DGRO
iShares Core Dividend Growth ETF
DGRO tracks the Morningstar US Dividend Growth Index, selecting U.S. companies with a history of consistently growing dividends. Focuses on sustainable dividend growth rather than high current yield. Quality screens for financial health and payout sustainability.
DIV
Global X SuperDividend ETF
DIV tracks the Solactive Global SuperDividend Index, selecting 100 of the highest dividend-yielding equity securities globally. Focuses purely on maximizing current income without regard for dividend growth or sustainability. Includes REITs, MLPs, and high-yield equities.
Key Metrics Comparison
| Metric | DGRO | DIV | Winner |
|---|---|---|---|
| Dividend Yield | 2.45% | 6.85% | DIV (+4.40%) |
| Expense Ratio | 0.08% | 0.58% | DGRO (-0.50%) |
| 5-Year Annual Return | 10.8% | 4.2% | DGRO (+6.6%) |
| Number of Holdings | 448 | 100 | DGRO (4.5x more) |
| Assets Under Management | $24.6B | $2.8B | DGRO |
| 5-Year Dividend Growth | 8.2% | 1.5% | DGRO (+6.7%) |
| P/E Ratio | 19.5 | 12.8 | DIV (cheaper) |
| Beta vs S&P 500 | 0.82 | 1.05 | DGRO (lower risk) |
Performance Comparison
DGRO Performance
Much higher total returns with moderate yield. Strong dividend growth provides inflation protection. Lower beta offers better downside protection. Quality screens ensure dividend sustainability. Broad diversification reduces concentration risk.
DIV Performance
Very high current income with low total returns. Monthly dividends provide cash flow. Higher beta indicates more volatility. Concentrated in highest-yield sectors globally. Includes REITs and MLPs for yield enhancement.
Strategy Analysis
DGRO Approach
Quality dividend growth methodology:
- Tracks Morningstar US Dividend Growth Index
- Minimum 5-year dividend growth history
- Payout ratio screening (< 75%)
- Financial health requirements
- US companies only
- Market-cap weighted
- Quality over yield focus
- Long-term compounding emphasis
DIV Approach
Maximum current yield globally:
- Tracks Solactive Global SuperDividend Index
- Selects 100 highest-yielding stocks globally
- Includes REITs, MLPs, and high-yield equities
- No dividend growth requirements
- Monthly dividend payments
- Equal-weighted methodology
- Yield maximization priority
- Current income over growth
Geographical Exposure Differences
DGRO is exclusively U.S. focused while DIV provides global high-yield exposure including emerging markets.
US Exposure
International Developed
Emerging Markets
Currency Risk
Quality vs Yield Trade-off
DGRO's quality focus vs DIV's yield maximization creates dramatically different risk and return profiles.
Financial Quality Metrics
ROE (Average): DGRO 22% vs DIV 14%
Debt/Equity: DGRO 58% vs DIV 85%
Profit Margin: DGRO 18% vs DIV 10%
Dividend Coverage: DGRO 2.1x vs DIV 1.2x
Dividend Sustainability
Payout Ratio (Avg): DGRO 48% vs DIV 92%
Dividend Growth: DGRO 8.2% vs DIV 1.5%
Cut Risk: DGRO very low, DIV moderate-high
Inflation Protection: DGRO strong, DIV weak
Sector Composition
DGRO: Tech, Healthcare, Industrials
DIV: REITs, Financials, Utilities, Energy
Defensive Sectors: DIV heavier
Growth Sectors: DGRO heavier
Sector & Asset Class Comparison
Sector & Asset Class Weighting
DIV includes REITs and MLPs (30% combined) while DGRO focuses on traditional dividend growers in growth sectors.
Real Estate (REITs)
Energy & MLPs
Technology
Financials
Risk Profile & Volatility Characteristics
DIV's higher yield comes with significantly higher risk across multiple dimensions.
Volatility Metrics
Standard Deviation: DGRO 14.2% vs DIV 18.5%
Beta: DGRO 0.82 vs DIV 1.05
Max Drawdown (2020): DGRO -32% vs DIV -45%
Sharpe Ratio: DGRO 0.68 vs DIV 0.28
Dividend Risk Factors
Yield Chasing Risk: DIV high, DGRO low
Dividend Cut Frequency: DIV 5-8% annually
Recovery from Cuts: DGRO faster
Tax Complexity: DIV higher (MLPs, REITs)
Market Environment Sensitivity
Rising Rate Environment: Both hurt, DIV more
Recession: DGRO more defensive
Growth Environment: DGRO outperforms
Flat Markets: DIV yield cushion helps
Income Analysis
DGRO Income Profile
Moderate current yield with strong growth. Quality focus ensures dividend sustainability. Lower payout ratios for safety. Better inflation protection through growth. Quarterly dividends with growth compounding.
DIV Income Profile
Very high current income with minimal growth. Monthly payments for cash flow. Includes REITs and MLPs for yield. Higher payout ratios increase risk. Global exposure adds currency risk but yield.
Historical Performance & Backtesting
Long-Term Performance Comparison
DGRO has massively outperformed DIV over all time periods despite much lower yield, thanks to better quality and growth.
Since 2013 (DIV inception)
Maximum Drawdown (2020)
Sharpe Ratio
Dividend Growth
Top Holdings Comparison
DGRO Top Holdings (Quality Dividend Growth)
Note: Quality dividend growers, 448 holdings, growth-oriented
DIV Top Holdings (Global High Yield)
Note: Global high yield, 100 holdings, REITs/MLPs heavy
Investment Recommendation
🌱 Choose DGRO If:
- Total return is priority (10.8% vs 4.2%)
- Dividend growth matters (8.2% vs 1.5%)
- Quality and sustainability are important
- Lower volatility appeals to you (beta 0.82 vs 1.05)
- You have longer time horizon (7+ years)
- Inflation protection through growth matters
- Lower expense ratio valuable (0.08% vs 0.58%)
- You prefer US-only exposure for simplicity
💰 Choose DIV If:
- Maximum current income is absolute priority (6.85% vs 2.45%)
- You're in retirement needing high cash flow
- Monthly dividend payments are valuable
- You want global high-yield exposure
- You can tolerate higher volatility and risk
- Tax complexity from MLPs/REITs is manageable
- You have short time horizon (< 3 years)
- Yield cushion during flat markets critical
💡 Portfolio Construction Strategy
Warning: These are fundamentally different strategies. DGRO is a quality dividend growth ETF for long-term compounding. DIV is a maximum yield ETF for current income with higher risk. For retirement income: Consider 20-30% DIV for yield boost with 70-80% DGRO for growth. For accumulation phase: Use DGRO as core (90%) with DIV satellite (10%) only if yield needed. For balanced approach: 80% DGRO + 20% DIV provides ~3.33% blended yield with better growth than DIV alone. Critical: DIV's 4.4% yield advantage is completely offset by DGRO's 6.6% annual performance advantage. DGRO investors catch up to DIV's income in ~3 years through growth. DIV's higher expense ratio (0.58% vs 0.08%) creates additional drag. Consider combining with SCHD: 50% SCHD + 40% DGRO + 10% DIV for balanced yield/growth/quality.