PortfoliosLab logoPortfoliosLab logo

Documentation

Upgrade your plan
IWM vs. VSMAX
Performance
Return for Risk
Drawdowns
Volatility
Dividends

IWM vs. VSMAX

Last updated Aug 5, 2026
Documentation

IWM (iShares Russell 2000 ETF) and VSMAX (Vanguard Small-Cap Index Fund Admiral Shares) are both Small Cap Blend Equities funds - IWM tracks the Russell 2000 Index while VSMAX tracks the CRSP US Small Cap Index. Both are passively managed. Over the past 10 years, IWM returned 10.83%/yr vs 11.02%/yr for VSMAX. Their 0.98 correlation means they have historically moved very closely together. IWM charges 0.19%/yr vs 0.05%/yr for VSMAX.

Performance

IWM vs. VSMAX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Russell 2000 ETF (IWM) and Vanguard Small-Cap Index Fund Admiral Shares (VSMAX). The values are adjusted to include any dividend payments, if applicable.

Loading charts...

Returns By Period

In the year-to-date period, IWM achieves a 23.08% return, which is significantly higher than VSMAX's 16.89% return. Both investments have delivered pretty close results over the past 10 years, with IWM having a 10.83% annualized return and VSMAX not far ahead at 11.02%.

IWM

1D
1.85%
1M
1.39%
6M
15.29%
YTD
23.08%
1Y
38.74%
3Y*
17.20%
5Y*
7.66%
10Y*
10.83%
ALL TIME*
8.88%

VSMAX

1D
1.49%
1M
-0.34%
6M
10.76%
YTD
16.89%
1Y
25.75%
3Y*
15.28%
5Y*
7.92%
10Y*
11.02%
ALL TIME*
8.97%
*Multi-year figures are annualized to reflect compound growth (CAGR)

Liquidity Comparison

PositionAvg. Volume Value (2W)Avg. Volume Value (1M)Avg. Volume Value (3M)

IWM

iShares Russell 2000 ETF
$6.85B$6.35B$7.43B

VSMAX

Vanguard Small-Cap Index Fund Admiral Shares
$0.00$0.00$0.00

IWM vs. VSMAX - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
IWM
iShares Russell 2000 ETF		23.08%12.66%11.38%16.83%-20.48%14.54%20.03%25.39%-11.12%14.58%
VSMAX
Vanguard Small-Cap Index Fund Admiral Shares		16.89%8.83%14.23%18.17%-17.61%17.74%19.06%27.36%-9.33%16.24%

Correlation

The correlation between IWM and VSMAX is 0.95 - they have historically moved very closely together. At this level, their price movements offset little of one another.

Correlation
Correlation (1Y)
Focuses on recent behavior, but can change the most.

0.95

Correlation (3Y)
Balances recent behavior with more history.

0.97

Correlation (5Y)
Shows whether the relationship held over a longer period.

0.98

Correlation (10Y)
Provides a long-term view across more market conditions.

0.98

Correlation (All Time)
Calculated using the full available price history since Nov 13, 2000

0.98

The correlation between IWM and VSMAX has been stable across timeframes, ranging from 0.95 to 0.98 - a consistent structural relationship.

IWM vs. VSMAX - Sectors Allocation Comparison

Sectors
IWM
VSMAX

Healthcare

20.0%
12.5%

Financial Services

18.3%
12.4%

Industrials

13.7%
19.9%

Technology

13.6%
17.9%

Consumer Cyclical

9.2%
11.6%

Real Estate

7.0%
7.9%

Energy

5.6%
3.9%

Basic Materials

4.5%
4.4%

Utilities

2.9%
3.3%

Consumer Defensive

2.8%
3.3%

Communication Services

2.0%
2.9%

Healthcare

IWM
20.0%
VSMAX
12.5%

Financial Services

IWM
18.3%
VSMAX
12.4%

Industrials

IWM
13.7%
VSMAX
19.9%

Technology

IWM
13.6%
VSMAX
17.9%

Consumer Cyclical

IWM
9.2%
VSMAX
11.6%

Real Estate

IWM
7.0%
VSMAX
7.9%

Energy

IWM
5.6%
VSMAX
3.9%

Basic Materials

IWM
4.5%
VSMAX
4.4%

Utilities

IWM
2.9%
VSMAX
3.3%

Consumer Defensive

IWM
2.8%
VSMAX
3.3%

Communication Services

IWM
2.0%
VSMAX
2.9%

Compare stocks, funds, or ETFs

Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.

iShares Russell 2000 ETF

Vanguard Small-Cap Index Fund Admiral Shares

Often compared with IWM:
IWM vs. SPYIWM vs. VTWOIWM vs. IJRIWM vs. AVUVIWM vs. VOOIWM vs. IWNIWM vs. IWO
Often compared with VSMAX:
VSMAX vs. VIMAXVSMAX vs. FSSNXVSMAX vs. VSGAXVSMAX vs. VBVSMAX vs. VOOVSMAX vs. VBRVSMAX vs. SWSSX

Return for Risk

IWM vs. VSMAX — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.
IWM
IWM Risk / Return Rank: 7979
Overall Rank
IWM Sharpe Ratio Rank: 7979
Sharpe Ratio Rank
IWM Sortino Ratio Rank: 7979
Sortino Ratio Rank
IWM Omega Ratio Rank: 7272
Omega Ratio Rank
IWM Calmar Ratio Rank: 8484
Calmar Ratio Rank
IWM Martin Ratio Rank: 8383
Martin Ratio Rank
VSMAX
VSMAX Risk / Return Rank: 7272
Overall Rank
VSMAX Sharpe Ratio Rank: 6666
Sharpe Ratio Rank
VSMAX Sortino Ratio Rank: 6767
Sortino Ratio Rank
VSMAX Omega Ratio Rank: 5959
Omega Ratio Rank
VSMAX Calmar Ratio Rank: 8585
Calmar Ratio Rank
VSMAX Martin Ratio Rank: 8585
Martin Ratio Rank
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.

IWM vs. VSMAX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Russell 2000 ETF (IWM) and Vanguard Small-Cap Index Fund Admiral Shares (VSMAX). 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.

IWMVSMAXDifference
Sharpe ratioReturn per unit of total volatility
2.02
1.70

+0.32

Sortino ratioReturn per unit of downside risk
2.82
2.44

+0.38

Omega ratioGain probability vs. loss probability

1.34

1.30

+0.04

Calmar ratioReturn relative to maximum drawdown

3.53

3.10

+0.43

Martin ratioReturn relative to average drawdown

12.51

11.36

+1.15

IWM vs. VSMAX - Sharpe Ratio Comparison

The current IWM Sharpe Ratio is 2.02, which is comparable to the VSMAX Sharpe Ratio of 1.70. The chart below compares the historical Sharpe Ratios of IWM and VSMAX, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Loading charts...

Drawdowns

IWM vs. VSMAX - Drawdown Comparison

The maximum IWM drawdown since its inception was -59.05%, roughly equal to the maximum VSMAX drawdown of -59.68%. Use the drawdown chart below to compare losses from any high point for IWM and VSMAX.

Loading charts...

Drawdown Indicators

IWMVSMAXDifference

Max Drawdown

Largest peak-to-trough decline

-59.05%

-59.68%

+0.63%

Max Drawdown (1Y)

Largest decline over 1 year

-11.03%

-8.97%

-2.06%

Max Drawdown (3Y)

Largest decline over 3 years

-27.50%

-25.25%

-2.25%

Max Drawdown (5Y)

Largest decline over 5 years

-31.91%

-28.14%

-3.77%

Max Drawdown (10Y)

Largest decline over 10 years

-41.13%

-41.82%

+0.69%

Current Drawdown

Current decline from peak

0.00%

-1.14%

+1.14%

Average Drawdown

Average peak-to-trough decline

-10.71%

-9.64%

-1.07%

Ulcer Index

Depth and duration of drawdowns from previous peaks

3.11%

2.44%

+0.67%

Volatility

IWM vs. VSMAX - Volatility Comparison

iShares Russell 2000 ETF (IWM) has a higher volatility of 4.58% compared to Vanguard Small-Cap Index Fund Admiral Shares (VSMAX) at 3.64%. This indicates that IWM's price experiences larger fluctuations and is considered to be riskier than VSMAX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Loading charts...

Volatility by Period

IWMVSMAXDifference

Volatility (1M)

Calculated over the trailing 1-month period

4.58%

3.64%

+0.94%

Volatility (6M)

Calculated over the trailing 6-month period

14.21%

12.00%

+2.21%

Volatility (1Y)

Calculated over the trailing 1-year period

19.40%

16.44%

+2.96%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

22.50%

20.67%

+1.83%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

23.02%

21.52%

+1.50%

IWM vs. VSMAX - Expense Ratio Comparison

IWM has a 0.19% expense ratio, which is higher than VSMAX's 0.05% 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

IWM vs. VSMAX - Dividend Comparison

IWM's dividend yield for the trailing twelve months is around 0.88%, less than VSMAX's 1.20% yield.

PositionTTM20252024202320222021202020192018201720162015
IWM
iShares Russell 2000 ETF		0.88%1.04%1.15%1.35%1.48%0.94%1.04%1.26%1.40%1.26%1.38%1.54%
VSMAX
Vanguard Small-Cap Index Fund Admiral Shares		1.20%1.33%1.30%1.56%1.54%1.24%1.14%1.39%1.67%1.35%1.49%1.48%

Frequently Asked Questions

With a correlation of 0.95, IWM and VSMAX 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.

IWM has higher volatility (4.58%) compared to VSMAX (3.64%). In terms of maximum drawdown, IWM dropped -59.05% vs VSMAX's -59.68%.

IWM currently has the higher Sharpe Ratio (2.02 vs 1.70), 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.

Portfolio Optimizer

Find the right allocation for IWM and VSMAX

Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.

Open Portfolio Optimizer