SCHA vs. IWO

Last updated Jun 4, 2026

SCHA (Schwab U.S. Small-Cap ETF) and IWO (iShares Russell 2000 Growth ETF) are both Small Cap Growth Equities funds - SCHA tracks the Dow Jones U.S. Small-Cap Total Stock Market Total Return Index while IWO tracks the Russell 2000 Growth Index. Both are passively managed. Over the past 10 years, SCHA returned 11.13%/yr vs 11.23%/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 19.79% return, which is significantly higher than IWO's 16.75% return. Both investments have delivered pretty close results over the past 10 years, with SCHA having a 11.13% annualized return and IWO not far ahead at 11.23%.

SCHA

• 1D: -0.58%
• 1M: 4.77%
• YTD: 19.79%
• 6M: 19.32%
• 1Y: 40.27%
• 3Y*: 18.92%
• 5Y*: 7.13%
• 10Y*: 11.13%

IWO

• 1D: -1.41%
• 1M: 4.28%
• YTD: 16.75%
• 6M: 15.06%
• 1Y: 37.09%
• 3Y*: 18.01%
• 5Y*: 5.56%
• 10Y*: 11.23%

*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	19.79%	11.60%	11.16%	18.46%	-19.81%	16.45%	19.34%	26.50%	-11.79%	14.94%
IWO iShares Russell 2000 Growth ETF	16.75%	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 4, 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	23.3%	23.6%
Financial Services	15.7%	8.2%
Industrials	15.4%	23.1%
Healthcare	13.5%	22.4%
Consumer Cyclical	9.0%	7.7%
Real Estate	6.0%	2.1%
Energy	5.5%	3.5%
Basic Materials	4.2%	4.2%
Consumer Defensive	2.6%	2.6%
Communication Services	2.4%	2.2%
Utilities	2.3%	0.7%

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: 71
SCHA Sharpe Ratio Rank: 66
SCHA Sortino Ratio Rank: 67
SCHA Omega Ratio Rank: 60
SCHA Calmar Ratio Rank: 81
SCHA Martin Ratio Rank: 79

IWO

IWO Risk / Return Rank: 49
IWO Sharpe Ratio Rank: 50
IWO Sortino Ratio Rank: 49
IWO Omega Ratio Rank: 45
IWO Calmar Ratio Rank: 50
IWO Martin Ratio Rank: 52

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.

	SCHA	IWO	Difference
Sharpe ratio: Return per unit of total volatility	2.25	1.75	+0.50
Sortino ratio: Return per unit of downside risk	3.16	2.42	+0.74
Omega ratio: Gain probability vs. loss probability	1.38	1.29	+0.09
Calmar ratio: Return relative to maximum drawdown	4.26	2.51	+1.75
Martin ratio: Return relative to average drawdown	15.66	8.99	+6.67
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

SCHA vs. IWO - Sharpe Ratio Comparison

The current SCHA Sharpe Ratio is 2.25, which is comparable to the IWO Sharpe Ratio of 1.75. 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.

Sharpe Ratios by Period

	SCHA	IWO	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.25	1.75	+0.50
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.33	0.23	+0.10
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.49	0.47	+0.02
Sharpe Ratio (All Time) Calculated using the full available price history	0.57	0.28	+0.29

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	-0.58%	-1.51%	+0.93%
Average Drawdown Average peak-to-trough decline	-7.58%	-16.71%	+9.13%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.58%	4.14%	-1.56%

Volatility

SCHA vs. IWO - Volatility Comparison

The current volatility for Schwab U.S. Small-Cap ETF (SCHA) is 5.08%, while iShares Russell 2000 Growth ETF (IWO) has a volatility of 6.61%. This indicates that SCHA experiences smaller price fluctuations and is considered to be less risky 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	5.08%	6.61%	-1.53%
Volatility (6M) Calculated over the trailing 6-month period	12.83%	15.65%	-2.82%
Volatility (1Y) Calculated over the trailing 1-year period	18.01%	21.34%	-3.33%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.93%	24.48%	-2.55%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.71%	24.13%	-1.42%

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 1.00%, more than IWO's 0.40% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IWO iShares Russell 2000 Growth ETF	0.40%	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	1.00%	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?

IWO has higher volatility (6.61%) compared to SCHA (5.08%). 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 11.23% vs 11.13% for SCHA. On fees, SCHA is cheaper at 0.04% per year. On volatility, SCHA has been the lower-risk option at 5.08%. 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 11.23% return vs 11.13%. 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 1.00%, compared with 0.40% for IWO.

What is the main difference between SCHA and IWO?

SCHA tracks Dow Jones U.S. Small-Cap Total Stock Market Total Return 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 (2.25 vs 1.75), 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.