- DGRW holds 300 dividend-paying stocks with solid long-term earnings growth, return on equity, and return on asset metrics. It's been a top long-term performer, and has a 0.28% expense ratio.
- DGRW is known for its double-digit dividend growth rate, but relatively low 1.83% dividend yield. Distributions will continue to accelerate, but investors should consider the impact fees have over time.
- Currently, the ETF is underweight Financials and Utilities, which could be a source of underperformance relative to other value ETFs. Pharmaceuticals and Tobacco are its largest industry exposure areas.
- For DGI investors deciding between DGRW, VIG, and SPY, I've included a fundamental analysis showing how DGRW looks better on multiple fronts. However, I want you to consider VYM, too, a popular high-yield ETF.
- I'm rating DGRW as a hold. It should slightly outperform SPY as the market continues to favor value, but there are better, lower-fee choices.
For further details see:
DGRW: Built For DGI Investors, But Fees And Sector Exposures Could Limit Gains