What is the main difference between DGRO and DIVB?

DGRO focuses on dividend growth, while DIVB targets core dividend strategies. Both are iShares ETFs but employ distinct methodologies. DGRO has a longer track record since its June 2014 inception compared to DIVB's November 2017 start. Understanding these fundamental differences is essential before comparing performance metrics, as each fund serves different investor preferences regarding income stability versus capital appreciation potential through consistent dividend increases.

How do the expense ratios of DGRO and DIVB compare?

DIVB charges a lower expense ratio of 0.05% compared to DGRO's 0.08%. This represents a three-basis-point difference annually. While both fees are relatively modest, this distinction could compound over long investment horizons. Investors should consider that lower costs may improve net returns, but must also evaluate whether the fund's strategy aligns with their financial goals before prioritising expenses alone.

What does net asset size tell us about these funds?

DGRO holds significantly more assets at $42.9 billion versus DIVB's $2.0 billion. Larger net assets often correlate with better liquidity and narrower bid-ask spreads during trading. However, this doesn't guarantee superior investment outcomes. Investors seeking ease of entry and exit might prefer DGRO's scale, while those focused on strategy specifics should weigh this factor against other characteristics like fee structure and dividend policy.

Which fund offers a higher dividend yield?

DIVB provides a slightly higher dividend yield of 2.22% compared to DGRO's 1.94%. This yield difference may appeal to investors prioritising immediate income generation. However, yield alone doesn't indicate total return potential or dividend sustainability. It's worth noting that DGRO's focus on dividend growth might prioritise increasing payouts over time rather than maximising current yield.

Do DGRO and DIVB track the same index?

The specific index methodology is not available for either fund. Both are categorised as Large Value ETFs but employ different approaches. Investors seeking precise benchmark tracking should note that lack of disclosed methodology limits transparency. Without knowing exact index details, comparing these funds requires examining their actual holdings, expenses, and yield characteristics as the primary evaluation criteria.

How similar are the top-10 holdings of these funds?

Both funds share XOM, JPM, JNJ, and ABBV in their top-10 holdings, indicating some portfolio overlap. However, DGRO features major tech names like AAPL and MSFT more prominently, while DIVB emphasises IT services and tech companies such as IBM, ADP, and ACN. These differences suggest distinct portfolio compositions beyond just shared positions, affecting overall diversification and sector exposure profiles.

What should beginners know about ETF distributions?

ETFs like DGRO and DIVB pass dividends to investors based on underlying portfolio holdings. Distributions aren't guaranteed and can fluctuate with market conditions. Yields mentioned represent current annualised payments, not forecasts. Investors receive distributions typically quarterly. Remember that dividend amounts depend on company decisions and portfolio composition changes, so past yields don't predict future payments or fund performance.

What is the significance of the inception dates?

DGRO launched in June 2014, while DIVB started in November 2017. This five-year difference means DGRO has a longer operational history and more performance data available. For investors valuing track record, DGRO offers more extensive historical context. However, older isn't necessarily better; both funds operate within modern regulatory frameworks, and DIVB's newer structure might incorporate updated portfolio construction techniques.

Why are sector weights important but not available here?

Sector weights reveal industry diversification levels. Without this data for either fund, investors can't fully assess concentration risks or sector alignments. This information gap means you must evaluate holdings manually or accept less transparency. Beginners should recognise that sector analysis helps understand how market downturns in specific industries might affect returns, though current yield and expense comparisons remain possible.

What investing goals align with each fund?

DGRO suits investors prioritising dividend growth potential and long-term capital appreciation. Its holdings and history support this approach. DIVB attracts income-focused investors seeking stable, slightly higher current yields. Neither fund is universally better; choice depends on whether you value growing payouts or immediate income. Assess your financial objectives carefully before selecting between these distinct but comparable strategies.

What does the 'category' tell us about these ETFs?

Both funds are classified as Large Value ETFs, indicating focus on established companies trading below intrinsic value. This shared category suggests similar underlying investment philosophy, though implementation details differ. Beginners should understand that 'Large Value' implies holdings in financially sound, mature businesses, often with consistent cash flows. This classification helps frame expectations about potential volatility and income characteristics when comparing these two options.

What disclaimer should investors read?

This comparison is for educational purposes only and does not constitute financial advice. All figures come from Yahoo Finance as of September 22, 2026, and may change. Dividend yields, expense ratios, and holdings data represent snapshots, not guarantees. Before investing, research both funds thoroughly, consult qualified professionals, and consider your personal risk tolerance and financial circumstances. Past performance never predicts future results.

DGRO vs DIVB

Two funds, one decision: we compare cost, performance and what each ETF actually holds in October 2026.

Compare iShares Core Dividend Growth ETF (DGRO) and iShares Core Dividend ETF (DIVB). Explore fees, holdings, dividends and how each fund tracks its market. DGRO has a 0.08% expense ratio; DIVB has 0.05%. Yields differ at 1.94% and 2.22%. Educational content, not financial advice.

Compare iShares Core Dividend Growth ETF (DGRO) and iShares Core Dividend ETF (DIVB). Explore fees, holdings, dividends and how each fund tracks its market. DGRO has a 0.08% expense ratio; DIVB has 0....

Fund Snapshot

Key Fund Metrics

DGRO

Metric

DIVB

0.08%

Expense Ratio

0.05%

1.94%

Dividend Yield

2.22%

$42.93B

Net Assets

$2.04B

396

Holdings

384

Jun 10, 2014

Inception Date

Nov 7, 2017

–

Index Tracked

–

Large Value

Fund Category

Large Value

DIVB costs about $3.00 less per year for every $10,000 invested.

Shared Top Holdings

Holding	DGRO	DIVB
XOMExxonMobil Holdings Corporation	3.06%	2.55%
JPMJPMorgan Chase & Co.	2.90%	2.60%
JNJJohnson & Johnson	2.89%	2.13%
ABBVAbbVie Inc.	2.87%	1.84%

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Investment Analysis

DGRO

Pros

detailed top-10 holdings are provided, allowing investors to assess concentration levels within their portfolio.
With net assets of $42.9 billion, the fund has sufficient scale to support liquidity and trading efficiency.
A low expense ratio of 0.08% ensures cost-effective access to dividend-growth strategies.

Considerations

The dividend yield of 1.94% is below the 2.22% offered by the alternative fund.
Sector weights are not available, limiting transparency for those requiring specific sector diversification insights.
The index methodology is not disclosed, which may concern investors who prefer clearly defined benchmark tracking.

DIVB

Pros

Top holdings include major tech names like IBM and ADP, offering targeted exposure in technology sectors.
The fund's expense ratio of 0.05% is lower than the 0.08% of its counterpart, providing a cost advantage.
A higher dividend yield of 2.22% makes it more attractive to income-focused investors compared to the alternative.

Considerations

With $2.0 billion in net assets, liquidity may not match the scale of larger funds.
The inception date of 2017 is later than the alternative fund, offering less historical performance data.
Sector weights are not available, reducing visibility into industry diversification and potential risks.

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About DGRO and DIVB

DGRO (DGRO)

The iShares Core Dividend Growth ETF (DGRO) is designed to provide investors with exposure to US companies that have a history of increasing their dividend payouts. This fund targets large-cap equities with sustainable dividend growth strategies rather than just high current yields. With an attractive low expense ratio of 0.08% and substantial net assets of USD 42.93 billion, it offers broad diversification across 396 holdings. The fund’s focus on large value stocks aims to balance income potential with capital appreciation opportunities. Investors should note that while the current dividend yield is approximately 1.94%, payouts are not guaranteed and can fluctuate based on company performance and market conditions. As with any equity investment, the value of shares can rise and fall, meaning returns are not assured. It serves as a general educational example for those interested in dividend-growth strategies within the broader market.

DIVB (DIVB)

iShares Core Dividend ETF (DIVB) is an exchange-traded fund that seeks to provide investors with exposure to a diversified portfolio of dividend-paying companies. It is designed for those looking for income and broad equity exposure in a single, tradeable instrument. The fund typically holds a mix of companies across sectors that historically pay dividends, aiming to smooth income streams compared with individual stocks. Investors should note that dividend payments are not guaranteed and can fluctuate with company earnings and economic conditions. As an ETF, DIVB offers intraday liquidity and may be more cost-effective and tax-efficient than holding multiple individual equities, though fees and tracking error can affect returns. Market capitalisation data for the ETF is not provided here. This summary is for general educational purposes only and is not personalised investment advice. Always consider your risk tolerance, investment horizon and seek independent advice if unsure, as values can rise or fall and past performance is not a reliable indicator of future results.

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DGRO vs DIVB

Fund Snapshot