Perritt Capital exits VIGI position

What happened: Perritt Capital Management has exited its position in the Vanguard Dividend Appreciation ETF (VIGI). Early investors in VIGI, including Perritt, have seen their yield on cost increase to 6.6% due to dividend growth. Meanwhile, the Vanguard Growth ETF (VUG) has outperformed its peers over the past 15 years, sparking debate about the future of growth vs. value stocks.

Market impact: The exit by Perritt Capital, a prominent investment manager, may signal a shift in sentiment towards dividend-focused ETFs like VIGI. This could lead to a re-evaluation of similar funds and impact their performance. The ongoing growth vs. value debate could drive investment decisions, affecting ETFs like VUG and its peers.

What to watch next: The upcoming earnings reports for key holdings in both VIGI and VUG will provide insight into the health of these companies and their dividends. Additionally, the next release of the Vanguard ETF landscape report could offer further guidance on the firm's stance on growth vs. value, influencing investor decisions.