Vanguard Dividend Appreciation ETF (VIG)

The Vanguard Dividend Appreciation ETF (VIG) started trading in April 2006. It tracks Mergent's Dividend Achievers Select Index, minus expenses and fees. The ETF's approach to tracking the index is full replication. That is, it attempts to own every stock in the index.

The Dividend Achievers Select Index tracks the performance of US stocks that have increased their annual dividends in each of the last 10 or more years. As of July 2008, it has 213 component stocks. At the end of June 2008, it had the following sector breakdown:

Consumer Discretionary 8.8%
Consumer Staples 24.3%
Energy 9.8%
Financials 11.1%
Health Care 13.2%
Industrials 15.8%
Information Technology 6.4%
Materials 4.5%
Telecommunication Services 3.9%
Utilities 2.2%

VIG is passively managed, with an expense ratio of 0.28%. The fund's most recent annual turnover rate, was 17%.

Although this is subject to change, it pays dividends on a quarterly basis, at the end of March, June, September, and December. The dividend is irregular, and past distributions have ranged from $0.184 a share to $0.28 a share.

As of March 2008, the Vanguard Dividend Appreciation ETF held 218 stocks.

The ETF's holdings are listed below.