Is Vanguard Dividend Appreciation ETF a Buy?
The Vanguard Dividend Appreciation ETF (NYSEMKT: VIG) was basically created because of the huge demand for the Vanguard Dividend Growth Fund. There are similarities between the two pooled investment products, but there are also very important differences. And, if you are a Dividend investor, there's one fact that you have to understand about both of these investment options before you buy them.
The Vanguard Dividend Growth Fund is an open-end mutual fund. It is actively managed, so there's no set in stone approach to stock selection. However, the general theme is that the managers are looking to buy stocks that have the potential to grow their dividends over time. But there's a telling statement on the fund's website, in that it only attempts to provide investors with "some income." Basically, the Vanguard Dividend Growth Fund is a growth fund that uses dividends as a screening tool.
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Source Fool.com
