Analysis of Vanguard Dividend Appreciation ETF Performance
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 22 2026
0mins
Should l Buy MSFT?
Source: Fool
- Market Style Shift: In 2026, technology stocks are no longer leading, with the Vanguard Dividend Appreciation ETF (VIG) up nearly 4% year-to-date compared to a flat return for the S&P 500 ETF, indicating a renewed focus on high-quality and value stocks.
- Portfolio Construction: This ETF invests in over 300 U.S. stocks with a track record of annual dividend growth for over 10 years, excluding real estate investment trusts and the top 25% highest yielding stocks, thus creating a portfolio of mature, cash-rich companies.
- Defensive Investment Trend: As investors grow more cautious about the U.S. economic outlook, interest in high-valuation tech stocks diminishes, leading to a shift towards more defensive and value-oriented sectors, enhancing the appeal of dividend stocks.
- Risk Warning: Although the Vanguard Dividend Appreciation ETF's holdings are built to withstand challenging environments, its market cap-weighting strategy results in a 26% allocation to large tech stocks, which may face greater pullback risks in the current unfavorable tech sector climate.
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Analyst Views on MSFT
Wall Street analysts forecast MSFT stock price to rise
34 Analyst Rating
32 Buy
2 Hold
0 Sell
Strong Buy
Current: 369.370
Low
500.00
Averages
631.36
High
678.00
Current: 369.370
Low
500.00
Averages
631.36
High
678.00
About MSFT
Microsoft Corporation is a technology company that develops and supports software, services, devices, and solutions. Its Productivity and Business Processes segment consists of products and services in its portfolio of productivity, communication, and information services, spanning a variety of devices and platforms. It comprises Microsoft 365 Commercial products and cloud services; Microsoft 365 Consumer products and cloud services; LinkedIn, and Dynamics products and cloud services. The Intelligent Cloud segment consists of its public, private, and hybrid server products and cloud services. It comprises server products and cloud services, including Azure, and enterprise and partner services, including Enterprise Support Services. Its More Personal Computing segment primarily comprises Windows and Devices, including Windows OEM licensing; Gaming, including Xbox hardware and Xbox content; Search and news advertising, comprising Bing and Copilot, Microsoft News, and Microsoft Edge.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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