DGRO vs VYM: Correlation & Overlap
iShares Core Dividend Growth ETF (DGRO) and Vanguard High Dividend Yield ETF (VYM) show a very strong relationship: their 3-year correlation of weekly returns is 0.97. By holdings, the two funds overlap 62.5% by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are DGRO and VYM?
Over the past 3 years, DGRO and VYM moved with a correlation of 0.97, which is very strong, meaning they move nearly in lockstep. Recent behaviour matches the longer record: 0.93 over 1 year against 0.97 over 3. Over 5 years the correlation is 0.97, and the annualized covariance of weekly returns is 136.3 %².
Among the 138 assets we track against DGRO, VYM ranks #4 by 3-year correlation. Twelve-month performance is nearly a tie, at +21.0% for DGRO and +21.1% for VYM. The link looks structural: the rolling one-year correlation barely moved, holding between 0.93 and 0.99.
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 VYM: side by side
| DGRO (iShares Core Dividend Growth ETF) | VYM (Vanguard High Dividend Yield ETF) | |
|---|---|---|
| 1-year return | +21.0% | +21.1% |
| 5-year return | +67.9% | +76.6% |
| Volatility (ann.) | 11.4% | 12.3% |
| Beta vs S&P 500 | 0.65 | 0.69 |
| Max drawdown (3Y) | -14.0% | -14.5% |
| Dividend yield | 1.89% | 2.24% |
| Expense ratio | 0.08% | 0.04% |
| Assets under management | $42.8B | $99.2B |
| Sector / category | ETF · Dividend | ETF · Dividend |
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. VYM, Vanguard's Large Value fund, carries $99.2B under management, 604 holdings, a 0.04% expense ratio, a 2.24% trailing dividend yield.
Portfolio overlap between DGRO and VYM
The two portfolios overlap heavily, with 261 holdings in common adding up to 62.5% of fund weight. Where correlation shows the co-movement, the overlap shows its source.
| Common holding | Weight in DGRO | Weight in VYM |
|---|---|---|
| JPM | 3.14% | 3.83% |
| XOM | 2.86% | 2.63% |
| JNJ | 3.16% | 2.51% |
| AVGO | 2.28% | 7.37% |
| ABBV | 3.03% | 1.81% |
| BAC | 1.80% | 1.67% |
| UNH | 1.67% | 1.52% |
| KO | 1.98% | 1.39% |
| PG | 2.13% | 1.37% |
| HD | 2.11% | 1.35% |
| MRK | 2.20% | 1.31% |
| CSCO | 1.27% | 1.87% |
| PM | 2.12% | 1.21% |
| GS | 1.11% | 1.14% |
| WFC | 1.22% | 1.08% |
Largest positions held only by DGRO: MSFT (3.39%), AAPL (2.85%), LLY (1.21%), V (1.13%), WMT (0.80%). Only by VYM: CVX (1.49%), TXN (1.02%), VZ (0.80%), DIS (0.69%), T (0.64%).
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 | VYM |
|---|---|---|
| 2022 | -7.9% | -0.4% |
| 2023 | +10.5% | +6.6% |
| 2024 | +16.6% | +17.6% |
| 2025 | +15.7% | +15.4% |
| 2026 | +15.2% | +15.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are DGRO and VYM good diversifiers for each other?
No. With a correlation of 0.97, DGRO and VYM move nearly in lockstep, so holding both adds very little diversification. On top of that, 62.5% of their holdings are the same, making the doubling-up even more literal.
FAQ
What is the correlation between DGRO and VYM?
The DGRO/VYM correlation stands at 0.97 on a 3-year window (1 year: 0.93, 5 years: 0.97), computed from weekly returns as of 2026-08-27.
Is VYM a good diversifier for DGRO?
No. With a correlation of 0.97, DGRO and VYM move nearly in lockstep, so holding both adds very little diversification. On top of that, 62.5% of their holdings are the same, making the doubling-up even more literal.
How much do DGRO and VYM overlap?
The two funds share 261 holdings amounting to 62.5% of weight, per issuer portfolio files dated 2026-08-26.
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