Got $2,000 to Invest? This Is 1 of the Smartest Vanguard ETFs to Buy and Hold for 20 Years.

Vanguard has made it easy for anyone to invest in the stock market. The company offers a growing list of exchange-traded funds (ETFs) that allow you to invest broadly in the stock market or focus on specific themes or types of stocks. One of its many funds is the Vanguard Dividend Appreciation ETF (NYSEMKT: VIG). It's one of the smartest funds to buy because it tracks the performance of companies that grow their dividends. Historically, dividend growth stocks have delivered the highest total returns with the lowest risk. That makes this a great fund to buy and hold for 20 years to grow your wealth. The Vanguard Dividend Appreciation ETF aims to track the performance of the S&P U.S. Dividend Growers Index. The managers of that index designed it to measure the performance of U.S. companies that have consistently increased their dividends for at least the past 10 years. Of note, it excludes the top 25% highest-yielding dividend stocks because these companies typically have higher dividend payout ratios and lower growth profiles. Those characteristics put them at a higher risk of stopping growth or reducing their dividends in the future. Continue reading

Apr 16, 2025 - 09:36

Got $2,000 to Invest? This Is 1 of the Smartest Vanguard ETFs to Buy and Hold for 20 Years.

Vanguard has made it easy for anyone to invest in the stock market. The company offers a growing list of exchange-traded funds (ETFs) that allow you to invest broadly in the stock market or focus on specific themes or types of stocks.

One of its many funds is the Vanguard Dividend Appreciation ETF (NYSEMKT: VIG). It's one of the smartest funds to buy because it tracks the performance of companies that grow their dividends. Historically, dividend growth stocks have delivered the highest total returns with the lowest risk. That makes this a great fund to buy and hold for 20 years to grow your wealth.

The Vanguard Dividend Appreciation ETF aims to track the performance of the S&P U.S. Dividend Growers Index. The managers of that index designed it to measure the performance of U.S. companies that have consistently increased their dividends for at least the past 10 years. Of note, it excludes the top 25% highest-yielding dividend stocks because these companies typically have higher dividend payout ratios and lower growth profiles. Those characteristics put them at a higher risk of stopping growth or reducing their dividends in the future.