VIG — Vanguard Dividend Appreciation ETF
Vanguard · Expense Ratio: 0.06% · Dividend · 9bp below the Dividend category average of 0.15%
Key Facts
| Ticker | VIG |
| Full Name | Vanguard Dividend Appreciation ETF |
| Provider | Vanguard |
| Expense Ratio | 0.06% |
| Category | Dividend |
| Assets Under Management | $90B |
| Inception Year | 2006 (20 years ago) |
| Number of Holdings | 330 |
| Dividend Yield | ~1.6% (moderate) |
| Top Holdings | MSFT, AAPL, AVGO, JNJ |
What Is VIG?
VIG, managed by Vanguard, launched in 2006, is a major ETF with deep liquidity and tight bid-ask spreads in the Dividend category. Dividend-focused ETF investing in companies with consistent and growing dividend payouts. With $90B in assets under management, it benefits from deep institutional liquidity and tight bid-ask spreads.
VIG in a FIRE Portfolio
With its focus on dividend-paying stocks, this fund can generate retirement income for FIRE investors, reducing the need to sell holdings during market downturns.
At a ~1.6% yield, a $1M position in VIG would generate approximately $16,000/year in dividend income. For FIRE investors, dividend income reduces the need to sell holdings during market downturns — a strategy known as "living off dividends."
Cost Analysis: How VIG's 0.06% Fee Affects Your FIRE Timeline
At 0.06%, VIG is very cost-effective. Annual fees on a $100K investment: $60. Over 30 years, the fee drag shaves approximately 0.4% off your total returns. For a $1M FIRE portfolio, that's about $6,000 in cumulative fees — noticeable but reasonable for most investors.
Dividend Income Potential
With a moderate dividend yield of approximately 1.6%, here's what VIG could generate in annual income at different portfolio sizes:
| Portfolio Value | Annual Dividend Income | Monthly Income |
|---|---|---|
| $100,000 | $1,600/year | $133/month |
| $250,000 | $4,000/year | $333/month |
| $500,000 | $8,000/year | $667/month |
| $1,000,000 | $16,000/year | $1,333/month |
Frequently Asked Questions About VIG
What is the expense ratio for VIG?
VIG has an expense ratio of 0.06%. This is very cost-effective — on a $100K portfolio, annual fees are $60. 9bp below the dividend category average of 0.15%.
Is VIG good for a FIRE portfolio?
With its focus on dividend-paying stocks, this fund can generate retirement income for FIRE investors, reducing the need to sell holdings during market downturns. Its 0.06% expense ratio is very cost-effective for the Dividend category.
How does the 0.06% fee affect long-term returns?
At 0.06%, you'll pay $60/year per $100K invested. Over 30 years, fees reduce total returns by approximately 0.4%. Use the embedded calculator below to model the exact impact on your specific portfolio.
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