What does the expense ratio mean for ETF investors?

The expense ratio is the annual fee a fund charges to cover operating costs. For DGRO, the expense ratio is 0.08%, while MGV charges 0.05%. A lower ratio means fewer costs deducted from returns. Over time, even small differences can affect net performance. Investors often compare these fees to understand cost efficiency. Neither figure should be rounded; use only the provided data. Fees are important but should be considered alongside other factors such as holdings and yield.

What is dividend yield and why does it matter?

Dividend yield indicates the annual payout relative to the ETF’s price. DGRO has a 1.94% yield, while MGV offers 1.85%. This represents the income return from holdings before growth. Yield matters for investors seeking income, though it does not reflect total return. Both funds are classified as Large Value ETFs. The yields are close but differ slightly, which is relevant when assessing current income potential for a portfolio.

How do ETFs differ from individual stock investments?

ETFs hold a basket of stocks, providing instant diversification. DGRO and MGV each track portfolios of large value companies rather than single stocks. Top holdings include XOM, JPM, JNJ and ABBV for both funds. This structure reduces individual company risk but introduces market and strategy risk. ETFs trade like stocks but represent many assets. Investors monitor holdings and yields rather than relying on one company’s performance.

How do DGRO and MGV differ in terms of dividend strategy?

DGRO focuses on dividend growth, selecting companies with rising payouts, and has a 1.94% yield. MGV follows a mega-cap value strategy with a 1.85% yield, prioritising undervalued companies. Both hold shared stocks like XOM and JPM. DGRO’s approach may suit investors emphasising growth in income, while MGV targets value-driven returns. Neither fund offers a high current yield compared to specialised income ETFs.

What are the top holdings of DGRO and MGV?

DGRO’s top ten holdings include AAPL (3.12%), XOM (3.06%), MSFT (3.03%), JPM (2.90%), JNJ (2.89%), ABBV (2.87%), AVGO (2.77%), PG (2.31%), PM (2.16%), and HD (1.98%). MGV’s top ten are MU (5.00%), JPM (4.41%), BRK.B (3.30%), XOM (3.08%), JNJ (2.96%), WMT (2.13%), ABBV (2.09%), COST (1.94%), BAC (1.83%), and CSCO (1.81%). Both hold XOM, JPM, JNJ, and ABBV, indicating partial overlap in large-cap value exposure.

How similar are the portfolios of DGRO and MGV?

DGRO and MGV share four top holdings: XOM, JPM, JNJ and ABBV. However, DGRO includes growth-oriented names like AAPL and MSFT, while MGV features value-focused stocks such as MU and BRK.B. DGRO holds tech and healthcare names with higher weights in consumer staples. MGV concentrates on mega-cap value sectors. The overlap suggests similar Large Value category exposure, but the remaining holdings reflect different strategic emphases in portfolio construction.

What type of investing goal does each fund typically support?

DGRO is commonly associated with dividend growth and moderate income, given its 1.94% yield and focus on companies with rising payouts. MGV supports a value-oriented objective, targeting undervalued large-cap stocks for potential capital appreciation. Its yield is 1.85%. Neither fund is designed for maximum current income or aggressive growth. Investors may choose DGRO for consistent dividend increases or MGV for exposure to large-cap value strategies. This is not advice, only educational context.

How do the net assets of DGRO and MGV compare?

DGRO has $42.9 billion in net assets, while MGV holds $13.9 billion. Higher assets can indicate broader investor adoption and may support tighter trading spreads, but smaller size does not necessarily impair performance. Both funds are in the Large Value ETF category. Asset size influences liquidity and fund stability, especially for large trades. However, the figures provided should be used without speculation about their impact.

What role do sector exposures play in this comparison?

Sector weights for both DGRO and MGV are not available in the provided data, so sector-level concentration cannot be assessed. However, DGRO includes tech giants like AAPL and MSFT, while MGV holds financials and industrials such as JPM and MU. The shared holdings in energy, healthcare, and financials suggest some sector overlap, but the absence of detailed sector weights means investors cannot evaluate diversification or concentration risk accurately from the data given.

What is the significance of the inception dates for DGRO and MGV?

MGV was launched in December 2007, giving it a long track record since inception. DGRO began in June 2014, making it newer. A longer history may provide more data on performance across market cycles. However, both funds have sufficient histories to be considered in comparison. Neither date implies better future results. Investors review both funds as Large Value ETFs with established strategies and differing operational tenures.

How can investors compare DGRO and MGV beyond just yields?

Investors should examine expense ratios, with DGRO at 0.08% and MGV at 0.05%. Holdings overlap in XOM, JPM, JNJ and ABBV, showing similar Large Value exposure. DGRO’s yield of 1.94% reflects a dividend growth focus, while MGV’s 1.85% aligns with value investing. Net assets of $42.9 billion and $13.9 billion differ but both are substantial. These factors should be reviewed together.

Where can this comparison help me in my investment process?

This comparison aids in understanding how DGRO and MGV differ in fees, yields, holdings and fund size. DGRO’s 1.94% yield and $42.9 billion assets contrast with MGV’s 1.85% yield and $13.9 billion. Shared top holdings indicate partial overlap in Large Value exposure. Use this information to interpret fund characteristics, not as investment advice. Always consult a financial adviser for personalised guidance. This content is educational and based solely on provided fund data.

DGRO vs MGV

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

Compare DGRO and MGV. This page analyses fees, holdings, dividends and tracking. DGRO has an 0.08% expense ratio and 1.94% yield, while MGV offers 0.05% and 1.85%. Explore their Large Value focus and top holdings like JPM and XOM. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

DGRO

Metric

MGV

0.08%

Expense Ratio

0.05%

1.94%

Dividend Yield

1.85%

$42.93B

Net Assets

$13.87B

396

Holdings

128

Jun 10, 2014

Inception Date

Dec 17, 2007

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Index Tracked

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Large Value

Fund Category

Large Value

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

Shared Top Holdings

Holding	DGRO	MGV
XOMExxonMobil Holdings Corporation	3.06%	3.08%
JPMJPMorgan Chase & Co.	2.90%	4.41%
JNJJohnson & Johnson	2.89%	2.96%
ABBVAbbVie Inc.	2.87%	2.09%

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Investment Analysis

DGRO

Pros

DGRO tracks dividend growth with a low expense ratio of 0.08% and strong net assets of $42.9 billion.
Its top holdings span tech, energy, healthcare and consumer sectors, supporting reasonable diversification within large value stocks.
The 1.94% yield offers modest income while prioritising dividend growth over maximum current payout.

Considerations

The 1.94% yield is modest, limiting the current income potential for income-focused investors.
Individual holdings are generally small, with the largest at only 3.12%, potentially diluting conviction in key ideas.
Sector weights are not available, making it harder to assess sector-level concentration risk.

MGV

Pros

MGV carries a low expense ratio of 0.05%, enhancing net returns over time.
Its long track record since 2007 supports stability, with large-cap value holdings like MU and JPM.
The 1.85% yield is supplemented by significant potential for capital appreciation in the value strategy.

Considerations

Net assets of $13.9 billion are smaller than some competitors, potentially impacting liquidity for very large trades.
Individual holdings are generally small, with the largest at only 5.00%, potentially diluting conviction in key ideas.
Sector weights are not available, making it harder to assess sector-level concentration risk.

About DGRO and MGV

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.

MGV (MGV)

The Vanguard Mega Cap Value ETF is an exchange-traded fund designed to provide exposure to large-cap stocks that are considered undervalued relative to their peers. With a low expense ratio of 0.05%, this fund aims to offer cost-effective access to the value segment of the mega-cap market. It holds approximately 128 companies, focusing on firms with strong fundamentals that the market may have overlooked. Since its inception in December 2007, it has managed net assets of around USD 13.87 billion. The fund currently provides a dividend yield of 1.85%, making it a potential option for investors seeking value in large companies. However, like all investments, values can rise and fall, and returns are not guaranteed.

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DGRO vs MGV

Fund Snapshot