Wealthy PotDGRO vs VYM: Dividend Growth or High Dividend Yield?
DGRO and VYM share most of their stocks: 62.8% overlap by our calculation from their SEC holdings filings. The difference is in the rules. VYM, Vanguard's High Dividend Yield ETF, buys stocks whose dividends are "higher than average." DGRO, iShares' Core Dividend Growth ETF, buys stocks with at least five years of dividend growth and actually throws out the highest-yielding tenth. VYM is cheaper (0.04% against 0.08%) and pays more (a 2.35% SEC yield against 1.95%). DGRO did better over ten years to 30 June 2026, 13.38% a year against 11.61% at NAV. VYM held up far better in 2022.
Table of Contents
The Short Answer
- Overlap: 62.8%. 79.8% of DGRO's weight is in stocks VYM also owns, and 73.9% of VYM's is in stocks DGRO owns. Both filings are for 31 July 2026.
- Fees: VYM 0.04%, DGRO 0.08%. $51 against $103 on $10,000 over ten years in the prospectus examples.
- Yield: VYM pays more. 30-day SEC yield 2.35% for VYM (30 September 2026) and 1.95% for DGRO (31 August 2026).
- Ten years: DGRO ahead. 13.38% a year against 11.61% at NAV, both to 30 June 2026. VYM led over three and five years.
- 2022: VYM ahead. -0.42% against DGRO's -7.85%.
- What differs most: DGRO owns Microsoft, Apple, Visa and Eli Lilly, which VYM does not. VYM owns Verizon, AT&T, Pfizer and Chevron, which DGRO does not. VYM also holds 7.35% in Broadcom, against DGRO's 2.55%.
- Both or one? With 62.8% overlap, owning both mostly averages them. Picking one is simpler.
Overlap: 62.8%, and What Each Leaves Out
Our Portfolio Overlap Checker matched the two funds' Form N-PORT filings for 31 July 2026: 386 holdings in DGRO and 601 in VYM, with 260 in common.
| Overlap measure | Result |
|---|---|
| Shared holdings | 260 |
| Share of DGRO's weight in stocks VYM also owns | 79.8% |
| Share of VYM's weight in stocks DGRO also owns | 73.9% |
| Overlap (sum of the smaller weight in each shared stock) | 62.8% |
The big shared names are banks, energy, healthcare and consumer staples: JPMorgan (3.16% of DGRO, 3.82% of VYM), Exxon Mobil (2.87%, 2.63%), Johnson & Johnson (3.07%, 2.51%), AbbVie (2.96%, 1.80%) and Procter & Gamble (2.17%, 1.37%).
The differences are where the funds earn their names. The 19.9% of DGRO that VYM does not own is led by Microsoft (3.24%), Apple (2.86%), Eli Lilly (1.19%), Visa (1.10%), Walmart (0.87%) and Mastercard (0.72%): large dividend payers that VYM's index does not include. The 25.8% of VYM that DGRO does not own is led by Chevron (1.48%), Texas Instruments (1.02%), Verizon (0.80%), Disney (0.69%), AT&T (0.64%) and Pfizer (0.58%). We did not check why each stock falls outside DGRO, but DGRO's rules exclude the top tenth of yields and require five straight years of dividend growth.
One shared stock is weighted very differently. Broadcom was 7.35% of VYM and 2.55% of DGRO. DGRO's index caps any company at 3%.
DGRO vs VYM, Side by Side
| DGRO | VYM | |
|---|---|---|
| Full name | iShares Core Dividend Growth ETF | Vanguard High Dividend Yield ETF |
| Index | Morningstar US Dividend Growth Index | FTSE High Dividend Yield Index |
| Selection | 5+ years of dividend growth, payout ratio under 75%, top-decile yielders excluded | Stocks with higher-than-average dividends, REITs excluded |
| Weighting | By dividend dollars paid, 3% cap per company | Market value |
| Expense ratio | 0.08% | 0.04% |
| Cost example, $10,000 over 10 years | $103 | $51 |
| Holdings | 390 (iShares, 2 Oct 2026) | 603 (Vanguard, 31 Aug 2026) |
| Top-ten weight (N-PORT, 31 Jul 2026) | 27.2% | 26.1% |
| 30-day SEC yield | 1.95% (31 Aug 2026) | 2.35% (30 Sep 2026) |
| Price/earnings | 23.47 (1 Oct 2026) | 20.7x (31 Aug 2026) |
| Portfolio turnover, latest fiscal year | 25% | 11% |
| Worst quarter in prospectus chart | -21.91% (Q1 2020) | -23.96% (Q1 2020) |
| Net assets | $42.2 billion (2 Oct 2026) | $100.8 billion, all share classes (31 Aug 2026) |
| Inception | 10 June 2014 | 10 November 2006 |
Sectors. iShares reports DGRO by GICS sectors (1 October 2026): financials 19.6%, information technology 18.5%, health care 17.2%, consumer staples 12.2%, industrials 11.4%. Vanguard reports VYM by a different system, ICB (30 June 2026): financials 20.6%, technology 14.6%, industrials 14.4%, health care 12.4%, consumer staples 8.5%, energy 8.5%, telecommunications 4.0%. The two systems do not line up exactly, so treat this as a rough comparison. The pattern is clear enough: DGRO leans more to health care, staples and tech; VYM more to energy and telecoms.
Two Different Rulebooks
VYM: higher yield. Its prospectus says the index "consists of common stocks of companies that pay dividends that generally are higher than average (excluding real estate investment trusts)." Stocks are weighted by market value, so the largest companies in the index, like Broadcom and JPMorgan, carry the most weight. The fund tries to hold every stock in the index.
DGRO: dividend growth, not yield. Its prospectus spells out the screen: "Eligible companies must pay a qualified dividend, must have at least five years of uninterrupted annual dividend growth and their earnings payout ratio must be less than 75%. Companies that are in the top decile based on dividend yield are excluded." Those screens leave out the highest yields and companies paying out three-quarters or more of their earnings. The index is weighted by the dollars of dividends each company pays, capped at 3% per company.
In practice DGRO ends up with a higher price/earnings ratio (23.47 against 20.7) and a lower yield. VYM is cheaper, broader, and pays more now. Neither rulebook is better in general. They pay off in different markets, as the returns show.
Returns: DGRO's Decade, VYM's 2022
| Average annual total return at NAV to 30 Jun 2026 | 1 year | 3 years | 5 years | 10 years |
|---|---|---|---|---|
| DGRO | 21.00% | 16.38% | 11.02% | 13.38% |
| VYM | 21.52% | 17.44% | 11.78% | 11.61% |
| Calendar year, total return at NAV | DGRO | VYM |
|---|---|---|
| 2021 | 26.56% | 26.14% |
| 2022 | -7.85% | -0.42% |
| 2023 | 10.43% | 6.53% |
| 2024 | 16.61% | 17.60% |
| 2025 | 15.74% | 15.43% |
Over ten years, DGRO beat VYM by 1.77 points a year. As a hypothetical illustration, $10,000 growing at 13.38% a year for ten years comes to about $35,100, and at 11.61% about $30,000. Over five years the order flips: VYM led by 0.76 points a year to 30 June 2026, largely because of 2022, when VYM lost 0.42% and DGRO 7.85%. Compounding 2021 through 2025, $10,000 became about $18,160 in VYM and $17,380 in DGRO.
The prospectus figures to 31 December 2025 tell the same story: DGRO 13.10% a year over ten years and 11.69% over five; VYM 11.32% and 12.68%. They also show the tax cost of distributions for a top-bracket investor. Over ten years, taxes on distributions cut DGRO's return by 0.63 points a year (13.10% to 12.47%) and VYM's by 0.81 points (11.32% to 10.51%). That fits VYM's higher yield.
Past performance does not guarantee future results. This is educational information, not personalised investment advice.
Which One Fits You
- You want the most income now, for less: VYM. Higher SEC yield, half the fee, more stocks.
- You want dividends that grow, and total return: DGRO. Its screens favour companies raising payouts, and it owns large growers that VYM skips.
- Taxable account: DGRO's lower yield means less taxable income each year, and its prospectus tax drag was smaller (0.63 points against 0.81 over ten years). Both lean toward qualified dividends: DGRO's index requires that companies "pay a qualified dividend," and VYM's fact sheet says it excludes REITs, "which generally do not benefit from currently favorable tax rates on qualified dividends."
- IRA or 401(k): the tax difference disappears; decide on yield versus growth. Vanguard also sells VYM as Admiral Shares (VHYAX) at 0.08%, so the ETF is the cheaper way to own it.
- Fidelity or Schwab account: both are ETFs, so there is no fund minimum; you buy shares at the market price like a stock.
- Already own a total-market fund: both tilt you toward dividend payers. See how much of each is already inside the market in VTI vs VYM and VIG vs VTI.
- Considering SCHD too: see DGRO vs SCHD and VYM vs SCHD. For VYM against Vanguard's own dividend-growth fund, see VIG vs VYM.
Sources & Methodology
Fees, index rules, quarterly extremes and returns to 31 December 2025 come from each fund's summary prospectus on SEC EDGAR. Yields, holdings counts, sectors and returns to 30 June 2026 come from the issuers' own fund pages and fact sheet, read on 5 October 2026, each with its own as-of date. Overlap and top-ten weights come from SEC Form N-PORT filings.
- iShares Core Dividend Growth ETF (DGRO), Summary Prospectus dated 31 August 2026 (Form 497K)
- Vanguard High Dividend Yield ETF (VYM), Summary Prospectus dated 27 February 2026 (Form 497K)
- iShares DGRO fund page
- Vanguard VYM profile and VYM fact sheet, 30 June 2026
- SEC Form N-PORT for both funds, period ended 31 July 2026, read by our Portfolio Overlap Checker.
How the overlap was computed. For every stock both funds hold, the checker takes the smaller of its two weights and adds them up. Both filings share the same date, so no timing gap affects the figure.
This article is for general education only and is not investment, tax or legal advice. Both are stock funds and can lose a large share of their value; each lost more than 21% in the first quarter of 2020. The dollar figures are hypothetical illustrations. All figures were checked on 5 October 2026; the two funds' yields carry different as-of dates. Confirm current figures with iShares and Vanguard before acting.
FAQ: DGRO vs VYM
Which has the higher dividend yield, DGRO or VYM?
VYM. Its 30-day SEC yield was 2.35% on 30 September 2026; DGRO's was 1.95% on 31 August 2026, the latest iShares had posted.
Which performed better?
It depends on the period. Over ten years to 30 June 2026, DGRO returned 13.38% a year against VYM's 11.61%. Over one, three and five years to the same date, VYM was ahead. In 2022 VYM lost 0.42% and DGRO 7.85%.
How much do DGRO and VYM overlap?
62.8% by our calculation from both funds' 31 July 2026 filings, with 260 stocks in common.
Is it worth holding both DGRO and VYM?
Usually not. They share most of their weight, so holding both mostly gives you an average of the two. Pick the rulebook you prefer: yield (VYM) or dividend growth (DGRO).
Why doesn't VYM own Microsoft or Apple?
VYM's index picks stocks with higher-than-average dividends, and neither was in its July 2026 filing. DGRO, which screens on dividend growth instead, held both.
Which is cheaper?
VYM, at 0.04% against DGRO's 0.08%.
Does DGRO hold small companies?
It can. Its prospectus says the index "may include large-, mid- and small-capitalization companies," though its biggest weights are large companies.
Cite This Page
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"DGRO vs VYM: Dividend Growth or High Dividend Yield?" Wealthy Pot, 2026. https://wealthypot.com/dgro-vs-vym/
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