IWM vs. VOO
Compare and contrast key facts about iShares Russell 2000 ETF (IWM) and Vanguard S&P 500 ETF (VOO).
IWM and VOO are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. IWM is a passively managed fund by iShares that tracks the performance of the Russell 2000 Index. It was launched on May 22, 2000. VOO is a passively managed fund by Vanguard that tracks the performance of the S&P 500 Index. It was launched on Sep 7, 2010. Both IWM and VOO are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: IWM or VOO.
Performance
IWM vs. VOO - Performance Comparison
Returns By Period
In the year-to-date period, IWM achieves a 17.83% return, which is significantly lower than VOO's 26.16% return. Over the past 10 years, IWM has underperformed VOO with an annualized return of 8.57%, while VOO has yielded a comparatively higher 13.18% annualized return.
IWM
17.83%
5.96%
16.10%
33.25%
9.62%
8.57%
VOO
26.16%
1.77%
13.62%
32.33%
15.68%
13.18%
Key characteristics
| IWM | VOO | |
|---|---|---|
| Sharpe Ratio | 1.63 | 2.70 |
| Sortino Ratio | 2.34 | 3.60 |
| Omega Ratio | 1.28 | 1.50 |
| Calmar Ratio | 1.39 | 3.90 |
| Martin Ratio | 8.92 | 17.65 |
| Ulcer Index | 3.82% | 1.86% |
| Daily Std Dev | 20.97% | 12.19% |
| Max Drawdown | -59.05% | -33.99% |
| Current Drawdown | -3.00% | -0.86% |
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IWM vs. VOO - Expense Ratio Comparison
IWM has a 0.19% expense ratio, which is higher than VOO's 0.03% 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%.
Correlation
The correlation between IWM and VOO is 0.84, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Risk-Adjusted Performance
IWM vs. VOO - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Russell 2000 ETF (IWM) and Vanguard S&P 500 ETF (VOO). 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.
Dividends
IWM vs. VOO - Dividend Comparison
IWM's dividend yield for the trailing twelve months is around 1.10%, less than VOO's 1.24% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IWM iShares Russell 2000 ETF | 1.10% | 1.35% | 1.48% | 0.94% | 1.04% | 1.26% | 1.40% | 1.26% | 1.38% | 1.54% | 1.26% | 1.23% |
VOO Vanguard S&P 500 ETF | 1.24% | 1.46% | 1.69% | 1.25% | 1.54% | 1.88% | 2.06% | 1.78% | 2.02% | 2.10% | 1.85% | 1.84% |
Drawdowns
IWM vs. VOO - Drawdown Comparison
The maximum IWM drawdown since its inception was -59.05%, which is greater than VOO's maximum drawdown of -33.99%. Use the drawdown chart below to compare losses from any high point for IWM and VOO. For additional features, visit the drawdowns tool.
Volatility
IWM vs. VOO - Volatility Comparison
iShares Russell 2000 ETF (IWM) has a higher volatility of 7.48% compared to Vanguard S&P 500 ETF (VOO) at 3.99%. This indicates that IWM's price experiences larger fluctuations and is considered to be riskier than VOO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.