Choosing Between VIG and NOBL: Which Dividend ETF Aligns With Your Strategy?

The Core Difference: Growth vs. Stability

When selecting a dividend-focused ETF, investors must first understand their priority: do you seek long-term dividend appreciation, or do you prefer defensive income stability? This distinction separates two popular approaches in the dividend ETF space.

VIG (Vanguard Dividend Appreciation ETF) pursues a growth-oriented dividend strategy, tracking 338 U.S. large-cap companies with established dividend expansion track records. Its portfolio construction emphasizes breadth over concentration, allowing it to capture emerging dividend growers across multiple sectors.

NOBL (ProShares S&P 500 Dividend Aristocrats ETF), by contrast, takes a narrower approach with just 70 holdings. NOBL restricts itself to S&P 500 companies that have consistently increased dividends for at least 25 consecutive years, combining equal-weighting and sector caps to limit concentration risk.

Performance Outcomes Tell Different Stories

Over the trailing 12 months (as of December 12, 2025), VIG delivered substantially stronger returns at 12.73%, compared to NOBL’s 3.05%—a nine-percentage-point spread reflecting their different sector exposures and risk management approaches.

The 5-year picture reveals another nuance. A $1,000 investment in VIG would have grown to approximately $1,559, versus $1,316 in NOBL. While VIG demonstrated superior growth, both funds exhibited similar volatility profiles, with VIG experiencing a maximum drawdown of -20.39% and NOBL at -17.92%.

Portfolio Composition Drives Strategy Divergence

VIG’s heavyweight sectors reflect a tech-forward tilt: technology comprises 28% of holdings, followed by financial services (22%) and healthcare (15%). Top positions include Broadcom, Microsoft, and Apple—companies benefiting from secular growth trends alongside dividend expansion.

NOBL’s allocation skews defensive and cyclical. Industrials dominate at 23%, with consumer defensive stocks comprising 22% of the portfolio. Its largest holdings—Albemarle, Expeditors International Washington, and C.H. Robinson Worldwide—represent more mature, established businesses with long dividend histories.

This sector allocation distinction explains much of the performance variance. During periods favoring technology and innovation-driven companies, VIG captures upside more effectively. Conversely, NOBL’s concentration in defensive sectors may provide relative protection during market downturns.

Cost Structure Creates Long-Term Advantage

Perhaps the starkest difference lies in expense ratios. VIG charges just 0.05% annually, while NOBL’s fee structure stands at 0.35%—a sevenfold difference that compounds meaningfully over decades of investing.

This cost advantage reflects VIG’s massive scale: the fund manages $120.4 billion in assets under management, dwarfing NOBL’s $11.3 billion. Greater asset bases enable lower per-unit operating expenses, creating a structural efficiency advantage for VIG investors.

Over a 30-year investment horizon, this fee differential alone could represent several percentage points of cumulative returns—a substantial drag that compounds through time.

Dividend Yield: Trading Current Income for Growth Potential

NOBL offers a higher current dividend yield at 2.04%, compared to VIG’s 1.59%. Investors prioritizing immediate income may find NOBL’s higher payout more attractive for near-term cash generation.

However, this yield advantage comes at a cost: NOBL’s more concentrated portfolio and equal-weighting methodology can limit exposure to the fastest-growing dividend payers. Essentially, NOBL trades potential appreciation for current income, while VIG defers income in favor of compounding dividend growth.

Making Your Selection: Questions to Consider

For long-term wealth builders: VIG’s combination of broad diversification, ultra-low costs, and superior growth trajectory makes it the compelling choice. The fund’s tech weighting aligns with secular growth trends, while its 338-stock portfolio provides natural diversification. The 0.05% expense ratio means more capital working for you across decades of compounding.

For defensive-minded investors: NOBL appeals to those prioritizing portfolio stability and immediate income. Its equal-weighting structure prevents over-concentration in mega-cap stocks, while the dividend aristocrat screen ensures holdings have proven their commitment to shareholder returns through multiple market cycles.

The practical consideration: Both funds share beta readings near 0.78-0.79, suggesting similar market sensitivity. The choice ultimately hinges on whether you prioritize dividend growth potential (favoring VIG) or current income stability with modest concentration risk management (favoring NOBL).

Key Takeaway

VIG and NOBL represent two valid dividend philosophies executed at vastly different scales and cost structures. VIG’s advantage in performance, cost efficiency, and asset diversification suits investors with long time horizons. NOBL’s narrower focus and higher current yield appeal to those emphasizing stability and defensive characteristics. Your decision should reflect your income needs, time horizon, and risk tolerance—not arbitrary preference between the funds’ management companies.