VIG vs. DIV: Which Dividend ETF Will Outperform in 2026?

Dividend ETFs offer cash flow and diversified holdings. You don’t have to stay up late at night researching dividend stocks to get respectable returns and extra income. Some dividend investors put their money in multiple ETFs for additional diversification, but some investors prefer to pick a dividend ETF that they believe will outperform the competition.

The Vanguard Dividend Appreciation Index Fund ETF (NYSEARCA:VIG) and Global X SuperDividend US ETF (NYSEARCA:DIV) are two ETFs that offer exposure to several dividend stocks. However, if you look at long-term returns and portfolio compositions, the winner between these two dividend ETFs is pretty clear.

What’s In VIG?

VIG focuses on dividend growth stocks that have low yields and high dividend growth rates. It results in a pretty low 30-day SEC yield of 1.65%, but the fund has also produced a return of roughly 70% over the past five years. It’s lagged the S&P 500, but not every investor wants to beat that benchmark. VIG is less volatile, and that comes in handy during market corrections.

VIG has an attractive 0.05% expense ratio, which means you get to keep almost all of your gains. The fund spreads its assets across 337 holdings, with more than one-quarter of its capital going into the tech sector. Financial stocks make up 22.7% of the fund’s portfolio.

The ETF’s top three holdings are Broadcom (NASDAQ:AVGO), Microsoft (NASDAQ:MSFT), and JPMorgan  (NYSE:JPM). These three holdings make up a little less than 15% of VIG’s total assets.

What’s In DIV?

DIV focuses on high-yield stocks, which results in a higher yield but lower long-term returns. The fund has a lofty 7.70% 30-day SEC yield, which blows VIG out of the water. However, a deeper look indicates that this fund isn’t a winner. It has a 0.45% expense ratio and has only delivered a 15% return over the past five years. The return is more generous if you include dividends, but those dividend payouts get taxed. Meanwhile, you don’t have to worry about any taxes if you simply hold your shares.

Its top three holdings are Armagh Metal Packaging (NYSE:AMBP), Alexander’s (NYSE:ALX), and Global Ship (NYSE:GSL). The fund primarily consists of mature companies that have high yields and limited growth prospects. Energy stocks make up 22.2% of the portfolio, and real estate comes in second, consisting of 18.6% of the portfolio. It’s notable that real estate holds the #2 spot since dividends from real estate investment trusts are treated as ordinary income.

DIV touts low volatility and gives out monthly dividends. Retirees may benefit from this setup, but it’s not as desirable for growth investors.

The Final Verdict: VIG vs. DIV

The Vanguard Dividend Appreciation Index Fund ETF is the clear winner over the Global X SuperDividend US ETF. VIG has several leading tech companies in its top holdings that are poised to surge as artificial intelligence continues to heat up. VIG has consistently outperformed DIV during bullish markets and will likely pull off a repeat in 2026.

DIV is more suitable for investors who want high yields and low volatility. While this fund may help retirees who want higher incomes and less risk, it isn’t a winning formula for attractive long-term returns. Investors who want to maximize their gains may want to buy shares in VIG instead of DIV.

The post VIG vs. DIV: Which Dividend ETF Will Outperform in 2026? appeared first on 24/7 Wall St..