VIG vs DGRO: Head-to-Head Comparison
Last updated: March 2026 • Dividend
Quick Verdict
Both ETFs score equally well for beginners (9/10). Your choice depends on your specific investment goals.
Side-by-Side Comparison
Key Differences Between VIG and DGRO
VIG (Vanguard Dividend Appreciation ETF) is a u.s. large-cap dividend growth fund managed by Vanguard. VIG invests in U.S. companies that have increased their dividends for at least 10 consecutive years, focusing on dividend growth rather than high current yield. This approach tends to select financially healthy companies with sustainable business models. Beginners who want quality companies that regularly reward shareholders will appreciate VIG's focus on consistent dividend growers.
DGRO (iShares Core Dividend Growth ETF) is a dividend growth fund managed by BlackRock. DGRO focuses on U.S. companies that have a track record of growing their dividends year after year, combining income potential with long-term growth. It screens for at least five consecutive years of dividend increases and sustainable payout ratios. Beginners who want both current income and the potential for that income to grow over time find DGRO an appealing core holding.
The most notable differences are in fees (0.06% vs 0.08%), number of holdings (338 vs 420), and 5-year returns (13.10% vs 13.00%).
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Holdings Overlap Analysis
43%
Holdings Overlap
VIG and DGRO share 43% of their top holdings. There is moderate overlap, so owning both provides some additional diversification but with diminishing returns.
Cost Comparison Over Time
If you invest $10,000 and hold for 20 years (assuming 8% annual returns):
VIG
Fee cost: $515
DGRO
Fee cost: $686
Over 20 years, the fee difference amounts to $171 on a $10,000 investment. VIG saves you more in fees over time.
Which One Should a Beginner Choose?
Choose VIG if: You want long-term investors who want dividend growth compounding over decades, investors seeking a balance between growth potential and income reliability, those who prefer quality companies with proven financial discipline. It's managed by Vanguard with an expense ratio of 0.06%.
Choose DGRO if: You want income investors who prioritize growing dividends over high current yield, long-term compounders who want dividend reinvestment to accelerate returns, core portfolio builders seeking a blend of income and capital appreciation. It's managed by BlackRock with an expense ratio of 0.08%.
Can You Own Both VIG and DGRO?
Absolutely! With only 43% overlap, VIG and DGRO complement each other well. A simple portfolio might allocate 60% to one and 40% to the other, or you could pair them with a bond ETF like BND for a complete three-fund portfolio.
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Frequently Asked Questions
Should I buy VIG or DGRO?▾
Both ETFs score equally well for beginners (9/10). Your choice depends on your specific investment goals. However, both are solid options. VIG is best for investors who want long-term investors who want dividend growth compounding over decades, while DGRO is better suited for income investors who prioritize growing dividends over high current yield.
What is the difference between VIG and DGRO?▾
VIG (Vanguard Dividend Appreciation ETF) tracks u.s. large-cap dividend growth investments with 338 holdings and a 0.06% expense ratio. DGRO (iShares Core Dividend Growth ETF) focuses on dividend growth with 420 holdings at 0.08%. Their top holdings overlap by 43%.
Can I own both VIG and DGRO?▾
Yes! With only 43% holdings overlap, VIG and DGRO complement each other well. Owning both gives you broader diversification.