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IXG vs. VTWO
Performance
Return for Risk
Drawdowns
Volatility
Dividends

IXG vs. VTWO

Last updated Jun 14, 2026

IXG (iShares Global Financials ETF) and VTWO (Vanguard Russell 2000 ETF) are both exchange-traded funds - IXG is a Financials Equities fund tracking the S&P Global Financials Sector Index, while VTWO is a Small Cap Blend Equities fund tracking the Russell 2000 Index. Both are passively managed. Over the past 10 years, IXG returned 12.87%/yr vs 11.41%/yr for VTWO. A 0.77 correlation means they provide meaningful diversification when combined. IXG charges 0.46%/yr vs 0.06%/yr for VTWO.

Performance

IXG vs. VTWO - Performance Comparison

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

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Returns By Period

In the year-to-date period, IXG achieves a 3.78% return, which is significantly lower than VTWO's 19.26% return. Over the past 10 years, IXG has outperformed VTWO with an annualized return of 12.87%, while VTWO has yielded a comparatively lower 11.41% annualized return.

IXG

1D
1.28%
1M
4.62%
YTD
3.78%
6M
4.96%
1Y
19.03%
3Y*
23.67%
5Y*
12.27%
10Y*
12.87%

VTWO

1D
0.86%
1M
5.50%
YTD
19.26%
6M
16.09%
1Y
42.05%
3Y*
17.46%
5Y*
6.23%
10Y*
11.41%
*Multi-year figures are annualized to reflect compound growth (CAGR)

IXG vs. VTWO - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
IXG
iShares Global Financials ETF		3.78%28.54%25.69%14.97%-8.97%25.07%-2.99%24.60%-16.33%23.78%
VTWO
Vanguard Russell 2000 ETF		19.26%12.90%11.55%17.08%-20.49%14.79%20.22%25.81%-11.15%14.69%

Correlation

The correlation between IXG and VTWO is 0.71, 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

0.71

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

0.74

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

0.77

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

0.76

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

0.77

The correlation between IXG and VTWO has been stable across timeframes, ranging from 0.71 to 0.77 - a consistent structural relationship.

IXG vs. VTWO - Sectors Allocation Comparison

Sectors
IXG
VTWO

Financial Services

97.9%
15.7%

Technology

1.1%
17.0%

Industrials

0.2%
17.7%

Energy

0.1%
6.1%

Healthcare

0.1%
16.5%

Consumer Cyclical

0.0%
8.4%

Basic Materials

-

4.8%

Communication Services

-

2.4%

Consumer Defensive

-

2.4%

Real Estate

-

6.1%

Utilities

-

2.9%

Financial Services

IXG
97.9%
VTWO
15.7%

Technology

IXG
1.1%
VTWO
17.0%

Industrials

IXG
0.2%
VTWO
17.7%

Energy

IXG
0.1%
VTWO
6.1%

Healthcare

IXG
0.1%
VTWO
16.5%

Consumer Cyclical

IXG
0.0%
VTWO
8.4%

Basic Materials

IXG

-

VTWO
4.8%

Communication Services

IXG

-

VTWO
2.4%

Consumer Defensive

IXG

-

VTWO
2.4%

Real Estate

IXG

-

VTWO
6.1%

Utilities

IXG

-

VTWO
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 Global Financials ETF

Vanguard Russell 2000 ETF

Often compared with IXG:
IXG vs. XLFIXG vs. IYGIXG vs. IYFIXG vs. VFHIXG vs. WFIN.ASIXG vs. FXOIXG vs. KBWB
Often compared with VTWO:
VTWO vs. IWMVTWO vs. VBVTWO vs. VOOVTWO vs. VTWVVTWO vs. VTWGVTWO vs. FSSNXVTWO vs. VIOO

Return for Risk

IXG vs. VTWO — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
IXG
IXG Risk / Return Rank: 3737
Overall Rank
IXG Sharpe Ratio Rank: 3838
Sharpe Ratio Rank
IXG Sortino Ratio Rank: 3838
Sortino Ratio Rank
IXG Omega Ratio Rank: 3535
Omega Ratio Rank
IXG Calmar Ratio Rank: 3434
Calmar Ratio Rank
IXG Martin Ratio Rank: 3838
Martin Ratio Rank
VTWO
VTWO Risk / Return Rank: 7373
Overall Rank
VTWO Sharpe Ratio Rank: 7272
Sharpe Ratio Rank
VTWO Sortino Ratio Rank: 7171
Sortino Ratio Rank
VTWO Omega Ratio Rank: 6363
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.

IXG vs. VTWO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Global Financials ETF (IXG) 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.

IXGVTWODifference
Sharpe ratioReturn per unit of total volatility
1.20
2.02

-0.81

Sortino ratioReturn per unit of downside risk
1.78
2.77

-0.99

Omega ratioGain probability vs. loss probability

1.21

1.33

-0.12

Calmar ratioReturn relative to maximum drawdown

1.49

3.61

-2.12

Martin ratioReturn relative to average drawdown

5.26

12.79

-7.53

IXG vs. VTWO - Sharpe Ratio Comparison

The current IXG Sharpe Ratio is 1.20, which is lower than the VTWO Sharpe Ratio of 2.02. The chart below compares the historical Sharpe Ratios of IXG 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

IXG vs. VTWO - Drawdown Comparison

The maximum IXG drawdown since its inception was -78.42%, which is greater than VTWO's maximum drawdown of -41.19%. Use the drawdown chart below to compare losses from any high point for IXG and VTWO.

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Drawdown Indicators

IXGVTWODifference

Max Drawdown

Largest peak-to-trough decline

-78.42%

-41.19%

-37.23%

Max Drawdown (1Y)

Largest decline over 1 year

-11.33%

-10.99%

-0.34%

Max Drawdown (3Y)

Largest decline over 3 years

-13.54%

-27.57%

+14.03%

Max Drawdown (5Y)

Largest decline over 5 years

-27.20%

-31.88%

+4.68%

Max Drawdown (10Y)

Largest decline over 10 years

-43.47%

-41.19%

-2.28%

Current Drawdown

Current decline from peak

0.00%

0.00%

0.00%

Average Drawdown

Average peak-to-trough decline

-19.73%

-8.38%

-11.35%

Ulcer Index

Depth and duration of drawdowns from previous peaks

3.21%

3.10%

+0.11%

Volatility

IXG vs. VTWO - Volatility Comparison

The current volatility for iShares Global Financials ETF (IXG) is 4.30%, while Vanguard Russell 2000 ETF (VTWO) has a volatility of 7.15%. This indicates that IXG experiences smaller price fluctuations and is considered to be less risky than VTWO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

IXGVTWODifference

Volatility (1M)

Calculated over the trailing 1-month period

4.30%

7.15%

-2.85%

Volatility (6M)

Calculated over the trailing 6-month period

11.30%

14.26%

-2.96%

Volatility (1Y)

Calculated over the trailing 1-year period

14.01%

19.66%

-5.65%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

17.38%

22.57%

-5.19%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

20.12%

23.13%

-3.01%

IXG vs. VTWO - Expense Ratio Comparison

IXG has a 0.46% expense ratio, which is higher than VTWO's 0.06% expense ratio.

Dividends

IXG vs. VTWO - Dividend Comparison

IXG's dividend yield for the trailing twelve months is around 1.97%, more than VTWO's 1.06% yield.

PositionTTM20252024202320222021202020192018201720162015
IXG
iShares Global Financials ETF		1.97%2.04%2.64%2.62%3.71%1.69%2.13%2.87%3.14%2.12%2.21%2.79%
VTWO
Vanguard Russell 2000 ETF		1.06%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

IXG and VTWO have a correlation of 0.71, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

VTWO has higher volatility (7.15%) compared to IXG (4.30%). In terms of maximum drawdown, IXG dropped -78.42% vs VTWO's -41.19%.

On 10-year performance, IXG leads with 12.87% vs 11.41% for VTWO. On fees, VTWO is cheaper at 0.06% per year. On volatility, IXG has been the lower-risk option at 4.30%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, IXG has performed better with a 12.87% return vs 11.41%. 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 0.46% for IXG.

IXG has the higher dividend yield at 1.97%, compared with 1.06% for VTWO.

IXG is categorized as Financials Equities, while VTWO is Small Cap Blend Equities. IXG tracks S&P Global Financials Sector Index, while VTWO tracks Russell 2000 Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.46% for IXG and 0.06% for VTWO.

VTWO currently has the higher Sharpe Ratio (2.02 vs 1.20), 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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