DIA vs. DGRO: What’s The Difference?

The SPDR Dow Jones Industrial Average ETF Trust (DIA) and the iShares Core Dividend Growth ETF (DGRO) are both among the Top 100 ETFs. DIA is a SPDR State Street Global Advisors Large Value fund and DGRO is a iShares Large Value fund. So, what’s the difference between DIA and DGRO? And which fund is better?

The expense ratio of DIA is 0.08 percentage points higher than DGRO’s (0.16% vs. 0.08%). DIA also has a higher exposure to the financial services sector and a higher standard deviation. Overall, DIA has provided higher returns than DGRO over the past 6 years.

In this article, we’ll compare DIA vs. DGRO. We’ll look at annual returns and performance, as well as at their fund composition and portfolio growth. Moreover, I’ll also discuss DIA’s and DGRO’s holdings, risk metrics, and industry exposure and examine how these affect their overall returns.

Summary

DIA DGRO
Name SPDR Dow Jones Industrial Average ETF Trust iShares Core Dividend Growth ETF
Category Large Value Large Value
Issuer SPDR State Street Global Advisors iShares
AUM 30.46B 20B
Avg. Return 13.35% 12.46%
Div. Yield 1.61% 2.04%
Expense Ratio 0.16% 0.08%

The SPDR Dow Jones Industrial Average ETF Trust (DIA) is a Large Value fund that is issued by SPDR State Street Global Advisors. It currently has 30.46B total assets under management and has yielded an average annual return of 13.35% over the past 10 years. The fund has a dividend yield of 1.61% with an expense ratio of 0.16%.

The iShares Core Dividend Growth ETF (DGRO) is a Large Value fund that is issued by iShares. It currently has 20B total assets under management and has yielded an average annual return of 12.46% over the past 10 years. The fund has a dividend yield of 2.04% with an expense ratio of 0.08%.

DIA’s dividend yield is 0.43% lower than that of DGRO (1.61% vs. 2.04%). Also, DIA yielded on average 0.90% more per year over the past decade (13.35% vs. 12.46%). The expense ratio of DIA is 0.08 percentage points higher than DGRO’s (0.16% vs. 0.08%).

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Fund Composition

Industry Exposure

DIA vs. DGRO - Industry Exposure

DIA DGRO
Technology 17.32% 18.98%
Industrials 16.7% 12.52%
Energy 2.0% 0.11%
Communication Services 4.42% 4.53%
Utilities 0.0% 7.34%
Healthcare 17.92% 17.55%
Consumer Defensive 6.3% 10.24%
Real Estate 0.0% 0.0%
Financial Services 20.68% 18.47%
Consumer Cyclical 13.44% 7.42%
Basic Materials 1.21% 2.83%

The SPDR Dow Jones Industrial Average ETF Trust (DIA) has the most exposure to the Financial Services sector at 20.68%. This is followed by Healthcare and Technology at 17.92% and 17.32% respectively. Utilities (0.0%), Basic Materials (1.21%), and Energy (2.0%) only make up 3.21% of the fund’s total assets.

DIA’s mid-section with moderate exposure is comprised of Communication Services, Consumer Defensive, Consumer Cyclical, Industrials, and Technology stocks at 4.42%, 6.3%, 13.44%, 16.7%, and 17.32%.

The iShares Core Dividend Growth ETF (DGRO) has the most exposure to the Technology sector at 18.98%. This is followed by Financial Services and Healthcare at 18.47% and 17.55% respectively. Energy (0.11%), Basic Materials (2.83%), and Communication Services (4.53%) only make up 7.47% of the fund’s total assets.

DGRO’s mid-section with moderate exposure is comprised of Utilities, Consumer Cyclical, Consumer Defensive, Industrials, and Healthcare stocks at 7.34%, 7.42%, 10.24%, 12.52%, and 17.55%.

DIA is 2.21% more exposed to the Financial Services sector than DGRO (20.68% vs 18.47%). DIA’s exposure to Healthcare and Technology stocks is 0.37% higher and 1.66% lower respectively (17.92% vs. 17.55% and 17.32% vs. 18.98%). In total, Utilities, Basic Materials, and Energy also make up 7.07% less of the fund’s holdings compared to DGRO (3.21% vs. 10.28%).

Holdings

DIA - Holdings

DIA Holdings Weight
UnitedHealth Group Inc 7.63%
Goldman Sachs Group Inc 7.23%
The Home Depot Inc 6.07%
Microsoft Corp 5.16%
Salesforce.com Inc 4.65%
Amgen Inc 4.64%
Boeing Co 4.56%
Visa Inc Class A 4.45%
McDonald’s Corp 4.4%
Honeywell International Inc 4.18%

DIA’s Top Holdings are UnitedHealth Group Inc, Goldman Sachs Group Inc, The Home Depot Inc, Microsoft Corp, and Salesforce.com Inc at 7.63%, 7.23%, 6.07%, 5.16%, and 4.65%.

Amgen Inc (4.64%), Boeing Co (4.56%), and Visa Inc Class A (4.45%) have a slightly smaller but still significant weight. McDonald’s Corp and Honeywell International Inc are also represented in the DIA’s holdings at 4.4% and 4.18%.

DGRO - Holdings

DGRO Holdings Weight
Microsoft Corp 3.29%
Apple Inc 3.26%
Pfizer Inc 2.89%
Johnson & Johnson 2.87%
Procter & Gamble Co 2.79%
Verizon Communications Inc 2.68%
JPMorgan Chase & Co 2.57%
The Home Depot Inc 2.35%
Merck & Co Inc 2.11%
Cisco Systems Inc 1.98%

DGRO’s Top Holdings are Microsoft Corp, Apple Inc, Pfizer Inc, Johnson & Johnson, and Procter & Gamble Co at 3.29%, 3.26%, 2.89%, 2.87%, and 2.79%.

Verizon Communications Inc (2.68%), JPMorgan Chase & Co (2.57%), and The Home Depot Inc (2.35%) have a slightly smaller but still significant weight. Merck & Co Inc and Cisco Systems Inc are also represented in the DGRO’s holdings at 2.11% and 1.98%.

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Risk Analysis

DIA DGRO
Mean Return 1.13 0
R-squared 93.31 0
Std. Deviation 13.68 0
Alpha -0.94 0
Beta 0.97 0
Sharpe Ratio 0.94 0
Treynor Ratio 13.07 0

The SPDR Dow Jones Industrial Average ETF Trust (DIA) has a Beta of 0.97 with a R-squared of 93.31 and a Treynor Ratio of 13.07. Its Mean Return is 1.13 while DIA’s Standard Deviation is 13.68. Furthermore, the fund has a Alpha of -0.94 and a Sharpe Ratio of 0.94.

The iShares Core Dividend Growth ETF (DGRO) has a Sharpe Ratio of 0 with a Mean Return of 0 and a Standard Deviation of 0. Its Alpha is 0 while DGRO’s R-squared is 0. Furthermore, the fund has a Treynor Ratio of 0 and a Beta of 0.

DIA’s Mean Return is 1.13 points higher than that of DGRO and its R-squared is 93.31 points higher. With a Standard Deviation of 13.68, DIA is slightly more volatile than DGRO. The Alpha and Beta of DIA are 0.94 points lower and 0.97 points higher than DGRO’s Alpha and Beta.

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Performance

Annual Returns

DIA vs. DGRO - Annual Returns

Year DIA DGRO
2020 9.63% 9.47%
2019 25.09% 30.02%
2018 -3.6% -2.24%
2017 27.97% 22.84%
2016 16.28% 15.27%
2015 0.1% -0.62%
2014 9.88% 0.0%
2013 29.41% 0.0%
2012 10.04% 0.0%
2011 8.21% 0.0%
2010 13.87% 0.0%

DIA had its best year in 2013 with an annual return of 29.41%. DIA’s worst year over the past decade yielded -3.6% and occurred in 2018. In most years the SPDR Dow Jones Industrial Average ETF Trust provided moderate returns such as in 2014, 2012, and 2010 where annual returns amounted to 9.88%, 10.04%, and 13.87% respectively.

The year 2019 was the strongest year for DGRO, returning 30.02% on an annual basis. The poorest year for DGRO in the last ten years was 2018, with a yield of -2.24%. Most years the iShares Core Dividend Growth ETF has given investors modest returns, such as in 2012, 2011, and 2010, when gains were 0.0%, 0.0%, and 0.0% respectively.

Portfolio Growth

DIA vs. DGRO - Portfolio Growth

Fund Initial Balance Final Balance CAGR
DIA $10,000 $19,691 13.35%
DGRO $10,000 $19,580 12.46%

A $10,000 investment in DIA would have resulted in a final balance of $19,691. This is a profit of $9,691 over 6 years and amounts to a compound annual growth rate (CAGR) of 13.35%.

With a $10,000 investment in DGRO, the end total would have been $19,580. This equates to a $9,580 profit over 6 years and a compound annual growth rate (CAGR) of 12.46%.

DIA’s CAGR is 0.90 percentage points higher than that of DGRO and as a result, would have yielded $111 more on a $10,000 investment. Thus, DIA outperformed DGRO by 0.90% annually.


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