DGRO vs IWM: Correlation & Overlap
Measured on weekly returns over the past three years, iShares Core Dividend Growth ETF (DGRO) and iShares Russell 2000 ETF (IWM) carry a correlation of 0.83, a very strong link. By holdings, the two funds overlap 0.9% by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are DGRO and IWM?
On 3 years of weekly data the DGRO/IWM correlation comes out at 0.83, very strong, meaning they move nearly in lockstep. The link has loosened recently: the 1-year correlation (0.71) runs below the 3-year figure (0.83). The 5-year figure is 0.83, and annualized covariance runs at 187.3 %².
Within DGRO's tracked universe of 138 assets, IWM comes in at #18 by 3-year correlation. Over the last 12 months IWM came out ahead by 7.4 percentage points (+21.0% against +28.4%). The rolling one-year correlation stayed in a tight band between 0.71 and 0.90 over the past three years, which points to a structural rather than episodic relationship. One caveat on sizing: IWM is 1.7 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
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 IWM: side by side
| DGRO (iShares Core Dividend Growth ETF) | IWM (iShares Russell 2000 ETF) | |
|---|---|---|
| 1-year return | +21.0% | +28.4% |
| 5-year return | +67.9% | +41.5% |
| Volatility (ann.) | 11.4% | 19.8% |
| Beta vs S&P 500 | 0.65 | 1.06 |
| Max drawdown (3Y) | -14.0% | -27.5% |
| Dividend yield | 1.89% | 0.91% |
| Expense ratio | 0.08% | 0.19% |
| Assets under management | $42.8B | $80.1B |
| Sector / category | ETF · Dividend | ETF · US Small & Mid Cap |
DGRO, iShares's Large Value fund, carries $42.8B under management, 383 holdings, a 0.08% expense ratio, a 1.89% trailing dividend yield. IWM, iShares's Small Blend fund, carries $80.1B under management, 1757 holdings, a 0.19% expense ratio, a 0.91% trailing dividend yield.
Portfolio overlap between DGRO and IWM
The two portfolios are largely distinct, with 37 holdings in common adding up to 0.9% of fund weight. Where correlation shows the co-movement, the overlap shows its source.
| Common holding | Weight in DGRO | Weight in IWM |
|---|---|---|
| BKH | 0.05% | 0.18% |
| IBP | 0.05% | 0.18% |
| HOMB | 0.04% | 0.18% |
| OGS | 0.04% | 0.16% |
| NJR | 0.04% | 0.18% |
| NWE | 0.04% | 0.14% |
| SR | 0.04% | 0.16% |
| TXNM | 0.04% | 0.19% |
| ESNT | 0.03% | 0.20% |
| UMBF | 0.03% | 0.34% |
| KTB | 0.03% | 0.13% |
| VCTR | 0.03% | 0.16% |
| RDN | 0.03% | 0.16% |
| CMC | 0.02% | 0.24% |
| CRC | 0.02% | 0.12% |
Largest positions held only by DGRO: MSFT (3.39%), JNJ (3.16%), JPM (3.14%), ABBV (3.03%), XOM (2.86%). Only by IWM: CYTK (0.33%), GKOS (0.33%), EAT (0.33%), FROG (0.32%), BTSG (0.31%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26. Top 15 common positions shown.
Year-by-year returns
| Year | DGRO | IWM |
|---|---|---|
| 2022 | -7.9% | -20.5% |
| 2023 | +10.5% | +16.8% |
| 2024 | +16.6% | +11.4% |
| 2025 | +15.7% | +12.7% |
| 2026 | +15.2% | +22.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are DGRO and IWM good diversifiers for each other?
No: a correlation of 0.83 means DGRO and IWM tend to fall together, which is precisely when diversification is supposed to help.
FAQ
What is the correlation between DGRO and IWM?
As of 2026-08-27, the correlation of weekly returns between DGRO and IWM is 0.83 over 3 years, 0.71 over 1 year and 0.83 over 5 years.
Is IWM a good diversifier for DGRO?
No: a correlation of 0.83 means DGRO and IWM tend to fall together, which is precisely when diversification is supposed to help.
How much do DGRO and IWM overlap?
0.9% by weight, across 37 common holdings, based on issuer-disclosed portfolios as of 2026-08-26.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/dgro-vs-iwm.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/dgro-vs-iwm/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: DGRO correlations · IWM correlations
