Vanguard Dividend Appreciation Index Fund ETF Shares

VIG tracks the S&P U.S. Dividend Growers Index, which selects companies with at least 10 consecutive years of increasing annual regular dividends. Unlike SCHD, VIG excludes the top 25% highest-yielding companies, which filters out stocks that may have elevated yields due to financial distress.

VIG is the "dividend quality" fund. Its focus on consistent growers rather than high current yield means a lower yield than SCHD but stronger capital appreciation over time. The fund has significant exposure to technology, healthcare, and financials. FIRE investors often use VIG as a bridge between pure growth (VTI) and pure income (SCHD).