iShares Core Dividend Growth ETF

DGRO

Market cap $35.6B

iShares Core Dividend Growth ETF has a strong track record as a dividend growth and wealth compounding machine. However, it has a key structural weakness. We look at this weakness more deeply and explain why it prevents us from wanting to own it.

Dividend growth stocks have a simple premise. Get low yields now that grow rapidly and generate high income by the time you retire.

‘Dividend aristocrats' can do more for risk-averse portfolios than supersafe Treasury bonds.

The iShares Core Dividend Growth ETF (DGRO) made its debut on 06/10/2014, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - Large Cap Value category of the market.

BlackRock is one of the largest exchange-traded fund providers, and its iShares brand is extremely popular and reliable.

AI-driven tech stocks dominate 2025 returns, leaving dividend and high-yield ETFs lagging due to limited AI exposure. REITs face mixed fortunes: ARE and DOC struggle with life science oversupply, while IVT, AMT, ADC, and VICI offer attractive dividend growth and value. My current buy list focuses on undervalued REITs and ETFs with strong dividend growth.

Schwab U.S. Dividend Equity ETF™ and PepsiCo, Inc. are positioned to benefit as market enthusiasm for AI normalizes and investors seek reliable dividend payers. SCHD offers a 3.86% yield, low expense ratio, and potential for capital appreciation as interest rates fall and fixed-income yields decline. PEP faces near-term headwinds but boasts strong liquidity, strategic acquisitions, and a below-average valuation, supporting long-term upside.

If you're looking for a low-maintenance income-generating investment that you can buy and hold indefinitely, an exchange-traded fund (ETF) is an obvious choice. And you've certainly got plenty of options.

If it's strong income and growth you're after, you may want to consider dividend-paying exchange-traded funds. We can look at high-yield dividend funds, which target companies with above-average yields in hot sectors such as consumer staples and telecommunications.

DGRO is a well-diversified large-cap value fund comprised of almost 400 U.S. securities on 5+ year dividend growth streaks. Its expense ratio is 0.08% and its trailing yield is 2.02%. DGRO has increased dividends for 10 years, one of only five in its category to do so. Today, I'll compare it with the other four: VTV, VYM, VIG, and SCHD. This article uses fundamental analysis to predict whether DGRO's dividend growth streak will continue and whether any of those four ETFs are potentially better long-term.