It tracks the S&P U.S. Dividend Growers Index, which includes companies with at least 10 consecutive years of dividend growth. The index also applies a quality screen by excluding the top 25% of companies with the highest dividend yields. This ETF is market-cap weighted, with a 4% cap on individual holdings to prevent overconcentration.
Because it doesn't chase yield, it includes a more balanced mix of sectors -- including a fair amount of tech -- making its sector composition closer to the Vanguard S&P 500 ETF. Think of it as a higher-quality play on blue chip stocks that also offers a modest income stream, with a 1.63% 30-day SEC yield. Over the past 10 years, VIG has delivered a solid annualized return of 12.99%, keeping pace with broader market ETFs.