VIG vs DGRO: Dividend Appreciation vs Dividend Growth — A Close Race
VIG screens for 10+ years of consecutive dividend growth. DGRO screens for 5+ years plus payout ratio quality. Very similar outcome — with different portfolio construction.
VIG (Vanguard Dividend Appreciation ETF) and DGRO (iShares Core Dividend Growth ETF) are among the most popular dividend growth ETFs in the US. VIG tracks the S&P US Dividend Growers Index, requiring 10+ consecutive years of dividend increases and excluding the top 25% highest-yielding companies (to filter out potential dividend traps). It holds ~315 stocks at 0.06%. DGRO requires at least 5 years of dividend growth AND a payout ratio below 75%, adding a sustainability screen, and holds ~430 stocks at 0.08%. Both have produced very similar returns. VIG's 10-year threshold is stricter on tenure; DGRO's payout ratio screen adds quality. With $90B in AUM vs DGRO's $33B, VIG has significantly more scale and liquidity. Both are excellent long-term core dividend holdings.
Whether the lower-cost fund suits your situation depends on your existing holdings, account type, tax situation, and how you use each fund. This is a cost comparison, not a personalized recommendation.
Both funds trade commission-free at every major brokerage. Where to buy them →
📋 VIG vs DGRO: Key Facts Side by Side
| Metric | VIG | DGRO |
|---|---|---|
| Fund Name | Vanguard Dividend Appreciation Index Fund ETF Shares | iShares Core Dividend Growth ETF |
| Issuer | Vanguard | iShares |
| Tracks Index | S&P US Dividend Growers | Morningstar US Dividend Growth |
| Expense Ratio | 0.06% ✓ | 0.08% |
| Cost per $10K/yr | $6.00 | $8.00 |
| AUM | $124.6B | $41.9B |
| Holdings | 315 | 430 |
| Inception | 2006 | 2014 |
| 1-Year Return | +10.59% | +14.13% |
| 3-Year Return | +17.53% | +19.00% |
| 5-Year Return | +11.04% | +11.40% |
| Dividend Yield | 1.56% | 1.98% |
| Holdings Overlap | See holdings overlap → | |
| Avg Bid-Ask Spread | 0.00% | 0.01% |
AUM and returns updated Oct 14, 2026 from ETF BFF database; expense ratios verified against issuer filings. Returns are annualised. Not investment advice.
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📊 VIG vs DGRO: Annualised Returns
Annualised returns (trailing, price-based). Past performance does not guarantee future results.
🎯 Which Fund Fits Which Investor?
- want the lowest fees: saves ~$2/yr per $10K vs DGRO
- want tech-heavy large-cap growth exposure via S&P US Dividend Growers
- want tech-heavy large-cap growth exposure via Morningstar US Dividend Growth
- already use iShares and prefer staying within one fund family
💰 What the Fee Difference Actually Costs
Adjust the numbers for your situation. This models each fund's expense ratio compounding against your balance over time.
Assumes a constant annual return reinvested, with each fund's expense ratio deducted yearly. Illustrative only; actual returns vary. Past performance does not guarantee future results.
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