VIG vs DGRO

Portfolio characteristics

Vanguard reports fund-level net assets of $127.7B (all share classes) and ETF-share assets of $109.1B at Sep 30; the $115.8B shown is the ETF figure on Vanguard’s fund page in early November. Beta is not comparable across providers, so VIG’s was not captured.

Top ten sums: VIG 34.5% · DGRO 27.43%. Vanguard rounds to one decimal. Seven stocks appear in both top-ten lists. Weights change.

The sector mirror

Same funds, different lenses

Company size

VIG (Vanguard, Sep 30): median market capitalization $337.6B and about 99% in domestic stock. DGRO (iShares): a broad list of 391 large and mid-sized U.S. companies; market-cap bands were not captured for this page. Both are overwhelmingly large-company funds.

What you actually own

Average annual: Vanguard and iShares, Sep 30, 2026. “Since inception” starts in different years (VIG 2006, DGRO 2014), so do not compare those two columns. After-tax returns for DGRO use iShares’ highest historical federal rates; Vanguard’s fact sheet does not show them. Calendar years: VIG from Yahoo Finance, DGRO from iShares. Past performance does not guarantee future results.

Growth of a hypothetical $10,000 · NAV total return to Sep 30, 2026

Both funds derived from the issuers’ annualized NAV returns (compounded). Distributions reinvested, fund expenses deducted. Illustration, not a forecast.

Quarterly payouts per share, newest first

Single payouts are noisy; a four-quarter comparison is steadier. Computed from the distribution tables above.

Rank by rank, the ten largest positions of each fund. VIG: Vanguard (Sep 30). DGRO: ETF Central (Aug 31). Top five: VIG 22.1%, DGRO 15.7%. Top ten: VIG 34.5%, DGRO 27.4%.

Both trade on NYSE Arca with very tight spreads. A spread of 0.01% is about $10 between the buy and sell price on $100,000. Use limit orders for large trades and avoid the first and last minutes of the session. See creation, redemption and trading for how NAV, premiums and spreads arise.

Expense ratio is taken from fund assets, not billed. It excludes the bid/ask spread, any premium or discount to NAV, brokerage commissions and taxes. VIG’s ratio has been listed as low as 0.04% and as high as 0.06% in older Vanguard documents; the 0.04% figure is from the current prospectus.

Exact eligibility rules, caps and rebalance dates sit in each prospectus and index methodology; read them before relying on this summary.

DGRO’s 2.07% SEC yield is higher than VIG’s 1.43% because of how the two indexes are built. VIG requires at least ten straight years of dividend growth and drops the highest-yielding quarter of eligible stocks, which concentrates it in lower-yielding growers such as Microsoft, Apple and Broadcom. DGRO drops only the top yield decile, then screens on dividend growth and payout ratio and weights by dividends paid, so it lets in more utilities, staples and energy.

The same mix shows in returns. DGRO led VIG over 1, 3, 5 and 10 years to Sep 30, 2026, but the margin narrows with time: 3.2 points a year over one year, 1.1 over three, 0.2 over five and 0.3 over ten. Calendar years split two apiece from 2022 to 2025. Sector tilt is the simplest explanation, not proof: leadership can reverse, and a higher yield is not a promise of higher total return. Read yield vs total return before choosing on yield alone.

Start with what separates them. Cost favors VIG by 0.04 points, or $4 a year on $10,000. Yield and recent returns favor DGRO: a 2.07% SEC yield against 1.43%, which on a $100,000 balance implies roughly $2,070 a year against $1,430 at those yields before taxes, if yields held (they change). Sector mix favors neither: VIG leans technology, DGRO leans financials, health care and defensive sectors.

Then check what you already own. Seven of the same stocks lead both funds and one estimate puts weight overlap near two-thirds, so holding both mostly doubles up. If you already hold a broad U.S. fund such as VOO or VTI, either fund adds only a modest dividend-growth tilt.

• Step 1 · Goal: income today and a flatter portfolio (DGRO) or the lowest fee and a technology tilt (VIG).
• Step 2 · Overlap: compare each fund with your existing index funds using the Diversification Calculator.
• Step 3 · Sectors: accept a technology-heavy mix (VIG) or more financials, utilities and staples (DGRO).
• Step 4 · Cost: VIG saves $4 a year per $10,000, which is small next to the yield gap.
• Step 5 · Account: consider how dividends are taxed in your account type.

Most investors would pick one rather than both. If you want something different from either, SCHD vs VIG and SCHD vs DGRO show how a dividend quality fund differs. Size the position against your whole portfolio.

VIG and DGRO are U.S.-listed and trade in U.S. dollars, so buying them from a Canadian account usually involves converting Canadian dollars, which adds a cost on both entry and exit. Currency moves also change your return in Canadian dollars even if the funds are flat in U.S. dollars.

U.S. dividends paid to Canadian residents can be subject to U.S. withholding tax, generally 15% under the Canada-U.S. tax treaty. Registered accounts are treated differently: an RRSP is generally exempt from that withholding on U.S. dividends, while a TFSA is not. In a taxable account the withheld amount may be claimable through the foreign tax credit. Because DGRO yields more, the withholding in dollar terms is larger on a given balance.

Canadians holding U.S.-listed assets above a modest threshold may also face U.S. estate tax exposure, which treaty relief can reduce. This is general education, not tax advice; confirm the rules for your situation with a cross-border tax professional.

Both funds invest in U.S. stocks and pay quarterly. VIG’s turnover is low (8.2%), which usually limits taxable distributions; DGRO’s turnover is about 31% (undated, from MutualFunds.com). Capital gains distribution history was not captured for either fund. U.S. taxpayers may see some dividends taxed at lower qualified rates if holding-period rules are met.

iShares’ after-tax return for DGRO to Sep 30, 2026 was 12.40% over one year before selling shares and 8.03% after selling; Vanguard’s fact sheet does not show an equivalent for VIG. For Canadian account types and withholding tax, see the Canadian section above. Confirm the rules for your account with a tax professional, and read how to build an ETF portfolio.

Investors comparing VIG and DGRO often also look at Schwab U.S. Dividend Equity (SCHD), Vanguard High Dividend Yield (VYM), iShares Core High Dividend (HDV) and ProShares S&P 500 Dividend Aristocrats (NOBL). See SCHD vs VIG, SCHD vs DGRO and SCHD vs VTI. Broad funds such as VTI and VOO already hold many of the same companies, so check overlap before adding a dividend fund to a core portfolio. See every dividend fund side by side on the Dividend ETFs page.

Is VIG or DGRO better?

Neither is better for everyone. DGRO pays a higher yield (2.07% SEC yield on Sep 30, 2026 against 1.43% for VIG on Oct 31) and led VIG over 1, 3, 5 and 10 years to Sep 30, 2026. VIG costs less (0.04% against 0.08%) and holds a more technology-heavy list. The funds hold many of the same stocks, so the difference is smaller than the gap in yield suggests.

Which pays the higher dividend yield, VIG or DGRO?

DGRO. Its 30-day SEC yield was 2.07% and its trailing 12-month yield 1.98% (both Sep 30, 2026). VIG’s SEC yield was 1.43% (Oct 31) and 1.60% (Sep 30), with a trailing yield of about 1.49%. VIG pays more dollars per share only because its share price is higher.

What are the expense ratios of VIG and DGRO?

VIG’s expense ratio is 0.04% per Vanguard’s current prospectus, or $4 a year per $10,000. DGRO’s is 0.08%, or $8 a year per $10,000. Older Vanguard documents showed higher figures for VIG, so check the latest prospectus.

How much do VIG and DGRO overlap?

Seven stocks appear in both top-ten lists: Microsoft, Apple, Broadcom, JPMorgan Chase, Exxon Mobil, Johnson & Johnson and AbbVie. One tracker estimated weight overlap near 66% in January 2023; that was not re-measured for this page. By this page’s own sector arithmetic, the funds overlap about 87% by sector weight.

What index does each ETF track?

VIG tracks the S&P U.S. Dividend Growers Index. DGRO tracks the Morningstar US Dividend Growth Index. Both are passive, quarterly-paying U.S. dividend funds listed on NYSE Arca.

What are the top holdings of VIG and DGRO?

VIG’s largest positions on Sep 30, 2026 were Microsoft (4.9%), Apple (4.9%), Broadcom (4.3%), Eli Lilly (4.1%) and JPMorgan Chase (3.9%). DGRO’s largest on Aug 31, 2026 were Microsoft (3.50%), JPMorgan Chase (3.17%), Johnson & Johnson (3.14%), AbbVie (2.99%) and Exxon Mobil (2.94%).

Which has performed better, VIG or DGRO?

DGRO led over every matched period to Sep 30, 2026: 12.95% vs 9.77% over one year, 17.57% vs 16.51% over three, 10.96% vs 10.72% over five and 13.16% vs 12.86% over ten, annualized on NAV. Calendar years 2022 to 2025 split two apiece. Past performance does not guarantee future results.

Which grew its dividend faster?

DGRO’s last four payouts total $1.494 per share, about 8.1% above the prior four. VIG’s last four total $3.646, about 2.7% above the prior four. Short windows are noisy and past growth does not guarantee future growth.

How do VIG and DGRO differ by sector?

VIG (Sep 30, 2026) was 26.7% technology, 21.0% financials and 18.6% health care, with 3.6% in energy. DGRO (Nov 5, 2026) was 19.5% financials, 17.9% health care, 16.7% technology and 13.1% consumer staples, with 7.3% in utilities and 5.3% in energy.

Can I own both VIG and DGRO?

You can, but they hold many of the same companies, so owning both mostly repeats your exposure. Check your combined overlap with a diversification calculator and size positions against your whole portfolio.

Which is less volatile, VIG or DGRO?

The measured gap is small: three-year standard deviation was 10.33% for VIG and 10.45% for DGRO at Sep 30, 2026. DGRO’s beta was 0.67; VIG’s was not captured. In the March 2020 sell-off DGRO fell about 35.1% (Mezzi); VIG’s worst decline of the last decade was about 31.7% (BestETF). These two figures use different periods.

Are VIG and DGRO suitable for Canadian investors?

Both are U.S.-listed and trade in U.S. dollars, so Canadians face currency conversion costs and may face U.S. withholding tax on dividends. Treatment differs across TFSA, RRSP and taxable accounts. This is general education, not tax advice; confirm with a tax professional.

Third-party sources

ETF Savant · Optimized Portfolio · ETF Central · Yahoo Finance · StockAnalysis.

Methodology and limits

• VIG figures come from Vanguard’s fact sheet and investment profile (Sep 30, 2026) and Vanguard’s fund page (Nov 5, 2026). DGRO figures come from iShares (Nov 5–6 and Sep 30, 2026).
• Top-ten holdings are Vanguard (Sep 30) for VIG and ETF Central (Aug 31) for DGRO, so dates differ by about five weeks. DGRO’s ten weights are summed from published weights.
• Weight overlap of about 66% is Optimized Portfolio’s January 2023 estimate and was not re-measured. Sector overlap of 87% is this page’s sum of the smaller sector weight in each fund. Correlation is from ETF Savant with no stated window.
• Calendar-year returns for VIG (Yahoo Finance) and DGRO (iShares) come from two sources; VIG 2021 was not captured, so the table starts in 2022.
• Growth of $10,000 is derived from each issuer’s annualized NAV returns; dollar values are approximate.
• Drawdowns: VIG is BestETF’s 10-year worst decline; DGRO is Mezzi’s March 2020 figure. They cover different periods and are third party. VIG beta, DGRO net-flow comparisons and DGRO capital gains history were not captured.
• Index rules summarize provider descriptions; confirm eligibility rules, caps and rebalance dates in each prospectus.

Pathways, not rankings or recommendations.