Dividend Growth ETFs Trade Current Yield for Rising Payouts and Varying Returns

Three dividend-growth ETFs focus on companies with rising payouts rather than high current yields. Over the year through October 6, 2026, DGRW returned about 13%, VIG 11%, and VIGI 5%, with wider gaps over five years. Rising bond yields have hurt high-yield dividend stocks more than dividend growers, while VIGI's lower return partly reflects its inability to hold U.S. mega-caps.

The three funds—VIG, DGRW, and VIGI—favor companies whose dividends are increasing, even if current payouts are modest. Over the year ending October 6, 2026, DGRW gained about 13%, VIG 11%, and VIGI 5%; five-year returns were 80%, 66%, and 26%. VIG oversees roughly $131 billion and charges 0.04%.

VIG demands a decade of annual payout increases and removes the highest-yielding 25% of eligible names. DGRW instead ranks candidates by projected long-term earnings growth, return on equity, and return on assets, with no long streak requirement. VIGI’s international mandate keeps it out of very large U.S. companies.