VIG vs. NOBL: A High-Stakes Showdown of Dividend Titans

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Ah, the Vanguard Dividend Appreciation ETF (VIG 0.50%) – that slick beast that prowls the American wilderness of stocks, seeking out companies with a golden record of juicing their dividends annually. And then there’s the ProShares S&P 500 Dividend Aristocrats ETF (NOBL 0.79%), a more focused hound with its nose buried in a diverse pack of U.S. stalwarts. It’s a wild world out there, folks, and these two ETFs are ready to unleash some chaos on your investment strategy.

VIG casts a WIDE net, hoarding a treasure trove of hundreds of holdings, while the well-heeled NOBL rides the S&P 500 express, handpicking 40 equally-weighted stocks, replete with sector caps that, let’s be real, hold both promise and risk.

Buckle up, because here comes the side-by-side breakdown, crammed with numbers and ratios that are both thrilling and terrifying.

Snapshot (cost & size)

Metric NOBL VIG
Issuer ProShares Vanguard
Expense ratio 0.35% 0.05%
1-yr return (as of Oct. 31, 2025) (1.8%) 11.8%
Dividend yield 2.1% 1.6%
Beta 0.86 0.86
AUM $11.1 billion $115.1 billion

Remember, beta is your buddy on volatility; keep it close.

With its low 0.05% expense ratio, VIG is the baller on a budget, allowing you ample space for your risk-seeking behavior, while poor NOBL, in all its glory, sits at a hefty 0.35%. Who said investing was cheap?

NOBL’s higher yield (2.1% compared to VIG’s 1.6%) plays its trump card, dishing out just a bit more in cash flow. But are we really here for the quick pickings, or the long haul?

Performance & risk comparison

Metric NOBL VIG
Max drawdown (5 y) (17.92%) (20.39%)
Growth of $1,000 over 5 years $1,396 $1,701

What’s inside

Step into VIG’s lair: 338 companies doused in the aura of consistent annual dividend growth. A portfolio that is heavily skewed towards technology (28%), financial services (22%), and a dollop of healthcare (15%). What you have, dear reader, is a hip blend of growth and stability.

Its heavyweight champs include the likes of Broadcom (AVGO 1.93%), Microsoft (MSFT 0.17%), and JPMorgan Chase (JPM 0.64%). These are not just stocks; they are the cocaine of the capitalist dream.

Now, slide to the other side where NOBL resides, a more conservative creature within the S&P 500, boasting 70 illustriously mundane stocks. This setup skews toward consumer defensive, industrials, and the always-reliable financial services.

Here, you find C.H. Robinson Worldwide (CHRW 1.20%), AbbVie (ABBV 2.79%), and Caterpillar (CAT 1.25%). NOBL’s composition is steady, maybe too steady, and while it offers a slightly elevated yield, it lacks the sumptuous dip of diversification VIG serves.

For clarity on the ETF investing labyrinth, check out the comprehensive guide through the rabbit hole here.

Foolish take

We sit at the juncture of “high dividend growth” and “stability without the punch.” NOBL carries the more mature stocks, those older titans of industry that play it safe, while VIG is out there strutting with its youth and ambition, throwing dividends around like confetti.

But the kicker? VIG has been upping its dividend payments by an impressive 10% each year since 2013, leaving NOBL, with its 6%, in the dust. YEP, you read that right. Thanks to VIG’s solid sales growth, those dividend hikes are more frequent, while the NOBL boat slowly sails along its predictable course.

Since 2013, VIG has quadrupled our money-FOUR TIMES-while NOBL has tripped along to a respectable threefold return. This VIG engine is fueled by massive weights like Broadcom and Microsoft, accounting for a jaw-dropping 11% of the entire fund.

NOBL, on the other hand, offers a humbler 16% of its top holdings – indeed, a different flavor of the dividend hunt. Its weighty distribution contributes to a more measured approach in the face of market volatility.

Both ETFs are palatable offerings to the investor’s palate, especially with VIG’s tasty, low expense ratio. Remember, friends, VIG is a tech-savvy gambler, while NOBL is your sage old-timer, sticking to the “tried-and-true” in an ever-shifting financial landscape.

Glossary

ETF (Exchange-Traded Fund): An investment fund traded on stock exchanges, holding a cocktail of assets like stocks or bonds.
Expense ratio: The annual fee-yes, your dear fund will gladly take this from you-expressed as a slim percentage.
Dividend yield: The annual dividend income paid by your investment, slapped on as a percentage of its current price.
Beta: A measure of volatility; a low beta means you can expect your investment to behave itself.
AUM (Assets Under Management): The total market value of everything your fund wrangles on behalf of you, the investor.
Max drawdown: The biggest drop in value your fund experiences – it’s a gut-punch waiting to happen.
Sector tilt: When a fund is cozying up to certain industries more than the overall market cares to admit.
Equally weighted: A grand plan where every holding has its fair share, no matter the size – yes, everybody gets a seat at the table.
Defensive sector: Those industries that sit pretty even when the market gets its knickers in a twist – think consumer staples or healthcare.
Diversification: The cool strategy of spreading your investments around, trying to dodge the bullet injuries.
Dividend growth: That glorious consistency of increasing dividend payments over time – may it be ever in your favor!
Constituents: The individual stocks or securities that make the magical world of your index or fund.

As ever, happy hunting, fellow financial gladiators! 🦅

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2025-11-04 09:58