VIG tracks the S&P U.S. Dividend Growers Index, which selects US companies that have increased their dividends for at least ten consecutive years and excludes the highest-yielding stocks, which can signal dividend risk. The portfolio is weighted by market capitalization, so large companies in technology, healthcare, financials and industrials account for much of the fund. Its yield is lower than that of high-dividend funds such as VYM, but dividend growth and the quality of holdings are the main focus. The fund has historically fallen somewhat less than the broad market in downturns, although it is still an equity fund.
