DGRO vs SPY: Correlation & Overlap
How closely do iShares Core Dividend Growth ETF (DGRO) and SPDR S&P 500 ETF Trust (SPY) trade together? Their weekly returns over three years give a correlation of 0.83, which is very strong. Looking through to holdings, 43.0% 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 SPY?
Over the past 3 years, DGRO and SPY moved with a correlation of 0.83, which is very strong, meaning they move nearly in lockstep. The past 12 months show a weaker link (0.61) than the 3-year average (0.83). Over 5 years the correlation is 0.89, and the annualized covariance of weekly returns is 136.4 %².
Among the 138 assets we track against DGRO, SPY ranks #19 by 3-year correlation. Neither side won the trailing year by much: +21.0% against +20.6%. Across three years, the rolling one-year figure varied moderately, from 0.61 to 0.94.
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 SPY: side by side
| DGRO (iShares Core Dividend Growth ETF) | SPY (SPDR S&P 500 ETF Trust) | |
|---|---|---|
| 1-year return | +21.0% | +20.6% |
| 5-year return | +67.9% | +82.4% |
| Volatility (ann.) | 11.4% | 14.5% |
| Beta vs S&P 500 | 0.65 | 1.00 |
| Max drawdown (3Y) | -14.0% | -18.8% |
| Dividend yield | 1.89% | 1.01% |
| Expense ratio | 0.08% | 0.09% |
| Assets under management | $42.8B | $795.3B |
| Sector / category | ETF · Dividend | ETF · US Large Cap |
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. SPY is a Large Blend fund from State Street Investment Management: $795.3B under management, 504 holdings, a 0.09% expense ratio, a 1.01% trailing dividend yield.
Portfolio overlap between DGRO and SPY
The two portfolios overlap heavily: 43.0% of the funds' weight sits in the same underlying holdings (229 common positions). Correlation tells you they move together; overlap tells you why.
| Common holding | Weight in DGRO | Weight in SPY |
|---|---|---|
| MSFT | 3.39% | 5.58% |
| AAPL | 2.85% | 6.96% |
| AVGO | 2.28% | 2.55% |
| JPM | 3.14% | 1.44% |
| LLY | 1.21% | 1.42% |
| XOM | 2.86% | 0.99% |
| JNJ | 3.16% | 0.98% |
| V | 1.13% | 0.96% |
| MA | 0.73% | 0.73% |
| ABBV | 3.03% | 0.70% |
| WMT | 0.80% | 0.69% |
| CSCO | 1.27% | 0.67% |
| BAC | 1.80% | 0.61% |
| MRK | 2.20% | 0.57% |
| UNH | 1.67% | 0.55% |
Largest positions held only by DGRO: LNG (0.12%), FNF (0.10%), EWBC (0.10%), WTRG (0.09%), RPRX (0.08%). Only by SPY: NVDA (7.68%), AMZN (3.85%), GOOGL (3.03%), GOOG (2.42%), META (1.91%).
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 | SPY |
|---|---|---|
| 2022 | -7.9% | -18.2% |
| 2023 | +10.5% | +26.2% |
| 2024 | +16.6% | +24.9% |
| 2025 | +15.7% | +17.7% |
| 2026 | +15.2% | +13.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are DGRO and SPY good diversifiers for each other?
No. With a correlation of 0.83, DGRO and SPY move nearly in lockstep, so holding both adds very little diversification. They also hold much of the same portfolio (43.0% overlap), so the exposure is doubly redundant.
FAQ
What is the correlation between DGRO and SPY?
The DGRO/SPY correlation stands at 0.83 on a 3-year window (1 year: 0.61, 5 years: 0.89), computed from weekly returns as of 2026-08-27.
Is SPY a good diversifier for DGRO?
No. With a correlation of 0.83, DGRO and SPY move nearly in lockstep, so holding both adds very little diversification. They also hold much of the same portfolio (43.0% overlap), so the exposure is doubly redundant.
How much do DGRO and SPY overlap?
43.0% by weight, across 229 common holdings, based on issuer-disclosed portfolios as of 2026-08-26.
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