iShares Core Dividend Growth ETF (DGRO): Complete Beginner's Guide
iShares Core Dividend Growth ETF (DGRO) is a dividend growth ETF from BlackRock with an expense ratio of 0.08% and $28.0B in assets under management. Our Beginner Suitability Score: 9/10 (Great for Beginners). 5-year annualized return: 13.00%.
Last updated: April 2026
BlackRock • Dividend Growth
Expense Ratio
0.08%
AUM
$28.0B
Dividend Yield
2.20%
Inception
2014
Beginner Score
9/10
What is iShares Core Dividend Growth ETF?
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.
DGRO is managed by BlackRock and has been available since 2014. With $28.0B in assets under management, it's a well-established fund with strong institutional backing. The fund charges an expense ratio of 0.08%, which means for every $10,000 you invest, you pay approximately $8 per year in management fees.
DGRO at a Glance — Key Metrics
| Expense Ratio | 0.08% |
| Total Holdings | 420 |
| P/E Ratio | 19.5 |
| Beta | 0.90 |
| Dividend Yield | 2.20% |
| AUM | $28.0B |
| Inception Year | 2014 |
| Issuer | BlackRock |
Top 10 Holdings in DGRO
DGRO holds 420 different securities. Here are the largest positions that make up the core of this fund:
| # | Company | Ticker | Weight |
|---|---|---|---|
| 1 | Microsoft Corp. | MSFT | 3.80% |
| 2 | Apple Inc. | AAPL | 3.50% |
| 3 | JPMorgan Chase & Co. | JPM | 3.20% |
| 4 | Broadcom Inc. | AVGO | 2.80% |
| 5 | ExxonMobil Corp. | XOM | 2.50% |
| 6 | Abbvie Inc. | ABBV | 2.30% |
| 7 | Johnson & Johnson | JNJ | 2.20% |
| 8 | Procter & Gamble Co. | PG | 2.00% |
| 9 | Home Depot Inc. | HD | 1.80% |
| 10 | Chevron Corp. | CVX | 1.60% |
DGRO's top holding is Microsoft Corp. (MSFT) at 3.80%, followed by Apple Inc. (AAPL) at 3.50% and JPMorgan Chase & Co. (JPM) at 3.20%. The top 10 holdings account for 25.70% of the fund's 420 total positions.
View data table
| Rank | Company | Ticker | Weight |
|---|---|---|---|
| 1 | Microsoft Corp. | MSFT | 3.80% |
| 2 | Apple Inc. | AAPL | 3.50% |
| 3 | JPMorgan Chase & Co. | JPM | 3.20% |
| 4 | Broadcom Inc. | AVGO | 2.80% |
| 5 | ExxonMobil Corp. | XOM | 2.50% |
| 6 | Abbvie Inc. | ABBV | 2.30% |
| 7 | Johnson & Johnson | JNJ | 2.20% |
| 8 | Procter & Gamble Co. | PG | 2.00% |
| 9 | Home Depot Inc. | HD | 1.80% |
| 10 | Chevron Corp. | CVX | 1.60% |
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DGRO Performance History
Here's how DGRO has performed over different time periods. Remember that past performance doesn't guarantee future results, but it gives you a sense of the fund's track record:
YTD
2.80%
1 Year
22.50%
3 Year
9.80%
5 Year
13.00%
10 Year
11.80%
DGRO has returned 13.00% annualized over 5 years and 11.80% over 10 years. YTD return is 2.80%.
View data table
| Period | Return |
|---|---|
| YTD | 2.80% |
| 1 Year | 22.50% |
| 3 Year | 9.80% |
| 5 Year | 13.00% |
| 10 Year | 11.80% |
Beginner Suitability Score: 9/10
Our proprietary Beginner Suitability Score evaluates ETFs based on five factors that matter most to new investors: fees, volatility, diversification, dividend history, and track record length.
DGRO scores 9/10 because it has very low fees, shows lower-than-average volatility, offers broad diversification across 420 holdings, and has been available since 2014, giving it a proven track record.
How to Buy DGRO — Step by Step
- Open a brokerage account — We recommend Fidelity, Charles Schwab, or Vanguard for ETF investing. All offer $0 commissions on ETF trades.
- Fund your account — Transfer money from your bank. You can start with as little as $1 if your broker offers fractional shares.
- Search for "DGRO" — Use the search bar in your brokerage platform to find iShares Core Dividend Growth ETF.
- Place your order — Choose "Market Order" for simplicity or "Limit Order" if you want to set a specific price. Enter how many shares (or dollar amount) you want to buy.
- Set up automatic investing — Most brokers let you schedule recurring purchases (e.g., $100/month on the 1st). This is dollar cost averaging in action.
DGRO Sector Allocation
Here's how DGRO distributes its investments across different sectors of the economy:
DGRO's largest sector allocation is Financials at 19.5%, followed by Information Technology at 18.5% and Health Care at 15.5%.
View data table
| Sector | Weight |
|---|---|
| Financials | 19.5% |
| Information Technology | 18.5% |
| Health Care | 15.5% |
| Industrials | 11.5% |
| Consumer Staples | 9.5% |
| Energy | 7.5% |
| Consumer Discretionary | 6.5% |
| Communication Services | 4.5% |
| Utilities | 3.5% |
| Materials | 2.5% |
| Real Estate | 1.0% |
Dollar Cost Averaging Into DGRO
Here's what consistent monthly investing could look like over time, assuming an average annual return of 8% (approximate historical stock market average):
| Monthly | 10 Years | 20 Years | 30 Years |
|---|---|---|---|
| $100/mo | $18,417 | $59,295 | $150,030 |
| $250/mo | $46,041 | $148,237 | $375,074 |
| $500/mo | $92,083 | $296,474 | $750,148 |
*Projections assume 8% average annual return with monthly compounding. Actual returns will vary. Past performance doesn't guarantee future results.
Fee impact: With DGRO's expense ratio of 0.08%, a $10,000 investment would lose approximately $686 to fees over 20 years compared to a zero-fee investment. This is a reasonable fee level for the value provided.
DGRO's expense ratio of 0.08% costs $686 on a $10,000 investment over 20 years (assuming 8% annual return). Without fees, the investment would grow to $46,610 instead of $45,924.
View data table
| Year | Without Fees | With Fees | Fee Cost |
|---|---|---|---|
| 0 | $10,000 | $10,000 | $0 |
| 5 | $14,693 | $14,639 | $54 |
| 10 | $21,589 | $21,430 | $159 |
| 15 | $31,722 | $31,371 | $351 |
| 20 | $46,610 | $45,924 | $686 |
Pros and Cons of DGRO
Pros
- ✓Focuses on companies with proven dividend growth records, not just high current yields
- ✓Low expense ratio of 0.08% is one of the cheapest dividend growth ETFs
- ✓Payout ratio screen helps avoid dividend cuts by selecting sustainable payers
- ✓Well-balanced sector mix avoids over-concentration in any single industry
Cons
- ✗Current dividend yield is lower than high-yield dividend ETFs
- ✗Five-year dividend growth requirement excludes newer dividend-paying companies
- ✗May underperform pure growth ETFs during strong momentum-driven markets
DGRO vs Similar ETFs
See how DGRO stacks up against similar funds:
Frequently Asked Questions
Is DGRO a good ETF for beginners?▾
DGRO has a Beginner Suitability Score of 9/10 on our scale. This makes it a strong choice for new investors due to its low fees and broad diversification.
What is the expense ratio of DGRO?▾
DGRO has an expense ratio of 0.08%. This means for every $10,000 you invest, you pay approximately $8 per year in fees. This is considered very low and cost-efficient.
How much money do I need to invest in DGRO?▾
You can invest in DGRO with as little as $1 through brokers that offer fractional shares (like Fidelity, Schwab, or Robinhood). There is no minimum investment required beyond the share price itself, which changes daily. Dollar cost averaging — investing a fixed amount regularly — is a popular strategy.
Does DGRO pay dividends?▾
Yes, DGRO pays dividends with a current yield of approximately 2.20%. Dividends are typically paid quarterly and can be reinvested automatically through most brokers.
What are the top holdings in DGRO?▾
The top holdings in DGRO include Microsoft Corp. (3.80%), Apple Inc. (3.50%), JPMorgan Chase & Co. (3.20%), and more. The fund holds 420 total positions, providing broad diversification across many companies.
What sectors does DGRO invest in?▾
DGRO's largest sector allocations are Financials (19.50%), Information Technology (18.50%), Health Care (15.50%). This sector distribution shows a focus on financials stocks.
How much do DGRO's fees cost over time?▾
With an expense ratio of 0.08%, a $10,000 investment in DGRO would lose approximately $686 to fees over 20 years (assuming 8% annual returns). This is a reasonable fee level.