PEY vs VIG

PEYCInvesco High Yield Equity Dividend Achievers ETF

VIGAVanguard Dividend Appreciation ETF

In short

PEY Two screens stacked: ten straight years of dividend increases, then the 50 highest yielders, weighted by yield instead of company size. Running since 2004, paying monthly, at 0.68%.

VIG VIG buys dividend growth, not fat yields: about 300 US companies with a record of raising their payouts, tracked for 0.04% a year. Running since 2006 and now north of $100 billion, it is the plain-vanilla anchor of the dividend-screen aisle.

Stated mandate

PEY The fund seeks to track, before fees and expenses, the NASDAQ US Dividend Achievers 50 Index. It normally invests at least 90% of assets in dividend-paying common stocks comprising that index.

VIG The fund seeks to track the S&P U.S. Dividend Growers Index, which represents common stocks of companies with a record of increasing dividends over time.

Why people hold it

• PEY Names must have raised dividends ten years running before the yield hunt starts; the index then takes the top 50 by yield, reconstituted each March and rebalanced quarterly.nasdaq.comnasdaq.com 2invesco.com
• Income arrives monthly rather than quarterly, from a concentrated book of about 50 dividend payers.
• Listed in December 2004, one of the longest-running dividend screens in ETF form, so its behavior across multiple market cycles is lived history, not a backtest.

• VIG At 0.04% a year, the fee is roughly a tenth of the typical dividend-screen fund's 0.39%, and undercuts every other top-graded fund in the group, DGRO and SCHD included.
• The screen rewards a record of increasing dividends rather than the biggest current payout, so the basket leans on payout discipline instead of stretched yields.
• Live since 2006, over $100 billion in assets and actively traded, which shows up as easy fills rather than wide spreads.
• About 300 holdings, cash paid quarterly, and one of the strongest overall implementations in its dividend-screen peer group.

Worth knowing

• PEY The 0.68% fee sits above the category median and well above index rivals such as SCHD at 0.06% and VIG at 0.04%.
• Weighting by dividend yield, not company size, puts the heaviest weights on the biggest payers, and a fat yield sometimes reflects a beaten-down price rather than a thriving business.nasdaq.com
• About 50 holdings is a narrow slice of the dividend market, so individual names and sector tilts carry real weight.

• VIG Growth of payouts, not maximum income, is the mandate. That puts it on a different axis than high-dividend funds such as SPYD.
• US stocks only, no bonds and no overseas payers, and sector weights are whatever the index screen spits out.
• Portfolio risk and concentration measures land mid-pack for the category: it is fully invested in equities and drops when the market drops.

Full PEY profile⁠

Full VIG profile⁠