VWO vs. DGRO

Last updated Jul 21, 2026

VWO (Vanguard FTSE Emerging Markets ETF) and DGRO (iShares Core Dividend Growth ETF) are both exchange-traded funds - VWO is a Emerging Markets Equities fund tracking the FTSE Emerging 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, VWO returned 7.65%/yr vs 13.13%/yr for DGRO. A 0.61 correlation means they provide meaningful diversification when combined. Both charge a 0.08% expense ratio.

Performance

VWO vs. DGRO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard FTSE Emerging Markets ETF (VWO) 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, VWO achieves a 7.88% return, which is significantly lower than DGRO's 11.48% return. Over the past 10 years, VWO has underperformed DGRO with an annualized return of 7.65%, while DGRO has yielded a comparatively higher 13.13% annualized return.

VWO

• 1D: 0.16%
• 1M: -4.67%
• 6M: 3.57%
• YTD: 7.88%
• 1Y: 17.74%
• 3Y*: 15.34%
• 5Y*: 5.14%
• 10Y*: 7.65%
• ALL TIME*: 6.75%

DGRO

• 1D: -0.58%
• 1M: 2.50%
• 6M: 8.20%
• YTD: 11.48%
• 1Y: 20.92%
• 3Y*: 15.71%
• 5Y*: 10.91%
• 10Y*: 13.13%
• ALL TIME*: 12.34%

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

VWO vs. DGRO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VWO Vanguard FTSE Emerging Markets ETF	7.88%	25.60%	10.59%	9.25%	-17.98%	1.26%	15.17%	20.75%	-14.76%	31.49%
DGRO iShares Core Dividend Growth ETF	11.48%	15.69%	16.62%	10.47%	-7.91%	26.64%	9.50%	29.87%	-2.38%	23.00%

Correlation

The correlation between VWO 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	0.49
Correlation (5Y) Calculated over the trailing 5-year period	0.52
Correlation (10Y) Calculated over the trailing 10-year period	0.57
Correlation (All Time) Calculated using the full available price history since Jun 12, 2014	0.61

The correlation between VWO and DGRO shifts across timeframes, from 0.43 (1 year) to 0.61 (all time), reflecting how their relationship changes across market environments.

VWO vs. DGRO - Sectors Allocation Comparison

Sectors	VWO	DGRO
Technology	31.4%	17.3%
Financial Services	16.8%	20.4%
Consumer Cyclical	8.6%	6.5%
Industrials	7.0%	11.3%
Basic Materials	7.0%	2.5%
Communication Services	5.8%	0.1%
Energy	3.6%	4.8%
Healthcare	3.4%	17.9%
Consumer Defensive	3.2%	11.9%
Utilities	2.4%	7.3%
Real Estate	1.8%	-

Return for Risk

VWO vs. DGRO — Risk / Return Rank

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

VWO

VWO Risk / Return Rank: 39
VWO Sharpe Ratio Rank: 37
VWO Sortino Ratio Rank: 36
VWO Omega Ratio Rank: 37
VWO Calmar Ratio Rank: 41
VWO Martin Ratio Rank: 44

DGRO

DGRO Risk / Return Rank: 86
DGRO Sharpe Ratio Rank: 88
DGRO Sortino Ratio Rank: 89
DGRO Omega Ratio Rank: 87
DGRO Calmar Ratio Rank: 82
DGRO Martin Ratio Rank: 85

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.

VWO vs. DGRO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard FTSE Emerging Markets ETF (VWO) 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.

	VWO	DGRO	Difference
Sharpe ratio: Return per unit of total volatility	1.03	2.20	-1.17
Sortino ratio: Return per unit of downside risk	1.50	3.23	-1.73
Omega ratio: Gain probability vs. loss probability	1.19	1.40	-0.21
Calmar ratio: Return relative to maximum drawdown	1.60	3.25	-1.65
Martin ratio: Return relative to average drawdown	5.36	12.53	-7.16

VWO vs. DGRO - Sharpe Ratio Comparison

The current VWO Sharpe Ratio is 1.03, which is lower than the DGRO Sharpe Ratio of 2.20. The chart below compares the historical Sharpe Ratios of VWO 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

VWO vs. DGRO - Drawdown Comparison

The maximum VWO drawdown since its inception was -67.68%, which is greater than DGRO's maximum drawdown of -35.10%. Use the drawdown chart below to compare losses from any high point for VWO and DGRO.

Drawdown Indicators

	VWO	DGRO	Difference
Max Drawdown Largest peak-to-trough decline	-67.68%	-35.10%	-32.58%
Max Drawdown (1Y) Largest decline over 1 year	-11.17%	-6.47%	-4.70%
Max Drawdown (3Y) Largest decline over 3 years	-17.37%	-14.03%	-3.34%
Max Drawdown (5Y) Largest decline over 5 years	-30.88%	-19.31%	-11.57%
Max Drawdown (10Y) Largest decline over 10 years	-36.39%	-35.10%	-1.29%
Current Drawdown Current decline from peak	-5.40%	-1.17%	-4.23%
Average Drawdown Average peak-to-trough decline	-15.75%	-3.41%	-12.34%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.31%	1.67%	+1.64%

Volatility

VWO vs. DGRO - Volatility Comparison

Vanguard FTSE Emerging Markets ETF (VWO) has a higher volatility of 5.81% compared to iShares Core Dividend Growth ETF (DGRO) at 2.73%. This indicates that VWO'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

	VWO	DGRO	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.81%	2.73%	+3.08%
Volatility (6M) Calculated over the trailing 6-month period	14.93%	7.14%	+7.79%
Volatility (1Y) Calculated over the trailing 1-year period	17.32%	9.56%	+7.76%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.60%	13.78%	+3.82%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.14%	16.58%	+2.56%

VWO vs. DGRO - Expense Ratio Comparison

Both VWO and DGRO have an expense ratio of 0.08%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.

Dividends

VWO vs. DGRO - Dividend Comparison

VWO's dividend yield for the trailing twelve months is around 2.39%, more than DGRO's 1.93% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DGRO iShares Core Dividend Growth ETF	1.93%	2.09%	2.26%	2.45%	2.34%	1.93%	2.30%	2.21%	2.44%	2.03%	2.27%	2.52%
VWO Vanguard FTSE Emerging Markets ETF	2.39%	2.79%	3.20%	3.52%	4.11%	2.63%	1.91%	3.23%	2.88%	2.30%	2.52%	3.26%

Frequently Asked Questions

Can I hold both VWO and DGRO in my portfolio?

VWO 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, VWO or DGRO?

VWO has higher volatility (5.81%) compared to DGRO (2.73%). In terms of maximum drawdown, VWO dropped -67.68% vs DGRO's -35.10%.

Which ETF is better, VWO or DGRO?

On 10-year performance, DGRO leads with 13.13% vs 7.65% for VWO. Both ETFs have the same 0.08% expense ratio. On volatility, DGRO has been the lower-risk option at 2.73%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VWO or DGRO?

Over the 10-year period, DGRO has performed better with a 13.13% return vs 7.65%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VWO or DGRO?

VWO and DGRO have the same expense ratio: 0.08% per year.

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

VWO has the higher dividend yield at 2.39%, compared with 1.93% for DGRO.

What is the main difference between VWO and DGRO?

VWO is categorized as Emerging Markets Equities, while DGRO is Large Cap Growth Equities. VWO tracks FTSE Emerging Index, while DGRO tracks Morningstar US Dividend Growth Index. They also come from different issuers: Vanguard and iShares.

Which has better risk-adjusted returns?

DGRO currently has the higher Sharpe Ratio (2.20 vs 1.03), 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.