- DGRO has managed to keep pace with the S&P 500 since its 2014 inception, which is no small feat considering the fund's strong large-cap value lean.
- This article analyzes how DGRO has been able to behave like an ETF with a 1/3 growth allocation despite it having only a 6% overlap with Morningstar's Large-Cap Growth Index.
- The answer is in Morningstar's screening criteria, which avoids chasing yield and instead focuses on dividend growth and sustainability.
- The result is a dividend growth-focused ETF that performs well during bull markets, and could possibly outrun the S&P 500 if the highest-yielding dividend stocks fall out of favor.
For further details see:
The iShares Core Dividend Growth ETF: Here's How It's Kept Pace With The S&P 500