The Vanguard Dividend Appreciation ETF (VIG) and iShares Core Dividend Growth ETF (DGRO) both focus on companies that increase dividends annually but differ in criteria and sector exposure. VIG requires a 10-year dividend growth streak and excludes the highest-yielding, often riskier stocks, resulting in a portfolio of stable dividend growers with a lower expense ratio of 0.04%. DGRO has a looser 5-year requirement, includes more financials, and offers a higher starting yield but with less consistent dividend growth and a higher expense ratio of 0.08%. VIG shows a stronger forward dividend growth trajectory and a longer history of uncut increases, making it more suitable for investors seeking reliable, compounding income over decades. DGRO may appeal to those wanting higher initial yield and financial sector exposure but with more variable payouts. For long-term income growth, VIG is recommended due to its cost efficiency and consistent dividend raises.
