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ETF Comparison

DGRO vs VYM: Dividend Growth or High Yield?

DGRO requires at least five years of dividend growth and yields 2.10%; VYM targets above-average yields across several hundred names for 2.41%. Two similar-looking dividend funds with different selection philosophies and outcomes.

Data as of September 28, 2026

DGRO

iShares Core Dividend Growth ETF

BlackRock

Dividend Growth

Price

$72.78

Yield (TTM)

2.10%

DGRO dividend calculator →

VYM

Vanguard High Dividend Yield ETF

Vanguard

High Dividend Yield

Price

$154.95

Yield (TTM)

2.41%

VYM dividend calculator →

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Project compounded returns, dividend income, and reinvestment using each ETF's real yield, expense ratio, and distribution frequency.

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Quick Comparison Summary

DGRO vs VYM: compare dividend yield (2.1% vs 2.4%), expense ratio (0.08% vs 0.04%), holdings, returns, and our verdict for dividend investors.

Side-by-Side Metrics
MetricDGROVYM
IssuerBlackRockVanguard
Inception2014-06-102006-11-10
CategoryDividend GrowthHigh Dividend Yield
Price$72.78$154.95
NAV$72.77$154.96
Dividend Yield (TTM)2.10%2.41%
Expense Ratio0.08%0.04%
Distribution FrequencyQuarterlyQuarterly
AUM$39.2B$76.7B
Total Returns

3Y and 5Y figures are annualized. A 0% value indicates the fund had not been listed for the full period.

Holdings & Sector Exposure

DGRO

Top 5 / 5 shown

  • MSFT

    Microsoft

    3.62%

  • AAPL

    Apple

    3.41%

  • JPM

    JPMorgan Chase

    3.18%

  • JNJ

    Johnson & Johnson

    2.88%

  • ABBV

    AbbVie

    2.65%

Sector Weights

  • Financials19.2%
  • Information Tech17.8%
  • Health Care16.5%
  • Consumer Staples12.1%
  • Industrials11.4%
  • Energy6.8%

VYM

Top 5 / 5 shown

  • JPM

    JPMorgan Chase

    3.92%

  • AVGO

    Broadcom

    3.41%

  • XOM

    ExxonMobil

    3.05%

  • JNJ

    Johnson & Johnson

    2.48%

  • PG

    Procter & Gamble

    2.31%

Sector Weights

  • Financials21.5%
  • Health Care13.8%
  • Consumer Staples12.6%
  • Industrials11.4%
  • Energy9.8%
  • Information Tech9.1%

Pros & Cons

DGROPros
  • Requires 5+ years of uninterrupted dividend growth
  • Screens for sustainable payout ratios and positive earnings
  • Quality tilt has historically produced durable income
  • 0.08% expense ratio
VYMPros
  • 2.41% yield with several hundred holdings
  • 0.04% expense ratio — half of DGRO's
  • Broad sector diversification, REITs excluded
  • Higher 5-year annualized return (11.92% vs 10.29%)
DGROCons
  • Slightly lower yield than VYM
  • Growth screen can underweight the highest-yielding sectors
  • Fewer holdings than VYM's broad index
VYMCons
  • No dividend-growth requirement
  • Forecast-yield targeting can rotate into slower businesses
  • Income growth has historically trailed growth-focused funds
The Verdict

The yields are close — VYM's 2.41% against DGRO's 2.10% — but the screens are not. DGRO selects companies with at least five consecutive years of dividend growth and sustainable payout ratios; VYM simply targets stocks with above-average forecast yields. DGRO leans quality and growth; VYM leans breadth and current income, with several hundred holdings and a slightly lower fee.

Best for
DGRO

Investors who want dividend growth and payout-quality screening

Best for
VYM

Investors who want broader exposure and a slightly higher starting yield

Strategy Summary

DGRO

Tracks the Morningstar US Dividend Growth Index — U.S. companies with at least 5 consecutive years of dividend growth, positive earnings payout ratios under 75%, and broad sector exposure.

VYM

Tracks the FTSE High Dividend Yield Index — U.S. stocks with above-average forecast dividend yields, excluding REITs. Broad, market-cap-weighted exposure for low-cost income.

Frequently Asked Questions

VYM yields about 2.41% versus DGRO's 2.10%. The gap is modest — about 0.3 percentage points — and both are well below dedicated high-yield strategies like SPYD.

DGRO tracks the Morningstar US Dividend Growth Index, requiring at least five consecutive years of dividend growth plus payout-sustainability checks. VYM tracks the FTSE High Dividend Yield Index, which favors stocks with above-average forecast yields and excludes REITs. Growth versus income, in one sentence.

Over the trailing five years VYM has returned about 11.92% annualized versus 10.29% for DGRO, according to the data on this page. Rankings shift across market cycles, and past performance does not guarantee future results.

Both distribute predominantly qualified dividends, generally taxed at long-term capital gains rates in taxable accounts. Holdings structured as REITs can pay ordinary income instead; VYM excludes REITs while DGRO may hold some. Confirm with a tax professional.

Both serve similar roles in a dividend portfolio, so holding both adds overlap without much diversification benefit. Pick the philosophy that matches your goal — rising payouts (DGRO) or broader income (VYM) — or combine one of them with a higher-yield satellite.
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Disclaimer: This page is for educational purposes only and is not financial, investment, or tax advice. ETF data is sourced from issuer fact sheets and may be slightly out of date. Past performance is not indicative of future results. Always consult a qualified advisor before making investment decisions.