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Is iShares Core Dividend Growth ETF (DGRO) a Strong ETF Right Now?
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The iShares Core Dividend Growth ETF (DGRO - Free Report) was launched on 06/10/2014, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - Large Cap Value category of the market.
What Are Smart Beta ETFs?
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.
Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
Because the fund has amassed over $37.55 billion, this makes it one of the largest ETFs in the Style Box - Large Cap Value. DGRO is managed by Blackrock. Before fees and expenses, DGRO seeks to match the performance of the Morningstar US Dividend Growth Index.
The Morningstar US Dividend Growth Index is composed of U.S. equities with a history of consistently growing dividends.
Cost & Other Expenses
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Operating expenses on an annual basis are 0.08% for DGRO, making it one of the least expensive products in the space.
DGRO's 12-month trailing dividend yield is 2.52%.
Sector Exposure and Top Holdings
ETFs offer diversified exposure and thus minimize single stock risk, but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Financials sector - about 18.5% of the portfolio. Healthcare and Information Technology round out the top three.
Looking at individual holdings, Exxon Mobil Corp (XOM) accounts for about 3.52% of total assets, followed by Johnson & Johnson (JNJ) and Jpmorgan Chase & Co (JPM).
The top 10 holdings account for about 26.27% of total assets under management.
Performance and Risk
The ETF has added about 2.35% so far this year and is up about 16.6% in the last one year (as of 03/18/2026). In the past 52-week period, it has traded between $55.22 and $74.01
DGRO has a beta of 0.80 and standard deviation of 11.69% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 404 holdings, it effectively diversifies company-specific risk .
Alternatives
iShares Core Dividend Growth ETF is an excellent option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. There are other ETFs in the space which investors could consider as well.
Invesco S&P 500 Quality ETF (SPHQ) tracks S&P 500 Quality Index and the Vanguard Dividend Appreciation Index Fund ETF Shares (VIG) tracks NASDAQ US Dividend Achievers Select Index. Invesco S&P 500 Quality ETF has $15.99 billion in assets, Vanguard Dividend Appreciation Index Fund ETF Shares has $100.89 billion. SPHQ has an expense ratio of 0.15% and VIG changes 0.04%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Value
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Is iShares Core Dividend Growth ETF (DGRO) a Strong ETF Right Now?
The iShares Core Dividend Growth ETF (DGRO - Free Report) was launched on 06/10/2014, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - Large Cap Value category of the market.
What Are Smart Beta ETFs?
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.
Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
Because the fund has amassed over $37.55 billion, this makes it one of the largest ETFs in the Style Box - Large Cap Value. DGRO is managed by Blackrock. Before fees and expenses, DGRO seeks to match the performance of the Morningstar US Dividend Growth Index.
The Morningstar US Dividend Growth Index is composed of U.S. equities with a history of consistently growing dividends.
Cost & Other Expenses
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Operating expenses on an annual basis are 0.08% for DGRO, making it one of the least expensive products in the space.
DGRO's 12-month trailing dividend yield is 2.52%.
Sector Exposure and Top Holdings
ETFs offer diversified exposure and thus minimize single stock risk, but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Financials sector - about 18.5% of the portfolio. Healthcare and Information Technology round out the top three.
Looking at individual holdings, Exxon Mobil Corp (XOM) accounts for about 3.52% of total assets, followed by Johnson & Johnson (JNJ) and Jpmorgan Chase & Co (JPM).
The top 10 holdings account for about 26.27% of total assets under management.
Performance and Risk
The ETF has added about 2.35% so far this year and is up about 16.6% in the last one year (as of 03/18/2026). In the past 52-week period, it has traded between $55.22 and $74.01
DGRO has a beta of 0.80 and standard deviation of 11.69% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 404 holdings, it effectively diversifies company-specific risk .
Alternatives
iShares Core Dividend Growth ETF is an excellent option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. There are other ETFs in the space which investors could consider as well.
Invesco S&P 500 Quality ETF (SPHQ) tracks S&P 500 Quality Index and the Vanguard Dividend Appreciation Index Fund ETF Shares (VIG) tracks NASDAQ US Dividend Achievers Select Index. Invesco S&P 500 Quality ETF has $15.99 billion in assets, Vanguard Dividend Appreciation Index Fund ETF Shares has $100.89 billion. SPHQ has an expense ratio of 0.15% and VIG changes 0.04%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Value
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.