DGRO Vs PFM: Sectors and Top Holdings

Exchange-Traded Funds (ETFs) have become an essential tool for modern investors, providing a convenient way to access diversified exposure across a wide range of sectors and asset classes. In this article, we will undertake a thorough analysis of two prominent ETFs: DGRO (iShares Core Dividend Growth ETF) and PFM (Invesco Dividend Achievers ETF). By examining various aspects such as ETF tickers, full names, issuers, sectors, top holdings, capitalization, strategy, tracking, and exposure, we aim to provide valuable insights for potential investors.

DGRO Vs PFM: Overview

DGRO and PFM are two ETFs that cater to investors seeking dividend-focused strategies. DGRO, managed by iShares, aims to track the performance of U.S. companies with a history of consistent dividend growth. On the other hand, PFM, managed by Invesco, targets companies that have a history of increasing dividends for at least a decade. This fundamental difference in their criteria for selecting holdings shapes their exposures and risk profiles, which we will delve into in the subsequent sections.

DGRO Vs PFM: Sectors and Top Holdings

The DGRO ETF is designed to provide exposure to companies across various sectors, including information technology, healthcare, and consumer discretionary. Its top holdings include giants like Microsoft, Apple, and Johnson & Johnson. PFM, on the other hand, offers exposure to sectors such as consumer staples, financials, and industrials, with top holdings including PepsiCo, IBM, and Procter & Gamble. Understanding the sectors and top holdings of these ETFs is crucial for investors to align their investment goals with the potential risks and rewards of each fund.

DGRO overlap DGRO VS PFM

DGRO Vs PFM: Capitalization and Strategy

DGRO boasts a substantial Asset Under Management (AUM), reflecting its popularity among investors looking for consistent dividend growth. Its strategy revolves around selecting companies with a strong history of increasing dividends, aiming for long-term capital appreciation. PFM's strategy is similar, targeting companies with a consistent dividend growth track record, which can potentially provide stability and income to investors' portfolios. The difference in capitalization and strategy between these two ETFs emphasizes the importance of aligning investments with individual financial objectives.

DGRO Vs PFM: Tracking and Exposure

DGRO tracks an index of U.S. companies that have a record of growing dividends, offering investors exposure to a diversified portfolio of dividend growth stocks. PFM, on the other hand, tracks the NASDAQ US Broad Dividend Achievers Index, which includes companies with a track record of increasing dividends for at least ten consecutive years. This difference in tracking methodology leads to varying exposure and risk factors, allowing investors to choose the ETF that suits their risk appetite and investment strategy.

Conclusion

DGRO and PFM are distinct ETFs that cater to investors seeking exposure to dividend growth strategies. Understanding the nuances of their selection criteria, sector exposure, top holdings, and tracking methodologies is essential for making informed investment decisions. For those interested in delving deeper into the intricacies of these ETFs, including their holdings, correlations, and overlaps, utilizing tools like ETF Insider can provide invaluable insights. With its user-friendly app, ETF Insider empowers investors with detailed information on various financial instruments, helping them navigate the complex world of ETF investing.

Disclaimer: This article is for informational purposes only and does not provide investment advisory services. It's important for readers to conduct their own research and consult with financial professionals before making any investment decisions.

Sources:

iShares. (n.d.). iShares Core Dividend Growth ETF (DGRO). Link
Invesco. (n.d.). Invesco Dividend Achievers ETF (PFM). Link

Get started