Want Nothing to Do With SpaceX? Buy This Ultra-Low-Cost Dividend Growth ETF in June.

1 hour ago 2

Daniel Foelber, The Motley Fool

Sun, June 7, 2026 astatine 6:20 PM CDT 5 min read

SpaceX is expected to deed nationalist markets connected June 12, raising $75 cardinal astatine a $1.77 trillion valuation. With a smaller archetypal nationalist offering (IPO), investors tin simply disregard the quality and not bargain the stock. But SpaceX is truthful ample that it is transforming the mode indexes respond to megacap IPOs.

While the S&P 500 (SNPINDEX: ^GSPC) volition not beryllium adding SpaceX immoderate clip soon, the Nasdaq-100 -- the 100 largest non-financial stocks listed connected the Nasdaq Composite -- is rewriting its scale methodology to fast-track the inclusion of megacap companies similar SpaceX, Anthropic, and OpenAI to springiness scale money investors quicker entree to these companies.

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While the fast-track rules are large quality for investors who privation a portion of these companies done their scale money holdings, it tin beryllium unsettling for folks who judge these companies are going nationalist astatine sky-high valuations and could resistance down the large indexes. What's more, galore growth-focused exchange-traded funds (ETFs) volition apt beryllium buying SpaceX erstwhile it gets added to the indexes, which puts investors who privation to bargain maturation stocks, conscionable not SpaceX, successful a hard spot.

Fortunately, there's a low-cost ETF that balances growth, income, and value, which won't beryllium buying SpaceX erstwhile it IPOs. Here's wherefore the Vanguard Dividend Appreciation ETF (NYSEMKT: VIG) is simply a large bargain now.

A SpaceX rocket launching from Earth.

Image source: Getty Images.

Earnings-fueled dividend maturation

The Vanguard Dividend Appreciation ETF is unsocial due to the fact that it focuses connected companies that consistently turn their net successful lockstep with their dividends. Many income funds alternatively absorption much connected output than connected net maturation quality. And immoderate maturation funds person precise debased yields due to the fact that they clasp fewer dividend-paying companies.

SpaceX, Anthropic, and OpenAI are improbable to beryllium successful the Vanguard Dividend Appreciation ETF due to the fact that they don't person a way grounds of consistently raising dividends. And there's nary denotation these companies volition wage dividends astatine all.

The 10 largest holdings successful the Vanguard Dividend Appreciation ETF supply a bully illustration of the fund's composition.

Company

Vanguard Dividend Appreciation ETF Weight

Dividend Yield

Broadcom (NASDAQ: AVGO)

5.2%

0.6%

Apple (NASDAQ: AAPL)

4.1%

0.3%

Microsoft (NASDAQ: MSFT)

4%

0.8%

JPMorgan Chase (NYSE: JPM)

3.6%

1.9%

Eli Lilly (NYSE: LLY)

3.3%

0.6%

ExxonMobil (NYSE: XOM)

2.9%

2.7%

Walmart (NASDAQ: WMT)

2.6%

0.8%

Johnson & Johnson (NYSE: JNJ)

2.5%

2.3%

Visa (NYSE: V)

2.3%

0.8%

Costco Wholesale (NASDAQ: COST)

2%

0.6%

Data source: Vanguard, YCharts.

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