Wealthy PotDGRO vs VIG: Two Dividend-Growth ETFs, Two Rulebooks
DGRO and VIG target the same kind of company: U.S. businesses with a record of raising their dividends. Neither is chasing the highest yield; both are after dividends that grow. They follow different indexes, though. VIG, the Vanguard Dividend Appreciation ETF, tracks the S&P U.S. Dividend Growers Index and costs 0.04%. DGRO, the iShares Core Dividend Growth ETF, tracks the Morningstar US Dividend Growth Index and costs 0.08%.
The Short Answer
- Same goal: companies with a history of increasing dividends.
- VIG is cheaper: 0.04% against 0.08%, a $4 a year difference on $10,000.
- DGRO holds more stocks: 389 against VIG's 333.
- DGRO yields a little more: a 1.95% 30-day SEC yield against VIG's 1.43% (both as of August 31, 2026).
DGRO vs VIG Side by Side
| Feature | DGRO | VIG |
|---|---|---|
| Full name | iShares Core Dividend Growth ETF | Vanguard Dividend Appreciation ETF |
| Index | Morningstar US Dividend Growth Index | S&P U.S. Dividend Growers Index |
| Expense ratio | 0.08% | 0.04% |
| Holdings | 389 | 333 |
| 30-day SEC yield | 1.95% (Aug 31, 2026) | 1.43% (Aug 31, 2026) |
| Inception | June 10, 2014 | April 21, 2006 |
Growth, Not Yield
Both funds yield well below a high-dividend fund such as SCHD or SPYD, and that is by design. A dividend-growth fund owns companies whose payouts have been rising, which tends to mean profitable, established businesses that reinvest as well as pay out. The appeal is income that can grow faster than inflation over time, not a large cheque today. Vanguard describes VIG's index as companies "that have a record of increasing dividends over time"; iShares describes DGRO's as U.S. stocks "with a history of growing their dividends."
The Differences That Matter
- Fee: VIG charges half as much. Over decades that compounds, although at 0.04 points a year the gap is small next to the choice of strategy.
- Breadth: DGRO's 389 holdings to VIG's 333. The two index providers apply different growth-history and screening rules, so the two lists differ.
- Yield: DGRO's SEC yield was about half a point higher at the end of August 2026 (1.95% against 1.43%).
Because they aim at the same kind of company, the two are likely to share many large holdings; compare their top-ten lists on the issuer pages. Holding both mostly doubles the same exposure.
Which One Fits You
- Choose VIG for the lower fee and Vanguard's long-running dividend-growth fund.
- Choose DGRO for a broader basket (389 stocks) with a little more current yield.
- Pick one, not both. Their goals are the same.
Want more current income instead of growth? Compare them with a higher-yield fund in VIG vs SCHD or DGRO vs SCHD.
FAQ
Is VIG or DGRO cheaper?
VIG, at 0.04% a year. DGRO charges 0.08%.
Which yields more?
DGRO, with a 1.95% 30-day SEC yield against VIG's 1.43%, both as of August 31, 2026.
What index does VIG track?
The S&P U.S. Dividend Growers Index.
What index does DGRO track?
The Morningstar US Dividend Growth Index.
Should I own DGRO and VIG together?
There is little reason to. Both target the same kind of dividend-growing company.
This article is for general information and is not investment advice. Fund figures were taken from iShares' and Vanguard's published fund pages on 2026-09-23 and can change; yields are as of the dates shown. Confirm current figures before you invest.