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IWM vs. VTWO
Performance
Return for Risk
Drawdowns
Volatility
Dividends

IWM vs. VTWO

Last updated Jun 12, 2026

IWM (iShares Russell 2000 ETF) and VTWO (Vanguard Russell 2000 ETF) are both Small Cap Blend Equities funds tracking the Russell 2000 Index, from iShares and Vanguard respectively. Both are passively managed. Over the past 10 years, IWM returned 11.14%/yr vs 11.29%/yr for VTWO. With a 0.99 correlation, they move nearly in lockstep. IWM charges 0.19%/yr vs 0.06%/yr for VTWO.

Performance

IWM vs. VTWO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Russell 2000 ETF (IWM) and Vanguard Russell 2000 ETF (VTWO). The values are adjusted to include any dividend payments, if applicable.

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Returns By Period

The year-to-date returns for both investments are quite close, with IWM having a 18.19% return and VTWO slightly higher at 18.25%. Both investments have delivered pretty close results over the past 10 years, with IWM having a 11.14% annualized return and VTWO not far ahead at 11.29%.

IWM

1D
2.96%
1M
2.77%
YTD
18.19%
6M
13.23%
1Y
37.41%
3Y*
17.34%
5Y*
5.88%
10Y*
11.14%

VTWO

1D
3.00%
1M
2.79%
YTD
18.25%
6M
13.34%
1Y
37.69%
3Y*
17.56%
5Y*
6.05%
10Y*
11.29%
*Multi-year figures are annualized to reflect compound growth (CAGR)

IWM vs. VTWO - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
IWM
iShares Russell 2000 ETF		18.19%12.66%11.38%16.83%-20.48%14.54%20.03%25.39%-11.12%14.58%
VTWO
Vanguard Russell 2000 ETF		18.25%12.90%11.55%17.08%-20.49%14.79%20.22%25.81%-11.15%14.69%

Correlation

The correlation between IWM and VTWO is 1.00 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

Correlation
Correlation (1Y)
Calculated over the trailing 1-year period

1.00

Correlation (3Y)
Calculated over the trailing 3-year period

1.00

Correlation (5Y)
Calculated over the trailing 5-year period

1.00

Correlation (10Y)
Calculated over the trailing 10-year period

1.00

Correlation (All Time)
Calculated using the full available price history since Sep 22, 2010

0.99

The correlation between IWM and VTWO has been stable across timeframes, ranging from 0.99 to 1.00 - a consistent structural relationship.

IWM vs. VTWO - Sectors Allocation Comparison

Sectors
IWM
VTWO

Technology

19.5%
17.1%

Industrials

17.2%
16.9%

Healthcare

16.1%
16.0%

Financial Services

15.6%
15.7%

Consumer Cyclical

7.9%
8.1%

Energy

5.8%
6.3%

Real Estate

5.6%
5.7%

Basic Materials

4.5%
4.6%

Utilities

3.0%
3.1%

Consumer Defensive

2.1%
2.2%

Communication Services

2.1%
2.1%

Technology

IWM
19.5%
VTWO
17.1%

Industrials

IWM
17.2%
VTWO
16.9%

Healthcare

IWM
16.1%
VTWO
16.0%

Financial Services

IWM
15.6%
VTWO
15.7%

Consumer Cyclical

IWM
7.9%
VTWO
8.1%

Energy

IWM
5.8%
VTWO
6.3%

Real Estate

IWM
5.6%
VTWO
5.7%

Basic Materials

IWM
4.5%
VTWO
4.6%

Utilities

IWM
3.0%
VTWO
3.1%

Consumer Defensive

IWM
2.1%
VTWO
2.2%

Communication Services

IWM
2.1%
VTWO
2.1%

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 Russell 2000 ETF

Often compared with IWM:
IWM vs. SPYIWM vs. IJRIWM vs. AVUVIWM vs. IWNIWM vs. VOOIWM vs. IWOIWM vs. TNA
Often compared with VTWO:
VTWO vs. VBVTWO vs. VOOVTWO vs. VTWVVTWO vs. VTWGVTWO vs. FSSNXVTWO vs. VIOOVTWO vs. IJR

Return for Risk

IWM vs. VTWO — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
IWM
IWM Risk / Return Rank: 7272
Overall Rank
IWM Sharpe Ratio Rank: 7272
Sharpe Ratio Rank
IWM Sortino Ratio Rank: 7171
Sortino Ratio Rank
IWM Omega Ratio Rank: 6363
Omega Ratio Rank
IWM Calmar Ratio Rank: 7979
Calmar Ratio Rank
IWM Martin Ratio Rank: 7777
Martin Ratio Rank
VTWO
VTWO Risk / Return Rank: 7373
Overall Rank
VTWO Sharpe Ratio Rank: 7373
Sharpe Ratio Rank
VTWO Sortino Ratio Rank: 7272
Sortino Ratio Rank
VTWO Omega Ratio Rank: 6464
Omega Ratio Rank
VTWO Calmar Ratio Rank: 7979
Calmar Ratio Rank
VTWO Martin Ratio Rank: 7777
Martin Ratio Rank
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.

IWM vs. VTWO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Russell 2000 ETF (IWM) 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.

IWMVTWODifference
Sharpe ratioReturn per unit of total volatility
1.91
1.93

-0.02

Sortino ratioReturn per unit of downside risk
2.65
2.67

-0.02

Omega ratioGain probability vs. loss probability

1.31

1.32

0.00

Calmar ratioReturn relative to maximum drawdown

3.41

3.45

-0.04

Martin ratioReturn relative to average drawdown

12.04

12.19

-0.15

IWM vs. VTWO - Sharpe Ratio Comparison

The current IWM Sharpe Ratio is 1.91, which is comparable to the VTWO Sharpe Ratio of 1.93. The chart below compares the historical Sharpe Ratios of IWM 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.

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Drawdowns

IWM vs. VTWO - Drawdown Comparison

The maximum IWM drawdown since its inception was -59.05%, which is greater than VTWO's maximum drawdown of -41.19%. Use the drawdown chart below to compare losses from any high point for IWM and VTWO.

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Drawdown Indicators

IWMVTWODifference

Max Drawdown

Largest peak-to-trough decline

-59.05%

-41.19%

-17.86%

Max Drawdown (1Y)

Largest decline over 1 year

-11.03%

-10.99%

-0.04%

Max Drawdown (3Y)

Largest decline over 3 years

-27.50%

-27.57%

+0.07%

Max Drawdown (5Y)

Largest decline over 5 years

-31.91%

-31.88%

-0.03%

Max Drawdown (10Y)

Largest decline over 10 years

-41.13%

-41.19%

+0.06%

Current Drawdown

Current decline from peak

-0.55%

-0.53%

-0.02%

Average Drawdown

Average peak-to-trough decline

-10.76%

-8.38%

-2.38%

Ulcer Index

Depth and duration of drawdowns from previous peaks

3.12%

3.10%

+0.02%

Volatility

IWM vs. VTWO - Volatility Comparison

iShares Russell 2000 ETF (IWM) and Vanguard Russell 2000 ETF (VTWO) have volatilities of 7.12% and 7.11%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

IWMVTWODifference

Volatility (1M)

Calculated over the trailing 1-month period

7.12%

7.11%

+0.01%

Volatility (6M)

Calculated over the trailing 6-month period

14.32%

14.30%

+0.02%

Volatility (1Y)

Calculated over the trailing 1-year period

19.72%

19.66%

+0.06%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

22.61%

22.57%

+0.04%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

23.08%

23.13%

-0.05%

IWM vs. VTWO - Expense Ratio Comparison

IWM has a 0.19% expense ratio, which is higher than VTWO's 0.06% 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. VTWO - Dividend Comparison

IWM's dividend yield for the trailing twelve months is around 0.87%, less than VTWO's 1.07% yield.

PositionTTM20252024202320222021202020192018201720162015
IWM
iShares Russell 2000 ETF		0.87%1.04%1.15%1.35%1.48%0.94%1.04%1.26%1.40%1.26%1.38%1.54%
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

With a correlation of 1.00, IWM 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.

IWM has higher volatility (7.12%) compared to VTWO (7.11%). In terms of maximum drawdown, IWM dropped -59.05% vs VTWO's -41.19%.

On 10-year performance, VTWO leads with 11.29% vs 11.14% for IWM. On fees, VTWO is cheaper at 0.06% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, VTWO has performed better with a 11.29% return vs 11.14%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

VTWO is cheaper with a 0.06% expense ratio, compared with 0.19% for IWM.

VTWO has the higher dividend yield at 1.07%, compared with 0.87% for IWM.

Both ETFs track Russell 2000 Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.19% for IWM and 0.06% for VTWO.

VTWO currently has the higher Sharpe Ratio (1.93 vs 1.91), 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 VTWO

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