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Appreciation For Dividend ETFs Is Not Dead

Picking stocks winner can be difficult, but picking ETF winners is easier. Determining relative returns is different.

One of the major difficulties of investing is being able to pick a winner and stick with it. While picking winners in the stock market can be very difficult, picking winners in the ETF market is easier for investors. There are a few major differences in determining the right investment and the right price to buy in. Positive or negative returns for any domestic equity ETF are overwhelmingly influenced by the market moving higher or lower. However, the relative returns between different ETFs are a different factor. Further, there is the question of how the ETF influences the investor's strategy. The Vanguard Dividend Appreciation ETF (VIG) performs well on several of these metrics.

What does VIG do?

VIG attempts to track the investment results of the NASDAQ US Dividend Achievers Select Index. The general methodology is to focus on stocks that have a history of increasing dividends over time. The…

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TAGS: ETF Analysis
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