VIG: A Potentially Superior Investment To SCHD
Summary
- The Vanguard Dividend Appreciation ETF offers exposure to high-growth U.S. tech companies and the potential for fast dividend growth, making it a compelling alternative to SCHD.
- Despite short-term underperformance, VIG presents a buying opportunity for long-term investors focused on compounding dividends.
- VIG has outperformed SCHD in the last decade, delivering a 253.8% total NAV return, driven by its tech and financial sector weightings.
- Key risks include potential under-performance in the tech and financial sectors, which could impact VIG's net asset value and dividend growth.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of VIG, SCHD, AAPL, AVGO either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.