VIG vs NOBL: Two Dividend Growth ETFs, Very Different Rulebooks

Vanguard Dividend Appreciation ETF (VIG) stands out for its ultra-low costs, broader sector mix, and higher recent returns, while ProShares - S&P 500 Dividend Aristocrats ETF (NOBL) focuses on equal-weighted blue-chip dividend growers with a defensive tilt.

Both funds target companies with robust dividend track records, but VIG and NOBL take different routes: VIG casts a wider net with hundreds of holdings and a tech tilt, while NOBL zeroes in on S&P 500 constituents with at least 25 consecutive years of dividend growth. Here’s how they compare on cost, performance, risk, and portfolio makeup.

Snapshot (cost & size)

Beta measures price volatility relative to the S&P 500; beta is calculated from five-year weekly returns. The 1-yr return represents total return over the trailing 12 months.

VIG is meaningfully more affordable, charging just 0.05% in annual fees compared to NOBL’s 0.35%, though NOBL offers a slightly higher dividend payout at 2.0% versus VIG’s 1.6%.

Performance & risk comparison

What's inside

VIG tracks a broad index of large-cap U.S. stocks with a consistent record of growing dividends, resulting in a portfolio of 338 companies. Its largest sector weights are technology (28%), financial services (22%), and healthcare (15%), with top positions in Broadcom (NASDAQ: AVGO), Microsoft (NASDAQ: MSFT), and Apple (NASDAQ: AAPL). The fund has a nearly 20-year track record and is managed by Vanguard, emphasizing low costs and full replication. There are no notable quirks or overlays that affect the fund’s mechanics.

NOBL’s 70-stock portfolio is equally weighted, with significant exposure to industrials (23%) and consumer defensive names (22%). Top holdings include Albemarle (NYSE: ALB), Expeditors Intl Wash (NYSE: EXPD), and C.H. Robinson Worldwide (NASDAQ: CHRW). The approach is more concentrated with a defensive tilt, and no single sector exceeds 30% of assets.

What this means for investors

Dividend growth ETFs can feel interchangeable in calm markets, but their differences surface quickly when market leadership shifts.VIG casts a wide net across dividend growers and weights them by size, which naturally gives more influence to the market’s largest and most successful companies. NOBL is narrower by design, limiting itself to S&P 500 companies with 25 straight years of dividend increases and then weighting them evenly. That structural choice shapes everything that follows.

VIG’s approach allows strong businesses to grow into larger positions over time, which is why technology and other growth-oriented dividend payers can meaningfully affect results. NOBL’s equal-weight structure keeps redistributing exposure across its smaller lineup, preventing any single company from pulling too far ahead. This can make returns feel steadier when investors favor established names, but it can also hold the fund back when dividend growth is coming from faster-growing companies. Costs add to the difference, since VIG is priced to be held broadly, while NOBL’s higher fee reflects its tighter rules.

For investors, the takeaway is not about yield levels or dividend reliability, but about how dividend growth is sourced. VIG captures dividend growth as it emerges from today’s market leaders. NOBL preserves dividend growth as a historical standard built on endurance rather than change. Over time, that distinction shapes whether a dividend strategy evolves with the market or holds its ground against it.

Glossary

Expense ratio: The annual fee, as a percentage of assets, that a fund charges its investors.
Dividend yield: Annual dividends paid by a fund or stock divided by its current price, expressed as a percentage.
Total return: The investment's price change plus all dividends and distributions, assuming those payouts are reinvested.
Beta: A measure of an investment's volatility compared to the overall market, typically the S&P 500.
Max drawdown: The largest percentage drop from a fund’s peak value to its lowest point over a specific period.
AUM (Assets Under Management): The total market value of all assets managed by a fund.
Equal-weighted: A portfolio strategy where each holding has the same allocation, regardless of company size.
Defensive tilt: A portfolio emphasis on sectors or stocks considered less sensitive to economic downturns.
Full replication: An index fund strategy that holds all securities in the benchmark index in the same proportions.
Dividend growth: The consistent increase of dividend payments by a company over time.
Sector weights: The percentage of a fund’s assets allocated to each industry sector.
Constituents: The individual stocks or securities that make up an index or fund.

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Eric Trie has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends ProShares S&P 500 Dividend Aristocrats ETF and Vanguard Dividend Appreciation ETF. The Motley Fool has a disclosure policy.