USMC vs. DGRO

Last updated Jun 4, 2026

USMC (Principal U.S. Mega-Cap ETF) and DGRO (iShares Core Dividend Growth ETF) are both Large Cap Growth Equities funds - USMC tracks the Nasdaq US Mega Cap Select Leaders Index while DGRO tracks the Morningstar US Dividend Growth Index. Both are passively managed. Over the past 5 years, USMC returned 15.40%/yr vs 10.54%/yr for DGRO. Their correlation of 0.81 suggests significant overlap in exposure. USMC charges 0.12%/yr vs 0.08%/yr for DGRO.

Performance

USMC vs. DGRO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Principal U.S. Mega-Cap ETF (USMC) and iShares Core Dividend Growth ETF (DGRO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both investments are quite close, with USMC having a 8.73% return and DGRO slightly higher at 8.76%.

USMC

• 1D: -0.35%
• 1M: 5.52%
• YTD: 8.73%
• 6M: 8.24%
• 1Y: 23.60%
• 3Y*: 21.98%
• 5Y*: 15.40%
• 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)

USMC vs. DGRO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
USMC Principal U.S. Mega-Cap ETF	8.73%	14.99%	29.82%	31.57%	-17.17%	26.30%	16.05%	27.37%	-2.30%	5.48%
DGRO iShares Core Dividend Growth ETF	8.76%	15.69%	16.62%	10.47%	-7.91%	26.64%	9.50%	29.87%	-2.38%	6.21%

Correlation

The correlation between USMC and DGRO is 0.58, 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	0.58
Correlation (3Y) Calculated over the trailing 3-year period	0.66
Correlation (5Y) Calculated over the trailing 5-year period	0.78
Correlation (All Time) Calculated using the full available price history since Oct 13, 2017	0.81

Over the past year, the correlation between USMC and DGRO has dropped to 0.58 - well below their long-term average of 0.81, suggesting their price drivers have been diverging.

USMC vs. DGRO - Sectors Allocation Comparison

Sectors	USMC	DGRO
Technology	29.1%	19.4%
Financial Services	19.6%	21.2%
Communication Services	14.7%	0.1%
Consumer Defensive	9.6%	11.5%
Consumer Cyclical	8.4%	5.7%
Healthcare	8.1%	16.4%
Industrials	5.6%	10.8%
Energy	4.8%	5.6%
Basic Materials	-	2.5%
Real Estate	-	-
Utilities	-	6.9%

Return for Risk

USMC vs. DGRO — Risk / Return Rank

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

USMC

USMC Risk / Return Rank: 54
USMC Sharpe Ratio Rank: 58
USMC Sortino Ratio Rank: 59
USMC Omega Ratio Rank: 56
USMC Calmar Ratio Rank: 46
USMC Martin Ratio Rank: 51

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.

USMC vs. DGRO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Principal U.S. Mega-Cap ETF (USMC) 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.

	USMC	DGRO	Difference
Sharpe ratio Return per unit of total volatility	2.01	2.39	-0.38
Sortino ratio Return per unit of downside risk	2.84	3.49	-0.65
Omega ratio Gain probability vs. loss probability	1.35	1.43	-0.08
Calmar ratio Return relative to maximum drawdown	2.30	3.50	-1.20
Martin ratio Return relative to average drawdown	8.80	13.52	-4.72
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

USMC vs. DGRO - Sharpe Ratio Comparison

The current USMC Sharpe Ratio is 2.01, which is comparable to the DGRO Sharpe Ratio of 2.39. The chart below compares the historical Sharpe Ratios of USMC 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

	USMC	DGRO	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.01	2.39	-0.38
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.95	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	0.84	0.76	+0.07

Drawdowns

USMC vs. DGRO - Drawdown Comparison

The maximum USMC drawdown since its inception was -29.97%, smaller than the maximum DGRO drawdown of -35.10%. Use the drawdown chart below to compare losses from any high point for USMC and DGRO.

Drawdown Indicators

	USMC	DGRO	Difference
Max Drawdown Largest peak-to-trough decline	-29.97%	-35.10%	+5.13%
Max Drawdown (1Y) Largest decline over 1 year	-10.30%	-6.47%	-3.83%
Max Drawdown (3Y) Largest decline over 3 years	-19.12%	-14.03%	-5.09%
Max Drawdown (5Y) Largest decline over 5 years	-24.09%	-19.31%	-4.78%
Max Drawdown (10Y) Largest decline over 10 years	—	-35.10%	—
Current Drawdown Current decline from peak	-0.35%	-0.28%	-0.07%
Average Drawdown Average peak-to-trough decline	-4.40%	-3.44%	-0.96%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.69%	1.67%	+1.02%

Volatility

USMC vs. DGRO - Volatility Comparison

Principal U.S. Mega-Cap ETF (USMC) has a higher volatility of 2.52% compared to iShares Core Dividend Growth ETF (DGRO) at 2.21%. This indicates that USMC'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

	USMC	DGRO	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.52%	2.21%	+0.31%
Volatility (6M) Calculated over the trailing 6-month period	8.68%	6.91%	+1.77%
Volatility (1Y) Calculated over the trailing 1-year period	11.81%	9.48%	+2.33%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.36%	13.82%	+2.54%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.25%	16.62%	+1.63%

USMC vs. DGRO - Expense Ratio Comparison

USMC has a 0.12% expense ratio, which is higher than DGRO's 0.08% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

USMC vs. DGRO - Dividend Comparison

USMC's dividend yield for the trailing twelve months is around 0.74%, 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%
USMC Principal U.S. Mega-Cap ETF	0.74%	0.79%	1.04%	1.35%	1.78%	1.53%	1.55%	2.01%	2.28%	0.24%	0.00%	0.00%

Frequently Asked Questions

Can I hold both USMC and DGRO in my portfolio?

USMC and DGRO have a correlation of 0.58, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, USMC or DGRO?

USMC has higher volatility (2.52%) compared to DGRO (2.21%). In terms of maximum drawdown, USMC dropped -29.97% vs DGRO's -35.10%.

Which ETF is better, USMC or DGRO?

On 5-year performance, USMC leads with 15.40% vs 10.54% for DGRO. 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, USMC or DGRO?

Over the 5-year period, USMC has performed better with a 15.40% return vs 10.54%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, USMC or DGRO?

DGRO is cheaper with a 0.08% expense ratio, compared with 0.12% for USMC.

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

DGRO has the higher dividend yield at 1.96%, compared with 0.74% for USMC.

What is the main difference between USMC and DGRO?

USMC tracks Nasdaq US Mega Cap Select Leaders Index, while DGRO tracks Morningstar US Dividend Growth Index. They also come from different issuers: Principal and iShares. Their fees differ too: 0.12% for USMC and 0.08% for DGRO.

Which has better risk-adjusted returns?

DGRO currently has the higher Sharpe Ratio (2.39 vs 2.01), 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.