VIG: March 2026 Reconstitution Reinforces Low Turnover, High Dividend Growth Strategy

The Sunday Investor7.31K FollowersFollow5ShareSavePlay(18min)CommentsSummaryThe Index tracked by the Vanguard Dividend Appreciation ETF reconstituted last month, resulting in just over 5% portfolio turnover mainly by simply trimming top-performing names like Broadcom.VIG's excellent dividend features were reinforced.

Using Seeking Alpha Dividend Grades, I'll demonstrate just how good VIG is from a dividend growth, safety, and consistency perspective.Its estimated 1.71% yield is a drawback, but VIG's components have low payout ratios, high earnings growth rates, and the quality necessary to keep up its 12-year dividend growth streak.This article also highlights how VIG's low turnover is a key reason for its strong DGI track record. It also compares it fundamentally with SPY, SCHD, VYM, DGRO, and EQWL.Overall, I've maintained my solid "hold" rating on VIG. Thapana Onphalai/iStock via Getty Images Investment Thesis The Index tracked by the $99B Vanguard Dividend Appreciation ETF (VIG) reconstituted last month, but unlike in 2023 and 2025, when Apple (AAPL) and Eli Lilly (LLY) crossed the ten-year dividendThis article was written byThe Sunday Investor7.31K FollowersFollowThe Sunday Investor is focused exclusively on U.S. Equity ETFs. He has a strong analytical background, has received a Certificate of Advanced Investment Advice from the Canadian Securities Institute, and has completed all the educational requirements for the Chartered Investment Manager designation.Having covered hundreds of ETFs on Seeking Alpha, The Sunday Investor has developed a complex, proprietary ETF Rankings system which he shares on his website, etf-rankings.com. Nearly 1,000 ETFs receive individual factor scores covering costs, liquidity, risk, size, value, dividends, growth, quality, momentum, and sentiment, which feed into an easy-to-understand composite score from 1-10.

The Sunday Investor is always active in the comments section in his articles - please don't hesitate to reach out via comment in any article or by visiting etf-rankings.com. Happy Investing!Analyst’s Disclosure: I/we have a beneficial long position in the shares of VIG, SPY, SCHD, MSFT either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.