DGRO vs MDY: Correlation & Overlap
Measured on weekly returns over the past three years, iShares Core Dividend Growth ETF (DGRO) and SPDR S&P MidCap 400 ETF (MDY) carry a correlation of 0.89, a very strong link. The two funds also share 4.0% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are DGRO and MDY?
Across a 3-year window, the weekly returns of DGRO and MDY correlate at 0.89, very strong, meaning they move nearly in lockstep. The relationship has been stable: the 1-year correlation (0.79) sits close to the 3-year figure. Stretching to 5 years gives 0.90, with an annualized covariance of 167.3 %².
By 3-year correlation, MDY places #8 of the 138 assets tracked against DGRO. Twelve-month performance is nearly a tie, at +21.0% for DGRO and +18.3% for MDY. The link looks structural: the rolling one-year correlation barely moved, holding between 0.80 and 0.93.
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 MDY: side by side
| DGRO (iShares Core Dividend Growth ETF) | MDY (SPDR S&P MidCap 400 ETF) | |
|---|---|---|
| 1-year return | +21.0% | +18.3% |
| 5-year return | +67.9% | +47.5% |
| Volatility (ann.) | 11.4% | 16.5% |
| Beta vs S&P 500 | 0.65 | 0.91 |
| Max drawdown (3Y) | -14.0% | -24.0% |
| Dividend yield | 1.89% | 1.02% |
| Expense ratio | 0.08% | 0.23% |
| Assets under management | $42.8B | $26.5B |
| 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. MDY, State Street Investment Management's Mid-Cap Blend fund, carries $26.5B under management, 400 holdings, a 0.23% expense ratio, a 1.02% trailing dividend yield.
Portfolio overlap between DGRO and MDY
The two portfolios are largely distinct, with 121 holdings in common adding up to 4.0% of fund weight. Where correlation shows the co-movement, the overlap shows its source.
| Common holding | Weight in DGRO | Weight in MDY |
|---|---|---|
| FNF | 0.10% | 0.33% |
| EWBC | 0.10% | 0.49% |
| WTRG | 0.09% | 0.32% |
| OVV | 0.08% | 0.49% |
| OGE | 0.07% | 0.26% |
| DTM | 0.07% | 0.37% |
| EQH | 0.07% | 0.38% |
| ORI | 0.07% | 0.26% |
| HRB | 0.06% | 0.18% |
| CFR | 0.06% | 0.28% |
| UNM | 0.06% | 0.37% |
| OC | 0.06% | 0.32% |
| ZION | 0.06% | 0.28% |
| RPM | 0.06% | 0.37% |
| BAH | 0.06% | 0.25% |
Largest positions held only by DGRO: MSFT (3.39%), JNJ (3.16%), JPM (3.14%), ABBV (3.03%), XOM (2.86%). Only by MDY: TWLO (0.95%), P (0.94%), ILMN (0.93%), FTI (0.83%), ATI (0.80%).
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 | MDY |
|---|---|---|
| 2022 | -7.9% | -13.3% |
| 2023 | +10.5% | +16.1% |
| 2024 | +16.6% | +13.6% |
| 2025 | +15.7% | +7.2% |
| 2026 | +15.2% | +16.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are DGRO and MDY good diversifiers for each other?
No. With a correlation of 0.89, DGRO and MDY move nearly in lockstep, so holding both adds very little diversification.
FAQ
What is the correlation between DGRO and MDY?
Using weekly returns as of 2026-08-27: 0.89 over 3 years, with 0.79 over the last year and 0.90 over 5 years.
Is MDY a good diversifier for DGRO?
No. With a correlation of 0.89, DGRO and MDY move nearly in lockstep, so holding both adds very little diversification.
How much do DGRO and MDY overlap?
Per the issuers' own portfolio disclosures (2026-08-26), the overlap is 4.0% by weight over 121 common positions.
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Hubs: DGRO correlations · MDY correlations
