Got $100? This Top Dividend ETF Is a No-Brainer Buy Right Now

If you're looking to start investing with just $100, you might be wondering where to begin. With so many options available, it can be overwhelming to choose the right investment. But fear not, because there's a top dividend ETF that's perfect for beginners and offers an attractive combination of income and growth potential. Let me introduce you to the Vanguard Dividend Appreciation ETF (VIG).



VIG is a no-brainer buy for several reasons:

1. Low expense ratio: VIG has an expense ratio of just 0.06%, which is one of the lowest among dividend ETFs. This means that for every $100 invested, the investor pays only $6 in fees annually. This low cost allows investors to keep more of their returns and compound their wealth over time.
2. Diversification: VIG holds a diversified portfolio of over 180 stocks, providing exposure to various sectors and industries. This diversification helps to reduce risk and provides a steady stream of income. As of December 11, 2024, the top holdings include Microsoft (MSFT), Apple (AAPL), and Johnson & Johnson (JNJ), among others.
3. Dividend growth focus: VIG focuses on companies that have increased their dividends for at least 10 consecutive years. This strategy aims to provide investors with a growing income stream over time. From 2018 to 2022, the ETF increased its dividends by 119%; if we take it back to 2012, dividends have more than tripled.
4. Consistent performance: VIG has a strong track record of performance, having generated almost identical returns to the S&P 500 over the past 10 years. It has also outperformed the market over the past three- and one-year periods. In a higher-rate environment, there's a reasonable chance that its superior performance could continue.
5. Accessibility: With a minimum investment of $100, VIG is accessible to a wide range of investors. This low barrier to entry allows investors to start building a diversified income-generating portfolio with a relatively small amount of capital.



So, if you're looking to start investing with just $100, the Vanguard Dividend Appreciation ETF (VIG) is a no-brainer buy. With its low expense ratio, diversification, dividend growth focus, consistent performance, and accessibility, VIG offers an attractive combination of income and growth potential. Don't miss out on this opportunity to start building your wealth today!