IWO vs. VTWG

Last updated Jun 25, 2026

IWO (iShares Russell 2000 Growth ETF) and VTWG (Vanguard Russell 2000 Growth ETF) are both Small Cap Growth Equities funds tracking the Russell 2000 Growth Index, from iShares and Vanguard respectively. Both are passively managed. Over the past 10 years, IWO returned 12.05%/yr vs 12.14%/yr for VTWG. With a 0.98 correlation, they move nearly in lockstep. IWO charges 0.24%/yr vs 0.06%/yr for VTWG.

Performance

IWO vs. VTWG - Performance Comparison

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

Returns By Period

The year-to-date returns for both investments are quite close, with IWO having a 20.61% return and VTWG slightly higher at 20.68%. Both investments have delivered pretty close results over the past 10 years, with IWO having a 12.05% annualized return and VTWG not far ahead at 12.14%.

IWO

• 1D: 0.34%
• 1M: 4.60%
• YTD: 20.61%
• 6M: 16.99%
• 1Y: 37.84%
• 3Y*: 19.29%
• 5Y*: 5.18%
• 10Y*: 12.05%

VTWG

• 1D: 0.21%
• 1M: 4.58%
• YTD: 20.68%
• 6M: 16.99%
• 1Y: 38.16%
• 3Y*: 19.42%
• 5Y*: 5.28%
• 10Y*: 12.14%

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

IWO vs. VTWG - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
IWO iShares Russell 2000 Growth ETF	20.61%	12.90%	15.04%	18.51%	-26.27%	2.54%	34.68%	28.48%	-9.43%	22.25%
VTWG Vanguard Russell 2000 Growth ETF	20.68%	13.07%	15.15%	18.90%	-26.49%	2.84%	34.72%	28.75%	-9.45%	22.27%

Correlation

The correlation between IWO and VTWG 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	0.99
Correlation (All Time) Calculated using the full available price history since Sep 22, 2010	0.98

The correlation between IWO and VTWG has been stable across timeframes, ranging from 0.98 to 1.00 - a consistent structural relationship.

IWO vs. VTWG - Sectors Allocation Comparison

Sectors	IWO	VTWG
Technology	25.9%	25.8%
Industrials	23.0%	23.1%
Healthcare	21.9%	22.0%
Financial Services	7.8%	7.8%
Consumer Cyclical	7.0%	7.1%
Basic Materials	4.0%	4.0%
Energy	3.1%	3.1%
Consumer Defensive	2.3%	2.3%
Communication Services	2.2%	2.2%
Real Estate	2.0%	2.0%
Utilities	0.6%	0.6%

Return for Risk

IWO vs. VTWG — Risk / Return Rank

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

IWO

IWO Risk / Return Rank: 55
IWO Sharpe Ratio Rank: 57
IWO Sortino Ratio Rank: 54
IWO Omega Ratio Rank: 49
IWO Calmar Ratio Rank: 58
IWO Martin Ratio Rank: 58

VTWG

VTWG Risk / Return Rank: 56
VTWG Sharpe Ratio Rank: 57
VTWG Sortino Ratio Rank: 55
VTWG Omega Ratio Rank: 49
VTWG Calmar Ratio Rank: 58
VTWG Martin Ratio Rank: 58

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.

IWO vs. VTWG - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Russell 2000 Growth ETF (IWO) and Vanguard Russell 2000 Growth ETF (VTWG). 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.

	IWO	VTWG	Difference
Sharpe ratio: Return per unit of total volatility	1.72	1.72	0.00
Sortino ratio: Return per unit of downside risk	2.36	2.38	-0.02
Omega ratio: Gain probability vs. loss probability	1.28	1.28	0.00
Calmar ratio: Return relative to maximum drawdown	2.56	2.58	-0.02
Martin ratio: Return relative to average drawdown	9.13	9.25	-0.12

IWO vs. VTWG - Sharpe Ratio Comparison

The current IWO Sharpe Ratio is 1.72, which is comparable to the VTWG Sharpe Ratio of 1.72. The chart below compares the historical Sharpe Ratios of IWO and VTWG, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

IWO vs. VTWG - Drawdown Comparison

The maximum IWO drawdown since its inception was -60.11%, which is greater than VTWG's maximum drawdown of -42.07%. Use the drawdown chart below to compare losses from any high point for IWO and VTWG.

Drawdown Indicators

	IWO	VTWG	Difference
Max Drawdown Largest peak-to-trough decline	-60.11%	-42.07%	-18.04%
Max Drawdown (1Y) Largest decline over 1 year	-14.87%	-14.88%	+0.01%
Max Drawdown (3Y) Largest decline over 3 years	-28.57%	-28.58%	+0.01%
Max Drawdown (5Y) Largest decline over 5 years	-40.51%	-40.49%	-0.02%
Max Drawdown (10Y) Largest decline over 10 years	-42.02%	-42.07%	+0.05%
Current Drawdown Current decline from peak	-1.23%	-1.25%	+0.02%
Average Drawdown Average peak-to-trough decline	-16.67%	-10.50%	-6.17%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.16%	4.14%	+0.02%

Volatility

IWO vs. VTWG - Volatility Comparison

iShares Russell 2000 Growth ETF (IWO) and Vanguard Russell 2000 Growth ETF (VTWG) have volatilities of 7.79% and 7.76%, 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.

Volatility by Period

	IWO	VTWG	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.79%	7.76%	+0.03%
Volatility (6M) Calculated over the trailing 6-month period	16.63%	16.86%	-0.23%
Volatility (1Y) Calculated over the trailing 1-year period	22.18%	22.32%	-0.14%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	24.64%	24.67%	-0.03%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	24.17%	24.27%	-0.10%

IWO vs. VTWG - Expense Ratio Comparison

IWO has a 0.24% expense ratio, which is higher than VTWG'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

IWO vs. VTWG - Dividend Comparison

IWO's dividend yield for the trailing twelve months is around 0.42%, less than VTWG's 0.59% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IWO iShares Russell 2000 Growth ETF	0.42%	0.56%	0.80%	0.73%	0.73%	0.32%	0.44%	0.71%	0.76%	0.73%	0.97%	0.89%
VTWG Vanguard Russell 2000 Growth ETF	0.59%	0.64%	0.55%	0.79%	0.71%	0.54%	0.48%	0.72%	0.72%	0.64%	0.96%	0.72%

Frequently Asked Questions

Can I hold both IWO and VTWG in my portfolio?

With a correlation of 1.00, IWO and VTWG 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.

Which is riskier, IWO or VTWG?

IWO has higher volatility (7.79%) compared to VTWG (7.76%). In terms of maximum drawdown, IWO dropped -60.11% vs VTWG's -42.07%.

Which ETF is better, IWO or VTWG?

On 10-year performance, VTWG leads with 12.14% vs 12.05% for IWO. On fees, VTWG 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.

Which ETF has performed better, IWO or VTWG?

Over the 10-year period, VTWG has performed better with a 12.14% return vs 12.05%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IWO or VTWG?

VTWG is cheaper with a 0.06% expense ratio, compared with 0.24% for IWO.

Which ETF pays a higher dividend yield, IWO or VTWG?

VTWG has the higher dividend yield at 0.59%, compared with 0.42% for IWO.

What is the main difference between IWO and VTWG?

Both ETFs track Russell 2000 Growth Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.24% for IWO and 0.06% for VTWG.

Which has better risk-adjusted returns?

VTWG currently has the higher Sharpe Ratio (1.72 vs 1.72), 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.