4 min read
By Beqa Bumbeishvili, ETF Insider


In the world of finance, ETFs (Exchange Traded Funds) have become a popular investment vehicle for both institutional and retail investors. Among the myriad of ETFs available, DES and DGRO stand out as two prominent options. But how do they compare? In this article, we'll delve deep into the nuances of both DES and DGRO, shedding light on their differences and similarities.

DES VS DGRO: Sectors and Top Holdings

When it comes to sectors and top holdings, both DES and DGRO have their unique propositions. DES, primarily known for its focus on small-cap dividend-paying companies, offers exposure to sectors that are often overlooked in larger ETFs. This includes industries like utilities, real estate, and consumer discretionary. Its top holdings typically comprise companies that, while smaller in size, have a consistent track record of paying dividends.
On the other hand, DGRO emphasizes companies that have shown a consistent history of growing their dividends. This ETF is more diversified across sectors, with a notable presence in technology, healthcare, and financial services. Its top holdings are often blue-chip companies known for their stability and growth potential.


DES VS DGRO: Capitalization Strategy

Capitalization strategy is another area where DES and DGRO differ significantly. As mentioned earlier, DES leans towards small-cap companies. This means that it invests in firms with a market capitalization typically below $2 billion. Such companies, while potentially offering higher returns, can also be more volatile due to their size.
DGRO, in contrast, is more focused on large-cap companies. These are firms with a market capitalization usually above $10 billion. Investing in such companies can provide stability to a portfolio, given their established market presence and consistent performance. However, the potential for exponential growth might be limited compared to smaller firms.

DES VS DGRO: Tracking and Exposure

Tracking and exposure refer to how closely an ETF follows its benchmark index and the kind of market segments it exposes investors to. DES, given its small-cap focus, tracks indices related to smaller companies, providing investors with a unique market segment that's not always represented in broader market ETFs.
DGRO, with its emphasis on dividend growth, tracks indices that focus on companies with a strong history of dividend payments. This means that investors get exposure to firms that are not only large and stable but also have a consistent track record of returning value to shareholders.


In the debate between DES VS DGRO, there's no one-size-fits-all answer. The choice between these ETFs depends on an investor's individual goals, risk tolerance, and market outlook. DES might be more suitable for those looking for exposure to small-cap companies and potentially higher returns, albeit with increased volatility. DGRO, with its focus on dividend growth and large-cap companies, might appeal to those seeking stability and consistent returns.
Both ETFs have their merits, and a diversified portfolio might even benefit from holding a mix of both. As always, before making any investment decision, it's crucial to conduct thorough research and possibly consult with a financial advisor.


  1. Official DES ETF website
  2. Official DGRO ETF website
  3. MarketWatch: A deep dive into DES and DGRO
  4. Investopedia: Understanding ETF Capitalization Strategies

DES ETF issuer
DES ETF official page

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