DGRO vs VNQ: Correlation & Overlap
Measured on weekly returns over the past three years, iShares Core Dividend Growth ETF (DGRO) and Vanguard Real Estate ETF (VNQ) carry a correlation of 0.74, a strong link. By holdings, the two funds overlap 0% by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are DGRO and VNQ?
Over the past 3 years, DGRO and VNQ moved with a correlation of 0.74, which is strong. Little has changed lately, as the 1-year reading of 0.67 lands near the 3-year figure. Over 5 years the correlation is 0.80, and the annualized covariance of weekly returns is 139.8 %².
Within DGRO's tracked universe of 138 assets, VNQ comes in at #27 by 3-year correlation. The trailing year gives DGRO the advantage: +21.0% versus +10.3%, a 10.7-point spread. The link looks structural: the rolling one-year correlation barely moved, holding between 0.66 and 0.87.
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 VNQ: side by side
| DGRO (iShares Core Dividend Growth ETF) | VNQ (Vanguard Real Estate ETF) | |
|---|---|---|
| 1-year return | +21.0% | +10.3% |
| 5-year return | +67.9% | +9.5% |
| Volatility (ann.) | 11.4% | 16.6% |
| Beta vs S&P 500 | 0.65 | 0.59 |
| Max drawdown (3Y) | -14.0% | -17.5% |
| Dividend yield | 1.89% | 3.51% |
| Expense ratio | 0.08% | 0.13% |
| Assets under management | $42.8B | $73.1B |
| Sector / category | ETF · Dividend | ETF · Real Estate |
DGRO, iShares's Large Value fund, carries $42.8B under management, 383 holdings, a 0.08% expense ratio, a 1.89% trailing dividend yield. VNQ is a Real Estate fund from Vanguard: $73.1B under management, 140 holdings, a 0.13% expense ratio, a 3.51% trailing dividend yield.
Portfolio overlap between DGRO and VNQ
The two portfolios are largely distinct, with 0 holdings in common adding up to 0% of fund weight. Where correlation shows the co-movement, the overlap shows its source.
Largest positions held only by DGRO: MSFT (3.39%), JNJ (3.16%), JPM (3.14%), ABBV (3.03%), XOM (2.86%). Only by VNQ: VRTPX (14.54%), WELL (8.54%), PLD (7.04%), EQIX (5.25%), AMT (4.22%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26.
Year-by-year returns
| Year | DGRO | VNQ |
|---|---|---|
| 2022 | -7.9% | -26.3% |
| 2023 | +10.5% | +11.9% |
| 2024 | +16.6% | +4.8% |
| 2025 | +15.7% | +3.2% |
| 2026 | +15.2% | +12.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are DGRO and VNQ good diversifiers for each other?
Somewhat, no more. With 0.74 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between DGRO and VNQ?
The DGRO/VNQ correlation stands at 0.74 on a 3-year window (1 year: 0.67, 5 years: 0.80), computed from weekly returns as of 2026-08-27.
Is VNQ a good diversifier for DGRO?
Somewhat, no more. With 0.74 correlation, most large moves hit both names, and the diversification benefit stays modest.
How much do DGRO and VNQ overlap?
Per the issuers' own portfolio disclosures (2026-08-26), the overlap is 0% by weight over 0 common positions.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/dgro-vs-vnq.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/dgro-vs-vnq/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: DGRO correlations · VNQ correlations
