What do the expense ratios of DGRO and SDY tell you?

The expense ratio is the annual fee charged by the fund. DGRO has an expense ratio of 0.08%, while SDY has an expense ratio of 0.35%. This difference is 0.27 percentage points. A lower fee means a smaller portion of your investment is taken out each year, potentially enhancing net returns, especially over long periods.

How do you interpret the inception dates provided?

DGRO was launched on 10 June 2014, whereas SDY started on 8 November 2005. The length of these histories means the funds have experienced varying periods, including multiple market cycles.

What does dividend yield indicate for these ETFs?

The dividend yield shows the annual dividends as a percentage of the share price. DGRO has a dividend yield of 1.94%, and SDY offers 2.51%. SDY's higher yield indicates that it provides more current income relative to its price, which might suit investors prioritising regular income.

How do the top holdings of these two funds compare?

The top holdings for DGRO include companies like Apple and Microsoft, while SDY's top holdings include Verizon and Accenture. Notably, none of the top 10 holdings are shared between the two funds. This highlights the distinct strategies and stock selections that underpin each ETF's performance.

What are the implications of different expense ratios for long-term returns?

The expense ratio difference of 0.27 percentage points between DGRO (0.08%) and SDY (0.35%) can have implications on returns. Over extended periods, lower fees allow for more capital to remain invested, potentially leading to better compounding growth and greater net returns.

Which ETFs offer greater current income according to their yields?

Comparing yields, SDY provides a dividend yield of 2.51%, while DGRO's yield stands at 1.94%. SDY's higher yield might indicate it is more suitable for investors focused on current income, rather than capital appreciation.

How do sector weights impact each ETF's risk profile?

Sector weights were not available for either fund. However, SDY's inclusion of Realty Income, a REIT, adds potential sector concentration, possibly increasing its volatility. In contrast, DGRO's top holdings suggest a wider diversification among large-cap companies, but the specific sector distribution is unknown.

How do the fund category designs influence portfolio alignment?

DGRO is classified under Large Value, potentially aligning with core holdings, while SDY falls into the Mid-Cap Value category, suggesting different risk and return characteristics. DGRO's designation might introduce large-cap biases, while SDY's focus could expose it to different volatility levels.

What does the size of the asset base indicate for these funds?

DGRO holds $42.9 billion in net assets, compared to SDY's $21.0 billion. A larger asset base typically supports tighter trading spreads and liquidity, which can affect the ease of buying or selling shares of the ETF in the market.

How does the mid-cap focus of SDY influence its portfolio behaviour?

SDY's mid-cap value focus can lead to greater portfolio volatility compared to large-cap positions. Mid-cap companies often exhibit different growth characteristics, potentially providing higher returns at the cost of increased risk compared to established large firms.

What should an investor consider before choosing between DGRO and SDY?

Investors might evaluate the expense ratio, dividend yield, portfolio composition, and their investing goals. For example, those seeking higher income might look to SDY's yield, while cost-sensitive investors might prefer DGRO's lower expense ratio. Always consider your individual financial circumstances and goals.

What should investors know about ETF distributions and tracking?

ETF distributions are influenced by dividends from the underlying holdings, with each fund's unique composition driving its payout patterns. While DGRO and SDY do not have a specified index tracked (not available), their portfolios aim to reflect certain characteristics, such as dividend growth for DGRO, and higher yields for SDY, potentially leading to varied performance.

DGRO vs SDY

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

Compare DGRO (iShares Core Dividend Growth ETF) and SDY (S&P Dividend SPDR). This page examines fees, holdings, dividends, and how each fund tracks its market. DGRO has a 0.08% expense ratio and SDY charges 0.35%. Educational content, not financial advice.

Compare DGRO (iShares Core Dividend Growth ETF) and SDY (S&P Dividend SPDR). This page examines fees, holdings, dividends, and how each fund tracks its market. DGRO has a 0.08% expense ratio and SDY c...

Fund Snapshot

Key Fund Metrics

DGRO

Metric

SDY

0.08%

Expense Ratio

0.35%

1.94%

Dividend Yield

2.51%

$42.93B

Net Assets

$21.00B

396

Holdings

158

Jun 10, 2014

Inception Date

Nov 8, 2005

–

Index Tracked

–

Large Value

Fund Category

Mid-Cap Value

DGRO costs about $27.00 less per year for every $10,000 invested.

Shared Top Holdings

These funds do not share any of their top holdings.

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Investment Analysis

DGRO

Pros

Low expense ratio of 0.08% enhances net returns.
Huge asset base of $42.9 billion supports tight trading spreads.
Long-term inception date of June 2014 offers a stable track record.

Considerations

Lower dividend yield of 1.94% compared to traditional income strategies.
Overlaps with core capitalisation holdings like Apple and Microsoft.
Mid-cap value category designation may misalign with large-cap positioning.

SDY

Pros

Higher dividend yield of 2.51% provides greater current income.
Established fund with November 2005 inception for long-term consistency.
Significant net assets of $21.0 billion ensure adequate liquidity.

Considerations

Higher expense ratio of 0.35% reduces overall return potential.
Mid-cap value focus may introduce greater portfolio volatility.
Exposure to REITs like Realty Income adds sector concentration.

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About DGRO and SDY

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.

SDY (SDY)

S&P Dividend SPDR (SDY) is an exchange-traded fund that aims to track the S&P High Yield Dividend Aristocrats Index — companies in the broader US market that have increased dividends for many consecutive years. It is designed for investors seeking income from equities rather than capital growth alone, often delivering a higher yield than broad-market ETFs. Holdings can be concentrated in sectors such as utilities, consumer staples and financials, and the fund typically rebalances periodically to maintain index eligibility. Investors should note that dividend payments and yields fluctuate, and capital values can fall as well as rise. Fees, tracking error and tax treatment affect net returns, so check current costs and distributions before investing. This information is general and educational only and not personalised financial advice; assess suitability for your goals and risk tolerance or consult a professional.

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DGRO vs SDY

Fund Snapshot