{"id":39036,"date":"2025-04-23T11:35:06","date_gmt":"2025-04-23T11:35:06","guid":{"rendered":"https:\/\/quickassetsmarket.com\/index.php\/2025\/04\/23\/vanguards-vig-etf-forms-a-rare-death-cross-is-a-deeper-crash-coming\/"},"modified":"2025-04-23T11:35:06","modified_gmt":"2025-04-23T11:35:06","slug":"vanguards-vig-etf-forms-a-rare-death-cross-is-a-deeper-crash-coming","status":"publish","type":"post","link":"https:\/\/quickassetsmarket.com\/index.php\/2025\/04\/23\/vanguards-vig-etf-forms-a-rare-death-cross-is-a-deeper-crash-coming\/","title":{"rendered":"Vanguard\u2019s VIG ETF forms a rare death cross: is a deeper crash coming?"},"content":{"rendered":"
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The Vanguard Dividend Appreciation ETF (VIG) has crashed this year and has formed a death cross pattern, pointing to more downside in the near term. After peaking at $204 earlier this year, the fund has retreated to $184.40, and has formed a death cross pattern, pointing to more downside in the near term.\u00a0<\/p>\n

VIG is a top dividend ETF<\/h2>\n

The Vanguard Dividend Appreciation ETF is one of the biggest players in the dividend investing industry. It has grown to accumulate over $102 billion in assets because of its low expense ratio of 0.05% and long history of paying dividends. It has a dividend yield of just 1.8% because of its strong stock performance. <\/p>\n

The VIG ETF has grown its dividend in the last eleven years. Its stock performance has also been better than other comparable ETFs like the Schwab US Dividend Equity<\/a> (SCHD), Vanguard High Dividend Yield Index Fund ETF Shares (VYM), and iShares Core Dividend Growth ETF (DGRO). <\/p>\n

The VIG ETF tracks companies in the S&P US Dividend Growers Index, which tracks companies in the S&P 500 index that have boosted their dividends for over a year. As such, the index is mostly made up of companies in the technology sector. <\/p>\n

According to Vanguard, 22% of the companies in the VIG fund are in the technology sector. They are followed by firms in the financials, healthcare, consumer staples, and industrials. <\/p>\n

The biggest companies in the fund are Apple, Microsoft, Broadcom, JPMorgan Chase, Eli Lilly, Visa, Exxon Mobil, and Mastercard. <\/p>\n

Read more: 5 Best Dividend ETFs to Buy for Q2 2025<\/p>\n

Is the Vanguard Dividend Appreciation ETF a good dividend fund to buy?<\/h2>\n

A good dividend ETF should exhibit several key characteristics. In addition to having a low expense ratio, it ought to have a high dividend yield. Besides, the goal of investing in these funds is to get a monthly, quarterly, or annual payout.<\/p>\n

For example, the S&P 500 index is not considered a dividend fund yet it has a yield of 1.39%. Similarly, the Invesco QQQ ETF is also not said to be a dividend yield of 0.70%.<\/p>\n

Therefore, we would not classify it as a dividend fund. Rather, it should be classified as a general ETF comprising 338 companies. <\/p>\n

One way to determine whether an ETF is a good investment is to compare its performance with that of other general funds that track the S&P 500 and Nasdaq 100 indices. <\/p>\n

The fund should be a good investment if it has a superior total return over time. In this case, VIG has a total return of 81% in the last five years. In comparison, the SPY and QQQ ETFs have returned 103% and 117%, respectively. <\/p>\n

<\/figure>\n

This means that an investment in the generic funds generates a better return compared to the VIG fund. This aligns with history, which shows that only a few funds have managed to beat the S&P 500 index over time.<\/p>\n

VIG ETF technical analysis<\/h2>\n
VIG ETF stock chart | Source: TradingView<\/a><\/figcaption><\/figure>\n

The daily chart indicates that the VIG ETF reached a high of $204 earlier this year. It formed a double-top pattern, with its neckline at $191.25. A double top is a popular bearish reversal pattern.<\/p>\n

Worse, the fund has formed a death cross pattern as the 50-day and 200-day Exponential Moving Averages (EMA) crossed each other. This pattern is one of the most popular bearish patterns in the market. <\/p>\n

The VIG ETF has moved below the 23.6% Fibonacci Retracement level. Therefore, the fund will likely continue falling as sellers target the year-to-date low of $170, down by 8.2% from the current level. A move above the resistance at $190 will invalidate the bearish view.<\/p>\n

The post Vanguard\u2019s VIG ETF forms a rare death cross: is a deeper crash coming?<\/a> appeared first on Invezz<\/a><\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

The Vanguard Dividend Appreciation ETF (VIG) has crashed this year and has formed a death cross pattern, pointing to more downside in the near term. After peaking at $204 earlier this year, the fund has retreated to $184.40, and has formed a death cross pattern, pointing to more downside in the near term.\u00a0 VIG is <\/p>\n","protected":false},"author":1,"featured_media":39037,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":{"0":"post-39036","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-world"},"_links":{"self":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/39036","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/comments?post=39036"}],"version-history":[{"count":0,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/39036\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media\/39037"}],"wp:attachment":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media?parent=39036"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/categories?post=39036"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/tags?post=39036"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}