Markets· August 16, 2026 at 03:20 p.m.
Surprising Top Holdings of Largest Dividend ETF Revealed
Key takeaways
- Vanguard Dividend Appreciation ETF's top holdings are Broadcom and Apple
- The fund aims to deliver a high total return from share price appreciation and dividend income
- Dividend growers have outperformed other categories of stocks since 1973
The Vanguard Dividend Appreciation ETF, a popular dividend-focused ETF with nearly $115 billion in assets under management, has two surprising top holdings: Broadcom and Apple. These tech giants account for 0.7% and 0.4% of the fund's total holdings respectively.
The VIG aims to deliver a high total return from share price appreciation and dividend income by investing in dividend growers, rather than yield-focused stocks. The ETF tracks the S&P U.S. Dividend Growers Index, which screens companies based on their dividend growth history and market cap.
Data shows that dividend growers have significantly outperformed other categories of stocks since 1973. By excluding the top 25% of companies by yield, the index aims to avoid weaker payers dragging down returns, a strategy that has paid off for investors with an average annual total return of 10.2% since the ETF's inception.
However, The Motley Fool Stock Advisor analyst team did not include Vanguard Dividend Appreciation ETF in their list of top 10 stocks for long-term growth.
