IVOO vs. VTWO

Last updated Jun 3, 2026

IVOO (Vanguard S&P Mid-Cap 400 ETF) and VTWO (Vanguard Russell 2000 ETF) are both exchange-traded funds - IVOO is a Small Cap Growth Equities fund tracking the S&P MidCap 400 Index, while VTWO is a Small Cap Blend Equities fund tracking the Russell 2000 Index. Both are passively managed. Over the past 10 years, IVOO returned 11.22%/yr vs 11.23%/yr for VTWO. Their correlation of 0.94 suggests significant overlap in exposure. Both charge a 0.10% expense ratio.

Performance

IVOO vs. VTWO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard S&P Mid-Cap 400 ETF (IVOO) 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, IVOO achieves a 14.15% return, which is significantly lower than VTWO's 18.72% return. Both investments have delivered pretty close results over the past 10 years, with IVOO having a 11.22% annualized return and VTWO not far ahead at 11.23%.

IVOO

• 1D: 0.86%
• 1M: 3.31%
• YTD: 14.15%
• 6M: 15.23%
• 1Y: 27.06%
• 3Y*: 16.07%
• 5Y*: 8.27%
• 10Y*: 11.22%

VTWO

• 1D: 0.91%
• 1M: 4.43%
• YTD: 18.72%
• 6M: 19.66%
• 1Y: 43.57%
• 3Y*: 18.66%
• 5Y*: 6.67%
• 10Y*: 11.23%

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

IVOO vs. VTWO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
IVOO Vanguard S&P Mid-Cap 400 ETF	14.15%	7.47%	13.77%	16.45%	-13.17%	24.61%	13.61%	26.18%	-11.33%	16.38%
VTWO Vanguard Russell 2000 ETF	18.72%	12.90%	11.55%	17.08%	-20.49%	14.79%	20.22%	25.81%	-11.15%	14.69%

Correlation

The correlation between IVOO and VTWO is 0.92, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.92
Correlation (3Y) Calculated over the trailing 3-year period	0.94
Correlation (5Y) Calculated over the trailing 5-year period	0.95
Correlation (10Y) Calculated over the trailing 10-year period	0.95
Correlation (All Time) Calculated using the full available price history since Sep 23, 2010	0.94

The correlation between IVOO and VTWO has been stable across timeframes, ranging from 0.92 to 0.95 - a consistent structural relationship.

IVOO vs. VTWO - Sectors Allocation Comparison

Sectors	IVOO	VTWO
Industrials	25.1%	17.7%
Technology	15.7%	17.0%
Financial Services	14.4%	15.7%
Consumer Cyclical	10.7%	8.4%
Healthcare	8.6%	16.5%
Real Estate	7.5%	6.1%
Energy	5.5%	6.1%
Basic Materials	4.8%	4.8%
Consumer Defensive	3.8%	2.4%
Utilities	3.1%	2.9%
Communication Services	1.0%	2.4%

Return for Risk

IVOO vs. VTWO — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

IVOO

IVOO Risk / Return Rank: 54
IVOO Sharpe Ratio Rank: 50
IVOO Sortino Ratio Rank: 52
IVOO Omega Ratio Rank: 48
IVOO Calmar Ratio Rank: 61
IVOO Martin Ratio Rank: 62

VTWO

VTWO Risk / Return Rank: 70
VTWO Sharpe Ratio Rank: 69
VTWO Sortino Ratio Rank: 68
VTWO Omega Ratio Rank: 61
VTWO Calmar Ratio Rank: 77
VTWO Martin Ratio Rank: 74

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

IVOO vs. VTWO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard S&P Mid-Cap 400 ETF (IVOO) 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.

	IVOO	VTWO	Difference
Sharpe ratio Return per unit of total volatility	1.75	2.30	-0.55
Sortino ratio Return per unit of downside risk	2.54	3.14	-0.60
Omega ratio Gain probability vs. loss probability	1.31	1.37	-0.07
Calmar ratio Return relative to maximum drawdown	3.06	3.99	-0.93
Martin ratio Return relative to average drawdown	11.19	14.22	-3.03
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

IVOO vs. VTWO - Sharpe Ratio Comparison

The current IVOO Sharpe Ratio is 1.75, which is comparable to the VTWO Sharpe Ratio of 2.30. The chart below compares the historical Sharpe Ratios of IVOO 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.

Sharpe Ratios by Period

	IVOO	VTWO	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.75	2.30	-0.55
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.42	0.30	+0.12
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.53	0.49	+0.04
Sharpe Ratio (All Time) Calculated using the full available price history	0.62	0.53	+0.09

Drawdowns

IVOO vs. VTWO - Drawdown Comparison

The maximum IVOO drawdown since its inception was -42.33%, roughly equal to the maximum VTWO drawdown of -41.19%. Use the drawdown chart below to compare losses from any high point for IVOO and VTWO.

Drawdown Indicators

	IVOO	VTWO	Difference
Max Drawdown Largest peak-to-trough decline	-42.33%	-41.19%	-1.14%
Max Drawdown (1Y) Largest decline over 1 year	-8.81%	-10.99%	+2.18%
Max Drawdown (3Y) Largest decline over 3 years	-24.22%	-27.57%	+3.35%
Max Drawdown (5Y) Largest decline over 5 years	-24.22%	-31.88%	+7.66%
Max Drawdown (10Y) Largest decline over 10 years	-42.33%	-41.19%	-1.14%
Current Drawdown Current decline from peak	0.00%	-0.12%	+0.12%
Average Drawdown Average peak-to-trough decline	-5.27%	-8.39%	+3.12%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.41%	3.08%	-0.67%

Volatility

IVOO vs. VTWO - Volatility Comparison

The current volatility for Vanguard S&P Mid-Cap 400 ETF (IVOO) is 4.46%, while Vanguard Russell 2000 ETF (VTWO) has a volatility of 5.55%. This indicates that IVOO 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

	IVOO	VTWO	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.46%	5.55%	-1.09%
Volatility (6M) Calculated over the trailing 6-month period	11.38%	13.49%	-2.11%
Volatility (1Y) Calculated over the trailing 1-year period	15.56%	19.06%	-3.50%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.73%	22.47%	-2.74%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.20%	23.08%	-1.88%

IVOO vs. VTWO - Expense Ratio Comparison

Both IVOO and VTWO have an expense ratio of 0.10%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.

Dividends

IVOO vs. VTWO - Dividend Comparison

IVOO's dividend yield for the trailing twelve months is around 1.19%, more than VTWO's 1.07% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IVOO Vanguard S&P Mid-Cap 400 ETF	1.19%	1.35%	1.30%	1.25%	1.58%	1.14%	1.23%	1.49%	1.56%	1.22%	1.37%	1.45%
VTWO Vanguard Russell 2000 ETF	1.07%	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 IVOO and VTWO in my portfolio?

With a correlation of 0.92, IVOO and VTWO move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, IVOO or VTWO?

VTWO has higher volatility (5.55%) compared to IVOO (4.46%). In terms of maximum drawdown, IVOO dropped -42.33% vs VTWO's -41.19%.

Which ETF is better, IVOO or VTWO?

On 10-year performance, VTWO leads with 11.23% vs 11.22% for IVOO. Both ETFs have the same 0.10% expense ratio. On volatility, IVOO has been the lower-risk option at 4.46%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IVOO or VTWO?

Over the 10-year period, VTWO has performed better with a 11.23% return vs 11.22%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IVOO or VTWO?

IVOO and VTWO have the same expense ratio: 0.10% per year.

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

IVOO has the higher dividend yield at 1.19%, compared with 1.07% for VTWO.

What is the main difference between IVOO and VTWO?

IVOO is categorized as Small Cap Growth Equities, while VTWO is Small Cap Blend Equities. IVOO tracks S&P MidCap 400 Index, while VTWO tracks Russell 2000 Index.

Which has better risk-adjusted returns?

VTWO currently has the higher Sharpe Ratio (2.30 vs 1.75), 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.