⚖️ VIG vs DGRO Comparison · Free & No Signup

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 is cheaper 🔬 Compare top 10 holdings → 💡 Plain-English verdict

🤝 BFF Take

VIG Has the Edge on Track Record and AUM — DGRO Adds a Payout Quality Screen

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.

📋 Quick Takeaways

📅VIG requires 10+ years of consecutive dividend increases; DGRO requires 5+ with a payout ratio screen

💰VIG costs 0.06%; DGRO costs 0.08% — both extremely cheap, VIG marginally cheaper

🏦VIG has $90B+ AUM; DGRO has $33B — VIG is significantly larger with better liquidity

📊 Data-Based Take: VIG has the lower fee

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.

✓ Reviewed by a CFA® Charterholder · Data as of Jul 14, 2026 · Educational only, not financial advice

VIG

Vanguard Dividend Appreciation Index Fund ETF Shares

Expense Ratio

0.06% ✓

1-Year Return

+15.8%

AUM

$124.6B

Holdings

315

DGRO

iShares Core Dividend Growth ETF

Expense Ratio

0.08%

1-Year Return

+18.8%

AUM

$41.2B

Holdings

430

📋 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	$41.2B
Holdings	315	430
Inception	2006	2014
1-Year Return	+15.78%	+18.81%
3-Year Return	+16.20%	+17.55%
5-Year Return	+10.70%	+11.03%
Dividend Yield	1.51%	1.95%
Holdings Overlap	See holdings overlap →
Avg Bid-Ask Spread	0.00%	0.01%

Expense ratio, AUM, and returns updated Jul 14, 2026 from ETF BFF database. Returns are annualised. Not investment advice.

📊 VIG vs DGRO — Annualised Returns

Annualised returns (trailing, price-based). Past performance does not guarantee future results.

🎯 Which Fund Fits Which Investor?

Often fits investors who...

VIG

want the lowest fees: saves ~$2/yr per $10K vs DGRO
want tech-heavy large-cap growth exposure via S&P US Dividend Growers

Often fits investors who...

DGRO

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.

Investment amount$ Years held Expected annual return%

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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❓ VIG vs DGRO — Frequently Asked Questions

What is the difference between VIG and DGRO?

Both VIG and DGRO focus on US stocks with consistent dividend growth histories. VIG requires 10+ consecutive years of dividend increases and excludes the top 25% highest-yielding names (anti-dividend-trap screen). DGRO requires at least 5 years of growth and adds a payout ratio screen (below 75% of earnings). DGRO is slightly more accessible (5-year threshold) but adds the payout sustainability check. VIG is more established and considerably larger.

Which dividend growth ETF should I choose for long-term investing?

Either VIG or DGRO is a solid choice for long-term dividend growth investing. If simplicity and the largest possible fund matters, VIG wins. If you prefer DGRO's payout ratio quality screen (which theoretically reduces dividend-cut risk), that's a reasonable preference. Many investors hold both since they complement each other with DGRO providing slightly different holdings and the payout ratio filter.

How do VIG and DGRO compare to SCHD?

SCHD has a meaningfully higher dividend yield (3.5-4%) than both VIG (~1.8-2.2%) and DGRO (~2.2-2.8%). SCHD focuses more on current yield along with quality metrics; VIG and DGRO focus more purely on dividend growth consistency. SCHD tends to attract more income-oriented investors; VIG and DGRO attract investors who prioritize long-term dividend growth with a lower initial yield.

Do VIG and DGRO hold the same stocks?

There is significant overlap — companies like Microsoft, Apple, JPMorgan Chase, and Johnson & Johnson appear in both. However, DGRO's 5-year threshold admits some companies excluded by VIG's stricter 10-year standard. DGRO also holds more stocks (~430 vs ~315) due to its broader inclusion criteria. The top holdings are similar but not identical.

What yield do VIG and DGRO pay?

VIG typically yields around 1.8-2.2% annually, paid quarterly. DGRO typically yields slightly more at 2.2-2.8%. Both are lower-yielding than SCHD because their screens select companies based on dividend growth history rather than current yield. The thesis is that consistent dividend growers tend to deliver strong total returns (price appreciation + growing income) over time.

New to ETF investing? See answers to the most common ETF questions →

📄 VIG & DGRO Fact Sheets

VIG Fact Sheet→ DGRO Fact Sheet→

ℹ️ Data shown is for educational purposes and may not reflect the most current figures. Returns are trailing price-based and exclude dividend reinvestment. Past performance does not guarantee future results. ETF BFF is not a licensed financial advisor — this is not personalized financial advice.