DGRO vs VWO: Correlation & Overlap
How closely do iShares Core Dividend Growth ETF (DGRO) and Vanguard FTSE Emerging Markets ETF (VWO) trade together? Their weekly returns over three years give a correlation of 0.61, which is strong. Looking through to holdings, 0.0% 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 VWO?
Across a 3-year window, the weekly returns of DGRO and VWO correlate at 0.61, strong. The relationship has been stable: the 1-year correlation (0.56) sits close to the 3-year figure. Stretching to 5 years gives 0.57, with an annualized covariance of 105.1 %².
Within DGRO's tracked universe of 138 assets, VWO comes in at #65 by 3-year correlation. Their 12-month results are close: +21.0% for DGRO against +21.6% for VWO. The rolling one-year correlation moved between 0.42 and 0.81 over the past three years, a moderate range.
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 VWO: side by side
| DGRO (iShares Core Dividend Growth ETF) | VWO (Vanguard FTSE Emerging Markets ETF) | |
|---|---|---|
| 1-year return | +21.0% | +21.6% |
| 5-year return | +67.9% | +38.2% |
| Volatility (ann.) | 11.4% | 15.2% |
| Beta vs S&P 500 | 0.65 | 0.75 |
| Max drawdown (3Y) | -14.0% | -17.4% |
| Dividend yield | 1.89% | 2.36% |
| Expense ratio | 0.08% | 0.06% |
| Assets under management | $42.8B | $162.0B |
| Sector / category | ETF · Dividend | ETF · International |
DGRO, iShares's Large Value fund, carries $42.8B under management, 383 holdings, a 0.08% expense ratio, a 1.89% trailing dividend yield. On the fund side, VWO sits in the Diversified Emerging Mkts category at Vanguard, with $162.0B under management, 4113 holdings, a 0.06% expense ratio, a 2.36% trailing dividend yield.
Portfolio overlap between DGRO and VWO
The two portfolios are largely distinct: 0.0% of the funds' weight sits in the same underlying holdings (5 common positions). Correlation tells you they move together; overlap tells you why.
| Common holding | Weight in DGRO | Weight in VWO |
|---|---|---|
| TEL | 0.19% | 0.02% |
| ECL | 0.18% | 0.01% |
| IEX | 0.05% | 0.01% |
| SRE | 0.35% | 0.01% |
| SCI | 0.05% | 0.01% |
Largest positions held only by DGRO: MSFT (3.39%), JNJ (3.16%), JPM (3.14%), ABBV (3.03%), XOM (2.86%). Only by VWO: 2330 (18.65%), 700 (3.97%), 9988 (2.90%), 2454 (1.62%), 939 (1.07%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26. Top 5 common positions shown.
Year-by-year returns
| Year | DGRO | VWO |
|---|---|---|
| 2022 | -7.9% | -18.0% |
| 2023 | +10.5% | +9.3% |
| 2024 | +16.6% | +10.6% |
| 2025 | +15.7% | +25.6% |
| 2026 | +15.2% | +13.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are DGRO and VWO good diversifiers for each other?
To a limited degree. At 0.61 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
FAQ
What is the correlation between DGRO and VWO?
The DGRO/VWO correlation stands at 0.61 on a 3-year window (1 year: 0.56, 5 years: 0.57), computed from weekly returns as of 2026-08-27.
Is VWO a good diversifier for DGRO?
To a limited degree. At 0.61 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
How much do DGRO and VWO overlap?
Per the issuers' own portfolio disclosures (2026-08-26), the overlap is 0.0% by weight over 5 common positions.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/dgro-vs-vwo.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/dgro-vs-vwo/)
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Related comparisons
Hubs: DGRO correlations · VWO correlations
