Richard Orrell VANGUARD US DIV APPR IDX ETF VGG-T COMMENT Jan 20, 2025

An offshoot of VIG (US dollar version). Holds a basket of rising dividends over the past 10 years, like JNJ and Visa. Important to invest in rising, not static dividends as interest rates rise. Pays a 2.2% dividend yield. This remains good. For more growth though lower dividends, look at VVL. Consider taxation in a non-registered account.

Another way to get US exposure. Dividend-appreciating stocks, rebalanced for you. Dividends are a reasonably good way to look at a portfolio. One shortfall is it doesn't consider share buybacks.

Consider shareholder yield products, such as SYLD.

Focused on dividend stocks on the S&P at medium risk. He's done well with it. It covers value-oriented stocks.

Capital gains are generally the most tax-efficient in a non-registered account, which is likely why it seems most individuals hold VGG in a registered account as it pays a distribution. However, the distribution is small (1.6%), so we would not be overly concerned with the slight tax efficiency downside within a non-registered account. We would be comfortable holding with a non-registered account.
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For US names. VIG is in USD, VGG uses CAD. Names like AAPL, AVGO, JPM, MSFT and so on. More of a tilt of rising dividends, especially important when interest rates are rising.

Great that the viewer is starting her son out early. Years of compounding growth is the best thing that any investor can do.

For anything that's related to just the S&P 500, you really need to know what you're buying. Make sure you diversify beyond the top 10 S&P names. Perhaps VGG, where you still get exposure to tech but more dividend appreciation. Another approach is to look at ETFS that focus on quality, such as QUAL or ZUQ among other names. These two screen for strong ROEs and low leverage.

More of a value tilt to the S&P 500 and diversification. Likes the value proposition of its dividend appreciation focus. MER is 0.3%.