IBHE vs. DGRO

Last updated Jun 4, 2026

IBHE (iShares iBonds 2025 Term High Yield & Income ETF) and DGRO (iShares Core Dividend Growth ETF) are both exchange-traded funds - IBHE is a High Yield Bonds fund tracking the Bloomberg 2025 Term High Yield and Income Index, while DGRO is a Large Cap Growth Equities fund tracking the Morningstar US Dividend Growth Index. Both are passively managed. Over the past 5 years, IBHE returned 3.89%/yr vs 10.54%/yr for DGRO. A 0.53 correlation means they provide meaningful diversification when combined. IBHE charges 0.35%/yr vs 0.08%/yr for DGRO.

Performance

IBHE vs. DGRO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares iBonds 2025 Term High Yield & Income ETF (IBHE) and iShares Core Dividend Growth ETF (DGRO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

IBHE

• 1D: 0.00%
• 1M: 0.00%
• YTD: 0.00%
• 6M: 0.09%
• 1Y: 2.31%
• 3Y*: 6.07%
• 5Y*: 3.89%
• 10Y*: —

DGRO

• 1D: -0.28%
• 1M: 3.14%
• YTD: 8.76%
• 6M: 8.75%
• 1Y: 22.54%
• 3Y*: 16.99%
• 5Y*: 10.54%
• 10Y*: 13.30%

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

IBHE vs. DGRO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
IBHE iShares iBonds 2025 Term High Yield & Income ETF	0.00%	4.45%	7.62%	10.32%	-4.08%	4.40%	4.16%	5.91%
DGRO iShares Core Dividend Growth ETF	8.76%	15.69%	16.62%	10.47%	-7.91%	26.64%	9.50%	14.84%

Correlation

The correlation between IBHE and DGRO is -0.01, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	-0.01
Correlation (3Y) Calculated over the trailing 3-year period	0.28
Correlation (5Y) Calculated over the trailing 5-year period	0.46
Correlation (All Time) Calculated using the full available price history since May 10, 2019	0.53

The correlation between IBHE and DGRO shifts across timeframes, from -0.01 (1 year) to 0.53 (all time), reflecting how their relationship changes across market environments.

IBHE vs. DGRO - Sectors Allocation Comparison

Sectors	IBHE	DGRO
Real Estate	100.0%	-
Basic Materials	-	2.5%
Communication Services	-	0.1%
Consumer Cyclical	-	5.7%
Consumer Defensive	-	11.5%
Energy	-	5.6%
Financial Services	-	21.2%
Healthcare	-	16.4%
Industrials	-	10.8%
Technology	-	19.4%
Utilities	-	6.9%

Return for Risk

IBHE vs. DGRO — Risk / Return Rank

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

IBHE

IBHE Risk / Return Rank: 97
IBHE Sharpe Ratio Rank: 93
IBHE Sortino Ratio Rank: 97
IBHE Omega Ratio Rank: 98
IBHE Calmar Ratio Rank: 98
IBHE Martin Ratio Rank: 98

DGRO

DGRO Risk / Return Rank: 71
DGRO Sharpe Ratio Rank: 71
DGRO Sortino Ratio Rank: 76
DGRO Omega Ratio Rank: 70
DGRO Calmar Ratio Rank: 69
DGRO Martin Ratio Rank: 71

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.

IBHE vs. DGRO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares iBonds 2025 Term High Yield & Income ETF (IBHE) 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.

	IBHE	DGRO	Difference
Sharpe ratio: Return per unit of total volatility	3.51	2.39	+1.12
Sortino ratio: Return per unit of downside risk	6.33	3.49	+2.85
Omega ratio: Gain probability vs. loss probability	2.19	1.43	+0.76
Calmar ratio: Return relative to maximum drawdown	12.78	3.50	+9.28
Martin ratio: Return relative to average drawdown	63.40	13.52	+49.88
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

IBHE vs. DGRO - Sharpe Ratio Comparison

The current IBHE Sharpe Ratio is 3.51, which is higher than the DGRO Sharpe Ratio of 2.39. The chart below compares the historical Sharpe Ratios of IBHE 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

	IBHE	DGRO	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	3.51	2.39	+1.12
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.83	0.77	+0.06
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.80	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.41	0.76	-0.36

Drawdowns

IBHE vs. DGRO - Drawdown Comparison

The maximum IBHE drawdown since its inception was -26.91%, smaller than the maximum DGRO drawdown of -35.10%. Use the drawdown chart below to compare losses from any high point for IBHE and DGRO.

Drawdown Indicators

	IBHE	DGRO	Difference
Max Drawdown Largest peak-to-trough decline	-26.91%	-35.10%	+8.19%
Max Drawdown (1Y) Largest decline over 1 year	-0.22%	-6.47%	+6.25%
Max Drawdown (3Y) Largest decline over 3 years	-0.94%	-14.03%	+13.09%
Max Drawdown (5Y) Largest decline over 5 years	-8.51%	-19.31%	+10.80%
Max Drawdown (10Y) Largest decline over 10 years	—	-35.10%	—
Current Drawdown Current decline from peak	0.00%	-0.28%	+0.28%
Average Drawdown Average peak-to-trough decline	-1.42%	-3.44%	+2.02%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.05%	1.67%	-1.62%

Volatility

IBHE vs. DGRO - Volatility Comparison

The current volatility for iShares iBonds 2025 Term High Yield & Income ETF (IBHE) is 0.00%, while iShares Core Dividend Growth ETF (DGRO) has a volatility of 2.21%. This indicates that IBHE experiences smaller price fluctuations and is considered to be less risky than DGRO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IBHE	DGRO	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.00%	2.21%	-2.21%
Volatility (6M) Calculated over the trailing 6-month period	0.39%	6.91%	-6.52%
Volatility (1Y) Calculated over the trailing 1-year period	0.78%	9.48%	-8.70%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.87%	13.82%	-8.95%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	11.53%	16.62%	-5.09%

IBHE vs. DGRO - Expense Ratio Comparison

IBHE has a 0.35% expense ratio, which is higher than DGRO's 0.08% expense ratio.

Dividends

IBHE vs. DGRO - Dividend Comparison

IBHE's dividend yield for the trailing twelve months is around 2.29%, 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%
IBHE iShares iBonds 2025 Term High Yield & Income ETF	2.29%	4.53%	6.92%	7.17%	5.77%	4.84%	5.74%	3.73%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both IBHE and DGRO in my portfolio?

IBHE and DGRO have a correlation of -0.01, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, IBHE or DGRO?

DGRO has higher volatility (2.21%) compared to IBHE (0.00%). In terms of maximum drawdown, IBHE dropped -26.91% vs DGRO's -35.10%.

Which ETF is better, IBHE or DGRO?

On 5-year performance, DGRO leads with 10.54% vs 3.89% for IBHE. On fees, DGRO is cheaper at 0.08% per year. On volatility, IBHE has been the lower-risk option at 0.00%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IBHE or DGRO?

Over the 5-year period, DGRO has performed better with a 10.54% return vs 3.89%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IBHE or DGRO?

DGRO is cheaper with a 0.08% expense ratio, compared with 0.35% for IBHE.

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

IBHE has the higher dividend yield at 2.29%, compared with 1.96% for DGRO.

What is the main difference between IBHE and DGRO?

IBHE is categorized as High Yield Bonds, while DGRO is Large Cap Growth Equities. IBHE tracks Bloomberg 2025 Term High Yield and Income Index, while DGRO tracks Morningstar US Dividend Growth Index. Their fees differ too: 0.35% for IBHE and 0.08% for DGRO.

Which has better risk-adjusted returns?

IBHE currently has the higher Sharpe Ratio (3.51 vs 2.39), 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.