How Vanguard’s Dividend Appreciation ETF Has Performed, Year by Year

VIG, the Vanguard Dividend Appreciation ETF, launched in April 2006 and has returned about 10.3% a year since, including reinvested dividends. That turned $10,000 into roughly $74,400 by early November 2026, with smaller losses than the S&P 500 in almost every major sell-off along the way.

VIG is built around one idea: owning companies that keep raising their dividends. That focus has given it a distinctive history. It fell far less than the market in 2008 and 2022, kept up better than most dividend funds during the technology-led rallies of recent years, and has grown its dividend about fourfold since its first full year.

This guide tells that story year by year. It covers how VIG was built, what happened in every calendar year since launch, how far it fell in each major decline and how long it took to recover, how its dividend grew, and what its record means for anyone holding it today.

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VIG at a Glance

All return figures in this guide are total returns, meaning they include dividends reinvested, unless stated otherwise. Past performance does not guarantee future results.

VIG Returns by Year

Over its 19 full calendar years, VIG finished higher in 15 and lower in four: 2008, 2015, 2018 and 2022. Apart from 2008, none of those losses was larger than 10%.

The Fund and the Index Behind It

VIG tracks the S&P U.S. Dividend Growers Index. To qualify, a company must have raised its dividend every year for at least 10 consecutive years, and real estate investment trusts are excluded.

The index also removes the highest yielders. A stock in the top 25% of eligible companies by dividend yield cannot be added, and an existing holding in the top 15% is dropped. The aim is to avoid companies whose high yield reflects a falling share price or a payout under strain.

Holdings are weighted by company size, with each one capped at 4% at the annual rebalance. The result is a fund of about 330 companies that leans towards large, profitable businesses with steady and rising payouts.

At the end of September 2026, its 10 largest holdings were Microsoft, Apple, Broadcom, Eli Lilly, JPMorgan Chase, ExxonMobil, Johnson & Johnson, Visa, Walmart and AbbVie. Together they made up about 34.5% of the fund, with technology the largest sector at about 27%, followed by financials and healthcare.

Until September 2021, VIG tracked the Nasdaq US Dividend Achievers Select Index, which also required at least 10 straight years of dividend increases. When the switch was announced, VIG was the largest dividend ETF by assets, and the change made headlines across the industry.

That design explains much of VIG’s history. Because it avoids the highest yielders, it holds more technology and healthcare companies than most dividend funds, with Microsoft, Apple and Broadcom among its largest holdings today, and fewer of the banks and energy companies that dominate high-yield funds.

The Launch: April 2006

VIG launched on April 21, 2006, a few months before Vanguard’s high-yield fund, VYM. It gave investors a low-cost index fund of dividend-growing companies that traded on an exchange like a stock.

Dividend ETFs were still a new category. iShares had launched DVY in 2003 and SPDR followed with SDY in 2005. VIG’s pitch was different from both: rather than chasing the highest current income, it targeted companies with a long record of raising their payouts.

The fund’s first months were calm. From its launch in late April to the end of 2006, VIG returned about 8.6%, as US stocks climbed steadily through the second half of the year.

2007: Ahead in a Difficult Year

VIG returned about 5.6% in 2007, slightly ahead of the S&P 500’s 5.2%. The market reached a record high in October, but subprime mortgage losses were already spreading through the banking system.

Banks and other financial companies, which were among the biggest dividend payers, began to slide. VIG’s focus on consistent dividend growth rather than high yield meant it held less of the weakest financial companies than many income funds.

VIG paid about $0.87 per share in dividends in 2007, its first full year. Its share price peaked on October 9, 2007, the same day as the broad market.

2008: The Financial Crisis

2008 was the worst year in VIG’s history. Lehman Brothers collapsed in September, credit markets froze, and stocks fell around the world.

VIG lost about 26.7% for the year, against 36.8% for the S&P 500. That 10-point gap was one of the strongest demonstrations of its approach: companies with long records of raising dividends tended to be financially sturdier and held up better under stress.

By the end of 2008, an investor’s $10,000 from launch was worth about $8,400. Despite the crisis, VIG’s dividend rose about 17.5% for the year to around $1.03 per share, as its companies kept their records of increases intact.

2009: The Bottom and a Small Dividend Dip

The decline continued into early 2009. VIG hit bottom on March 9, 2009, down about 48.2% from its 2007 peak on price, or about 46.8% including dividends, well short of the S&P 500’s fall of about 55%.

The rebound that followed was powerful, and VIG returned about 19.6% for the year. It trailed the S&P 500’s 26.4%, as the sharpest early gains went to the most beaten-down companies, many of which VIG did not own.

VIG’s annual dividend dipped about 4.6%, to around $0.98 per share. Some companies that had cut payouts left the index, and the fund’s income fell far less than that of high-yield funds, where many banks slashed their dividends.

2010: Climbing Back

VIG returned about 14.7% in 2010, close to the S&P 500’s 15.1%. The economy was recovering slowly, and the Federal Reserve kept interest rates near zero to support it.

In May, the flash crash briefly wiped almost 1,000 points off the Dow in minutes, and the European debt crisis began to unsettle markets. Stocks recovered by the end of the year.

By the end of 2010, an investor’s $10,000 from launch was worth about $11,500, back above its starting value. VIG’s dividend grew about 7% to roughly $1.05 per share.

2011: Steady When the Market Stalled

In August 2011, the United States lost its AAA credit rating for the first time, and fears about Europe’s debt crisis sent stocks sharply lower. The S&P 500 finished the year up only about 1.9%.

VIG returned about 6.2%, as investors moved towards steady, financially strong companies. Its consumer staples, healthcare and industrial holdings held up well through the turmoil.

The fund’s dividend rose about 11.8% to around $1.17 per share. By the end of 2011, the original $10,000 had grown to about $12,200.

2012: The Fiscal Cliff and a Dividend Rush

VIG returned about 11.7% in 2012, behind the S&P 500’s 16.0%. Financial and technology stocks led the market’s recovery.

The year ended with worries about the fiscal cliff, a set of tax rises and spending cuts due on January 1, 2013. Many companies paid dividends early, in December, before any tax change could take effect.

That rush pushed VIG’s 2012 dividend up about 20% to around $1.41 per share. In August 2012, VIG’s share price regained its October 2007 peak, about three and a half years after the low.

2013: A Banner Year

2013 was an outstanding year for almost every US stock fund, and VIG returned about 28.9%, close to the S&P 500’s 32.3%. The Federal Reserve’s bond buying kept interest rates low and pushed investors towards stocks.

VIG’s annual dividend slipped about 1.6%, to around $1.39 per share. That dip was largely a matter of timing, because many companies had moved payments forward into December 2012.

By the end of 2013, an investor’s $10,000 from launch had grown to about $17,600. Underlying dividend growth resumed the following year.

2014: Steady Gains

VIG returned about 10.1% in 2014, behind the S&P 500’s 13.5%. The bull market continued as the Federal Reserve wound down its bond buying.

Oil prices began to collapse in the second half of the year, but VIG held relatively little energy, so the damage was limited. Its dividend jumped about 14.2% to around $1.59 per share.

By the end of 2014, the original $10,000 had nearly doubled to about $19,400. VIG had now delivered a positive year in seven of its eight full calendar years.

2015: A Small Loss

2015 brought a small loss of about 1.9%, while the S&P 500 managed a gain of about 1.2%. The oil crash deepened, and in August China’s surprise currency devaluation triggered a sharp global sell-off.

VIG’s industrial and materials companies were hit by fears of slowing global growth and a strong US dollar, which reduced the value of their overseas profits. The S&P 500 was helped by large technology and internet companies that VIG did not hold.

The dividend rose about 14.8% to around $1.82 per share, its fastest growth in years. The year showed that rising payouts do not prevent a falling share price.

2016: Level With the Market

VIG returned about 12.0% in 2016, matching the S&P 500. After oil prices hit bottom in February, stocks recovered, and the surprise result of the US presidential election in November sparked a late-year rally.

The rally favored banks and energy companies on hopes of tax cuts and lighter regulation, areas where VIG held relatively little. Even so, it kept pace with the market for the year.

VIG’s dividend was almost unchanged, rising about 0.4%, its smallest increase on record. By the end of 2016, the original $10,000 had grown to about $21,300.

2017: Calm and Strong

2017 was one of the calmest years in market history, and VIG returned about 22.2%, slightly ahead of the S&P 500’s 21.7%. Strong global growth lifted the profits of its multinational companies.

The corporate tax cuts passed in December 2017 lowered company tax rates from 2018. That gave many of VIG’s companies more room to raise their dividends.

VIG’s dividend rose about 5.1% to around $1.92 per share. By the end of 2017, an investor’s $10,000 from launch had passed $26,000.

2018: Two Sell-Offs, a Smaller Loss

2018 tested markets twice. A volatility shock hit in February, and a larger decline followed in the fourth quarter, driven by rising interest rates, trade tensions with China and fears of a slowing economy.

From its September peak to Christmas Eve, VIG’s price fell about 18.1%. It finished the year down about 2.1%, a smaller loss than the S&P 500’s 4.6%.

The recovery was quick. VIG’s price regained its September 2018 peak by late April 2019, about four months after the low, and its dividend rose about 6.2% for the year.

2019: VIG’s Best Year

When the Federal Reserve paused its rate rises in early 2019 and then cut rates three times, markets rebounded strongly. VIG returned about 29.6%, its best calendar year, close to the S&P 500’s 31.2%.

Falling interest rates made steady, dividend-growing companies more attractive. VIG’s technology, consumer and industrial holdings all performed well.

By the end of 2019, the original $10,000 had grown to about $33,000. VIG’s dividend rose about 4.7% to around $2.13 per share.

2020: The COVID Crash

In early 2020, the spread of COVID-19 triggered the fastest market crash in history. From February 14 to March 23, VIG’s price fell about 31.7%, a smaller drop than the broad market’s.

The recovery was faster still. VIG regained its February peak by late August 2020, about five months after the low, helped by its technology and healthcare holdings and the Federal Reserve’s emergency support.

VIG returned about 15.4% for 2020, behind the S&P 500’s 18.3% but far ahead of high-yield funds such as VYM, which gained only about 1.1% as banks and energy companies weighed it down. Its dividend rose about 7.6%, even through the recession.

2021: A New Index and Rising Inflation

2021 was a strong year for almost everything. VIG returned about 23.8%, behind the S&P 500’s 28.7% as the largest technology companies surged.

In September 2021, VIG switched to the S&P U.S. Dividend Growers Index. The new rules excluded the highest-yielding companies and used only freely traded shares to measure company size, but kept the core requirement of at least 10 years of dividend increases.

VIG’s dividend rose about 15.8% to around $2.66 per share, one of its strongest years. By the end of 2021, the original $10,000 had grown to about $47,200, but inflation was rising fast.

2022: Holding Up in a Bear Market

As inflation hit 40-year highs in 2022, the Federal Reserve raised interest rates at the fastest pace in decades. The S&P 500 fell into a full bear market and lost about 18.2% for the year.

VIG lost about 9.8%. Its price fell about 21.5% from January to its low on September 30, but its profitable, dividend-growing companies held up far better than the high-valued growth stocks that led the market’s decline.

The loss was bigger than VYM’s 0.4% or SCHD’s 3.3%, because VIG held more technology and less energy. VIG’s dividend still rose about 11.7%, and its price regained its January 2022 peak in January 2024.

2023: The Best of the Dividend Funds

2023 was dominated by artificial intelligence. A small group of giant technology companies drove the S&P 500 up about 26.2%.

VIG returned about 14.5%. That was well behind the market, but far ahead of SCHD’s 4.5% and VYM’s 6.6%, because VIG’s holdings included companies such as Microsoft that benefited from the technology rally.

VIG’s dividend rose about 7.9% to around $3.21 per share. By the end of 2023, the original $10,000 had grown to about $48,700.

2024: Another Gap to the Market

VIG returned about 17.0% in 2024, a solid year that still trailed the S&P 500’s 24.9%. The market’s gains remained concentrated in a handful of technology companies, several of which pay no dividend or have not raised it for 10 years.

Among the fund’s holdings, Broadcom stood out as its shares soared on demand for AI chips. The fund’s dividend rose about 5.3% to around $3.38 per share.

By the end of 2024, an investor’s $10,000 from launch had grown to about $57,000. Across 2023 and 2024 combined, VIG stayed much closer to the market than SCHD or VYM.

2025: The Tariff Shock

In early 2025, sweeping US tariff announcements triggered a sharp market sell-off. From February 19 to April 8, VIG’s price fell about 15.4%.

The recovery was quick. VIG regained its February peak by July 1, less than three months after the low, as tariff fears eased and company profits held up.

VIG returned about 14.2% for 2025, behind the S&P 500’s 17.7% but well ahead of SCHD’s 4.3%. Its dividend rose about 5.3% to around $3.56 per share.

2026: Ahead of the Market

Vanguard cut VIG’s expense ratio from 0.05% to 0.04% in February 2026. At the start of March, war between the United States and Iran sent oil prices above $100 a barrel and unsettled markets.

VIG has held up well through the year. By early November, it was up about 14.3% for 2026, against about 11.2% for the S&P 500.

That still left it behind SCHD’s 34.1% and VYM’s 16.2%, because VIG holds far less energy than either fund. As of early November, the original $10,000 from launch was worth about $74,400.

Every Major Fall at a Glance

These figures are measured on share price alone. Including reinvested dividends, the declines were slightly smaller and the recoveries came sooner. After the financial crisis, for example, VIG’s total return regained its 2007 peak in early 2011, well over a year before its price did. In every case so far, VIG eventually recovered and went on to new highs.

How VIG Compared With the Market Over Time

From its launch in April 2006 to early November 2026, VIG returned about 10.3% a year, against about 10.9% for the S&P 500, measured by SPY. Measured from the start of 2007, its first full year, the figures are about 10.2% and 10.8%, and $10,000 grew to about $68,500 in VIG against about $76,100 in SPY.

Over the 10 years to November 2026, VIG returned about 13.9% a year against about 15.5% for the S&P 500. Over five years, it returned about 10.5% a year against about 11.8%.

So VIG has trailed the S&P 500 over long periods, but by a modest margin, and with noticeably smaller losses in 2008, 2018 and 2022.

That is the clearest answer to the common question of how VIG compares with an S&P 500 fund such as VOO. VOO has delivered higher returns over most long periods, while VIG has offered smaller falls in bear markets and a portfolio built around companies that keep raising their dividends. Which suits an investor depends on whether they value the extra growth or the steadier ride.

FRC’s SPY performance history and VOO performance history tell the S&P 500 side of the same story.

The Dividend Story

VIG’s dividend has grown from about $0.87 per share in 2007 to about $3.56 in 2025, roughly four times as much. That works out to average growth of about 8% a year.

The annual payout fell only twice: by about 4.6% in 2009, after the financial crisis, and by about 1.6% in 2013, largely because of payments moved into December 2012. Every other year it rose, with increases ranging from almost nothing in 2016 to about 20% in 2012. Over the 10 years from 2015 to 2025, the payout grew about 6.9% a year.

VIG’s yield is low for a dividend fund, at about 1.5% in late 2026. That is the trade-off of its design: by excluding the highest yielders, it gives up current income in exchange for companies that have tended to grow their payouts and their share prices.

For long-term investors, that growth adds up. Someone who bought in 2007 was earning around four times as much income per share by 2025, an example of compound interest at work.

What the Declines Taught VIG Investors

The first lesson is that a dividend growth fund is still a stock fund. VIG lost almost half its value from 2007 to 2009 and nearly a third in 2020, and its focus on dividend growth did not prevent those losses.

The second is that quality has tended to help in a crisis. In 2008, 2018 and 2022, VIG’s financially sturdy companies fell less than the broad market, and its income held up far better than that of high-yield funds.

The third is that VIG behaves differently from other dividend funds. Its technology holdings helped it pull ahead of VYM in 2020 and of both SCHD and VYM in 2023, but its small energy weighting left it behind them in 2022 and 2026. FRC’s guide to growth stocks vs value stocks explains why different styles take turns leading.

How VIG Compares With Other Dividend Funds

VIG, SCHD and VYM are the three most popular US dividend ETFs, and their histories differ in useful ways. VIG targets dividend growth and avoids the highest yielders, SCHD holds about 100 companies chosen for quality and yield, and VYM holds the higher-yielding half of the market.

Those approaches produced very different results in key years. In 2023, VIG returned about 14.5% while SCHD returned about 4.5%. In 2026, SCHD has surged ahead, up about 34.1% against VIG’s 14.3%.

FRC’s comparisons of SCHD vs VIG and VYM vs VIG explain these differences in detail. FRC’s SCHD performance history and VYM performance history tell those funds’ stories year by year.

Costs and Taxes Over VIG’s History

VIG has been one of the lowest-cost dividend funds throughout its history. At 0.04%, it now costs $4 a year for every $10,000 invested.

Like most Vanguard index ETFs, VIG has rarely distributed capital gains. Most of its dividends have been qualified dividends, taxed at the lower long-term capital gains rates, and its lower yield means less taxable income each year than a high-yield fund.

That combination makes VIG relatively efficient in a taxable account. FRC’s guides to qualified vs non-qualified dividends and how to choose tax-efficient ETFs explain how dividend income is taxed.

What VIG’s History Does Not Tell You

VIG’s 20-year record covers a specific period, including a financial crisis, a decade of near-zero interest rates, a historic run for technology stocks and an oil shock in 2026. Future returns may look very different.

Its index also changed in 2021, and its holdings shift each year as companies join or leave the list of consistent dividend raisers. The VIG of 2026, with Microsoft, Apple and Broadcom near the top, is a different portfolio from the VIG of 2008.

Its 10-year rule also means it can miss companies until they have built a long record. Fast-growing companies that only recently started paying dividends do not qualify, however profitable they are.

Is Your Money Safe in VIG?

VIG is a regulated investment company overseen by the SEC, with its holdings kept by an independent custodian and separate from Vanguard’s own assets. FRC’s guide to Is Vanguard Safe? explains how Vanguard is structured and regulated.

When you hold VIG at a SIPC member brokerage, your account is protected up to $500,000, including $250,000 in cash, if the brokerage fails and assets are missing. This protection does not cover market losses, such as VIG’s fall of almost half from 2007 to 2009.

VIG’s history shows that its value can fall sharply even when its dividend keeps rising. Its safeguards protect the safekeeping of your investment, not its value.

Keep Learning

VIG’s first 20 years show that a dividend growth fund can fall less than the market in a crisis, keep raising its income through hard times and still trail the market in strong rallies. The investors who did best were usually those who understood what the fund owned and held it through every cycle.

The FRC dictionary is more than a dictionary. It is a library of explainer videos, written explanations and on-page quizzes, so you can open any term, such as ex-dividend or diversification, and go deeper whenever something is unclear.

FRC’s programs and memberships are open to everyone. FRC’s Investing for Beginners guide and its guide to dollar-cost averaging vs lump sum are natural next steps.

Your Next Step

Since April 2006, VIG has returned about 10.3% a year, turned $10,000 into about $74,400 and grown its annual dividend from about $0.87 to about $3.56 per share. It fell far less than the market in 2008 and 2022, led the major dividend funds in 2023 and has moved ahead of the S&P 500 in 2026.

Use that history to set realistic expectations. A dividend growth fund can still fall sharply and trail the market for years, so choose it for what it owns and hold it with a long-term view.