HEEM vs. DGRO

Last updated Jun 6, 2026

HEEM (iShares Currency Hedged MSCI Emerging Markets ETF) and DGRO (iShares Core Dividend Growth ETF) are both exchange-traded funds - HEEM is a Emerging Markets Diversified fund tracking the MSCI Emerging Markets 100% USD Hedged Index, while DGRO is a Large Cap Growth Equities fund tracking the Morningstar US Dividend Growth Index. Both are passively managed. Over the past 10 years, HEEM returned 10.40%/yr vs 13.23%/yr for DGRO. A 0.59 correlation means they provide meaningful diversification when combined. HEEM charges 0.72%/yr vs 0.08%/yr for DGRO.

Performance

HEEM vs. DGRO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Currency Hedged MSCI Emerging Markets ETF (HEEM) and iShares Core Dividend Growth ETF (DGRO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, HEEM achieves a 20.85% return, which is significantly higher than DGRO's 8.79% return. Over the past 10 years, HEEM has underperformed DGRO with an annualized return of 10.40%, while DGRO has yielded a comparatively higher 13.23% annualized return.

HEEM

• 1D: -5.76%
• 1M: -2.36%
• YTD: 20.85%
• 6M: 21.68%
• 1Y: 50.37%
• 3Y*: 23.65%
• 5Y*: 8.78%
• 10Y*: 10.40%

DGRO

• 1D: -0.78%
• 1M: 2.16%
• YTD: 8.79%
• 6M: 9.12%
• 1Y: 23.20%
• 3Y*: 17.09%
• 5Y*: 10.54%
• 10Y*: 13.23%

*Multi-year figures are annualized to reflect compound growth (CAGR)

HEEM vs. DGRO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
HEEM iShares Currency Hedged MSCI Emerging Markets ETF	20.85%	34.02%	12.59%	10.14%	-16.85%	-1.82%	17.94%	18.53%	-11.09%	27.59%
DGRO iShares Core Dividend Growth ETF	8.79%	15.69%	16.62%	10.47%	-7.91%	26.64%	9.50%	29.87%	-2.38%	23.00%

Correlation

The correlation between HEEM and DGRO is 0.43, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.43
Correlation (3Y) Calculated over the trailing 3-year period	0.47
Correlation (5Y) Calculated over the trailing 5-year period	0.51
Correlation (10Y) Calculated over the trailing 10-year period	0.56
Correlation (All Time) Calculated using the full available price history since Sep 26, 2014	0.59

The correlation between HEEM and DGRO shifts across timeframes, from 0.43 (1 year) to 0.59 (all time), reflecting how their relationship changes across market environments.

HEEM vs. DGRO - Sectors Allocation Comparison

Sectors	HEEM	DGRO
Technology	37.0%	19.4%
Financial Services	19.4%	21.2%
Consumer Cyclical	9.6%	5.7%
Industrials	7.5%	10.8%
Communication Services	6.9%	0.1%
Basic Materials	6.5%	2.5%
Energy	4.0%	5.6%
Consumer Defensive	3.0%	11.5%
Healthcare	2.9%	16.4%
Utilities	2.1%	6.9%
Real Estate	1.1%	-

Return for Risk

HEEM vs. DGRO — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

HEEM

HEEM Risk / Return Rank: 86
HEEM Sharpe Ratio Rank: 86
HEEM Sortino Ratio Rank: 81
HEEM Omega Ratio Rank: 87
HEEM Calmar Ratio Rank: 86
HEEM Martin Ratio Rank: 88

DGRO

DGRO Risk / Return Rank: 77
DGRO Sharpe Ratio Rank: 77
DGRO Sortino Ratio Rank: 81
DGRO Omega Ratio Rank: 76
DGRO Calmar Ratio Rank: 73
DGRO Martin Ratio Rank: 75

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

HEEM vs. DGRO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Currency Hedged MSCI Emerging Markets ETF (HEEM) and iShares Core Dividend Growth ETF (DGRO). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	HEEM	DGRO	Difference
Sharpe ratio: Return per unit of total volatility	2.71	2.45	+0.26
Sortino ratio: Return per unit of downside risk	3.44	3.55	-0.11
Omega ratio: Gain probability vs. loss probability	1.52	1.44	+0.07
Calmar ratio: Return relative to maximum drawdown	4.67	3.60	+1.07
Martin ratio: Return relative to average drawdown	18.40	13.91	+4.49
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

HEEM vs. DGRO - Sharpe Ratio Comparison

The current HEEM Sharpe Ratio is 2.71, which is comparable to the DGRO Sharpe Ratio of 2.45. The chart below compares the historical Sharpe Ratios of HEEM and DGRO, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	HEEM	DGRO	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.71	2.45	+0.26
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.51	0.77	-0.25
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.58	0.80	-0.22
Sharpe Ratio (All Time) Calculated using the full available price history	0.45	0.76	-0.31

Drawdowns

HEEM vs. DGRO - Drawdown Comparison

The maximum HEEM drawdown since its inception was -33.53%, roughly equal to the maximum DGRO drawdown of -35.10%. Use the drawdown chart below to compare losses from any high point for HEEM and DGRO.

Drawdown Indicators

	HEEM	DGRO	Difference
Max Drawdown Largest peak-to-trough decline	-33.53%	-35.10%	+1.57%
Max Drawdown (1Y) Largest decline over 1 year	-10.83%	-6.47%	-4.36%
Max Drawdown (3Y) Largest decline over 3 years	-14.82%	-14.03%	-0.79%
Max Drawdown (5Y) Largest decline over 5 years	-30.60%	-19.31%	-11.29%
Max Drawdown (10Y) Largest decline over 10 years	-33.53%	-35.10%	+1.57%
Current Drawdown Current decline from peak	-7.80%	-0.78%	-7.02%
Average Drawdown Average peak-to-trough decline	-11.13%	-3.44%	-7.69%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.75%	1.67%	+1.08%

Volatility

HEEM vs. DGRO - Volatility Comparison

iShares Currency Hedged MSCI Emerging Markets ETF (HEEM) has a higher volatility of 9.48% compared to iShares Core Dividend Growth ETF (DGRO) at 2.42%. This indicates that HEEM's price experiences larger fluctuations and is considered to be riskier than DGRO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	HEEM	DGRO	Difference
Volatility (1M) Calculated over the trailing 1-month period	9.48%	2.42%	+7.06%
Volatility (6M) Calculated over the trailing 6-month period	16.57%	6.94%	+9.63%
Volatility (1Y) Calculated over the trailing 1-year period	18.71%	9.52%	+9.19%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.21%	13.82%	+3.39%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.06%	16.62%	+1.44%

HEEM vs. DGRO - Expense Ratio Comparison

HEEM has a 0.72% expense ratio, which is higher than DGRO's 0.08% expense ratio.

Dividends

HEEM vs. DGRO - Dividend Comparison

HEEM's dividend yield for the trailing twelve months is around 3.29%, more than DGRO's 1.96% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DGRO iShares Core Dividend Growth ETF	1.96%	2.09%	2.26%	2.45%	2.34%	1.93%	2.30%	2.21%	2.44%	2.03%	2.27%	2.52%
HEEM iShares Currency Hedged MSCI Emerging Markets ETF	3.29%	3.98%	2.38%	2.75%	7.49%	1.93%	1.49%	3.04%	2.37%	2.05%	1.84%	6.28%

Frequently Asked Questions

Can I hold both HEEM and DGRO in my portfolio?

HEEM and DGRO have a correlation of 0.43, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, HEEM or DGRO?

HEEM has higher volatility (9.48%) compared to DGRO (2.42%). In terms of maximum drawdown, HEEM dropped -33.53% vs DGRO's -35.10%.

Which ETF is better, HEEM or DGRO?

On 10-year performance, DGRO leads with 13.23% vs 10.40% for HEEM. On fees, DGRO is cheaper at 0.08% per year. On volatility, DGRO has been the lower-risk option at 2.42%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, HEEM or DGRO?

Over the 10-year period, DGRO has performed better with a 13.23% return vs 10.40%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, HEEM or DGRO?

DGRO is cheaper with a 0.08% expense ratio, compared with 0.72% for HEEM.

Which ETF pays a higher dividend yield, HEEM or DGRO?

HEEM has the higher dividend yield at 3.29%, compared with 1.96% for DGRO.

What is the main difference between HEEM and DGRO?

HEEM is categorized as Emerging Markets Diversified, while DGRO is Large Cap Growth Equities. HEEM tracks MSCI Emerging Markets 100% USD Hedged Index, while DGRO tracks Morningstar US Dividend Growth Index. Their fees differ too: 0.72% for HEEM and 0.08% for DGRO.

Which has better risk-adjusted returns?

HEEM currently has the higher Sharpe Ratio (2.71 vs 2.45), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.