Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTTodd Shriber, The Motley FoolSun, August 9, 2026 at 7:35 PM GMT+2 4 min readExperienced market participants know that when one invests long enough, one encounters a variety of cycles, including bull and bear markets, as well as periods in which stocks chop along, doing little.Obviously, prolonged bull markets are most investors' preference, but bear markets are facts of life. On average, those circumstances pop up once every 3.5 years and last nearly 10 months. The difficulty many investors encounter is timing market cycles, which is why it's always nice to have exposure to strategies that can be durable across various market "seasons."Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »This Vanguard dividend ETF has all-weather potential. Image source: Getty Images.Some exchange-traded funds (ETFs) accomplish that objective, including the famed Vanguard Dividend Appreciation ETF (NYSEMKT: VIG). Let's examine why this fund is appropriate for long-term investors of all stripes.Regarding this Vanguard fund, the largest ETF in the dividend category, a couple of disclaimers are important. First, as no- and low-yielding growth stocks have led U.S. stocks higher, dividend payers lagged the broader market. Second, dividend stocks and ETFs don't provide full protection during bear markets.All that said, this Vanguard ETF sported lower annualized volatility and lower maximum drawdown than the S&P 500 over the decade ending Aug. 4. The VIG ETF has another feather in its cap. It's one of the most durable long-term performers in its category. Over the 10 years ending July 31, just four domestic dividend ETFs beat this Vanguard fund.For investors who aren't familiar with this ETF, it's worth exploring how that success was attained. The Vanguard fund tracks the S&P U.S. Dividend Growers index, which is a collection of stocks with dividend increase streaks of at least 10 years. To boot, the index excludes the top 25% of highest-yielding names, implying the Vanguard fund isn't littered with a bunch of yield traps.To be sure, those are important facts, and they reveal other attributes of this Vanguard ETF's potential sturdiness across various market climates. Broadly speaking, dividend growth stocks, of which this ETF holds 322, are less volatile than the broader market. Second, over the long term, dividend growth can beat inflation, assuming 1970s- or 2022-style price increases don't materialize.Terms and Privacy PolicyEU DSA contactPrivacy & Cookie SettingsMore Info