Vanguard is renowned for its selection of ETFs known for their low fees, and two in particular are currently standing out. The Vanguard Dividend Appreciation ETF and the Vanguard Total International Stock ETF offer unique opportunities for investors looking to diversify their portfolios.
The Vanguard Dividend Appreciation ETF, with the ticker symbol VIG, focuses on companies that have consistently increased their annual dividend payouts for at least 10 consecutive years. Unlike traditional dividend ETFs that prioritize high dividend yields, VIG aims to avoid yield traps by selecting companies with a track record of dividend growth. While the current dividend yield may be modest at 1.6%, the long-term potential for increased payouts makes this ETF appealing for investors looking for both growth and income opportunities.
Some of the top holdings in VIG include tech giants like Broadcom, Microsoft, and Apple, which offer below-average dividend yields but have a history of consistently increasing dividends. This unique focus on tech and growth stocks sets VIG apart from other dividend ETFs and can provide a valuable addition to a diversified portfolio.
On the other hand, the Vanguard Total International Stock ETF, with the ticker symbol VXUS, offers exposure to both developed and emerging markets. This ETF allows investors to benefit from the stability of developed markets like the U.S., Germany, and Japan, as well as the growth potential of emerging markets such as China, Brazil, and India. Diversifying with international stocks can help hedge against any downturns in the U.S. economy and provide opportunities for growth in different regions.
In 2025, VXUS outperformed the S&P 500, finishing the year up 28% compared to the S&P 500’s 16.4%. While VXUS may not consistently outperform the S&P 500, having a portion of your portfolio allocated to international stocks can help balance your overall investment strategy.
Before investing in the Vanguard Dividend Appreciation ETF or any other stock, it’s essential to conduct thorough research and consider expert recommendations. The Motley Fool Stock Advisor team has identified 10 stocks with significant growth potential, excluding VIG. These stocks have the potential to deliver substantial returns over the coming years, as demonstrated by past picks like Netflix and Nvidia.
In conclusion, Vanguard offers a range of ETFs that cater to different investment strategies and goals. Whether you’re looking for dividend growth or international exposure, Vanguard’s ETFs can provide valuable opportunities for investors seeking to diversify their portfolios. Consider these under-the-radar ETFs as potential additions to your investment strategy.
