DGRO vs VYM
iShares Core Dividend Growth ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 616 holdings.
Side-by-Side Comparison
| Metric | DGRO | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.08% | 0.04% | |
| AUM | $43.9B | $81.6B | |
| Dividend Yield | 1.89% | 2.24% | |
| Holdings | 397 | 616 | |
| YTD Return | +15.09% | +15.34% | |
| 1Y Return | +22.96% | +23.24% | |
| 3Y Return (annualized) | +18.54% | +19.22% | |
| 5Y Return (annualized) | +11.04% | +12.21% | |
| Volatility (annualized) | 13.7% | 14.6% | |
| Max Drawdown | -35.1% | -58.8% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jun 10, 2014 | Nov 10, 2006 |
DGRO vs VYM Performance
iShares Core Dividend Growth ETF (DGRO) is a ETF from iShares by BlackRock (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year DGRO returned +22.96% while VYM returned +23.24%. Year to date, DGRO is up 15.09% versus a gain of 15.34% for VYM.
Over three years, DGRO compounded at +18.54% per year against +19.22% for VYM; over five years the annualized figures are +11.04% and +12.21% respectively. Across the full 12-year window we track, DGRO has the edge at +11.21% annualized vs +7.04%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 13.7% for DGRO. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -35.1% for DGRO and -58.8% for VYM. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
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 1.89% against 2.24% for VYM.
Holdings Overlap
DGRO and VYM share 242 holdings out of 741 unique holdings combined, representing a 60.2% weight overlap.
High overlap means holding both may not provide much additional diversification.
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. On a $10,000 investment, that is $4 per year of difference.
Which performed better, DGRO or VYM?
Over the past year DGRO returned +22.96% vs +23.24% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (12 years), DGRO annualized +11.21% vs +7.04% for VYM. Past performance does not guarantee future results.
Which is riskier, DGRO or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 13.7% for DGRO. Worst drawdown: DGRO -35.1% vs VYM -58.8%.
Should I hold both DGRO and VYM?
DGRO and VYM have a monthly-return correlation of 0.98, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between DGRO and VYM?
DGRO and VYM share 242 common holdings with a 60.2% weight overlap. Combined, they hold 741 unique securities.
Which pays a higher dividend, DGRO or VYM?
DGRO yields 1.89% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.
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