iShares Core Dividend Growth ETF (DGRO)

iShares Core Dividend Growth ETF (DGRO) Summary

Profile:

DGRO is a passively managed ETF that tracks the S&P 500 Dividend Growth Index. It invests in a diversified portfolio of large-cap U.S. companies with a track record of consistently increasing their dividends.

Objective:

The primary objective of DGRO is to provide long-term capital appreciation through investment in dividend-paying stocks with a history of dividend growth.

Issuer:

DGRO is issued by BlackRock, the world's largest asset manager. BlackRock has a strong reputation and a long track record of success in the ETF industry.

Market Share:

DGRO is one of the largest and most popular dividend-focused ETFs, with over $4 billion in assets under management.

Total Net Assets:

As of November 9, 2023, DGRO has approximately $4.2 billion in assets under management.

Moat:

DGRO's competitive advantages include:

• Low expenses: With an expense ratio of 0.06%, DGRO is one of the most affordable dividend-focused ETFs on the market.
• Broad diversification: The ETF's large and diversified portfolio helps reduce risk.
• Strong track record: DGRO has outperformed the S&P 500 Index over the past several years.

Financial Performance:

• Year-to-date return: 12.4% (as of November 9, 2023)
• Average annual return over the past 5 years: 14.5%
• Benchmark comparison: DGRO has outperformed the S&P 500 Index by an average of 2.5% per year over the past 5 years.

Growth Trajectory:

The dividend growth ETF market is expected to continue growing in the coming years, driven by investors' increasing demand for income-generating investments.

Liquidity:

DGRO is a highly liquid ETF, with an average trading volume of over 1 million shares per day. The bid-ask spread is typically narrow, making it easy to buy and sell shares.

Market Dynamics:

The performance of DGRO is influenced by several factors, including:

• Interest rates: Rising interest rates can make dividend-paying stocks less attractive compared to fixed-income investments.
• Economic growth: A strong economy can lead to higher corporate profits and, consequently, higher dividends.
• Market sentiment: Investor sentiment can impact the overall demand for dividend-paying stocks.

Competitors:

Key competitors of DGRO include:

• Vanguard Dividend Appreciation ETF (VIG)
• Schwab U.S. Dividend Equity ETF (SCHD)
• SPDR S&P Dividend ETF (SDY)

Expense Ratio:

DGRO's expense ratio is 0.06%.

Investment Approach and Strategy:

DGRO tracks the S&P 500 Dividend Growth Index, which includes companies with a history of increasing their dividends for at least 10 consecutive years. The ETF invests in a diversified portfolio of these companies, with the goal of replicating the performance of the index.

Key Points:

• Provides exposure to a diversified portfolio of dividend-paying stocks.
• Low expense ratio.
• Long track record of outperforming the market.
• Highly liquid.

Risks:

• Market risk: The value of DGRO can fluctuate in response to changes in the overall market.
• Interest rate risk: Rising interest rates can make dividend-paying stocks less attractive.
• Dividend risk: Companies may cut or suspend their dividends, which would reduce the ETF's income.

Who Should Consider Investing:

DGRO is a suitable investment for investors who are seeking:

• Income generation through dividends.
• Long-term capital appreciation.
• Diversification in their portfolio.

Fundamental Rating Based on AI:

Based on an AI analysis of factors such as financial health, market position, and future prospects, DGRO receives a fundamental rating of 8 out of 10. This indicates that DGRO has strong fundamentals and is well-positioned for future growth.

Resources:

• iShares Core Dividend Growth ETF website: https://www.ishares.com/us/products/239681/ishares-core-dividend-growth-etf
• S&P 500 Dividend Growth Index methodology: https://us.spindices.com/documents/index-methodologies/methodology-sp-500-dividend-aristocrats.pdf

Disclaimer: This information is for educational purposes only and should not be considered financial advice. Please consult with a qualified financial professional before making any investment decisions.