Could Buying Vanguard Dividend Appreciation ETF Today Set You Up for Life?

Vanguard Dividend Appreciation ETF (NYSEMKT: VIG) is an interesting exchange-traded fund (ETF). It has the word dividend in the name, but it really doesn't have a high yield at around 1.8%. Is this an ETF that could set you up for life, or would it actually set you up for disappointment?Here's what you need to know.The Vanguard Dividend Appreciation ETF tracks the S&P U.S. Dividend Growers Index. This index is fairly simple. First, it pulls out all of the U.S. companies that have increased their dividends for at least 10 consecutive years. And then it removes the 25% with the highest dividend yields because these companies have a greater chance of being yield traps that could potentially cut their payouts. Everything else gets into the index and into the Vanguard Dividend Appreciation ETF. The stocks are market-cap-weighted, so the largest companies have the greatest impact on performance.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool