What are expense ratios and why do they matter?

An expense ratio represents the annual operating fees charged by an ETF. These fees reduce the fund's overall returns. DGRO has an expense ratio of 0.08%, while VYM is slightly lower at 0.04%. Although 0.04% sounds small, lower fees can compound over long periods, potentially enhancing net returns for investors. Understanding these costs is crucial when comparing similar funds, as they directly impact how much of the fund's performance you actually keep in your pocket over time.

How do dividend yields differ between these funds?

A dividend yield measures the annual dividend payment relative to the fund's price. DGRO currently offers a dividend yield of 1.94%, whereas VYM provides a higher yield of 2.31%. A higher yield can generate more regular cash income for investors, which is often attractive for those focusing on current income generation. However, yield alone does not indicate total return, as it does not account for potential capital appreciation or the growth rate of the dividends themselves over time.

How should I interpret the net assets of these ETFs?

Net assets indicate the total value of securities held by the fund, reflecting its size. VYM manages approximately $80.9 billion, while DGRO holds around $42.9 billion. Larger funds like VYM generally offer deeper liquidity and tighter bid-ask spreads, making it easier to buy or sell shares without significant price impact. While fund size does not guarantee performance, it is a useful metric for assessing how established and widely traded an exchange-traded fund is within the broader market ecosystem.

What does concentration risk look like in top holdings?

Concentration risk arises when a single stock dominates a fund's portfolio. In VYM, Broadcom (AVGO) comprises 6.93% of top holdings, representing a significant single-stock exposure. In contrast, DGRO's largest holding is Apple (AAPL) at 3.12%, suggesting a potentially more diversified allocation among its biggest positions. High concentration in one stock means that the fund's performance may be heavily influenced by that specific company's price movements, rather than the broader market or sector trends.

Are there any sector transparency issues with these funds?

For both DGRO and VYM, explicit sector weight breakdowns are not available in the provided data. This lack of detail restricts the ability to quickly assess potential sector concentration risks within the portfolios. Without knowing the exact percentage allocated to sectors like technology, healthcare, or energy, investors cannot easily determine if the fund is heavily skewed toward industries they wish to avoid or over-expose themselves to specific sector downturns compared to a broader market index.

What do these funds track, and how do exposures differ?

While DGRO and VYM are both categorised as Large Value ETFs, the specific indexes they track are not listed in the available data. Typically, these funds focus on large-cap companies with strong dividend histories, but their construction methods differ. One may prioritise dividend growth potential, while the other may prioritise high current yield. Without explicit index details, investors must rely on the top holdings and dividend yields to infer that these funds target similar broad market segments but with different strategic emphases regarding income and growth.

How similar are the top holdings of the two funds?

There is a notable overlap in the top ten holdings of both funds. Shared positions include Exxon Mobil (XOM), JPMorgan Chase (JPM), Johnson & Johnson (JNJ), AbbVie (ABBV), and Broadcom (AVGO). This similarity suggests that both funds screen for established, dividend-paying large-cap companies that meet certain fundamental criteria. Despite this core overlap, the weighting of these shared stocks differs, and each fund maintains unique holdings, leading to distinct portfolio compositions and potential variations in risk and return profiles.

How do inception dates affect historical comparison?

The inception date reveals how long a fund has been operating. VYM launched on November 10, 2006, while DGRO started later on June 10, 2014. VYM has a longer track record, allowing investors to observe its performance across more market cycles. DGRO's shorter history means there is less long-term data available to analyse its behaviour during various economic conditions, such as different interest rate environments or recessionary periods, which some investors may consider when evaluating consistency.

Is this information financial advice?

No, this content is for educational purposes only. It provides factual comparisons of DGRO and VYM using public data from Yahoo Finance as of September 2026. These details should not be interpreted as a recommendation to buy, sell, or hold any securities. Investors should consider their individual financial circumstances, risk tolerance, and investment objectives before making any decisions. Always consult with a qualified financial adviser or conduct your own thorough due diligence before investing in exchange-traded funds.

DGRO vs VYM

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

Compare iShares Core Dividend Growth ETF (DGRO) and Vanguard High Dividend Yield ETF (VYM) on fees, holdings, dividends and how each fund tracks its market. Review expense ratios, net assets, dividend yields, top holdings and shared positions to understand their differences. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

DGRO

Metric

VYM

0.08%

Expense Ratio

0.04%

1.94%

Dividend Yield

2.31%

$42.93B

Net Assets

$80.88B

396

Holdings

613

Jun 10, 2014

Inception Date

Nov 10, 2006

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Index Tracked

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Large Value

Fund Category

Large Value

VYM costs about $4.00 less per year for every $10,000 invested.

Shared Top Holdings

Holding	DGRO	VYM
XOMExxonMobil Holdings Corporation	3.06%	2.69%
JPMJPMorgan Chase & Co.	2.90%	3.83%
JNJJohnson & Johnson	2.89%	2.58%
ABBVAbbVie Inc.	2.87%	1.83%
AVGOBroadcom Inc.	2.77%	6.93%

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Investment Analysis

DGRO

Pros

The fund's expense ratio of 0.08% is low for an international equity fund, helping minimise annual cost drag on long-term returns.
With approximately $42.9 billion in net assets and broad market cap exposure, the ETF generally offers deep liquidity and tight bid-ask spreads.
The diversified, all-market index strategy mitigates single-stock risk by spreading holdings across large-cap and mid-cap companies in multiple sectors.

Considerations

The 1.94% dividend yield is relatively modest, which may limit the suitability of this fund for income-focused investors seeking higher cash payouts.
The fund's inception date is June 10, 2014, meaning it has a shorter performance history compared to funds launched in earlier periods.
A sector weight data point is not available, which restricts the ability to quickly assess potential sector concentration risks within the portfolio.

VYM

Pros

With a 0.04% expense ratio, the fund maintains an exceptionally low cost structure, which enhances net return potential for investors.
The $80.9 billion in net assets confirms the fund's status as a major, highly liquid vehicle with typically stable trading volumes.
The 2.31% dividend yield is robust, providing an attractive stream of regular income distributions that may appeal to income-oriented portfolios.

Considerations

Technology and semiconductor stock AVGO comprises 6.93% of top holdings, representing a significant single-stock concentration risk within the fund.
The 2006 inception date indicates a lengthy track record; however, older funds may carry structural legacy costs not visible in the expense ratio.
Like many large-value ETFs, the fund does not list an explicit sector weight breakdown in the provided data, creating a transparency gap.

About DGRO and VYM

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.

VYM (VYM)

The Vanguard High Dividend Yield ETF is designed to provide investors with exposure to a broad range of high-dividend-paying stocks listed in the US. With a low expense ratio of 0.04% and over 600 holdings, the fund aims to deliver income while maintaining diversification. Its dividend yield sits at 2.31%, reflecting its focus on companies with strong payout traditions. This ETF suits those seeking a steady income stream as part of a long-term strategy, though values can rise and fall. Returns are not guaranteed. Always consider your personal circumstances before investing.

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DGRO vs VYM

Fund Snapshot