ETF Comparison

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

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

Data updated July 4, 2026

iShares

ETFs481

Total AUM$4451B

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.

See all iShares ETFs

Vanguard

ETFs115

Total AUM$4484B

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

Vanguard is known for offering low-cost, passively managed ETFs that emphasize broad market exposure and long-term investing. The company operates 175 ETFs across diverse fund families including Index, Bond, Equity, Dividend, Income, International, Factor, and ESG strategies, serving investors with various goals from core portfolio building to specialized income generation. Notable for its scale and popular tickers like VB (total U.S. small-cap), BND (total bond market), and VBIAX (international bonds), Vanguard focuses on providing comprehensive, index-based investment solutions with an emphasis on cost efficiency and accessibility.

See our curated list of related YouTube videos on VOO.

See all Vanguard ETFs

Side-by-side snapshot

	DGRO	VOO
Full name	iShares Core Dividend Growth ETF	Vanguard S&P 500 ETF
Issuer	iShares	Vanguard
Last Close	$77.26 as of July 4, 2026	$684.84 as of July 4, 2026
Distribution yield	1.71%	1.15%
Distribution Safety Score	97	100
Expense ratio	0.08%	0.03%
AUM	$40.6B	$1033B
Distribution frequency	Quarterly	Quarterly
Underlying index	Basket (Growth-focused dividend equity holdings by BlackRock)	S&P 500 Index
Objective	Seeks 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 performance of the S&P 500 Index, representing 500 of the largest U.S. companies.
Asset class	Equity	Equity
Inception date	06/10/2014	09/07/2010
Beta	0.7	1.0
Last dividend	$0.3310	$1.9622
Ex-dividend date	09/15/2026	06/26/2026

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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 VOO over the trailing twelve months, posting a 21.82% total return against 21.69%. The picture flips over 10 years, though — VOO has compounded at 15.38% a year, ahead of DGRO at 13.57%. DGRO has been the steadier holding, though — annualized volatility of 11.8% against 14.9% for VOO. Figures are total returns: price change plus every distribution reinvested.

Symbol	YTD	1Y	3Y	5Y	10Y	Since Jun 2014	Volatility	Sharpe	Sortino	Max drawdown
DGRO	11.69%	21.82%	17.05%	11.29%	13.57%	12.51%	11.8%	0.96	1.40	-14.0%
VOO	9.34%	21.69%	20.30%	13.11%	15.38%	13.81%	14.9%	0.95	1.36	-18.7%

Total return with all distributions reinvested on the ex-dividend date, split-adjusted, as of July 2, 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 VOO (Vanguard S&P 500 ETF) are both quarterly-pay dividend ETFs, but they take different approaches.

DGRO offers the higher yield at 1.71% vs 1.15% for VOO. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.

VOO is cheaper with an expense ratio of 0.03% compared to 0.08%.

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

VOO is the larger fund by assets ($1033B), which generally means tighter spreads and better liquidity.

Deep dive

Yield & income

On a $10,000 investment, DGRO would generate roughly $14.25/month, while VOO would produce $9.58/month, at current distribution rates. Both pay quarterly distributions.

DGRO yield1.71%

VOO yield1.15%

Monthly diff on $10K$4.67

Cost & efficiency

Over 10 years on $10,000, DGRO would cost approximately $80 in fees vs $30 for VOO (simplified, not compounded). The $50.00 difference may be offset by yield or performance.

DGRO ER0.08%

VOO ER0.03%

Strategy & risk

DGRO tracks Basket (Growth-focused dividend equity holdings by BlackRock) with a basket approach, while VOO tracks S&P 500 Index with a large cap approach. Beta is 0.7 for DGRO and 1.0 for VOO, indicating DGRO is less volatile relative to the market.

DGRO beta0.7

VOO beta1.0

Fund details

DGRO is managed by iShares (launched 06/10/2014) with $40.6B in assets. VOO is managed by Vanguard (launched 09/07/2010) with $1033B in assets.

DGRO AUM$40.6B

VOO AUM$1033B

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Frequently asked questions

Is DGRO or VOO 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 VOO?

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

Can I hold both DGRO and VOO?

Yes. Many income investors hold both to diversify across different strategies and underlying indexes. This can reduce concentration risk while maintaining a strong income stream.

Which has lower fees, DGRO or VOO?

DGRO has an expense ratio of 0.08% while VOO charges 0.03%. Lower fees mean more of your investment returns stay in your pocket over time.

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

At current rates, $10,000 in DGRO would generate roughly $14.25 per month ($171.00 annually). The same in VOO would produce about $9.58 per month ($115.00 annually).

Which has performed better historically, DGRO or VOO?

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DGRO vs VOO — at a glance

Generated June 2026 from current fund data.

Overview

DGRO and VOO are both U.S. equity ETFs, but they track fundamentally different universes. VOO holds all 500 companies in the S&P 500, weighted by market cap. DGRO screens for dividend-growing stocks—companies with consistent payout growth, modest payout ratios, and below-average current yields—creating a narrower, growth-oriented dividend basket. The key distinction is focus: VOO captures the broad market; DGRO targets a dividend-quality subset.

How they differ

The biggest difference is strategy. VOO is a cap-weighted S&P 500 tracker with no dividend preference; DGRO actively screens for dividend growers, excluding high-yield stocks and those with unsustainable payout policies. That structural difference shows up in yield: DGRO's 1.75% distribution rate nearly matches VOO's 1.17%, but DGRO achieves it with fewer, higher-quality dividend payers. DGRO's beta of 0.7 versus VOO's 1.0 reflects lower market sensitivity—a result of screening for stable, mature dividend growers rather than capturing the full market's volatility. On cost, VOO edges out DGRO with a 0.03% expense ratio versus DGRO's 0.08%, though the gap is negligible. Scale differs sharply: VOO's $1033B in assets dwarfs DGRO's $40.6B, giving VOO tighter tracking and deeper trading liquidity.

Who each is best for

DGRO: Fits investors seeking a dividend-income tilt without high distribution yields—those who want equity exposure anchored to companies demonstrating payout discipline and growth, rather than the broadest possible market participation.

VOO: Fits investors pursuing maximum market breadth and lowest cost, accepting whatever dividend and earnings growth the full S&P 500 delivers, without tilting toward or away from dividend payers.

Key risks to know

Concentration in dividend growers. DGRO's screening criteria—payout ratio, growth history, exclusion of top-decile yielders—narrow the opportunity set significantly versus the S&P 500. If growth stocks underperform mature dividend payers, or if dividend-growth narratives lose favor, DGRO may lag VOO for extended periods.

Lower beta and market capture. DGRO's 0.7 beta means it will underperform in broad bull markets where the full S&P 500 (beta 1.0) and growth or high-yield stocks rally hardest. Investors accepting lower equity volatility may sacrifice upside.

Payout ratio constraints. DGRO's requirement for sub-75% payout ratios and exclusion of extreme yielders filters out some high-dividend-paying sectors (utilities, REITs, energy) that form a material part of VOO's exposure. Sector skew introduces style risk.

S&P 500 concentration risk. Both funds are U.S.-only and cap-weighted within their scope; neither provides geographic or market-cap diversification. A prolonged downturn in large-cap U.S. equities affects both, though DGRO's lower beta provides some cushion.

Bottom line

VOO offers the lowest-cost, broadest U.S. equity exposure with full market participation; DGRO trades some upside for dividend-growth discipline and lower volatility. If you want to hold the market as a whole with minimal friction, VOO's scale, fees, and cap-weighting make it the natural anchor. If you prefer equity income tied to companies with rising payouts and room for growth, DGRO's tighter focus and lower beta align with that objective. Past performance does not guarantee future results.

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