PALC vs. DGRO

Last updated Jun 4, 2026

PALC (Pacer Lunt Large Cap Multi-Factor Alternator ETF) and DGRO (iShares Core Dividend Growth ETF) are both Large Cap Growth Equities funds - PALC tracks the Lunt Capital U.S. Large Cap Multi-Factor Rotation Index while DGRO tracks the Morningstar US Dividend Growth Index. Both are passively managed. Over the past 5 years, PALC returned 9.40%/yr vs 10.54%/yr for DGRO. A 0.79 correlation means they provide meaningful diversification when combined. PALC charges 0.60%/yr vs 0.08%/yr for DGRO.

Performance

PALC vs. DGRO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Pacer Lunt Large Cap Multi-Factor Alternator ETF (PALC) 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, PALC achieves a 11.39% return, which is significantly higher than DGRO's 8.76% return.

PALC

• 1D: -0.38%
• 1M: 6.95%
• YTD: 11.39%
• 6M: 12.77%
• 1Y: 21.51%
• 3Y*: 17.82%
• 5Y*: 9.40%
• 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)

PALC vs. DGRO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
PALC Pacer Lunt Large Cap Multi-Factor Alternator ETF	11.39%	7.28%	21.24%	17.52%	-14.74%	41.03%	22.18%
DGRO iShares Core Dividend Growth ETF	8.76%	15.69%	16.62%	10.47%	-7.91%	26.64%	21.25%

Correlation

The correlation between PALC and DGRO is 0.81, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.81
Correlation (3Y) Calculated over the trailing 3-year period	0.76
Correlation (5Y) Calculated over the trailing 5-year period	0.82
Correlation (All Time) Calculated using the full available price history since Jun 26, 2020	0.79

The correlation between PALC and DGRO has been stable across timeframes, ranging from 0.76 to 0.82 - a consistent structural relationship.

PALC vs. DGRO - Sectors Allocation Comparison

Sectors	PALC	DGRO
Financial Services	22.6%	21.2%
Technology	15.2%	19.4%
Industrials	14.1%	10.8%
Healthcare	11.9%	16.4%
Energy	10.6%	5.6%
Consumer Defensive	10.6%	11.5%
Communication Services	6.2%	0.1%
Consumer Cyclical	4.9%	5.7%
Basic Materials	2.2%	2.5%
Utilities	1.5%	6.9%
Real Estate	0.3%	-

Return for Risk

PALC vs. DGRO — Risk / Return Rank

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

PALC

PALC Risk / Return Rank: 52
PALC Sharpe Ratio Rank: 54
PALC Sortino Ratio Rank: 55
PALC Omega Ratio Rank: 51
PALC Calmar Ratio Rank: 49
PALC Martin Ratio Rank: 53

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.

PALC vs. DGRO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Pacer Lunt Large Cap Multi-Factor Alternator ETF (PALC) 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.

	PALC	DGRO	Difference
Sharpe ratio: Return per unit of total volatility	1.87	2.39	-0.53
Sortino ratio: Return per unit of downside risk	2.65	3.49	-0.84
Omega ratio: Gain probability vs. loss probability	1.32	1.43	-0.11
Calmar ratio: Return relative to maximum drawdown	2.42	3.50	-1.08
Martin ratio: Return relative to average drawdown	8.98	13.52	-4.54
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

PALC vs. DGRO - Sharpe Ratio Comparison

The current PALC Sharpe Ratio is 1.87, which is comparable to the DGRO Sharpe Ratio of 2.39. The chart below compares the historical Sharpe Ratios of PALC 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

	PALC	DGRO	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.87	2.39	-0.53
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.58	0.77	-0.18
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.80	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.98	0.76	+0.22

Drawdowns

PALC vs. DGRO - Drawdown Comparison

The maximum PALC drawdown since its inception was -24.45%, smaller than the maximum DGRO drawdown of -35.10%. Use the drawdown chart below to compare losses from any high point for PALC and DGRO.

Drawdown Indicators

	PALC	DGRO	Difference
Max Drawdown Largest peak-to-trough decline	-24.45%	-35.10%	+10.65%
Max Drawdown (1Y) Largest decline over 1 year	-8.94%	-6.47%	-2.47%
Max Drawdown (3Y) Largest decline over 3 years	-17.39%	-14.03%	-3.36%
Max Drawdown (5Y) Largest decline over 5 years	-24.45%	-19.31%	-5.14%
Max Drawdown (10Y) Largest decline over 10 years	—	-35.10%	—
Current Drawdown Current decline from peak	-0.38%	-0.28%	-0.10%
Average Drawdown Average peak-to-trough decline	-6.33%	-3.44%	-2.89%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.40%	1.67%	+0.73%

Volatility

PALC vs. DGRO - Volatility Comparison

Pacer Lunt Large Cap Multi-Factor Alternator ETF (PALC) has a higher volatility of 2.95% compared to iShares Core Dividend Growth ETF (DGRO) at 2.21%. This indicates that PALC'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

	PALC	DGRO	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.95%	2.21%	+0.74%
Volatility (6M) Calculated over the trailing 6-month period	8.55%	6.91%	+1.64%
Volatility (1Y) Calculated over the trailing 1-year period	11.58%	9.48%	+2.10%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.22%	13.82%	+2.40%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.07%	16.62%	+0.45%

PALC vs. DGRO - Expense Ratio Comparison

PALC has a 0.60% expense ratio, which is higher than DGRO's 0.08% expense ratio.

Dividends

PALC vs. DGRO - Dividend Comparison

PALC's dividend yield for the trailing twelve months is around 1.04%, less 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%
PALC Pacer Lunt Large Cap Multi-Factor Alternator ETF	1.04%	1.08%	0.93%	0.74%	1.69%	0.64%	0.72%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both PALC and DGRO in my portfolio?

PALC and DGRO have a correlation of 0.81, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, PALC or DGRO?

PALC has higher volatility (2.95%) compared to DGRO (2.21%). In terms of maximum drawdown, PALC dropped -24.45% vs DGRO's -35.10%.

Which ETF is better, PALC or DGRO?

On 5-year performance, DGRO leads with 10.54% vs 9.40% for PALC. On fees, DGRO is cheaper at 0.08% per year. On volatility, DGRO has been the lower-risk option at 2.21%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, PALC or DGRO?

Over the 5-year period, DGRO has performed better with a 10.54% return vs 9.40%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PALC or DGRO?

DGRO is cheaper with a 0.08% expense ratio, compared with 0.60% for PALC.

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

DGRO has the higher dividend yield at 1.96%, compared with 1.04% for PALC.

What is the main difference between PALC and DGRO?

PALC tracks Lunt Capital U.S. Large Cap Multi-Factor Rotation Index, while DGRO tracks Morningstar US Dividend Growth Index. They also come from different issuers: Pacer and iShares. Their fees differ too: 0.60% for PALC and 0.08% for DGRO.

Which has better risk-adjusted returns?

DGRO currently has the higher Sharpe Ratio (2.39 vs 1.87), 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.