Investors are often enticed by funds that offer high dividend yields, but those yields are rarely maintained during periods of economic turmoil. Instead of chasing yield, most investors would likely be better served by finding funds that actually maintain a steady payout through thick and thin.

Although there’s nothing particularly spectacular about Vanguard Dividend Appreciation ETF’s (NYSE: VIG) yield—it currently runs at just 2 percent—the exchange-traded fund’s (ETF) payout is a study in consistency. While the total annual dividend paid by the S&P 500 fell by almost 50 percent from its pre-crisis peak to its post-crisis trough, the total annual dividend paid by Vanguard Dividend Appreciation ETF declined by just 4 cents over the same period.

Vanguard doesn’t disclose the precise methodology it uses to construct the fund’s index, but its process is clearly focused on high-quality securities. For example, a company only merits inclusion if it has increased its dividend in each of the last 10 years. And the average stock in the fund’s portfolio tends to command a lower price-to-earnings multiple than the S&P 500, while having higher historical sales and earnings growth. The fund’s constituents also have lower payout ratios and clean balance sheets. As a result, the ETF strikes an excellent balance between growth and value investing, while ensuring that its holdings pay growing and sustainable dividends.

The fund’s investment strategy has also enabled it to select holdings that show superior revenue growth relative to their peers. In contrast to the many companies that have recently reported flat revenue, the majority of the fund’s 128 holdings that have reported earnings thus far have shown meaningful revenue growth on a year-over-year basis. That’s probably due to the fact that many of its holdings— including names such as McDonald’s Corp (NYSE: MCD), IBM Corp (NYSE: IBM) and Proctor & Gamble Co (NYSE: PG)—are recognized as clear leaders in their industries. The fund also allocates just 6.1 percent of assets to the financial sector versus the S&P 500’s 13.8 percent allocation.

The stream of dividend income from the fund’s holdings has helped bolster its performance during downturns. When the market plunged 37 percent in 2008, the fund declined just 26.6 percent. While the S&P 500 gained 1.1 percent annually over the trailing five-year period, the Vanguard Dividend Appreciation ETF returned more than 3 percent annually.

Over short-term periods, however, the ETF often lags the broad market. In the first quarter, for instance, it gained 7.6 percent versus a 12.6 percent gain for the S&P 500. But its defensive nature is what ultimately makes the fund an ideal candidate for a core portfolio holding. And in keeping with Vanguard’s tradition as a low-cost leader, its annual expense ratio is just 0.18 percent, making it one of the cheapest large-cap ETFs available.

With the global economy still in financial straits—bond yields in both Spain and Italy are once again spiking and growth continues to slow—the ETF’s steady performance should help investors weather the market’s return to volatility in the months ahead.