IWMW vs. VOO

Last updated Jun 4, 2026

IWMW (iShares Russell 2000 BuyWrite ETF) and VOO (Vanguard S&P 500 ETF) are both exchange-traded funds - IWMW is a Derivative Income fund tracking the Cboe FTSE Russell IWM 2% OTM BuyWrite Index, while VOO is a S&P 500 fund tracking the S&P 500 Index. Both are passively managed. Over the past year, IWMW returned 24.62% vs 28.04% for VOO. A 0.75 correlation means they provide meaningful diversification when combined. IWMW charges 0.39%/yr vs 0.03%/yr for VOO.

Performance

IWMW vs. VOO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Russell 2000 BuyWrite ETF (IWMW) and Vanguard S&P 500 ETF (VOO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, IWMW achieves a 8.49% return, which is significantly lower than VOO's 10.91% return.

IWMW

• 1D: -0.34%
• 1M: 3.04%
• YTD: 8.49%
• 6M: 8.94%
• 1Y: 24.62%
• 3Y*: —
• 5Y*: —
• 10Y*: —

VOO

• 1D: -0.70%
• 1M: 5.04%
• YTD: 10.91%
• 6M: 10.93%
• 1Y: 28.04%
• 3Y*: 22.44%
• 5Y*: 13.90%
• 10Y*: 15.56%

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

IWMW vs. VOO - Yearly Performance Comparison

	2026 (YTD)	2025	2024
IWMW iShares Russell 2000 BuyWrite ETF	8.49%	7.82%	6.09%
VOO Vanguard S&P 500 ETF	10.91%	17.82%	16.15%

Correlation

The correlation between IWMW and VOO is 0.75, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.75
Correlation (All Time) Calculated using the full available price history since Mar 18, 2024	0.75

The correlation between IWMW and VOO has been stable across timeframes, ranging from 0.75 to 0.75 - a consistent structural relationship.

IWMW vs. VOO - Sectors Allocation Comparison

Sectors	IWMW	VOO
Technology	19.2%	35.7%
Industrials	17.6%	8.3%
Healthcare	16.6%	8.5%
Financial Services	16.0%	11.6%
Consumer Cyclical	7.8%	10.2%
Energy	6.4%	3.5%
Real Estate	5.8%	1.9%
Basic Materials	4.8%	1.8%
Utilities	3.1%	2.4%
Consumer Defensive	2.2%	4.9%
Communication Services	2.0%	11.3%

Return for Risk

IWMW vs. VOO — Risk / Return Rank

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

IWMW

IWMW Risk / Return Rank: 64
IWMW Sharpe Ratio Rank: 59
IWMW Sortino Ratio Rank: 57
IWMW Omega Ratio Rank: 66
IWMW Calmar Ratio Rank: 71
IWMW Martin Ratio Rank: 67

VOO

VOO Risk / Return Rank: 70
VOO Sharpe Ratio Rank: 71
VOO Sortino Ratio Rank: 70
VOO Omega Ratio Rank: 70
VOO Calmar Ratio Rank: 62
VOO Martin Ratio Rank: 75

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.

IWMW vs. VOO - Risk-Adjusted Trends Comparison

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

	IWMW	VOO	Difference
Sharpe ratio: Return per unit of total volatility	2.01	2.39	-0.37
Sortino ratio: Return per unit of downside risk	2.75	3.25	-0.51
Omega ratio: Gain probability vs. loss probability	1.40	1.43	-0.03
Calmar ratio: Return relative to maximum drawdown	3.56	3.16	+0.40
Martin ratio: Return relative to average drawdown	12.33	14.73	-2.40
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

IWMW vs. VOO - Sharpe Ratio Comparison

The current IWMW Sharpe Ratio is 2.01, which is comparable to the VOO Sharpe Ratio of 2.39. The chart below compares the historical Sharpe Ratios of IWMW and VOO, 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

	IWMW	VOO	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.01	2.39	-0.37
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.83	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.87	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.64	0.89	-0.25

Drawdowns

IWMW vs. VOO - Drawdown Comparison

The maximum IWMW drawdown since its inception was -21.82%, smaller than the maximum VOO drawdown of -33.99%. Use the drawdown chart below to compare losses from any high point for IWMW and VOO.

Drawdown Indicators

	IWMW	VOO	Difference
Max Drawdown Largest peak-to-trough decline	-21.82%	-33.99%	+12.17%
Max Drawdown (1Y) Largest decline over 1 year	-6.94%	-8.90%	+1.96%
Max Drawdown (3Y) Largest decline over 3 years	—	-18.69%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-24.52%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-33.99%	—
Current Drawdown Current decline from peak	-0.34%	-0.70%	+0.36%
Average Drawdown Average peak-to-trough decline	-3.85%	-3.69%	-0.16%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.00%	1.91%	+0.09%

Volatility

IWMW vs. VOO - Volatility Comparison

iShares Russell 2000 BuyWrite ETF (IWMW) has a higher volatility of 3.03% compared to Vanguard S&P 500 ETF (VOO) at 2.84%. This indicates that IWMW'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.

Volatility by Period

	IWMW	VOO	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.03%	2.84%	+0.19%
Volatility (6M) Calculated over the trailing 6-month period	8.75%	8.90%	-0.15%
Volatility (1Y) Calculated over the trailing 1-year period	12.32%	11.80%	+0.52%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.12%	16.81%	-0.69%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.12%	18.01%	-1.89%

IWMW vs. VOO - Expense Ratio Comparison

IWMW has a 0.39% expense ratio, which is higher than VOO's 0.03% expense ratio.

Dividends

IWMW vs. VOO - Dividend Comparison

IWMW's dividend yield for the trailing twelve months is around 22.40%, more than VOO's 1.03% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IWMW iShares Russell 2000 BuyWrite ETF	22.40%	20.98%	17.73%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
VOO Vanguard S&P 500 ETF	1.03%	1.13%	1.24%	1.46%	1.69%	1.25%	1.54%	1.88%	2.06%	1.78%	2.02%	2.10%

Frequently Asked Questions

Can I hold both IWMW and VOO in my portfolio?

IWMW and VOO have a correlation of 0.75, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, IWMW or VOO?

IWMW has higher volatility (3.03%) compared to VOO (2.84%). In terms of maximum drawdown, IWMW dropped -21.82% vs VOO's -33.99%.

Which ETF is better, IWMW or VOO?

On 1-year performance, VOO leads with 28.04% vs 24.62% for IWMW. On fees, VOO is cheaper at 0.03% per year. On volatility, VOO has been the lower-risk option at 2.84%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IWMW or VOO?

Over the 1-year period, VOO has performed better with a 28.04% return vs 24.62%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IWMW or VOO?

VOO is cheaper with a 0.03% expense ratio, compared with 0.39% for IWMW.

Which ETF pays a higher dividend yield, IWMW or VOO?

IWMW has the higher dividend yield at 22.40%, compared with 1.03% for VOO.

What is the main difference between IWMW and VOO?

IWMW is categorized as Derivative Income, while VOO is S&P 500. IWMW tracks Cboe FTSE Russell IWM 2% OTM BuyWrite Index, while VOO tracks S&P 500 Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.39% for IWMW and 0.03% for VOO.

Which has better risk-adjusted returns?

VOO currently has the higher Sharpe Ratio (2.39 vs 2.01), 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.