DGRO vs MCD: Correlation
How closely do iShares Core Dividend Growth ETF (DGRO) and McDonald's (MCD) trade together? Their weekly returns over three years give a correlation of 0.41, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are DGRO and MCD?
On 3 years of weekly data the DGRO/MCD correlation comes out at 0.41, moderate. The past 12 months show a tighter link (0.52) than the 3-year average (0.41). The 5-year figure is 0.55, and annualized covariance runs at 84.3 %².
Within DGRO's tracked universe of 138 assets, MCD comes in at #123 by 3-year correlation. The last year tells two different stories: DGRO led by 35.5 percentage points, +21.0% for DGRO against -14.5% for MCD. The rolling one-year correlation moved between 0.31 and 0.69 over the past three years, a moderate range. Note the risk asymmetry: MCD runs 1.6 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 MCD: side by side
| DGRO (iShares Core Dividend Growth ETF) | MCD (McDonald's) | |
|---|---|---|
| 1-year return | +21.0% | -14.5% |
| 5-year return | +67.9% | +23.3% |
| Volatility (ann.) | 11.4% | 17.8% |
| Beta vs S&P 500 | 0.65 | 0.30 |
| Max drawdown (3Y) | -14.0% | -22.8% |
| Market cap | – | $184.0B |
| P/E (trailing) | – | 21.7 |
| Dividend yield | 1.89% | 2.75% |
| Expense ratio | 0.08% | – |
| Assets under management | $42.8B | – |
| Sector / category | ETF · Dividend | Consumer Discretionary |
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 | MCD |
|---|---|---|
| 2022 | -7.9% | +0.5% |
| 2023 | +10.5% | +15.1% |
| 2024 | +16.6% | +0.1% |
| 2025 | +15.7% | +7.9% |
| 2026 | +15.2% | -13.9% |
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 MCD at a 1.07% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are DGRO and MCD good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.41 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between DGRO and MCD?
Using weekly returns as of 2026-08-27: 0.41 over 3 years, with 0.52 over the last year and 0.55 over 5 years.
Is MCD a good diversifier for DGRO?
Yes, to a useful degree: a correlation of 0.41 leaves real independence between the two, which historically damped combined volatility.
What does a correlation of 0.41 mean?
On the −1 to +1 scale, 0.41 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-mcd.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/dgro-vs-mcd/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: DGRO correlations · MCD correlations
