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VIOO vs. VTWO
Performance
Return for Risk
Drawdowns
Volatility
Dividends

VIOO vs. VTWO

Last updated Jun 23, 2026

VIOO (Vanguard S&P Small-Cap 600 ETF) and VTWO (Vanguard Russell 2000 ETF) are both Small Cap Blend Equities funds from Vanguard - VIOO tracks the S&P SmallCap 600 Index while VTWO tracks the Russell 2000 Index. Both are passively managed. Over the past 10 years, VIOO returned 11.35%/yr vs 11.83%/yr for VTWO. Their correlation of 0.95 suggests significant overlap in exposure. VIOO charges 0.07%/yr vs 0.06%/yr for VTWO.

Performance

VIOO vs. VTWO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard S&P Small-Cap 600 ETF (VIOO) 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, VIOO achieves a 19.73% return, which is significantly lower than VTWO's 21.67% return. Both investments have delivered pretty close results over the past 10 years, with VIOO having a 11.35% annualized return and VTWO not far ahead at 11.83%.

VIOO

1D
0.05%
1M
4.59%
YTD
19.73%
6M
16.79%
1Y
36.99%
3Y*
16.33%
5Y*
6.65%
10Y*
11.35%

VTWO

1D
0.92%
1M
4.84%
YTD
21.67%
6M
18.16%
1Y
44.30%
3Y*
19.86%
5Y*
6.94%
10Y*
11.83%
*Multi-year figures are annualized to reflect compound growth (CAGR)

VIOO vs. VTWO - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
VIOO
Vanguard S&P Small-Cap 600 ETF		19.73%6.04%8.48%16.16%-16.26%26.79%11.47%22.68%-8.65%13.16%
VTWO
Vanguard Russell 2000 ETF		21.67%12.90%11.55%17.08%-20.49%14.79%20.22%25.81%-11.15%14.69%

Correlation

The correlation between VIOO and VTWO is 0.93, 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

0.93

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

0.97

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

0.95

The correlation between VIOO and VTWO has been stable across timeframes, ranging from 0.93 to 0.97 - a consistent structural relationship.

VIOO vs. VTWO - Sectors Allocation Comparison

Sectors
VIOO
VTWO

Financial Services

16.9%
15.5%

Industrials

15.5%
17.9%

Technology

15.5%
19.1%

Consumer Cyclical

13.4%
7.9%

Healthcare

11.0%
16.3%

Real Estate

7.7%
5.9%

Energy

5.9%
5.3%

Basic Materials

5.1%
4.7%

Communication Services

3.6%
2.5%

Consumer Defensive

3.5%
2.2%

Utilities

2.0%
2.8%

Financial Services

VIOO
16.9%
VTWO
15.5%

Industrials

VIOO
15.5%
VTWO
17.9%

Technology

VIOO
15.5%
VTWO
19.1%

Consumer Cyclical

VIOO
13.4%
VTWO
7.9%

Healthcare

VIOO
11.0%
VTWO
16.3%

Real Estate

VIOO
7.7%
VTWO
5.9%

Energy

VIOO
5.9%
VTWO
5.3%

Basic Materials

VIOO
5.1%
VTWO
4.7%

Communication Services

VIOO
3.6%
VTWO
2.5%

Consumer Defensive

VIOO
3.5%
VTWO
2.2%

Utilities

VIOO
2.0%
VTWO
2.8%

Compare stocks, funds, or ETFs

Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.

Vanguard S&P Small-Cap 600 ETF

Vanguard Russell 2000 ETF

Often compared with VIOO:
VIOO vs. VBVIOO vs. IJRVIOO vs. VOVIOO vs. AVUVVIOO vs. VIOVVIOO vs. VIOGVIOO vs. SPSM
Often compared with VTWO:
VTWO vs. IWMVTWO vs. VBVTWO vs. VOOVTWO vs. VTWVVTWO vs. VTWGVTWO vs. FSSNXVTWO vs. IJR

Return for Risk

VIOO vs. VTWO — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
VIOO
VIOO Risk / Return Rank: 7171
Overall Rank
VIOO Sharpe Ratio Rank: 6666
Sharpe Ratio Rank
VIOO Sortino Ratio Rank: 6969
Sortino Ratio Rank
VIOO Omega Ratio Rank: 6060
Omega Ratio Rank
VIOO Calmar Ratio Rank: 8383
Calmar Ratio Rank
VIOO Martin Ratio Rank: 7777
Martin Ratio Rank
VTWO
VTWO Risk / Return Rank: 7373
Overall Rank
VTWO Sharpe Ratio Rank: 7373
Sharpe Ratio Rank
VTWO Sortino Ratio Rank: 7171
Sortino Ratio Rank
VTWO Omega Ratio Rank: 6363
Omega Ratio Rank
VTWO Calmar Ratio Rank: 8080
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.

VIOO vs. VTWO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard S&P Small-Cap 600 ETF (VIOO) 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.

VIOOVTWODifference
Sharpe ratioReturn per unit of total volatility
2.09
2.27

-0.17

Sortino ratioReturn per unit of downside risk
3.00
3.07

-0.07

Omega ratioGain probability vs. loss probability

1.36

1.37

-0.01

Calmar ratioReturn relative to maximum drawdown

4.24

4.05

+0.19

Martin ratioReturn relative to average drawdown

14.31

14.36

-0.05

VIOO vs. VTWO - Sharpe Ratio Comparison

The current VIOO Sharpe Ratio is 2.09, which is comparable to the VTWO Sharpe Ratio of 2.27. The chart below compares the historical Sharpe Ratios of VIOO 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

VIOO vs. VTWO - Drawdown Comparison

The maximum VIOO drawdown since its inception was -44.15%, which is greater than VTWO's maximum drawdown of -41.19%. Use the drawdown chart below to compare losses from any high point for VIOO and VTWO.

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Drawdown Indicators

VIOOVTWODifference

Max Drawdown

Largest peak-to-trough decline

-44.15%

-41.19%

-2.96%

Max Drawdown (1Y)

Largest decline over 1 year

-8.77%

-10.99%

+2.22%

Max Drawdown (3Y)

Largest decline over 3 years

-27.93%

-27.57%

-0.36%

Max Drawdown (5Y)

Largest decline over 5 years

-27.93%

-31.88%

+3.95%

Max Drawdown (10Y)

Largest decline over 10 years

-44.15%

-41.19%

-2.96%

Current Drawdown

Current decline from peak

-0.12%

0.00%

-0.12%

Average Drawdown

Average peak-to-trough decline

-7.31%

-8.37%

+1.06%

Ulcer Index

Depth and duration of drawdowns from previous peaks

2.59%

3.09%

-0.50%

Volatility

VIOO vs. VTWO - Volatility Comparison

The current volatility for Vanguard S&P Small-Cap 600 ETF (VIOO) is 4.93%, while Vanguard Russell 2000 ETF (VTWO) has a volatility of 6.49%. This indicates that VIOO 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

VIOOVTWODifference

Volatility (1M)

Calculated over the trailing 1-month period

4.93%

6.49%

-1.56%

Volatility (6M)

Calculated over the trailing 6-month period

12.10%

14.25%

-2.15%

Volatility (1Y)

Calculated over the trailing 1-year period

17.80%

19.69%

-1.89%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

21.40%

22.56%

-1.16%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

23.01%

23.14%

-0.13%

VIOO vs. VTWO - Expense Ratio Comparison

VIOO has a 0.07% expense ratio, which is higher than VTWO'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

VIOO vs. VTWO - Dividend Comparison

VIOO's dividend yield for the trailing twelve months is around 1.13%, more than VTWO's 1.09% yield.

PositionTTM20252024202320222021202020192018201720162015
VIOO
Vanguard S&P Small-Cap 600 ETF		1.13%1.36%1.48%1.47%1.51%1.16%1.09%1.37%1.32%1.11%1.06%1.26%
VTWO
Vanguard Russell 2000 ETF		1.09%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

With a correlation of 0.93, VIOO and VTWO 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.

VTWO has higher volatility (6.49%) compared to VIOO (4.93%). In terms of maximum drawdown, VIOO dropped -44.15% vs VTWO's -41.19%.

On 10-year performance, VTWO leads with 11.83% vs 11.35% for VIOO. On fees, VTWO is cheaper at 0.06% per year. On volatility, VIOO has been the lower-risk option at 4.93%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, VTWO has performed better with a 11.83% return vs 11.35%. 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 0.07% for VIOO.

VIOO has the higher dividend yield at 1.13%, compared with 1.09% for VTWO.

VIOO tracks S&P SmallCap 600 Index, while VTWO tracks Russell 2000 Index. Their fees differ too: 0.07% for VIOO and 0.06% for VTWO.

VTWO currently has the higher Sharpe Ratio (2.27 vs 2.09), 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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