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ETF Comparison

DGRO vs SPY: Which Is the Better Pick in 2026?

A head-to-head comparison of iShares Core Dividend Growth ETF and SPDR S&P 500 ETF Trust covering yield, cost, risk, and income potential.

Data updated August 14, 2026

Best for

  • DGROInvestors who want higher current income (1.66% vs 0.98% for SPY).
  • SPYInvestors who want simple, diversified core exposure in one low-cost fund.

Jump to the side-by-side numbers

Side-by-side snapshot

Side-by-side snapshot. Each row is one metric; each column is one fund.
MetricDGROSPY
Full nameiShares Core Dividend Growth ETFSPDR S&P 500 ETF Trust
IssueriSharesState Street
Last Close$79.83 as of August 14, 2026$776.34 as of August 14, 2026
Distribution yield1.66%0.98%
Distribution Safety Score™ 100100
Expense ratio0.08%0.10%
AUM$43.4B$812B
Distribution frequencyQuarterlyQuarterly
Underlying indexBasket (Growth-focused dividend equity holdings by BlackRock)S&P 500 Index
ObjectiveSeeks to track the investment results of the Morningstar U.S. Dividend Growth Index, which measures the performance of U.S. equities with a history of consistently growing dividends. Companies must have a payout ratio less than 75% and are excluded if in the top decile based on dividend yield.Track the S&P 500 Index before expenses.
Asset classEquityEquity
Inception date06/10/201401/22/1993
Beta0.671.0
Last dividend$0.3310$1.9035
Ex-dividend date06/15/202606/18/2026

Bottom lineChoose DGRO if you want higher current income (1.66% vs 0.98% for SPY). Choose SPY if you want simple, diversified core exposure in one low-cost fund.

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Income calculator

See how much monthly income a hypothetical investment would generate in each ETF at current yields.

iShares
ETFs473
Total AUM$4664B

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

iShares is one of the largest ETF providers globally, known for offering a broad, diversified lineup of exchange-traded funds across multiple asset classes and investment strategies. The company operates 215 funds spanning 15 distinct families, including popular offerings in dividend income, covered call strategies, bonds, equities, ESG-focused investments, and factor-based approaches, with widely-held tickers like AGG (bond), ACWI (global equity), and AOA (allocation). iShares is characterized by its comprehensive fund ecosystem that serves both core portfolio holdings and specialized investment strategies, making it a prominent player for investors seeking both traditional and alternative income-generating ETF solutions.

See our curated list of related YouTube videos on DGRO.

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State Street
ETFs180
Total AUM$2127B

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

State Street Global Advisors (SSGA) is one of the largest ETF providers globally, known for its flagship SPDR suite of exchange-traded products that serve both institutional and retail investors across a broad range of asset classes. Their 88-fund lineup spans diverse strategies including sector exposure (Select Sector SPDR), income generation (Income and Select Sector SPDR Premium Income families), commodities (including the widely-held GLD gold ETF), bonds, ESG-focused investments, and thematic allocations, with popular tickers like DIA (Diamonds Trust), FEZ (Eurozone exposure), and JNK (high-yield bonds) among their most recognized funds. The issuer is characterized by its comprehensive coverage across multiple market segments and its emphasis on both traditional index-based products and specialized strategies like covered call income funds and factor-based investing.

See our curated list of related YouTube videos on SPY.

See all State Street ETFs

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Visual comparison

Key metrics

Projected income on $10K

Projections assume the current yield and share price remain constant. Actual results will vary.

Total returns

DGRO has outpaced SPY over the trailing twelve months, posting a 22.91% total return against 21.72%. The picture flips over 10 years, though — SPY has compounded at 15.33% a year, ahead of DGRO at 13.56%. DGRO has been the steadier holding, though — annualized volatility of 11.8% against 15.3% for SPY. Figures are total returns: price change plus every distribution reinvested.

Total return and risk statistics by fund. Each row is one fund; each column is one period or statistic.
SymbolYTD1Y3Y5Y10YSince Jun 2014Volatility Sharpe Sortino Max drawdown
DGRO15.41%22.91%17.66%11.11%13.56%12.68%11.8%1.001.46-14.0%
SPY14.24%21.72%21.60%13.24%15.33%14.00%15.3%0.991.43-18.8%

Total return with all distributions reinvested on the ex-dividend date, split-adjusted, as of August 14, 2026. YTD and 1Y are cumulative; longer windows are annualized. “Since Jun 2014” measures every fund from June 12, 2014 — the youngest fund's first trading day — so all funds share one comparison window. Volatility is the annualized standard deviation of daily total returns over the trailing 3 years. Sharpe and Sortino divide the annualized return in excess of the risk-free rate by, respectively, that volatility and the downside deviation (both over the trailing 3 years) — higher is better. Max drawdown is the largest peak-to-trough total-return decline over the same window — shallower is better.

Quick verdict

DGRO (iShares Core Dividend Growth ETF) and SPY (SPDR S&P 500 ETF Trust) are both quarterly-pay dividend ETFs, but they take different approaches.

DGRO offers the higher yield at 1.66% vs 0.98% for SPY. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.

DGRO is cheaper with an expense ratio of 0.08% compared to 0.10%.

They track different benchmarks: DGRO is linked to Basket (Growth-focused dividend equity holdings by BlackRock) while SPY tracks S&P 500 Index, which means their performance drivers differ.

SPY is the larger fund by assets ($812B), which generally means tighter spreads and better liquidity.

Deep dive

Yield & income

On a $10,000 investment, DGRO would generate roughly $13.83/month, while SPY would produce $8.17/month, at current distribution rates. Both pay quarterly distributions.

DGRO yield1.66%
SPY yield0.98%
Monthly diff on $10K$5.67

Cost & efficiency

Over 10 years on $10,000, DGRO would cost approximately $80 in fees vs $100 for SPY (simplified, not compounded). The $20.00 difference may be offset by yield or performance.

DGRO ER0.08%
SPY ER0.10%

Strategy & risk

DGRO tracks Basket (Growth-focused dividend equity holdings by BlackRock), while SPY tracks S&P 500 Index with a large cap approach. Beta is 0.67 for DGRO and 1.0 for SPY, indicating DGRO is less volatile relative to the market.

DGRO beta0.67
SPY beta1.0

Fund details

DGRO is managed by iShares (launched 06/10/2014) with $43.4B in assets. SPY is managed by State Street (launched 01/22/1993) with $812B in assets.

DGRO AUM$43.4B
SPY AUM$812B
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Frequently asked questions

What is the current distribution yield for DGRO and SPY?

DGRO currently distributes 1.66% and SPY 0.98%, based on fund data updated August 2026. Distribution yield moves with both the payout and the share price, so check the as-of date before relying on either figure.

Is DGRO or SPY better for dividend income?

It depends on your goals. DGRO currently offers the higher distribution yield, which means more income per dollar invested. However, a lower-yield fund may offer better total return or lower volatility. Consider your time horizon and risk tolerance.

What is the difference between DGRO and SPY?

DGRO (iShares Core Dividend Growth ETF) tracks Basket (Growth-focused dividend equity holdings by BlackRock), while SPY (SPDR S&P 500 ETF Trust) tracks S&P 500 Index with a large cap approach. They are issued by iShares and State Street respectively.

Can I hold both DGRO and SPY?

Yes — nothing prevents holding both. Whether the combination actually diversifies depends on how much the underlying exposures overlap, which isn't fully measurable from the data on this page; review each security's holdings, sector, and strategy before treating them as complementary.

Is DGRO or SPY safer?

By Dividend Vision's Distribution Safety Score — a rules-based 0–100 estimate of how resilient a distribution looks, where higher is safer — they are effectively tied: DGRO scores 100, SPY scores 100. Neither has a clear safety edge on that measure. DGRO has also shown lower price volatility (beta 0.67 vs 1.00 for SPY). No score makes an investment risk-free — treat this as a screening signal, not a guarantee.

Which has lower fees, DGRO or SPY?

DGRO has an expense ratio of 0.08% while SPY charges 0.10%. Lower fees mean more of your investment returns stay in your pocket over time.

How much income does $10,000 in DGRO vs SPY generate?

At current rates, $10,000 in DGRO would generate roughly $13.83 per month ($166.00 annually). The same in SPY would produce about $8.17 per month ($98.00 annually).

Which has performed better historically, DGRO or SPY?

DGRO has outpaced SPY over the trailing twelve months, posting a 22.91% total return against 21.72%. The picture flips over 10 years, though — SPY has compounded at 15.33% a year, ahead of DGRO at 13.56%. DGRO has been the steadier holding, though — annualized volatility of 11.8% against 15.3% for SPY. Figures are total returns: price change plus every distribution reinvested. Past performance does not guarantee future results.

More comparisons to explore

DGRO vs SPY — at a glance

Generated August 15, 2026.

Overview

DGRO and SPY are both large-cap equity ETFs, but they pursue fundamentally different philosophies. SPY is a market-cap-weighted S&P 500 tracker that holds all 500 index constituents in proportion to their market value. DGRO is a narrower dividend-growth screened portfolio that selects U.S. companies with consistent dividend-raising histories and payout ratios below 75%, then deliberately excludes the highest-yielding stocks to avoid value traps.

How they differ

The core difference is scope and selection. SPY holds the full S&P 500 regardless of dividend policy; DGRO filters the universe down to dividend growers and explicitly rejects high-yield stocks, creating a meaningfully different composition. SPY's beta of 1.0 confirms it moves with the broader market; DGRO's beta of 0.67 indicates it's less volatile—a consequence of its lower-yield, growth-oriented tilt within the equity space. On income, SPY yields 0.98% while DGRO yields 1.66%, reflecting the dividend-screen strategy. Both charge minimal fees (SPY at 0.10%, DGRO at 0.08%), but SPY operates at an enormous scale ($812B AUM versus DGRO's $43.4B), which translates to tighter spreads and deeper liquidity.

Who each is best for

DGRO: Fits investors seeking lower volatility relative to the S&P 500 while still capturing equity upside, with a preference for holdings that have demonstrated disciplined capital-return practices and room to raise payouts.

SPY: Fits investors who want maximum market-cap-weighted exposure to large-cap U.S. equities without screening for dividend policy or growth characteristics, and who prioritize liquidity and the widest possible diversification.

Key risks to know

  • Concentration in dividend-growth screening: DGRO's exclusion of high-yield stocks and focus on lower payout ratios biases it away from mature, cash-generative businesses that may trade at value prices. Its holdings may overlap substantially with growth-focused indexes, potentially magnifying exposure to the same macro drivers that affect the broader growth segment.
  • Beta mismatch in market recoveries: DGRO's 0.67 beta means it is likely to lag SPY during broad market rallies, particularly when value and dividend-rich sectors outperform. An investor holding DGRO to reduce volatility should understand this asymmetry in upside participation.
  • Dividend-growth sustainability: The index screens for history and payout ratios, but past dividend-raising behavior does not guarantee future increases, especially during recessions or sector downturns where historically reliable payers may cut or pause growth.

Bottom line

If you value broad market exposure with minimal fees and maximum liquidity, SPY's full S&P 500 weighting and $812B in AUM stand out. If you prefer lower volatility and a tilt toward dividend-growers with room to raise payouts, DGRO's 0.67 beta and 1.66% yield fit a different investor profile. Past performance does not predict future results; the trade-off between market-cap fidelity and dividend-growth selectivity depends on your asset-allocation plan.

AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.

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The metrics behind this comparison, explained in the Academy.

How covered-call funds work How to read a fund's stats The covered-call opportunity cost

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