ETF Comparison

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

A head-to-head comparison of iShares Core Dividend Growth ETF and Vanguard High Dividend Yield Index Fund ETF Shares 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 VYM.

See all Vanguard ETFs

Side-by-side snapshot

	DGRO	VYM
Full name	iShares Core Dividend Growth ETF	Vanguard High Dividend Yield Index Fund ETF Shares
Issuer	iShares	Vanguard
Last Close	$77.26 as of July 4, 2026	$159.48 as of July 4, 2026
Distribution yield	1.71%	2.46%
Distribution Safety Score	97	100
Expense ratio	0.08%	0.06%
AUM	$40.6B	$78.3B
Distribution frequency	Quarterly	Quarterly
Underlying index	Basket (Growth-focused dividend equity holdings by BlackRock)	Basket (Vanguard High Dividend Yield ETF holdings)
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.	Seeks to track the performance of the FTSE High Dividend Yield Index, which offers exposure to dividend-paying large-cap companies that exhibit value characteristics within the U.S. equity market. The index includes stocks with a history of paying above-average dividends.
Asset class	Equity	Equity
Inception date	06/10/2014	11/10/2006
Beta	0.7	0.7
Last dividend	$0.3310	$0.9800
Ex-dividend date	09/15/2026	06/18/2026

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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 VYM over the trailing twelve months, posting a 21.82% total return against 20.72%. The lead holds up over 10 years too: DGRO has compounded at 13.57% a year, against 11.63% for VYM. 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%
VYM	10.82%	20.72%	17.36%	11.70%	11.63%	10.97%	12.5%	0.92	1.34	-14.5%

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 VYM (Vanguard High Dividend Yield Index Fund ETF Shares) are both quarterly-pay dividend ETFs, but they take different approaches.

VYM offers the higher yield at 2.46% vs 1.71% for DGRO. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.

VYM is cheaper with an expense ratio of 0.06% compared to 0.08%.

They track different benchmarks: DGRO is linked to Basket (Growth-focused dividend equity holdings by BlackRock) while VYM tracks Basket (Vanguard High Dividend Yield ETF holdings), which means their performance drivers differ.

VYM is the larger fund by assets ($78.3B), 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 VYM would produce $20.50/month, at current distribution rates. Both pay quarterly distributions.

DGRO yield1.71%

VYM yield2.46%

Monthly diff on $10K$6.25

Cost & efficiency

Over 10 years on $10,000, DGRO would cost approximately $80 in fees vs $60 for VYM (simplified, not compounded). The $20.00 difference may be offset by yield or performance.

DGRO ER0.08%

VYM ER0.06%

Strategy & risk

DGRO tracks Basket (Growth-focused dividend equity holdings by BlackRock) with a basket approach, while VYM tracks Basket (Vanguard High Dividend Yield ETF holdings) with an index approach.

DGRO beta0.7

VYM beta0.7

Fund details

DGRO is managed by iShares (launched 06/10/2014) with $40.6B in assets. VYM is managed by Vanguard (launched 11/10/2006) with $78.3B in assets.

DGRO AUM$40.6B

VYM AUM$78.3B

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Frequently asked questions

Is DGRO or VYM better for dividend income?

It depends on your goals. VYM 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 VYM?

DGRO (iShares Core Dividend Growth ETF) tracks Basket (Growth-focused dividend equity holdings by BlackRock) with a basket approach, while VYM (Vanguard High Dividend Yield Index Fund ETF Shares) tracks Basket (Vanguard High Dividend Yield ETF holdings) with an index approach. They are issued by iShares and Vanguard respectively.

Can I hold both DGRO and VYM?

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 VYM?

DGRO has an expense ratio of 0.08% while VYM charges 0.06%. Lower fees mean more of your investment returns stay in your pocket over time.

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

At current rates, $10,000 in DGRO would generate roughly $14.25 per month ($171.00 annually). The same in VYM would produce about $20.50 per month ($246.00 annually).

Which has performed better historically, DGRO or VYM?

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DGRO vs VYM — at a glance

Generated June 2026 from current fund data.

Overview

DGRO and VYM are both large, low-cost equity ETFs focused on U.S. dividend payers, but they diverge sharply in selection philosophy. DGRO tilts toward companies with growing dividends and enforces a payout ratio cap (under 75%) and yield ceiling (excludes the top decile), making it a growth-oriented dividend strategy. VYM targets the highest current dividend yields among large-cap stocks, capturing value-oriented payers with above-average income streams. The two funds have nearly identical beta (0.7) but distribute very different yields: DGRO at 1.75% versus VYM at 2.48%.

How they differ

The largest difference is in selection criteria: DGRO prioritizes dividend growth history and payout discipline, while VYM prioritizes absolute dividend yield without a payout cap. This drives a 73-basis-point yield gap—VYM's 2.48% distribution rate nearly half again larger than DGRO's 1.75%—and almost certainly a meaningful difference in portfolio composition (DGRO screens out the highest-yielding stocks, VYM includes them).

Second is fund size and tenure: VYM is older (inception November 2006 versus June 2014) and substantially larger ($78.3B versus $40.6B), giving it deeper liquidity and longer performance history.

Third is the expense ratio spread, though minimal: VYM's 0.06% undercuts DGRO's 0.08% by two basis points. Both are exceptionally cheap, so cost is unlikely to be a tiebreaker.

Who each is best for

DGRO: Fits investors who want sustainable, rising income streams and are willing to sacrifice current yield for lower payout ratios and dividend-growth exposure. Appeals to those concerned about the durability of payouts over a multi-decade horizon.

VYM: Fits investors prioritizing near-term income from a broad, stable large-cap dividend portfolio and are comfortable with higher current yields and value-stock characteristics. Works well for those who want simplicity and a longer track record of index-based dividend exposure.

Key risks to know

Dividend growth vs. yield tradeoff. DGRO's screening removes high-yielding stocks, which means it sacrifices current income for growth potential; if dividend growth slows or payout discipline deteriorates, the 1.75% yield may underperform inflation without capital appreciation to compensate.

Value-stock exposure in VYM. VYM's tilt toward high-yield, large-cap stocks concentrates its portfolio in value and income-focused sectors (utilities, REITs, financial services, energy). Prolonged underperformance of value relative to growth would drag returns, and rising interest rates can pressure high-yielding stocks.

Beta convergence risk. Both funds report 0.7 beta, suggesting they move together in downturns. This modest downside cushion can disappear if dividend stocks fall out of favor or market dislocations increase equity volatility.

Payout sustainability in VYM. Because VYM includes stocks with above-average yields without a payout ratio limit, some holdings may have less room to maintain distributions if earnings decline, especially in cyclical sectors.

Bottom line

If you prioritize rising income and conservative payouts, DGRO's growth tilt and yield discipline stand out; if you want maximum current yield from a stable, larger portfolio, VYM's 2.48% distribution and $78.3B scale offer more immediate income and deeper liquidity. Both carry value-stock volatility risk, so the choice hinges on whether you're building for growing income (DGRO) or harvesting higher current yields (VYM). 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.