Vanguard Dividend Appreciation ETF recommended for stability

Investors are feeling uncertain about the economy and the stock market right now. Trade tensions and tariff news have caused major stock indexes to drop this year, creating worries among many people. However, experts suggest that this does not mean it's time to completely leave the stock market. Instead, some adjustments to your investment strategy might be helpful. A good option for stability in your portfolio is to invest in a dividend exchange-traded fund (ETF). These funds focus on stocks that pay dividends, providing guaranteed income, especially during tough market times. One recommended ETF is the Vanguard Dividend Appreciation ETF (VIG). VIG is appealing because it includes companies with a strong history of increasing dividends. Over the past five years, the ETF has seen an 85% increase in dividends, outperforming well-known companies like Walmart and Coca-Cola. Although the quarterly dividends can vary a bit, they averaged around $0.85 in 2024. It's worth noting that VIG includes a mix of both stable and growth companies. About 25% of its assets are in the tech sector, which is more than other popular dividend ETFs. The ETF's top holdings include major companies like Apple, Microsoft, and JPMorgan Chase. While past performance is not a guarantee of future success, VIG has shown strong long-term returns since it started. With a minimal expense ratio of 0.05%, your earnings are likely to stay in your hands, not with Vanguard. This ETF is a solid choice for investors seeking a dependable income-generating asset for the long term.