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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 ETF covering yield, cost, risk, and income potential.

Updated October 14, 2026

How these figures are calculated: methodology.

Best for

  • DGROInvestors who want a quality-dividend tilt rather than the whole market.
  • VYMInvestors who want simple, diversified core exposure in one low-cost fund.

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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

100% reinvested · ex-date convention. Period returns use this fixed assumption, independent of chart settings. YTD and 1Y are cumulative period returns; 3Y, 5Y, and 10Y are annualized. The shared Since-start window is annualized only when it covers at least one year.

DGRO has outpaced VYM over the trailing twelve months, posting a 16.87% total return against 15.96%. The lead holds up over 10 years too: DGRO has compounded at 13.72% a year, against 11.73% for VYM. 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.
SymbolYTD cumulative1Y cumulative3Y annualized5Y annualized10Y annualizedSince Jun 2014Volatility Sharpe Sortino Max drawdown
DGRO13.87%16.87%19.00%11.04%13.72%12.33%11.7%1.111.62-14.0%
VYM12.79%15.96%18.97%11.51%11.73%10.78%12.4%1.051.52-14.5%

Total return with all distributions reinvested on the ex-dividend date (a modeling convention, not the cash-settlement date), split-adjusted, as of October 14, 2026. YTD and 1Y are cumulative period returns; 3Y, 5Y, and 10Y are annualized. The shared Since-start window is annualized only when it covers at least one year. “Since Jun 2014” measures every fund from June 12, 2014 — the start of shared available history — 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.

Side-by-side snapshot

Side-by-side snapshot. Each row is one metric; each column is one fund.
MetricDGROVYM
Full nameiShares Core Dividend Growth ETFVanguard High Dividend Yield ETF
IssueriSharesVanguard
Underlying indexMorningstar US Dividend Growth IndexFTSE High Dividend Yield Index
Last Close$77.95 as of October 14, 2026$159.06 as of October 14, 2026
Distribution rate1.98%2.23%
Trailing 12-month yield1.92%2.31%
Distribution Safety Score™ 9793
Safety-Adjusted Yield 1.92%2.07%
Expense ratio0.08%0.04%
AUM$43.1B$80.7B
Distribution frequencyQuarterlyQuarterly
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.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 classEquityEquity
Inception date06/10/201411/10/2006
Beta0.660.68
Last dividend$0.385$0.887
Ex-dividend date09/15/202609/18/2026

Bottom lineChoose DGRO if you want a quality-dividend tilt rather than the whole market. Choose VYM if you want simple, diversified core exposure in one low-cost fund.

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iShares
ETFs467
Total AUM$4.70T

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

iShares, operated by BlackRock, is one of the largest and most established ETF providers globally, known for offering broad, liquid index-tracking funds across nearly all asset classes and investment styles. The lineup encompasses a comprehensive range of strategies including core equity and bond exposure, dividend and income-focused funds, covered call strategies, ESG and thematic investments, factor-based approaches, alternatives, commodities, and municipal bonds, serving both individual and institutional investors. With numerous popular ticker symbols and extensive diversification across geographies, sectors, and investment objectives, iShares provides one of the market's widest selections of ETFs for building diversified portfolios.

See our curated list of related YouTube videos on DGRO.

See all ETFs from iShares
Vanguard
ETFs116
Total AUM$4.71T

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

Vanguard is one of the largest and most established ETF issuers, known for low-cost, broadly diversified fund offerings built on passive indexing principles. Their lineup spans multiple asset classes and strategies, including core equity and bond index funds, dividend-focused portfolios, ESG-screened options, factor-based strategies, sector exposure, target-date retirement funds, and international investments across developed and emerging markets. The platform is characterized by its emphasis on accessibility and cost efficiency across a comprehensive range of fund families, serving both individual investors seeking broad market exposure and those pursuing specific income, sustainability, or thematic objectives.

See our curated list of related YouTube videos on VYM.

See all ETFs from Vanguard

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Quick verdict

DGRO (iShares Core Dividend Growth ETF) and VYM (Vanguard High Dividend Yield ETF) are both quarterly-pay dividend ETFs, but they take different approaches.

VYM offers the higher yield at 2.23% vs 1.98% 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 0.04% compared to 0.08%.

They have different reference exposures: DGRO is linked to Morningstar US Dividend Growth Index while VYM is linked to FTSE High Dividend Yield Index, which means their performance drivers differ.

VYM is the larger fund by assets ($80.7B), but assets alone do not establish trading costs or liquidity.

Deep dive

Yield & income

On a $10,000 investment, DGRO would generate roughly $49.50 cash per distribution, while VYM would produce $55.75 cash per distribution, at current distribution rates. Both pay quarterly distributions.

DGRO yield1.98%
VYM yield2.23%
Cash diff on $10K$6.25

Cost & efficiency

Over 10 years on $10,000, DGRO would cost approximately $80 in fees vs $40 for VYM (simplified, not compounded). The $40.00 difference may be offset by yield or performance.

DGRO ER0.08%
VYM ER0.04%

Strategy & risk

DGRO tracks Morningstar US Dividend Growth Index, while VYM tracks FTSE High Dividend Yield Index. Beta is 0.66 for DGRO and 0.68 for VYM — effectively similar market sensitivity.

DGRO beta0.66
VYM beta0.68

Fund details

DGRO is managed by iShares (launched 06/10/2014) with $43.1B in assets. VYM is managed by Vanguard (launched 11/10/2006) with $80.7B in assets.

DGRO AUM$43.1B
VYM AUM$80.7B
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Frequently asked questions

What is the current distribution rate for DGRO and VYM?

DGRO currently distributes 1.98% and VYM 2.23%, based on fund data updated October 2026. Distribution rate moves with both the payout and the share price, so check the as-of date before relying on either figure.

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 Morningstar US Dividend Growth Index, while VYM (Vanguard High Dividend Yield ETF) tracks FTSE High Dividend Yield Index. They are issued by iShares and Vanguard respectively.

Can I hold both DGRO and VYM?

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 VYM safer?

By Dividend Vision's Distribution Safety Score — a rules-based 0–100 estimate of how resilient a distribution looks, where higher is safer — DGRO scores 97, VYM scores 93, so DGRO's payout currently looks the more resilient of the two. No score makes an investment risk-free — treat this as a screening signal, not a guarantee.

Which has lower fees, DGRO or VYM?

DGRO has an expense ratio of 0.08% while VYM charges 0.04%. 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 $49.50 cash per distribution ($198.00 annually). The same in VYM would produce about $55.75 cash per distribution ($223.00 annually).

Which has performed better historically, DGRO or VYM?

DGRO has outpaced VYM over the trailing twelve months, posting a 16.87% total return against 15.96%. The lead holds up over 10 years too: DGRO has compounded at 13.72% a year, against 11.73% for VYM. Figures are total returns: price change plus every distribution reinvested. Past performance does not guarantee future results.

More comparisons to explore

DGRO vs VYM — at a glance

Generated October 10, 2026.

Overview

DGRO and VYM are both U.S. dividend-focused ETFs tracking different dividend indexes, but they measure "dividend quality" in opposite directions. DGRO targets companies with growing dividend histories while screening out the highest-yielders, whereas VYM explicitly targets above-average dividend payers from large-cap value stocks. This split creates a meaningful divergence: DGRO leans toward dividend growth potential; VYM leans toward current income.

How they differ

The largest difference is their dividend philosophy. DGRO excludes stocks in the top decile of dividend yield and requires consistent dividend growth history; VYM actively seeks above-average yielders within the large-cap value universe. As a result, DGRO distributes 1.98% while VYM pays 2.23%, a gap of 0.25% percentage points.

Second, DGRO is newer and substantially smaller. VYM launched on 11/10/2006 with $80.7B in assets; DGRO arrived on 06/10/2014 and manages $43.1B. The size difference reflects VYM's longer track record and broader appeal to income-focused investors.

Third, VYM has a lower expense ratio at 0.04% versus DGRO's 0.08%, though the 0.04% basis-point gap is modest. Both trade at roughly similar betas—VYM at 0.68 and DGRO at 0.66—indicating comparable sensitivity to broad market moves.

Who each is best for

  • DGRO: Fits investors who prioritize dividend growth over current yield and expect to reinvest distributions, seeking exposure to companies with rising payout histories rather than today's highest yields.
  • VYM: Fits investors who want meaningful current income from a large-cap dividend-heavy portfolio and are comfortable holding value-biased exposures for both yield and potential price appreciation.

Key risks to know

  • Yield sustainability at VYM's higher payout: VYM's 2.23% yield is meaningfully above DGRO's, which may signal either genuine value pricing or a concentration in dividend stocks facing yield compression if economic growth slows.
  • Growth screening excludes high-yielders at DGRO: By design, DGRO filters out the highest-dividend stocks. If the market reprices and high-yielders outperform, DGRO's screening rules work against returns.
  • Value tilt concentration in VYM: The FTSE High Dividend Yield Index skews toward classic value sectors (financials, energy, utilities). If growth-heavy sectors outperform, VYM will lag a broader benchmark.
  • Dividend growth assumption in DGRO: DGRO assumes that past dividend-growth trends persist. Companies can cut or freeze dividends despite historical growth, eroding the fund's core positioning.
  • Beta similarity masks style divergence: Both funds report similar betas, but DGRO's dividend-growth tilt and VYM's value tilt create different return patterns in market rotations.

Bottom line

If you value steady reinvestment of growing payouts and accept a lower current yield, DGRO's sub-1% yield and growth mandate fit a patient accumulation approach. If you need income now and hold value companies, VYM's 2.23% yield and larger asset base appeal more. Past performance doesn't predict future results, but the two funds will behave quite differently depending on whether dividend-growth stocks or high-yield value stocks lead the market.

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

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Dividend growth vs. high yield Yield on cost, explained How expense ratios eat returns

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These comparisons follow the Dividend Vision methodology.