DGRO vs VYM

DGRO vs VYM

Which is better, DGRO or VYM?

Nearly the same fund. VYM costs less.

VYM has a lower expense ratio. DGRO led over 1Y and the full window, VYM over 3Y and 5Y. The two have moved almost in lockstep, correlation 0.98. VYM is less concentrated, with 26.1% of the fund in its ten largest positions against 27.4%.

Lower Fees: VYMHigher Returns: splitLess Concentrated: VYM

MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.

Side-by-Side Comparison

MetricDGROVYM
Expense Ratio0.08%0.04%Best
AUM$43.4B$81.6B
Dividend Yield1.87%2.22%
Holdings397613
YTD Return+11.61%+11.71%Best
1Y Return+16.79%Best+16.24%
3Y Return (annualized)+16.99%+17.24%Best
5Y Return (annualized)+10.78%+11.86%Best
Volatility (annualized)13.7%Tie13.7%Tie
Max Drawdown-35.1%Best-35.7%
$10,000 over 5 years$16,684$17,514Best
Top 10 Weight27.4%26.1%Best
Fund FamilyiShares by BlackRock (US)Vanguard (US)
CategoryEquityEquity
StyleLarge Cap ValueLarge Cap Value
InceptionJun 10, 2014Nov 10, 2006

Volatility and max drawdown are measured over the window both funds cover: Jun 12, 2014 to Sep 16, 2026 (12.3 years).

DGRO vs VYM growth

Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 12.3 years both funds cover.

DGRO vs VYM Performance

iShares Core Dividend Growth ETF (DGRO) is an ETF from iShares by BlackRock (US) and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year DGRO returned +16.79% while VYM returned +16.24%. Year to date, DGRO is up 11.61% versus a gain of 11.71% for VYM.

Over three years, DGRO compounded at +16.99% per year against +17.24% for VYM; over five years the annualized figures are +10.78% and +11.86% respectively. Across the full 12-year window we track, DGRO has the edge at +10.86% annualized vs +8.92%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

DGRO and VYM have been equally volatile, both at 13.7% annualized.

The deepest peak-to-trough decline in our data was -35.1% for DGRO and -35.7% for VYM. Drawdown depth is what each fund did in the worst stretch of the window measured above.

The two funds' monthly returns correlate at 0.98. They move almost in lockstep, so holding both mostly duplicates the same exposure.

Fees and Cost Over Time

DGRO charges 0.08% per year while VYM charges 0.04%. On a $10,000 position that is $8 vs $4 annually, a gap of $4 per year that compounds over a long holding period. On income, DGRO currently yields 1.87% against 2.22% for VYM.

Holdings Overlap

DGRO already in VYM77.9%
VYM already in DGRO71.9%

77.9% of DGRO's money is in holdings VYM also owns. 71.9% of VYM's money is in holdings DGRO also owns.

Most of DGRO is already inside VYM. Owning both mostly buys the same companies twice.

245 positions in common, counted across the 381 positions we hold weights for in DGRO and 557 in VYM, against full books of 397 and 613.

What only one of them owns

Our book lists 286 positions for VYM that do not appear in our book for DGRO (25.8% of the fund), and 125 for DGRO that do not appear in VYM (21.2%).

Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.

Top Shared Holdings

StockWeight in DGROWeight in VYMDifference
AVGOBroadcom Inc2.40%7.35%4.95%
JPMJpmorgan Chase3.17%3.82%0.65%
JNJJohnson & Johnson - Common3.14%2.51%0.63%
XOMExxon Mobil Corp.2.94%2.63%0.31%
ABBVAbbvie Inc.2.99%1.80%1.19%
PGProcter & Gamble Company2.15%1.37%0.78%
BACBank of America Corp.: Financials1.81%1.66%0.15%
MRKMerck & Company Inc2.15%1.31%0.84%
HDHome Depot Inc/The2.09%1.34%0.75%
KOCoca Cola Co.1.96%1.38%0.58%

77.9% of DGRO is already inside VYM.

You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.

DGROVYM

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Frequently Asked Questions

Which is cheaper, DGRO or VYM?

DGRO has an expense ratio of 0.08% while VYM charges 0.04%. VYM is the cheaper option, by $4 a year on a $10,000 investment.

Which performed better, DGRO or VYM?

Over the past year DGRO returned +16.79% vs +16.24% for VYM, so DGRO leads on 1-year performance. Over the longest common window we track (12 years), DGRO annualized +10.86% vs +8.92% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, DGRO or VYM?

DGRO and VYM have been equally volatile, both at 13.7% annualized. Worst drawdown: DGRO -35.1% vs VYM -35.7%.

Should I hold both DGRO and VYM?

DGRO and VYM have a monthly-return correlation of 0.98, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.

What is the holdings overlap between DGRO and VYM?

77.9% of DGRO's money is in holdings VYM also owns. 71.9% of VYM's is in holdings DGRO also owns. They hold 245 positions in common, counted across the 381 positions we hold weights for in DGRO and 557 in VYM.

Which pays a higher dividend, DGRO or VYM?

DGRO yields 1.87% while VYM yields 2.22%, so VYM currently pays the higher dividend yield.

Is VYM better than DGRO?

VYM has a lower expense ratio. DGRO led over 1Y and the full window, VYM over 3Y and 5Y. The two have moved almost in lockstep, correlation 0.98. VYM is less concentrated, with 26.1% of the fund in its ten largest positions against 27.4%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.