DGRO vs QUAL: Correlation & Overlap
Measured on weekly returns over the past three years, iShares Core Dividend Growth ETF (DGRO) and iShares MSCI USA Quality Factor ETF (QUAL) carry a correlation of 0.85, a very strong link. Looking through to holdings, 30.4% of the two portfolios is the same by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are DGRO and QUAL?
Over the past 3 years, DGRO and QUAL moved with a correlation of 0.85, which is very strong, meaning they move nearly in lockstep. Recent behaviour matches the longer record: 0.76 over 1 year against 0.85 over 3. Over 5 years the correlation is 0.89, and the annualized covariance of weekly returns is 135.1 %².
Within DGRO's tracked universe of 138 assets, QUAL comes in at #13 by 3-year correlation. Their 12-month results are close: +21.0% for DGRO against +19.7% for QUAL. On a rolling one-year basis the correlation drifted between 0.66 and 0.95, a moderate band.
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 QUAL: side by side
| DGRO (iShares Core Dividend Growth ETF) | QUAL (iShares MSCI USA Quality Factor ETF) | |
|---|---|---|
| 1-year return | +21.0% | +19.7% |
| 5-year return | +67.9% | +68.0% |
| Volatility (ann.) | 11.4% | 14.0% |
| Beta vs S&P 500 | 0.65 | 0.93 |
| Max drawdown (3Y) | -14.0% | -18.0% |
| Dividend yield | 1.89% | 0.86% |
| Expense ratio | 0.08% | 0.15% |
| Assets under management | $42.8B | $46.5B |
| Sector / category | ETF · Dividend | ETF · US Style |
DGRO is a Large Value fund from iShares: $42.8B under management, 383 holdings, a 0.08% expense ratio, a 1.89% trailing dividend yield. QUAL, iShares's Large Blend fund, carries $46.5B under management, 123 holdings, a 0.15% expense ratio, a 0.86% trailing dividend yield.
Portfolio overlap between DGRO and QUAL
The two portfolios partially overlap, with 72 holdings in common adding up to 30.4% of fund weight. Where correlation shows the co-movement, the overlap shows its source.
| Common holding | Weight in DGRO | Weight in QUAL |
|---|---|---|
| MSFT | 3.39% | 7.51% |
| AAPL | 2.85% | 6.62% |
| XOM | 2.86% | 2.18% |
| JNJ | 3.16% | 2.13% |
| MRK | 2.20% | 1.44% |
| LLY | 1.21% | 3.72% |
| V | 1.13% | 3.26% |
| KO | 1.98% | 0.82% |
| PG | 2.13% | 0.81% |
| WMT | 0.80% | 0.91% |
| MA | 0.73% | 2.34% |
| ACN | 0.88% | 0.73% |
| ADP | 0.71% | 1.22% |
| GILD | 0.99% | 0.69% |
| LMT | 0.62% | 0.91% |
Largest positions held only by DGRO: JPM (3.14%), ABBV (3.03%), AVGO (2.28%), PM (2.12%), HD (2.11%). Only by QUAL: NVDA (6.00%), META (3.75%), GOOGL (1.93%), NFLX (1.91%), BRK.B (1.79%).
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 | QUAL |
|---|---|---|
| 2022 | -7.9% | -20.5% |
| 2023 | +10.5% | +30.9% |
| 2024 | +16.6% | +22.3% |
| 2025 | +15.7% | +12.7% |
| 2026 | +15.2% | +13.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are DGRO and QUAL good diversifiers for each other?
No: a correlation of 0.85 means DGRO and QUAL tend to fall together, which is precisely when diversification is supposed to help.
FAQ
What is the correlation between DGRO and QUAL?
As of 2026-08-27, the correlation of weekly returns between DGRO and QUAL is 0.85 over 3 years, 0.76 over 1 year and 0.89 over 5 years.
Is QUAL a good diversifier for DGRO?
No: a correlation of 0.85 means DGRO and QUAL tend to fall together, which is precisely when diversification is supposed to help.
How much do DGRO and QUAL overlap?
30.4% by weight, across 72 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-qual.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/dgro-vs-qual/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: DGRO correlations · QUAL correlations
