SCHA vs. IWO

Last updated Jul 14, 2026

SCHA (Schwab U.S. Small-Cap ETF) and IWO (iShares Russell 2000 Growth ETF) are both exchange-traded funds - SCHA is a Small Cap Blend Equities fund tracking the Dow Jones U.S. Small-Cap Total Stock Market Index, while IWO is a Small Cap Growth Equities fund tracking the Russell 2000 Growth Index. Both are passively managed. Over the past 10 years, SCHA returned 10.88%/yr vs 10.99%/yr for IWO. With a 0.97 correlation, they move nearly in lockstep. SCHA charges 0.04%/yr vs 0.24%/yr for IWO.

Performance

SCHA vs. IWO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Schwab U.S. Small-Cap ETF (SCHA) and iShares Russell 2000 Growth ETF (IWO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SCHA achieves a 21.01% return, which is significantly higher than IWO's 17.50% return. Both investments have delivered pretty close results over the past 10 years, with SCHA having a 10.88% annualized return and IWO not far ahead at 10.99%.

SCHA

• 1D: -1.69%
• 1M: -1.21%
• 6M: 14.27%
• YTD: 21.01%
• 1Y: 33.94%
• 3Y*: 16.83%
• 5Y*: 8.06%
• 10Y*: 10.88%

IWO

• 1D: -1.48%
• 1M: -0.25%
• 6M: 10.16%
• YTD: 17.50%
• 1Y: 31.93%
• 3Y*: 15.98%
• 5Y*: 5.74%
• 10Y*: 10.99%

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

SCHA vs. IWO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SCHA Schwab U.S. Small-Cap ETF	21.01%	11.60%	11.16%	18.46%	-19.81%	16.45%	19.34%	26.50%	-11.79%	14.94%
IWO iShares Russell 2000 Growth ETF	17.50%	12.90%	15.04%	18.51%	-26.27%	2.54%	34.68%	28.48%	-9.43%	22.25%

Correlation

The correlation between SCHA and IWO is 0.95, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.95
Correlation (3Y) Calculated over the trailing 3-year period	0.96
Correlation (5Y) Calculated over the trailing 5-year period	0.97
Correlation (10Y) Calculated over the trailing 10-year period	0.96
Correlation (All Time) Calculated using the full available price history since Nov 3, 2009	0.97

The correlation between SCHA and IWO has been stable across timeframes, ranging from 0.95 to 0.97 - a consistent structural relationship.

SCHA vs. IWO - Sectors Allocation Comparison

Sectors	SCHA	IWO
Technology	22.0%	25.9%
Healthcare	15.9%	21.9%
Financial Services	15.5%	7.8%
Industrials	14.6%	23.0%
Consumer Cyclical	9.4%	7.0%
Real Estate	6.1%	2.0%
Energy	5.0%	3.1%
Basic Materials	4.0%	4.0%
Communication Services	2.7%	2.2%
Consumer Defensive	2.5%	2.3%
Utilities	2.2%	0.6%

Return for Risk

SCHA vs. IWO — Risk / Return Rank

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

SCHA

SCHA Risk / Return Rank: 74
SCHA Sharpe Ratio Rank: 70
SCHA Sortino Ratio Rank: 71
SCHA Omega Ratio Rank: 63
SCHA Calmar Ratio Rank: 83
SCHA Martin Ratio Rank: 82

IWO

IWO Risk / Return Rank: 53
IWO Sharpe Ratio Rank: 53
IWO Sortino Ratio Rank: 53
IWO Omega Ratio Rank: 47
IWO Calmar Ratio Rank: 54
IWO Martin Ratio Rank: 56

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.

SCHA vs. IWO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Schwab U.S. Small-Cap ETF (SCHA) and iShares Russell 2000 Growth ETF (IWO). 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.

	SCHA	IWO	Difference
Sharpe ratio: Return per unit of total volatility	1.79	1.45	+0.34
Sortino ratio: Return per unit of downside risk	2.56	2.05	+0.51
Omega ratio: Gain probability vs. loss probability	1.30	1.24	+0.06
Calmar ratio: Return relative to maximum drawdown	3.59	2.16	+1.43
Martin ratio: Return relative to average drawdown	12.73	7.67	+5.06

SCHA vs. IWO - Sharpe Ratio Comparison

The current SCHA Sharpe Ratio is 1.79, which is comparable to the IWO Sharpe Ratio of 1.45. The chart below compares the historical Sharpe Ratios of SCHA and IWO, 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

SCHA vs. IWO - Drawdown Comparison

The maximum SCHA drawdown since its inception was -42.41%, smaller than the maximum IWO drawdown of -60.11%. Use the drawdown chart below to compare losses from any high point for SCHA and IWO.

Drawdown Indicators

	SCHA	IWO	Difference
Max Drawdown Largest peak-to-trough decline	-42.41%	-60.11%	+17.70%
Max Drawdown (1Y) Largest decline over 1 year	-9.50%	-14.87%	+5.37%
Max Drawdown (3Y) Largest decline over 3 years	-27.29%	-28.57%	+1.28%
Max Drawdown (5Y) Largest decline over 5 years	-30.79%	-40.51%	+9.72%
Max Drawdown (10Y) Largest decline over 10 years	-42.41%	-42.02%	-0.39%
Current Drawdown Current decline from peak	-5.01%	-3.80%	-1.21%
Average Drawdown Average peak-to-trough decline	-7.54%	-16.65%	+9.11%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.67%	4.17%	-1.50%

Volatility

SCHA vs. IWO - Volatility Comparison

Schwab U.S. Small-Cap ETF (SCHA) has a higher volatility of 6.97% compared to iShares Russell 2000 Growth ETF (IWO) at 6.33%. This indicates that SCHA's price experiences larger fluctuations and is considered to be riskier than IWO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SCHA	IWO	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.97%	6.33%	+0.64%
Volatility (6M) Calculated over the trailing 6-month period	14.39%	16.68%	-2.29%
Volatility (1Y) Calculated over the trailing 1-year period	19.07%	22.18%	-3.11%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	22.09%	24.65%	-2.56%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.74%	24.14%	-1.40%

SCHA vs. IWO - Expense Ratio Comparison

SCHA has a 0.04% expense ratio, which is lower than IWO's 0.24% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

SCHA vs. IWO - Dividend Comparison

SCHA's dividend yield for the trailing twelve months is around 1.04%, more than IWO's 0.43% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IWO iShares Russell 2000 Growth ETF	0.43%	0.56%	0.80%	0.73%	0.73%	0.32%	0.44%	0.71%	0.76%	0.73%	0.97%	0.89%
SCHA Schwab U.S. Small-Cap ETF	1.04%	1.26%	1.51%	1.42%	1.37%	1.19%	1.05%	1.39%	1.58%	1.24%	1.50%	1.48%

Frequently Asked Questions

Can I hold both SCHA and IWO in my portfolio?

With a correlation of 0.95, SCHA and IWO 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, SCHA or IWO?

SCHA has higher volatility (6.97%) compared to IWO (6.33%). In terms of maximum drawdown, SCHA dropped -42.41% vs IWO's -60.11%.

Which ETF is better, SCHA or IWO?

On 10-year performance, IWO leads with 10.99% vs 10.88% for SCHA. On fees, SCHA is cheaper at 0.04% per year. On volatility, IWO has been the lower-risk option at 6.33%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SCHA or IWO?

Over the 10-year period, IWO has performed better with a 10.99% return vs 10.88%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SCHA or IWO?

SCHA is cheaper with a 0.04% expense ratio, compared with 0.24% for IWO.

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

SCHA has the higher dividend yield at 1.04%, compared with 0.43% for IWO.

What is the main difference between SCHA and IWO?

SCHA is categorized as Small Cap Blend Equities, while IWO is Small Cap Growth Equities. SCHA tracks Dow Jones U.S. Small-Cap Total Stock Market Index, while IWO tracks Russell 2000 Growth Index. They also come from different issuers: Charles Schwab and iShares. Their fees differ too: 0.04% for SCHA and 0.24% for IWO.

Which has better risk-adjusted returns?

SCHA currently has the higher Sharpe Ratio (1.79 vs 1.45), 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.