DGRO: It Just Doesn't Make Sense To Exclude Growth Stocks

Summary

• The iShares Core Dividend Growth ETF offers higher dividend growth, a better yield, and slightly lower volatility, making it appealing for defensive investors.
• The ETF has a low expense ratio of 0.08%, invests in 420 US dividend stocks, and is heavily weighted in Financials, Technology, and Health Care.
• Compared to the S&P 500, the ETF has more Financials and Health Care, a lower P/E ratio, and a higher dividend yield.
• Despite underperforming the S&P 500, the ETF is suitable for long-term, defensive investors seeking stable income and lower volatility.

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Investment Thesis

Compared to numerous other, even more niche ETFs, the iShares Core Dividend Growth ETF (NYSEARCA:DGRO) performed relatively well. Still, there is a significant overlap with the S&P 500; the underperformance can be seen over longer periods. However, the ETF

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.