IWD vs. VLU

Last updated Jul 14, 2026

IWD (iShares Russell 1000 Value ETF) and VLU (SPDR S&P 1500 Value Tilt ETF) are both Large Cap Value Equities funds - IWD tracks the Russell 1000 Value Index while VLU tracks the S&P 1500 Low Valuation Tilt Index. Both are passively managed. Over the past 10 years, IWD returned 11.25%/yr vs 14.11%/yr for VLU. A 0.75 correlation means they provide meaningful diversification when combined. IWD charges 0.18%/yr vs 0.12%/yr for VLU.

Performance

IWD vs. VLU - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Russell 1000 Value ETF (IWD) and SPDR S&P 1500 Value Tilt ETF (VLU). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, IWD achieves a 18.54% return, which is significantly higher than VLU's 15.57% return. Over the past 10 years, IWD has underperformed VLU with an annualized return of 11.25%, while VLU has yielded a comparatively higher 14.11% annualized return.

IWD

• 1D: 0.32%
• 1M: 2.59%
• 6M: 14.53%
• YTD: 18.54%
• 1Y: 28.21%
• 3Y*: 18.08%
• 5Y*: 11.41%
• 10Y*: 11.25%

VLU

• 1D: 0.08%
• 1M: 1.18%
• 6M: 11.87%
• YTD: 15.57%
• 1Y: 25.85%
• 3Y*: 19.52%
• 5Y*: 12.82%
• 10Y*: 14.11%

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

IWD vs. VLU - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
IWD iShares Russell 1000 Value ETF	18.54%	15.68%	14.17%	11.34%	-7.75%	24.95%	2.73%	26.12%	-8.45%	13.45%
VLU SPDR S&P 1500 Value Tilt ETF	15.57%	16.70%	17.24%	17.18%	-8.24%	30.95%	9.91%	26.20%	-7.89%	18.16%

Correlation

The correlation between IWD and VLU is 0.94, 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	0.94
Correlation (3Y) Calculated over the trailing 3-year period	0.96
Correlation (5Y) Calculated over the trailing 5-year period	0.97
Correlation (10Y) Calculated over the trailing 10-year period	0.89
Correlation (All Time) Calculated using the full available price history since Oct 25, 2012	0.75

The correlation between IWD and VLU shifts across timeframes, from 0.75 (all time) to 0.97 (5 years), reflecting how their relationship changes across market environments.

IWD vs. VLU - Sectors Allocation Comparison

Sectors	IWD	VLU
Technology	18.6%	19.1%
Financial Services	18.4%	18.4%
Industrials	12.5%	8.3%
Healthcare	10.6%	11.5%
Communication Services	8.1%	8.8%
Consumer Cyclical	7.1%	10.7%
Consumer Defensive	6.7%	7.1%
Energy	6.3%	6.6%
Utilities	4.0%	3.5%
Real Estate	3.9%	3.4%
Basic Materials	3.7%	2.6%

Return for Risk

IWD vs. VLU — Risk / Return Rank

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

IWD

IWD Risk / Return Rank: 91
IWD Sharpe Ratio Rank: 92
IWD Sortino Ratio Rank: 92
IWD Omega Ratio Rank: 90
IWD Calmar Ratio Rank: 89
IWD Martin Ratio Rank: 91

VLU

VLU Risk / Return Rank: 90
VLU Sharpe Ratio Rank: 90
VLU Sortino Ratio Rank: 90
VLU Omega Ratio Rank: 89
VLU Calmar Ratio Rank: 88
VLU Martin Ratio Rank: 90

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.

IWD vs. VLU - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Russell 1000 Value ETF (IWD) and SPDR S&P 1500 Value Tilt ETF (VLU). 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.

	IWD	VLU	Difference
Sharpe ratio: Return per unit of total volatility	2.50	2.40	+0.10
Sortino ratio: Return per unit of downside risk	3.51	3.35	+0.16
Omega ratio: Gain probability vs. loss probability	1.45	1.45	0.00
Calmar ratio: Return relative to maximum drawdown	4.18	4.10	+0.08
Martin ratio: Return relative to average drawdown	17.33	16.32	+1.00

IWD vs. VLU - Sharpe Ratio Comparison

The current IWD Sharpe Ratio is 2.50, which is comparable to the VLU Sharpe Ratio of 2.40. The chart below compares the historical Sharpe Ratios of IWD and VLU, 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

IWD vs. VLU - Drawdown Comparison

The maximum IWD drawdown since its inception was -60.10%, which is greater than VLU's maximum drawdown of -37.39%. Use the drawdown chart below to compare losses from any high point for IWD and VLU.

Drawdown Indicators

	IWD	VLU	Difference
Max Drawdown Largest peak-to-trough decline	-60.10%	-37.39%	-22.71%
Max Drawdown (1Y) Largest decline over 1 year	-6.79%	-6.34%	-0.45%
Max Drawdown (3Y) Largest decline over 3 years	-15.71%	-16.22%	+0.51%
Max Drawdown (5Y) Largest decline over 5 years	-19.04%	-19.55%	+0.51%
Max Drawdown (10Y) Largest decline over 10 years	-38.51%	-37.39%	-1.12%
Current Drawdown Current decline from peak	-0.05%	0.00%	-0.05%
Average Drawdown Average peak-to-trough decline	-8.62%	-3.72%	-4.90%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.63%	1.59%	+0.04%

Volatility

IWD vs. VLU - Volatility Comparison

iShares Russell 1000 Value ETF (IWD) has a higher volatility of 3.72% compared to SPDR S&P 1500 Value Tilt ETF (VLU) at 2.55%. This indicates that IWD's price experiences larger fluctuations and is considered to be riskier than VLU based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IWD	VLU	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.72%	2.55%	+1.17%
Volatility (6M) Calculated over the trailing 6-month period	8.65%	7.68%	+0.97%
Volatility (1Y) Calculated over the trailing 1-year period	11.34%	10.83%	+0.51%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.84%	15.35%	-0.51%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.24%	17.97%	-0.73%

IWD vs. VLU - Expense Ratio Comparison

IWD has a 0.18% expense ratio, which is higher than VLU's 0.12% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

IWD vs. VLU - Dividend Comparison

IWD's dividend yield for the trailing twelve months is around 1.41%, less than VLU's 1.61% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IWD iShares Russell 1000 Value ETF	1.41%	1.69%	1.87%	2.02%	2.15%	1.62%	2.05%	2.45%	2.71%	2.09%	2.25%	2.47%
VLU SPDR S&P 1500 Value Tilt ETF	1.61%	1.82%	2.00%	2.02%	2.16%	1.86%	1.98%	2.19%	2.57%	1.96%	2.14%	6.37%

Frequently Asked Questions

Can I hold both IWD and VLU in my portfolio?

With a correlation of 0.94, IWD and VLU 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, IWD or VLU?

IWD has higher volatility (3.72%) compared to VLU (2.55%). In terms of maximum drawdown, IWD dropped -60.10% vs VLU's -37.39%.

Which ETF is better, IWD or VLU?

On 10-year performance, VLU leads with 14.11% vs 11.25% for IWD. On fees, VLU is cheaper at 0.12% per year. On volatility, VLU has been the lower-risk option at 2.55%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IWD or VLU?

Over the 10-year period, VLU has performed better with a 14.11% return vs 11.25%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IWD or VLU?

VLU is cheaper with a 0.12% expense ratio, compared with 0.18% for IWD.

Which ETF pays a higher dividend yield, IWD or VLU?

VLU has the higher dividend yield at 1.61%, compared with 1.41% for IWD.

What is the main difference between IWD and VLU?

IWD tracks Russell 1000 Value Index, while VLU tracks S&P 1500 Low Valuation Tilt Index. They also come from different issuers: iShares and State Street. Their fees differ too: 0.18% for IWD and 0.12% for VLU.

Which has better risk-adjusted returns?

IWD currently has the higher Sharpe Ratio (2.50 vs 2.40), 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.