1 Reason to Buy Vanguard Dividend Appreciation ETF (VIG)

With a roughly 1.7% yield as of this writing, the Vanguard Dividend Appreciation ETF (NYSEMKT: VIG) isn't exactly the highest-paying dividend ETF. Far from it.

However, the point of this ETF isn't to generate current income. Instead, it invests in an index of stocks that are likely to consistently raise their dividends over time, creating a growing income stream.

Specifically, the Vanguard Dividend Appreciation ETF tracks the S U.S. Dividend Growers Index, which consists of large-cap stocks that have an established track record of growing their dividends every year. It is a weighted index, meaning that certain stocks make up more of the assets than others, and there are 337 stocks altogether.

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Source Fool.com