DES vs. VTWO

Last updated Aug 4, 2026

DES (WisdomTree U.S. SmallCap Dividend Fund) and VTWO (Vanguard Russell 2000 ETF) are both Small Cap Blend Equities funds - DES tracks the WisdomTree SmallCap Dividend (TR) while VTWO tracks the Russell 2000 Index. Both are passively managed. Over the past 10 years, DES returned 8.19%/yr vs 10.77%/yr for VTWO. Their correlation of 0.91 means they have usually moved in the same direction. DES charges 0.38%/yr vs 0.06%/yr for VTWO.

Performance

DES vs. VTWO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in WisdomTree U.S. SmallCap Dividend Fund (DES) and Vanguard Russell 2000 ETF (VTWO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, DES achieves a 24.40% return, which is significantly higher than VTWO's 20.92% return. Over the past 10 years, DES has underperformed VTWO with an annualized return of 8.19%, while VTWO has yielded a comparatively higher 10.77% annualized return.

DES

• 1D: 1.38%
• 1M: 2.25%
• 6M: 14.77%
• YTD: 24.40%
• 1Y: 34.94%
• 3Y*: 13.85%
• 5Y*: 8.92%
• 10Y*: 8.19%
• ALL TIME*: 7.95%

VTWO

• 1D: 1.69%
• 1M: -0.42%
• 6M: 13.61%
• YTD: 20.92%
• 1Y: 39.49%
• 3Y*: 16.67%
• 5Y*: 7.83%
• 10Y*: 10.77%
• ALL TIME*: 11.43%

*Multi-year figures are annualized to reflect compound growth (CAGR)

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
DES WisdomTree U.S. SmallCap Dividend Fund	$3.72M	$4.44M	$5.66M
VTWO Vanguard Russell 2000 ETF	$175.64M	$193.82M	$227.97M

DES vs. VTWO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
DES WisdomTree U.S. SmallCap Dividend Fund	24.40%	0.25%	9.93%	16.50%	-10.96%	26.51%	-4.26%	20.26%	-12.85%	8.64%
VTWO Vanguard Russell 2000 ETF	20.92%	12.90%	11.55%	17.08%	-20.49%	14.79%	20.22%	25.81%	-11.15%	14.69%

Correlation

The correlation between DES and VTWO is 0.77, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.77
Correlation (3Y) Balances recent behavior with more history.	0.88
Correlation (5Y) Shows whether the relationship held over a longer period.	0.89
Correlation (10Y) Provides a long-term view across more market conditions.	0.90
Correlation (All Time) Calculated using the full available price history since Sep 22, 2010	0.91

The correlation between DES and VTWO shifts across timeframes, from 0.77 (1 year) to 0.91 (all time), reflecting how their relationship changes across market environments.

DES vs. VTWO - Sectors Allocation Comparison

Sectors	DES	VTWO
Financial Services	25.2%	17.6%
Consumer Cyclical	16.3%	9.2%
Industrials	13.6%	14.1%
Real Estate	9.9%	6.7%
Energy	9.5%	5.4%
Technology	6.2%	14.8%
Basic Materials	6.1%	4.4%
Utilities	4.1%	2.7%
Consumer Defensive	4.1%	2.6%
Communication Services	2.9%	2.2%
Healthcare	2.1%	20.2%

Return for Risk

DES vs. VTWO — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

DES

DES Risk / Return Rank: 90
DES Sharpe Ratio Rank: 89
DES Sortino Ratio Rank: 91
DES Omega Ratio Rank: 87
DES Calmar Ratio Rank: 93
DES Martin Ratio Rank: 88

VTWO

VTWO Risk / Return Rank: 85
VTWO Sharpe Ratio Rank: 86
VTWO Sortino Ratio Rank: 85
VTWO Omega Ratio Rank: 80
VTWO Calmar Ratio Rank: 88
VTWO Martin Ratio Rank: 87

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

DES vs. VTWO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for WisdomTree U.S. SmallCap Dividend Fund (DES) and Vanguard Russell 2000 ETF (VTWO). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	DES	VTWO	Difference
Sharpe ratio: Return per unit of total volatility	2.23	2.06	+0.17
Sortino ratio: Return per unit of downside risk	3.33	2.87	+0.46
Omega ratio: Gain probability vs. loss probability	1.40	1.34	+0.06
Calmar ratio: Return relative to maximum drawdown	4.59	3.61	+0.98
Martin ratio: Return relative to average drawdown	13.84	12.83	+1.02

DES vs. VTWO - Sharpe Ratio Comparison

The current DES Sharpe Ratio is 2.23, which is comparable to the VTWO Sharpe Ratio of 2.06. The chart below compares the historical Sharpe Ratios of DES and VTWO, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

DES vs. VTWO - Drawdown Comparison

The maximum DES drawdown since its inception was -65.48%, which is greater than VTWO's maximum drawdown of -41.19%. Use the drawdown chart below to compare losses from any high point for DES and VTWO.

Drawdown Indicators

	DES	VTWO	Difference
Max Drawdown Largest peak-to-trough decline	-65.48%	-41.19%	-24.29%
Max Drawdown (1Y) Largest decline over 1 year	-7.64%	-10.99%	+3.35%
Max Drawdown (3Y) Largest decline over 3 years	-25.16%	-27.57%	+2.41%
Max Drawdown (5Y) Largest decline over 5 years	-25.16%	-31.88%	+6.72%
Max Drawdown (10Y) Largest decline over 10 years	-45.65%	-41.19%	-4.46%
Current Drawdown Current decline from peak	-0.18%	-1.40%	+1.22%
Average Drawdown Average peak-to-trough decline	-9.61%	-8.32%	-1.29%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.53%	3.09%	-0.56%

Volatility

DES vs. VTWO - Volatility Comparison

The current volatility for WisdomTree U.S. SmallCap Dividend Fund (DES) is 3.55%, while Vanguard Russell 2000 ETF (VTWO) has a volatility of 4.16%. This indicates that DES experiences smaller price fluctuations and is considered to be less risky than VTWO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	DES	VTWO	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.55%	4.16%	-0.61%
Volatility (6M) Calculated over the trailing 6-month period	10.25%	14.11%	-3.86%
Volatility (1Y) Calculated over the trailing 1-year period	15.76%	19.30%	-3.54%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.39%	22.45%	-3.06%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.93%	23.07%	-1.14%

DES vs. VTWO - Expense Ratio Comparison

DES has a 0.38% expense ratio, which is higher than VTWO's 0.06% expense ratio.

Dividends

DES vs. VTWO - Dividend Comparison

DES's dividend yield for the trailing twelve months is around 2.23%, more than VTWO's 1.09% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DES WisdomTree U.S. SmallCap Dividend Fund	2.23%	2.85%	2.81%	2.65%	2.89%	2.31%	2.75%	2.68%	3.65%	2.89%	2.70%	3.09%
VTWO Vanguard Russell 2000 ETF	1.09%	1.25%	1.21%	1.45%	1.48%	1.13%	0.92%	1.36%	1.41%	1.18%	1.27%	1.23%

Frequently Asked Questions

Can I hold both DES and VTWO in my portfolio?

DES and VTWO have a correlation of 0.77, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, DES or VTWO?

VTWO has higher volatility (4.16%) compared to DES (3.55%). In terms of maximum drawdown, DES dropped -65.48% vs VTWO's -41.19%.

Which ETF is better, DES or VTWO?

On 10-year performance, VTWO leads with 10.77% vs 8.19% for DES. On fees, VTWO is cheaper at 0.06% per year. On volatility, DES has been the lower-risk option at 3.55%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, DES or VTWO?

Over the 10-year period, VTWO has performed better with a 10.77% return vs 8.19%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, DES or VTWO?

VTWO is cheaper with a 0.06% expense ratio, compared with 0.38% for DES.

Which ETF pays a higher dividend yield, DES or VTWO?

DES has the higher dividend yield at 2.23%, compared with 1.09% for VTWO.

What is the main difference between DES and VTWO?

DES tracks WisdomTree SmallCap Dividend (TR), while VTWO tracks Russell 2000 Index. They also come from different issuers: WisdomTree and Vanguard. Their fees differ too: 0.38% for DES and 0.06% for VTWO.

Which has better risk-adjusted returns?

DES currently has the higher Sharpe Ratio (2.23 vs 2.06), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.