DGRO vs ITW: Correlation
Measured on weekly returns over the past three years, iShares Core Dividend Growth ETF (DGRO) and Illinois Tool Works (ITW) carry a correlation of 0.72, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are DGRO and ITW?
Across a 3-year window, the weekly returns of DGRO and ITW correlate at 0.72, strong. Little has changed lately, as the 1-year reading of 0.62 lands near the 3-year figure. Stretching to 5 years gives 0.75, with an annualized covariance of 156.0 %².
By 3-year correlation, ITW places #30 of the 138 assets tracked against DGRO. Over the last 12 months DGRO came out ahead by 12.8 percentage points (+21.0% against +8.2%). The link looks structural: the rolling one-year correlation barely moved, holding between 0.63 and 0.83. Note the risk asymmetry: ITW runs 1.7 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
How is this computed?
Pearson correlation on weekly returns: ρ(A,B) = cov(rA, rB) / (σA · σB), over windows of 52, 156 and 260 weeks. Covariance is annualized (×52) and expressed in %². Full definitions on the methodology page.
DGRO vs ITW: side by side
| DGRO (iShares Core Dividend Growth ETF) | ITW (Illinois Tool Works) | |
|---|---|---|
| 1-year return | +21.0% | +8.2% |
| 5-year return | +67.9% | +36.1% |
| Volatility (ann.) | 11.4% | 19.0% |
| Beta vs S&P 500 | 0.65 | 0.64 |
| Max drawdown (3Y) | -14.0% | -20.6% |
| Market cap | – | $80.2B |
| P/E (trailing) | – | 25.8 |
| Dividend yield | 1.89% | 2.26% |
| Expense ratio | 0.08% | – |
| Assets under management | $42.8B | – |
| Sector / category | ETF · Dividend | Industrials |
On the fund side, DGRO sits in the Large Value category at iShares, with $42.8B under management, 383 holdings, a 0.08% expense ratio, a 1.89% trailing dividend yield.
Year-by-year returns
| Year | DGRO | ITW |
|---|---|---|
| 2022 | -7.9% | -8.5% |
| 2023 | +10.5% | +21.6% |
| 2024 | +16.6% | -1.0% |
| 2025 | +15.7% | -0.4% |
| 2026 | +15.2% | +15.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
Keep in mind that DGRO holds ITW at a 0.44% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are DGRO and ITW good diversifiers for each other?
Only partially. A correlation of 0.72 means DGRO and ITW share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between DGRO and ITW?
The DGRO/ITW correlation stands at 0.72 on a 3-year window (1 year: 0.62, 5 years: 0.75), computed from weekly returns as of 2026-08-27.
Is ITW a good diversifier for DGRO?
Only partially. A correlation of 0.72 means DGRO and ITW share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.72 mean?
On the −1 to +1 scale, 0.72 describes how much the two returns move together: +1 is lockstep, 0 is independence, negative values mean opposite directions. It says nothing about which performed better.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/dgro-vs-itw.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/dgro-vs-itw/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: DGRO correlations · ITW correlations
