HSCZ vs. DGRO

Last updated Jun 24, 2026

HSCZ (iShares Currency Hedged MSCI EAFE Small Cap ETF) and DGRO (iShares Core Dividend Growth ETF) are both exchange-traded funds - HSCZ is a Foreign Small & Mid Cap Equities fund tracking the MSCI EAFE Small-Cap 100% Hedged to USD 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, HSCZ returned 12.54%/yr vs 13.62%/yr for DGRO. A 0.66 correlation means they provide meaningful diversification when combined. HSCZ charges 0.43%/yr vs 0.08%/yr for DGRO.

Performance

HSCZ vs. DGRO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Currency Hedged MSCI EAFE Small Cap ETF (HSCZ) 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, HSCZ achieves a 10.35% return, which is significantly higher than DGRO's 9.19% return. Over the past 10 years, HSCZ has underperformed DGRO with an annualized return of 12.54%, while DGRO has yielded a comparatively higher 13.62% annualized return.

HSCZ

• 1D: -1.36%
• 1M: -0.07%
• YTD: 10.35%
• 6M: 10.73%
• 1Y: 27.70%
• 3Y*: 19.25%
• 5Y*: 11.06%
• 10Y*: 12.54%

DGRO

• 1D: 0.32%
• 1M: 0.80%
• YTD: 9.19%
• 6M: 8.52%
• 1Y: 22.22%
• 3Y*: 16.92%
• 5Y*: 11.00%
• 10Y*: 13.62%

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

HSCZ vs. DGRO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
HSCZ iShares Currency Hedged MSCI EAFE Small Cap ETF	10.35%	25.74%	12.89%	17.03%	-11.46%	17.75%	6.40%	27.89%	-13.99%	24.52%
DGRO iShares Core Dividend Growth ETF	9.19%	15.69%	16.62%	10.47%	-7.91%	26.64%	9.50%	29.87%	-2.38%	23.00%

Correlation

The correlation between HSCZ and DGRO is 0.64, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.64
Correlation (3Y) Calculated over the trailing 3-year period	0.65
Correlation (5Y) Calculated over the trailing 5-year period	0.71
Correlation (10Y) Calculated over the trailing 10-year period	0.69
Correlation (All Time) Calculated using the full available price history since Jul 14, 2015	0.66

The correlation between HSCZ and DGRO has been stable across timeframes, ranging from 0.64 to 0.71 - a consistent structural relationship.

HSCZ vs. DGRO - Sectors Allocation Comparison

Sectors	HSCZ	DGRO
Industrials	22.8%	10.4%
Financial Services	15.8%	20.6%
Technology	11.5%	22.0%
Real Estate	10.4%	-
Basic Materials	10.3%	2.4%
Consumer Cyclical	9.9%	5.4%
Energy	4.2%	5.1%
Healthcare	3.7%	16.5%
Consumer Defensive	3.1%	11.1%
Communication Services	3.1%	0.1%
Utilities	2.2%	6.4%

Return for Risk

HSCZ vs. DGRO — Risk / Return Rank

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

HSCZ

HSCZ Risk / Return Rank: 75
HSCZ Sharpe Ratio Rank: 80
HSCZ Sortino Ratio Rank: 81
HSCZ Omega Ratio Rank: 80
HSCZ Calmar Ratio Rank: 62
HSCZ Martin Ratio Rank: 71

DGRO

DGRO Risk / Return Rank: 75
DGRO Sharpe Ratio Rank: 76
DGRO Sortino Ratio Rank: 81
DGRO Omega Ratio Rank: 75
DGRO Calmar Ratio Rank: 71
DGRO Martin Ratio Rank: 73

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.

HSCZ vs. DGRO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Currency Hedged MSCI EAFE Small Cap ETF (HSCZ) 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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	HSCZ	DGRO	Difference
Sharpe ratio: Return per unit of total volatility	2.39	2.35	+0.05
Sortino ratio: Return per unit of downside risk	3.35	3.41	-0.07
Omega ratio: Gain probability vs. loss probability	1.44	1.42	+0.02
Calmar ratio: Return relative to maximum drawdown	2.90	3.45	-0.55
Martin ratio: Return relative to average drawdown	12.32	13.31	-1.00

HSCZ vs. DGRO - Sharpe Ratio Comparison

The current HSCZ Sharpe Ratio is 2.39, which is comparable to the DGRO Sharpe Ratio of 2.35. The chart below compares the historical Sharpe Ratios of HSCZ 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.

Drawdowns

HSCZ vs. DGRO - Drawdown Comparison

The maximum HSCZ drawdown since its inception was -34.89%, roughly equal to the maximum DGRO drawdown of -35.10%. Use the drawdown chart below to compare losses from any high point for HSCZ and DGRO.

Drawdown Indicators

	HSCZ	DGRO	Difference
Max Drawdown Largest peak-to-trough decline	-34.89%	-35.10%	+0.21%
Max Drawdown (1Y) Largest decline over 1 year	-9.61%	-6.47%	-3.14%
Max Drawdown (3Y) Largest decline over 3 years	-12.81%	-14.03%	+1.22%
Max Drawdown (5Y) Largest decline over 5 years	-20.11%	-19.31%	-0.80%
Max Drawdown (10Y) Largest decline over 10 years	-34.89%	-35.10%	+0.21%
Current Drawdown Current decline from peak	-1.36%	-0.90%	-0.46%
Average Drawdown Average peak-to-trough decline	-4.64%	-3.43%	-1.21%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.25%	1.67%	+0.58%

Volatility

HSCZ vs. DGRO - Volatility Comparison

iShares Currency Hedged MSCI EAFE Small Cap ETF (HSCZ) has a higher volatility of 3.94% compared to iShares Core Dividend Growth ETF (DGRO) at 2.63%. This indicates that HSCZ'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

	HSCZ	DGRO	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.94%	2.63%	+1.31%
Volatility (6M) Calculated over the trailing 6-month period	9.76%	6.94%	+2.82%
Volatility (1Y) Calculated over the trailing 1-year period	11.64%	9.53%	+2.11%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.52%	13.80%	-0.28%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	15.47%	16.60%	-1.13%

HSCZ vs. DGRO - Expense Ratio Comparison

HSCZ has a 0.43% expense ratio, which is higher than DGRO's 0.08% expense ratio.

Dividends

HSCZ vs. DGRO - Dividend Comparison

HSCZ's dividend yield for the trailing twelve months is around 2.95%, more than DGRO's 1.97% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DGRO iShares Core Dividend Growth ETF	1.97%	2.09%	2.26%	2.45%	2.34%	1.93%	2.30%	2.21%	2.44%	2.03%	2.27%	2.52%
HSCZ iShares Currency Hedged MSCI EAFE Small Cap ETF	2.95%	3.25%	3.26%	2.98%	26.91%	2.90%	1.46%	4.66%	6.15%	2.52%	2.57%	1.75%

Frequently Asked Questions

Can I hold both HSCZ and DGRO in my portfolio?

HSCZ and DGRO have a correlation of 0.64, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, HSCZ or DGRO?

HSCZ has higher volatility (3.94%) compared to DGRO (2.63%). In terms of maximum drawdown, HSCZ dropped -34.89% vs DGRO's -35.10%.

Which ETF is better, HSCZ or DGRO?

On 10-year performance, DGRO leads with 13.62% vs 12.54% for HSCZ. On fees, DGRO is cheaper at 0.08% per year. On volatility, DGRO has been the lower-risk option at 2.63%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, HSCZ or DGRO?

Over the 10-year period, DGRO has performed better with a 13.62% return vs 12.54%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, HSCZ or DGRO?

DGRO is cheaper with a 0.08% expense ratio, compared with 0.43% for HSCZ.

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

HSCZ has the higher dividend yield at 2.95%, compared with 1.97% for DGRO.

What is the main difference between HSCZ and DGRO?

HSCZ is categorized as Foreign Small & Mid Cap Equities, while DGRO is Large Cap Growth Equities. HSCZ tracks MSCI EAFE Small-Cap 100% Hedged to USD Index, while DGRO tracks Morningstar US Dividend Growth Index. Their fees differ too: 0.43% for HSCZ and 0.08% for DGRO.

Which has better risk-adjusted returns?

HSCZ currently has the higher Sharpe Ratio (2.39 vs 2.35), 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.