Vanguard Dividend Appreciation ETF underperformed the Fidelity International Dividend ETF in 2025, returning 8.4% versus 11.1%, largely due to sector exposures and its U.S.-only mandate. VIG’s overweight in healthcare (15% of assets) and exclusion of REITs left it exposed when technology gained momentum and real estate equities rebounded overseas. Looking ahead to 2026, VIG’s healthcare tilt could pay off if the sector regains strength, while its absence of foreign holdings may be less of a drag if U.S. interest rates remain stable. Investors should watch the pace of dividend hikes among VIG’s top health-care components—names that deliver roughly 20% of its income—as a barometer for potential outperformance.

At just 0.05% in annual fees, VIG undercuts NOBL’s 0.35% expense ratio and offers broader diversification across 338 dividend growers versus NOBL’s 70. VIG’s sector weights—28% technology, 22% financials and 15% healthcare—have driven a 12.7% total return over the past year, compared with NOBL’s 3.1%, and a five-year growth of $1,000 to $1,557 versus $1,319. Although VIG has exhibited a 20.4% maximum drawdown over five years (versus 17.9% for NOBL), its size-weighted approach allows high-growth dividend payers like Broadcom, Microsoft and Apple to drive returns when market leadership shifts toward technology and financials.

In the third quarter, Albion Financial Group UT boosted its VIG stake by 234%, acquiring 42,573 additional shares to hold 60,768 shares valued at $13.11 million. Other advisors, including Websterrogers and Crane Advisory, also increased positions, signaling confidence in VIG’s dividend growth strategy. The fund now manages $120.4 billion in assets, carries a dividend yield of 1.59% and a beta of 0.79, and trades at a P/E ratio of 23.3. These metrics underscore VIG’s appeal for investors seeking low-cost exposure to large-cap U.S. companies with a consistent track record of dividend increases.