Two of the market's most popular income ETFs compared side-by-side. See which one fits your yield strategy.
What this means: DGRW is ratedTier 1 (Cornerstone)while XMAG is ratedTier 4 (Harvest).DGRW is structurally lower risk than XMAG.
| Metric | DGRW | XMAG |
|---|---|---|
| Total Return (1Y) | 12.72% | 12.39% |
| NAV Change (1Y) | 9.67% | 11.88% |
| Max Drawdown | -22.15% | 0.00% |
| Beta | - | - |
* Returns include dividend reinvestment. Drawdown calculates peak-to-trough decline over trailing 12 months.
DGRW (WisdomTree US Dividend Growth) is a conservative dividend growth fund managed by WisdomTree. It focuses on generating income through strategic holdings. With $15.9B in assets under management, this fund has been operational since its inception.
Strategy: Focuses on quality dividend-paying companies with strong balance sheets and consistent payout histories.
XMAG (Defiance Large Cap ex-Mag 7 ETF) is a options-based income fund managed by Defiance. It focuses on generating income through strategic holdings. With $103.1M in assets under management, this fund has been operational since its inception.
Strategy: Generates enhanced income through covered call options on equity holdings, trading upside potential for premium income.
In the head-to-head battle of DGRW vs XMAG, the choice depends on your specific goal. DGRW wins for Immediate Income with a 3.05% yield. However, DGRW is the better choice for Long-Term Growth due to superior total return performance.
Which fund is safer for retirement income? We analyze the yield sustainability and structural risk.
The Bottom Line Question: If you invest $100,000 today, how much cash will you actually receive each month? Here's the exact math:
DGRW
Annual Yield: 3.05%
$254/mo
($3,054/year)
Frequency: monthly
XMAG
Annual Yield: 0.51%
$42/mo
($506/year)
Frequency: annual
Income Gap: DGRW generates $2,548/year more than XMAG on the same $100k investment.
Over 20 years, that's $50,955 in additional cash flow (before reinvestment).
Context Matters: Higher income doesn't always mean better investment. Review the "Yield Trap" and "Total Return" sections above—you want income that's sustainable, not just headline-grabbing.
Historical data reveals how these funds behave during market stress. DGRW has delivered a superior Total Return of 12.72% over the past year.
What is an Expense Ratio? The annual fee charged by the fund, expressed as a percentage of assets. It's deducted daily from the fund's NAV, making it invisible to most investors—but it compounds over time.
DGRW (LOWER COST)
0.280%
Annual expense ratio
XMAG (HIGHER COST)
0.350%
Annual expense ratio
20-YEAR FEE IMPACT SIMULATION ($100,000 INITIAL INVESTMENT)
The Hidden Cost of "Just 0.07%": That seemingly small difference of 0.070% annually becomes $1,400 in lost wealth over 20 years. Factor in compound growth, and you're giving up ~$4,003 in potential portfolio value.
💡 Cost Efficiency Winner: DGRW is the clear winner for long-term buy-and-hold investors. Lower fees mean more capital compounds in YOUR account, not the fund manager's.
Every investor has a unique risk profile. Use our Portfolio Intelligence tool to see the impact of adding these ETFs to your holdings.