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IWN vs. VWO
Performance
Return for Risk
Drawdowns
Volatility
Dividends

IWN vs. VWO

Last updated Jun 13, 2026

IWN (iShares Russell 2000 Value ETF) and VWO (Vanguard FTSE Emerging Markets ETF) are both exchange-traded funds - IWN is a Small Cap Value Equities fund tracking the Russell 2000 Value Index, while VWO is a Emerging Markets Equities fund tracking the FTSE Emerging Index. Both are passively managed. Over the past 10 years, IWN returned 10.58%/yr vs 9.00%/yr for VWO. A 0.65 correlation means they provide meaningful diversification when combined. IWN charges 0.24%/yr vs 0.08%/yr for VWO.

Performance

IWN vs. VWO - Performance Comparison

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

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Returns By Period

In the year-to-date period, IWN achieves a 20.82% return, which is significantly higher than VWO's 10.77% return. Over the past 10 years, IWN has outperformed VWO with an annualized return of 10.58%, while VWO has yielded a comparatively lower 9.00% annualized return.

IWN

1D
1.17%
1M
4.34%
YTD
20.82%
6M
17.48%
1Y
42.26%
3Y*
17.41%
5Y*
6.89%
10Y*
10.58%

VWO

1D
0.76%
1M
-0.65%
YTD
10.77%
6M
12.57%
1Y
24.61%
3Y*
16.61%
5Y*
5.03%
10Y*
9.00%
*Multi-year figures are annualized to reflect compound growth (CAGR)

IWN vs. VWO - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
IWN
iShares Russell 2000 Value ETF		20.82%12.40%7.63%14.56%-14.77%27.96%4.66%22.01%-13.01%7.69%
VWO
Vanguard FTSE Emerging Markets ETF		10.77%25.60%10.59%9.25%-17.98%1.26%15.17%20.75%-14.76%31.49%

Correlation

The correlation between IWN and VWO is 0.62, 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

0.62

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

0.56

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

0.58

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

0.56

Correlation (All Time)
Calculated using the full available price history since Mar 10, 2005

0.65

The correlation between IWN and VWO has been stable across timeframes, ranging from 0.56 to 0.65 - a consistent structural relationship.

IWN vs. VWO - Sectors Allocation Comparison

Sectors
IWN
VWO

Financial Services

24.2%
19.5%

Technology

12.4%
29.6%

Industrials

11.1%
8.0%

Real Estate

10.2%
2.2%

Energy

9.2%
4.6%

Healthcare

8.8%
3.9%

Consumer Cyclical

8.7%
10.7%

Utilities

5.7%
2.9%

Basic Materials

5.4%
8.0%

Consumer Defensive

2.0%
3.7%

Communication Services

1.6%
7.1%

Financial Services

IWN
24.2%
VWO
19.5%

Technology

IWN
12.4%
VWO
29.6%

Industrials

IWN
11.1%
VWO
8.0%

Real Estate

IWN
10.2%
VWO
2.2%

Energy

IWN
9.2%
VWO
4.6%

Healthcare

IWN
8.8%
VWO
3.9%

Consumer Cyclical

IWN
8.7%
VWO
10.7%

Utilities

IWN
5.7%
VWO
2.9%

Basic Materials

IWN
5.4%
VWO
8.0%

Consumer Defensive

IWN
2.0%
VWO
3.7%

Communication Services

IWN
1.6%
VWO
7.1%

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 Value ETF

Vanguard FTSE Emerging Markets ETF

Often compared with IWN:
IWN vs. IWMIWN vs. IWOIWN vs. VTWOIWN vs. IJSIWN vs. IWSIWN vs. IWVIWN vs. IWX
Often compared with VWO:
VWO vs. VEAVWO vs. IEMGVWO vs. VXUSVWO vs. EEMVWO vs. VOOVWO vs. VTIVWO vs. VEMAX

Return for Risk

IWN vs. VWO — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
IWN
IWN Risk / Return Rank: 8585
Overall Rank
IWN Sharpe Ratio Rank: 8484
Sharpe Ratio Rank
IWN Sortino Ratio Rank: 8484
Sortino Ratio Rank
IWN Omega Ratio Rank: 7878
Omega Ratio Rank
IWN Calmar Ratio Rank: 9191
Calmar Ratio Rank
IWN Martin Ratio Rank: 8888
Martin Ratio Rank
VWO
VWO Risk / Return Rank: 5050
Overall Rank
VWO Sharpe Ratio Rank: 4949
Sharpe Ratio Rank
VWO Sortino Ratio Rank: 4747
Sortino Ratio Rank
VWO Omega Ratio Rank: 5151
Omega Ratio Rank
VWO Calmar Ratio Rank: 5050
Calmar Ratio Rank
VWO Martin Ratio Rank: 5252
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.

IWN vs. VWO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Russell 2000 Value ETF (IWN) and Vanguard FTSE Emerging Markets ETF (VWO). 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.

IWNVWODifference
Sharpe ratioReturn per unit of total volatility
2.35
1.49

+0.85

Sortino ratioReturn per unit of downside risk
3.27
2.10

+1.17

Omega ratioGain probability vs. loss probability

1.40

1.28

+0.12

Calmar ratioReturn relative to maximum drawdown

5.02

2.21

+2.81

Martin ratioReturn relative to average drawdown

16.91

7.80

+9.11

IWN vs. VWO - Sharpe Ratio Comparison

The current IWN Sharpe Ratio is 2.35, which is higher than the VWO Sharpe Ratio of 1.49. The chart below compares the historical Sharpe Ratios of IWN and VWO, 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

IWN vs. VWO - Drawdown Comparison

The maximum IWN drawdown since its inception was -61.55%, smaller than the maximum VWO drawdown of -67.68%. Use the drawdown chart below to compare losses from any high point for IWN and VWO.

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Drawdown Indicators

IWNVWODifference

Max Drawdown

Largest peak-to-trough decline

-61.55%

-67.68%

+6.13%

Max Drawdown (1Y)

Largest decline over 1 year

-8.45%

-11.17%

+2.72%

Max Drawdown (3Y)

Largest decline over 3 years

-26.70%

-17.37%

-9.33%

Max Drawdown (5Y)

Largest decline over 5 years

-26.70%

-32.60%

+5.90%

Max Drawdown (10Y)

Largest decline over 10 years

-46.08%

-36.39%

-9.69%

Current Drawdown

Current decline from peak

0.00%

-2.68%

+2.68%

Average Drawdown

Average peak-to-trough decline

-10.15%

-15.80%

+5.65%

Ulcer Index

Depth and duration of drawdowns from previous peaks

2.51%

3.17%

-0.66%

Volatility

IWN vs. VWO - Volatility Comparison

The current volatility for iShares Russell 2000 Value ETF (IWN) is 5.80%, while Vanguard FTSE Emerging Markets ETF (VWO) has a volatility of 6.64%. This indicates that IWN experiences smaller price fluctuations and is considered to be less risky than VWO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

IWNVWODifference

Volatility (1M)

Calculated over the trailing 1-month period

5.80%

6.64%

-0.84%

Volatility (6M)

Calculated over the trailing 6-month period

12.25%

14.04%

-1.79%

Volatility (1Y)

Calculated over the trailing 1-year period

18.09%

16.54%

+1.55%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

21.47%

17.48%

+3.99%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

23.41%

19.22%

+4.19%

IWN vs. VWO - Expense Ratio Comparison

IWN has a 0.24% expense ratio, which is higher than VWO's 0.08% 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

IWN vs. VWO - Dividend Comparison

IWN's dividend yield for the trailing twelve months is around 1.42%, less than VWO's 2.44% yield.

PositionTTM20252024202320222021202020192018201720162015
IWN
iShares Russell 2000 Value ETF		1.42%1.70%1.80%2.04%2.12%1.48%1.60%1.92%1.99%1.78%1.74%2.15%
VWO
Vanguard FTSE Emerging Markets ETF		2.44%2.79%3.20%3.52%4.11%2.63%1.91%3.23%2.88%2.30%2.52%3.26%

Frequently Asked Questions

IWN and VWO have a correlation of 0.62, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

VWO has higher volatility (6.64%) compared to IWN (5.80%). In terms of maximum drawdown, IWN dropped -61.55% vs VWO's -67.68%.

On 10-year performance, IWN leads with 10.58% vs 9.00% for VWO. On fees, VWO is cheaper at 0.08% per year. On volatility, IWN has been the lower-risk option at 5.80%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, IWN has performed better with a 10.58% return vs 9.00%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

VWO is cheaper with a 0.08% expense ratio, compared with 0.24% for IWN.

VWO has the higher dividend yield at 2.44%, compared with 1.42% for IWN.

IWN is categorized as Small Cap Value Equities, while VWO is Emerging Markets Equities. IWN tracks Russell 2000 Value Index, while VWO tracks FTSE Emerging Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.24% for IWN and 0.08% for VWO.

IWN currently has the higher Sharpe Ratio (2.35 vs 1.49), 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.

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