DGRO Vs DES: Sectors and Top Holdings
4 min read
By Ron Koren, ETF Insider

DGRO Vs DES: Sectors and Top Holdings

Exchange-Traded Funds (ETFs) have become an integral part of modern investing, offering a convenient way to access a diversified range of assets. In this article, we'll conduct an in-depth comparison between two prominent ETFs: DGRO (iShares Core Dividend Growth ETF) and DES (WisdomTree U.S. SmallCap Dividend Fund). We'll delve into various aspects, including ETF tickers, full names, issuers, sectors, top holdings, capitalization, investment strategy, tracking methods, and exposure.

DGRO Vs DES: Overview

DGRO and DES represent two distinct investment strategies within the realm of dividend-focused ETFs. While DGRO aims to capture the growth potential of dividend-paying companies, DES targets small-cap dividend stocks. This strategic difference leads to varied risk profiles and potential returns, which we'll explore further in the subsequent sections.

DGRO Vs DES: Sectors and Top Holdings

The DGRO ETF focuses on companies with a history of consistent dividend growth. Its portfolio includes top holdings from sectors like technology, healthcare, and consumer goods. In contrast, DES primarily invests in small-cap stocks across various sectors that offer attractive dividends. Understanding the sectors and top holdings helps investors assess the industries they want to be exposed to and the level of diversification in the ETF.

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DGRO Vs DES: Capitalization and Investment Strategy

DGRO, with its larger asset under management (AUM), signifies its popularity among investors seeking dividend growth. Its investment strategy revolves around established companies that demonstrate the ability to sustain and increase dividends over time. On the other hand, DES's strategy involves seeking dividend-paying opportunities among smaller companies. The difference in capitalization and strategy emphasizes the need for investors to align their investment objectives with the ETF's focus.

DGRO Vs DES: Tracking and Exposure

DGRO's objective is to provide investors with exposure to large-cap U.S. stocks that have a history of dividend growth. The tracking method involves selecting companies that meet specific dividend growth criteria. DES, however, targets small-cap dividend stocks, aiming to capture both income and potential capital appreciation. The different tracking methods and exposure strategies cater to investors with varying risk preferences and investment goals.

Conclusion

DGRO and DES exemplify the diverse range of investment opportunities that ETFs offer. Depending on your investment philosophy and risk tolerance, you can choose between the potential for dividend growth from established companies (DGRO) or the appeal of dividend-paying small-cap stocks (DES). For those looking to gain deeper insights into holdings, correlations, overlaps, and other crucial data, ETF Insider stands as an invaluable tool. With its user-friendly app, it equips investors with comprehensive information about these ETFs and various other financial instruments.

Disclaimer: This article does not offer investment advisory services. Always conduct thorough research and consider seeking advice from financial professionals before making investment decisions.

Sources:

iShares: DGRO - iShares Core Dividend Growth ETF
WisdomTree: DES - WisdomTree U.S. SmallCap Dividend Fund

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FAQ

  • Why is DGRO better than DES?

    DGRO may be considered better than DES for some investors due to its specific focus, offering diversification.

  • Does DES beat DGRO?

    DES's performance relative to DGRO will vary over time, depending on market conditions.

  • Should I invest in DGRO or DES?

    The choice between DGRO and DES should align with your investment goals, risk tolerance, and desired exposure.

  • Are DGRO and DES good investments?

    Both DGRO and DES can be suitable investments depending on individual investment strategies, goals, and risk profiles.

  • What is the correlation between DGRO and DES?

    The correlation between DGRO and DES can vary over time, reflecting differences in performance.