■ Analysis · August 17, 2026
VIG's Top Holdings: Tech Giants Lead Dividend Growth ETF
Vanguard Dividend Appreciation ETF's largest holdings are Broadcom and Apple, reflecting its focus on dividend growth rather than high yield.
Top Holdings Surprise
Investors might expect the largest dividend-focused ETF to hold high-yield stocks, but the Vanguard Dividend Appreciation ETF (VIG) tells a different story. As of the latest data, Broadcom and Apple—yielding just 0.7% and 0.4%, respectively—are the fund's top two holdings. With nearly $115 billion in assets under management, VIG is the biggest dividend ETF, yet its strategy prioritizes dividend growth over current income.
Focus on Dividend Growers
VIG is a passively managed fund that tracks the S&P U.S. Dividend Growers Index. To be included, a company must be part of the U.S. stock market and have increased its dividend for at least ten consecutive years. The index excludes real estate investment trusts (REITs) because they pay non-qualified dividends, and it also removes the top 25% of companies by yield to avoid potentially risky high payouts. Remaining companies are weighted by market capitalization, which is why large-cap tech firms like Broadcom and Apple dominate the portfolio.
This approach aligns with historical data from Ned Davis Research and Hartford Funds, covering S&P 500 stocks from 1973 to 2025. Dividend growers have significantly outperformed companies that kept dividends unchanged, cut them, or eliminated them entirely. By excluding the highest-yielding names, the index aims to sidestep companies that might be sacrificing growth for unsustainable payouts.
Performance Record
Since its inception two decades ago, VIG has delivered an average annual total return of 10.2%. This performance underscores the potential of focusing on dividend growth rather than chasing yield alone. The fund's composition reflects a blend of established dividend raisers, many of which are technology giants with strong cash flows and a history of increasing shareholder payouts.
What it means for income investors
For income-focused investors, VIG's strategy highlights that dividend growth can be a powerful driver of long-term returns, even when starting yields are low. The fund's top holdings demonstrate that companies with robust earnings and a commitment to raising dividends can offer both capital appreciation and growing income over time.
Reporting based on: Yahoo Finance. Figures verified against market data where available.