VIG outperformed most dividend ETFs and exhibited reduced volatility and drawdowns compared to the broader market over 10 years.
The Vanguard Dividend Appreciation ETF (VIG) demonstrated lower annualized volatility and a smaller maximum drawdown than the S&P 500 over the past decade ending August 4. This performance persisted despite dividend-paying stocks lagging behind growth stocks in recent years.
Over the 10 years ending July 31, only four domestic dividend ETFs surpassed VIG’s returns. While dividend ETFs do not offer full protection during bear markets, VIG’s resilience across market cycles has made it a preferred choice for long-term investors.
Bear markets occur roughly every 3.5 years and last nearly 10 months on average, highlighting the challenges of market timing. VIG’s durability positions it as a stable option amid fluctuating conditions.