-as-emergency-cut-potential-evaporates/">interest rate cuts</a> by the Fed in September add positive insights.
Therefore, a well-diversified portfolio consisting income oriented and growth prospects ETFs could be apt choice for attaining balanced exposure.
Considering these conducive trends, let's analyze the fundamental aspects of the three best performing ETFs such as VUG, VIG, and SCHD for great returns.
Vanguard Growth Index Fund ETF Shares (<a href="https://stocknews.com/stock/VUG/">VUG</a>)
VUG is an ETF launched and managed by The Vanguard Group, Inc. The fund invests in public equity markets in the United States and target stocks of companies operating across diversified sectors. It invests in growth stocks of large-cap companies. It seeks to track the performance of the CRSP US Large Cap Growth Index.
The fund has assets under management (<a href="https://www.investopedia.com/terms/a/aum.asp">AUM</a>) of $131.75 billion. VUG's top holdings include Microsoft Corporation (<a href="https://stocknews.com/stock/MSFT/">MSFT</a>) with a 13.02% weighting, followed by Apple Inc. (<a href="https://stocknews.com/stock/AAPL/">AAPL</a>) at 12.02%, and NVIDIA Corporation (NVDA) and Amazon.com, Inc. (AMZN) at 11.32% and 4.95%, respectively.
The ETF has a total of 190 holdings, with its top 10 assets comprising 60.01% of its AUM. VUG's expense ratio is 0.04%, lower than the category average of 0.37%. Over the past month, its fund inflows were $7.79 billion and $11.95 billion over the past year.
VUG pays an annual dividend of $1.88, which translates to a 0.51% yield at the current price level. The fund's dividend payouts have increased at a CAGR of 5.1% over the past three years. Notably, VUG has paid dividends for 19 consecutive years.
VUG has surged 10.9% over the past six months and 32.8% over the past year to close the last trading session at $372.34. It has a beta of 1.11. The fund's NAV was <a href="https://investor.vanguard.com/investment-products/etfs/profile/vug">$372.51 as of August 15, 2024</a>.
VUG's <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a> reflect solid prospects. The fund has an overall rating of B, translating to a Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.
VUG has an A grade for Buy &amp; Hold. It also has a B grade for Trade. Within the B-rated <a href="https://stocknews.com/category/large-cap-growth-etfs/">Large Cap Growth ETFs</a> group, it is ranked #12 of the 61 ETFs.
To access all VUG's POWR Ratings, <a href="https://stocknews.com/stock/VUG/">click here</a>.
Vanguard Dividend Appreciation Index Fund ETF Shares (<a href="https://stocknews.com/stock/VIG/">VIG</a>)
VIG is managed by The Vanguard Group, Inc. The fund holds investments in companies which offers exposure to dividend paying large-cap companies exhibiting growth characteristics within the U.S. equity market. It seeks to track the performance of the NASDAQ US Dividend Achievers Select Index.
The ETF tracks the S&amp;P U.S. Dividend Growers Index. With $80.11 billion in AUM, VIG's top holdings are Apple Inc. (<a href="https://stocknews.com/stock/AAPL/">AAPL</a>) with a 4.48% weighting, Microsoft Corporation (<a href="https://stocknews.com/stock/MSFT/">MSFT</a>) at 4.26%, and Broadcom Inc. (<a href="https://stocknews.com/stock/AVGO/">AVGO</a>) and JPMorgan Chase &amp; Co. (JPM) at 4.01% and 3.34%, respectively.
The fund has a total of 341 holdings, with its top 10 assets comprising 30.55% of its AUM. It has an expense ratio of 0.06%, lower than the category average of 0.37%. VIG fund inflows were $703.27 million over the past six months and $1.37 billion over the past year.
VIG pays an annual dividend of $3.35, which translates to a 1.78% yield at the current price level. Moreover, the fund's dividend payouts have increased at a CAGR of 11.6% over the past three years. VIG has raised its dividends for 10 consecutive years.
VIG has gained 8.3% over the past six months and 17.7% over the past year to close the last trading session at $190.64. It has a beta of 0.85. The fund's NAV was <a href="https://investor.vanguard.com/investment-products/etfs/profile/vig">$190.58 as of August 15, 2024</a>.
VIG's sound fundamentals are reflected in its POWR Ratings. The fund has an overall rating of A, which translates to a Strong Buy in our proprietary rating system.
The fund has an A grade for Trade, Peer, and Buy &amp; Hold. Of the 280 ETFs in the <a href="https://stocknews.com/category/large-cap-blend-etfs/">Large Cap Blend ETFs</a> group, VIG is ranked #5.
<a href="https://stocknews.com/stock/VIG/">Click here</a> to see all the VIG ratings.
Schwab U.S. Dividend Equity ETF (<a href="https://stocknews.com/stock/SCHD/">SCHD</a>)
SCHD is a market-cap-weighted fund which invests in companies with a 10-year history of paying dividends. SCHD applies fundamental screens to build its portfolio and focuses on quality companies with sustainable dividends. The fund tracks the Dow Jones U.S. Dividend 100 Index.
The fund has an AUM of $57.43 billion. Its top holdings include Lockheed Martin Corporation (LMT) with a 4.64% weighting, followed by AbbVie, Inc. (ABBV) at a 4.46% weighting, and BlackRock, Inc. (BLK) and Coca-Cola Company (KO) at 4.18% and 4.13%, respectively. SCHD has a total of 101 holdings, with the top 10 assets comprising 41.16% of its AUM.
The fund has an expense ratio of 0.06%, compared to the category average of 0.49%. Over the past six months, SCHD fund inflows came in at $2.16 billion and $3.93 billion over the past year. Also, it has a beta of 0.88.
SCHD pays an annual dividend of $2.83, which translates to a 3.47% yield at the current price level. The fund's dividend payouts have grown at a CAGR of 12.9% over the past five years. Also, SCHD has raised its dividends for 12 consecutive years.
SCHD has gained 5.6% over the past six months and 10.9% over the past year to close the last trading session at $81.59. The fund has a NAV of <a href="https://www.schwabassetmanagement.com/products/schd">$80.74 as of August 14, 2024</a>.
SCHD's POWR Ratings reflect its strong outlook. The ETF has an overall rating of A, which translates to a Strong Buy in our proprietary rating system.
SCHD has an A grade for Buy &amp; Hold, and Trade. It also has a B grade for Peer. The fund is ranked #2 among 89 ETFs in the A-rated <a href="https://stocknews.com/category/large-cap-value-etfs/">Large Cap Value ETFs</a> group.
To access all the POWR Ratings for SCHD, <a href="https://stocknews.com/stock/SCHD/">click here</a>.
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VUG shares were trading at $373.38 per share on Friday afternoon, up $1.04 (+0.28%). Year-to-date, VUG has gained 20.41%, versus a 17.39% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Rjkumari Saxena</h2> <img src='https:/wp-content/uploads/2024/04/Rajkumari-Saxena_Image-1.jpeg' style="float:left; padding:5px;width:125px;">Rajkumari started her career as a writer but gradually shifted her focus to financial journalism, leveraging her educational background in Commerce. Fascinated by the interplay of business and economic shifts in equities, she aspires to evolve as an analyst. With a knack for simplifying complex financial concepts, her mission is to empower investors with insights that lead to profitable decisions.<a href="https://stocknews.com/authors/?author=rajkumari-saxena">More...</a>The post <a href=https://stocknews.com/news/vug-vig-schd-3-etfs-for-a-balanced-growth-and-income-portfolio/>3 ETFs for a Balanced Growth and Income Portfolio</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>


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