VIG vs NOBL: Which Dividend ETF Should You Buy Now?

Both the Vanguard Dividend Appreciation ETF (NYSEMKT:VIG) VIG and the ProShares S&P 500 Dividend Aristocrats ETF (NYSEMKT:NOBL) people companies with a proven grounds of increasing dividends. Their approaches, however, diverge.

VIG tracks a broader swath of large-cap U.S. stocks with a dividend-growth tilt, portion NOBL zeroes successful connected S&P 500 firms with the longest dividend maturation streaks and applies adjacent weighting. VIG besides stands retired for its importantly little outgo and stronger humanities returns, portion NOBL offers a higher output and a much focused, arsenic weighted attack to dividend maturation stocks.

This examination unpacks however those differences amusement up successful cost, performance, risk, and portfolio composition, helping investors marque informed decisions.

Beta measures terms volatility comparative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr instrumentality represents full instrumentality implicit the trailing 12 months.

VIG is considerably much affordable, charging conscionable 0.04% successful yearly fees versus NOBL's 0.35%, and it is besides overmuch larger successful presumption of assets nether management. NOBL offers a higher dividend output by 0.4 percent points, appealing to those who prioritize existent income.

NOBL holds astir 70 stocks, with a portfolio that is arsenic weighted and assemblage vulnerability capped astatine 30%. As of its astir caller data, the largest assemblage weights are industrials (22.5%), user antiaircraft (22.09%), and fiscal services (13.08%). Its apical holdings arsenic of March 20 see Chevron (NYSE:CVX), ExxonMobil (NYSE:XOM), and Linde (NASDAQ:LIN), each making up conscionable implicit 1.7% of assets. The money has been astir for 12.4 years, offering a focused yet diversified attack to U.S. dividend maturation leaders.

VIG, by contrast, casts a wider nett with 338 holdings and a tilt toward exertion (24.5%), fiscal services (20.6%), and healthcare (16.8%). Its largest positions arsenic of Feb. 28 were Broadcom(NASDAQ:AVGO), Apple (NASDAQ:AAPL), and Eli Lilly (NYSE:LLY), each making up betwixt 3.7% and 5.9% of full assets.

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For investors seeking a dependable watercourse of passive income, dividend ETFs connection a blend of regular income with instant diversification by holding a handbasket of stocks. The Vanguard Dividend Appreciation ETF and the ProShares S&P 500 Dividend Aristocrats ETF are some prime dividend ETFs focused connected dividend growth.