VIG's Strange Rule: The Highest-Yielding Dividend Growers Aren't Allowed In

Key Points One of the criticisms of the Vanguard Dividend Appreciation ETF is that it offers a relatively low yield. That's actually by design. The fund actively avoids high-yield stocks, but that works for its overall strategy. 10 stocks we like better than Vanguard Dividend Appreciation ETF › The Vanguard Dividend Appreciation ETF (NYSEMKT: VIG) is the largest dividend exchange-traded fund (ETF) in the world. Its advantage is its simplicity. It targets companies that have raised their annual payouts for at least 10 consecutive years and adds those stocks that qualify under its criteria to its portfolio on a market-cap-weighted basis. For dividend growth investors, it's a simple yet effective strategy that's returned an average of 10.