Quick Read
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iShares Core Dividend Growth ETF (DGRO) returned 185% with reinvested dividends since late 2016 and outperformed SCHD and HDV.
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iShares International Select Dividend ETF (IDV) gained 37.2% year-to-date on dollar weakness and international rate cuts.
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DGRO charges 0.08% expense ratio while IDV yields 4.64% and recovered faster than U.S. ETFs during spring tariff selloff.
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Some investors get rich while others struggle because they never learned there are two completely different strategies to building wealth. Don’t make the same mistake, learn about both here.
BlackRock is one of the largest exchange-traded fund providers, and its iShares brand is extremely popular and reliable. Buying ETFs like iShares Core Dividend Growth ETF (NYSEARCA:DGRO) and iShares International Select Dividend ETF (BATS:IDV) by next year could set you up for even more gains.
I’d specifically buy these two ETFs before 2026 due to the economy being at a pivotal point. Interest rates are finally coming down. But at the same time, investors are increasingly apprehensive about the AI rally. Both of these elements can lead to a rotation towards defensive dividend stocks.
Plus, BlackRock’s ETFs are popular for a reason, as you get low expense ratios and great tax efficiency. These ETFs are unlikely to disappear, which can be a big problem with smaller issuers, especially if you are investing for the long run.
On top of that, these ETFs have lots of liquidity. When you are finally ready to cash out a large amount, there will often be more than enough sell orders on the opposite side of the order book, meaning slippage is low.
iShares Core Dividend Growth ETF (DGRO)
The iShares Core Dividend Growth ETF tracks an index of U.S stocks with a solid record of growing their dividends consistently. It tracks the Morningstar US Dividend Growth Index, which in turn selects companies that have consistently raised their dividends. The index excludes those with unsustainable payout ratios, and weights holdings by annual dividend payments rather than market cap.
DGRO is a popular “core” ETF if you want something very reliable for the long term. It doesn’t pay the highest in dividends, with a yield of just 2.06%, but it has still outperformed its peers.
If you do a head-to-head comparison between the Schwab U.S. Dividend Equity ETF (NYSEARCA:SCHD), Amplify CWP Enhanced Dividend Income ETF (NYSEARCA:DIVO), iShares Core High Dividend ETF (NYSEARCA:HDV), and DGRO, DGRO wins against all of them.
With dividends reinvested since the end of 2016, DGRO has returned 185.16%, followed by DIVO at 184.15%, SCHD at 144.1%, and finally HDV at 98.68%.
The expense ratio is also remarkably low at 0.08%, or just $8 per $10,000.
iShares International Select Dividend ETF (IDV)
The iShares International Select Dividend ETF tracks the Dow Jones EPAC Select Dividend Index. This ETF includes high-yield dividend stocks in developed countries outside the U.S.
It’s a good idea to look outward before 2026. Non-U.S. central banks are joining the rate-cut trend, and international stocks have lots of room to catch up. They may start cutting rates more aggressively than their U.S. counterparts. The U.S. dollar has also weakened this year and could weaken more due to Central Banks stockpiling gold instead of the dollar.
IDV has already benefited significantly from this. Both the currency slide and a stronger rebound outside the U.S. have lifted 37.2% year-to-date already. If these trends continue into next year, an even bigger windfall is possible.
Anyhow, it doesn’t hurt to add more international diversification to your holdings. Your conventional portfolio likely holds a few ETFs, all of which contain the same few dozen names in different proportions.
It’s also worth noting that IDV can be a good tariff hedge. During the spring selloff, most ETFs fell some 20% from February to early April. IDV had a 10% slide in April but recovered very quickly and delivered even more gains.
And on top of the diversification, IDV has a handsome dividend yield of 4.64%. It carries an expense ratio of 0.50%, or $50 per $10,000.