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VSMAX vs. IWM
Performance
Return for Risk
Drawdowns
Volatility
Dividends

VSMAX vs. IWM

Last updated Jun 23, 2026

VSMAX (Vanguard Small-Cap Index Fund Admiral Shares) and IWM (iShares Russell 2000 ETF) are both Small Cap Blend Equities funds - VSMAX tracks the CRSP US Small Cap Index while IWM tracks the Russell 2000 Index. Both are passively managed. Over the past 10 years, VSMAX returned 11.47%/yr vs 11.68%/yr for IWM. With a 0.98 correlation, they move nearly in lockstep. VSMAX charges 0.05%/yr vs 0.19%/yr for IWM.

Performance

VSMAX vs. IWM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Small-Cap Index Fund Admiral Shares (VSMAX) and iShares Russell 2000 ETF (IWM). The values are adjusted to include any dividend payments, if applicable.

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Returns By Period

In the year-to-date period, VSMAX achieves a 15.43% return, which is significantly lower than IWM's 21.64% return. Both investments have delivered pretty close results over the past 10 years, with VSMAX having a 11.47% annualized return and IWM not far ahead at 11.68%.

VSMAX

1D
1.27%
1M
2.62%
YTD
15.43%
6M
12.70%
1Y
29.88%
3Y*
16.29%
5Y*
7.86%
10Y*
11.47%

IWM

1D
0.88%
1M
4.83%
YTD
21.64%
6M
18.08%
1Y
44.01%
3Y*
19.60%
5Y*
6.77%
10Y*
11.68%
*Multi-year figures are annualized to reflect compound growth (CAGR)

VSMAX vs. IWM - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
VSMAX
Vanguard Small-Cap Index Fund Admiral Shares		15.43%8.83%14.23%18.17%-17.61%17.74%19.06%27.36%-9.33%16.24%
IWM
iShares Russell 2000 ETF		21.64%12.66%11.38%16.83%-20.48%14.54%20.03%25.39%-11.12%14.58%

Correlation

The correlation between VSMAX and IWM is 0.96 - 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

0.96

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

0.97

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

0.98

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

0.98

Correlation (All Time)
Calculated using the full available price history since Nov 13, 2000

0.98

The correlation between VSMAX and IWM has been stable across timeframes, ranging from 0.96 to 0.98 - a consistent structural relationship.

VSMAX vs. IWM - Sectors Allocation Comparison

Sectors
VSMAX
IWM

Industrials

20.7%
17.3%

Technology

18.8%
20.1%

Financial Services

11.9%
15.5%

Healthcare

11.0%
15.6%

Consumer Cyclical

10.3%
8.0%

Real Estate

7.1%
5.5%

Energy

4.7%
6.0%

Basic Materials

4.7%
4.5%

Consumer Defensive

3.4%
2.0%

Utilities

3.1%
3.1%

Communication Services

2.7%
1.7%

Industrials

VSMAX
20.7%
IWM
17.3%

Technology

VSMAX
18.8%
IWM
20.1%

Financial Services

VSMAX
11.9%
IWM
15.5%

Healthcare

VSMAX
11.0%
IWM
15.6%

Consumer Cyclical

VSMAX
10.3%
IWM
8.0%

Real Estate

VSMAX
7.1%
IWM
5.5%

Energy

VSMAX
4.7%
IWM
6.0%

Basic Materials

VSMAX
4.7%
IWM
4.5%

Consumer Defensive

VSMAX
3.4%
IWM
2.0%

Utilities

VSMAX
3.1%
IWM
3.1%

Communication Services

VSMAX
2.7%
IWM
1.7%

Compare stocks, funds, or ETFs

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

Vanguard Small-Cap Index Fund Admiral Shares

iShares Russell 2000 ETF

Often compared with VSMAX:
VSMAX vs. VIMAXVSMAX vs. FSSNXVSMAX vs. VSGAXVSMAX vs. VBVSMAX vs. VOOVSMAX vs. VBRVSMAX vs. SWSSX
Often compared with IWM:
IWM vs. SPYIWM vs. VTWOIWM vs. IJRIWM vs. AVUVIWM vs. IWNIWM vs. VOOIWM vs. TNA

Return for Risk

VSMAX vs. IWM — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
VSMAX
VSMAX Risk / Return Rank: 5555
Overall Rank
VSMAX Sharpe Ratio Rank: 4545
Sharpe Ratio Rank
VSMAX Sortino Ratio Rank: 4444
Sortino Ratio Rank
VSMAX Omega Ratio Rank: 4040
Omega Ratio Rank
VSMAX Calmar Ratio Rank: 7878
Calmar Ratio Rank
VSMAX Martin Ratio Rank: 6868
Martin Ratio Rank
IWM
IWM Risk / Return Rank: 7272
Overall Rank
IWM Sharpe Ratio Rank: 7272
Sharpe Ratio Rank
IWM Sortino Ratio Rank: 7070
Sortino Ratio Rank
IWM Omega Ratio Rank: 6363
Omega Ratio Rank
IWM Calmar Ratio Rank: 8080
Calmar Ratio Rank
IWM Martin Ratio Rank: 7676
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.

VSMAX vs. IWM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Small-Cap Index Fund Admiral Shares (VSMAX) and iShares Russell 2000 ETF (IWM). 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.

VSMAXIWMDifference
Sharpe ratioReturn per unit of total volatility
1.81
2.24

-0.43

Sortino ratioReturn per unit of downside risk
2.57
3.05

-0.47

Omega ratioGain probability vs. loss probability

1.31

1.36

-0.05

Calmar ratioReturn relative to maximum drawdown

3.36

4.01

-0.65

Martin ratioReturn relative to average drawdown

12.34

14.19

-1.84

VSMAX vs. IWM - Sharpe Ratio Comparison

The current VSMAX Sharpe Ratio is 1.81, which is comparable to the IWM Sharpe Ratio of 2.24. The chart below compares the historical Sharpe Ratios of VSMAX and IWM, 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

VSMAX vs. IWM - Drawdown Comparison

The maximum VSMAX drawdown since its inception was -59.68%, roughly equal to the maximum IWM drawdown of -59.05%. Use the drawdown chart below to compare losses from any high point for VSMAX and IWM.

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Drawdown Indicators

VSMAXIWMDifference

Max Drawdown

Largest peak-to-trough decline

-59.68%

-59.05%

-0.63%

Max Drawdown (1Y)

Largest decline over 1 year

-8.97%

-11.03%

+2.06%

Max Drawdown (3Y)

Largest decline over 3 years

-25.25%

-27.50%

+2.25%

Max Drawdown (5Y)

Largest decline over 5 years

-28.14%

-31.91%

+3.77%

Max Drawdown (10Y)

Largest decline over 10 years

-41.82%

-41.13%

-0.69%

Current Drawdown

Current decline from peak

-0.57%

0.00%

-0.57%

Average Drawdown

Average peak-to-trough decline

-9.68%

-10.75%

+1.07%

Ulcer Index

Depth and duration of drawdowns from previous peaks

2.43%

3.11%

-0.68%

Volatility

VSMAX vs. IWM - Volatility Comparison

The current volatility for Vanguard Small-Cap Index Fund Admiral Shares (VSMAX) is 5.30%, while iShares Russell 2000 ETF (IWM) has a volatility of 6.47%. This indicates that VSMAX experiences smaller price fluctuations and is considered to be less risky than IWM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

VSMAXIWMDifference

Volatility (1M)

Calculated over the trailing 1-month period

5.30%

6.47%

-1.17%

Volatility (6M)

Calculated over the trailing 6-month period

12.24%

14.28%

-2.04%

Volatility (1Y)

Calculated over the trailing 1-year period

16.65%

19.75%

-3.10%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

20.77%

22.60%

-1.83%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

21.59%

23.09%

-1.50%

VSMAX vs. IWM - Expense Ratio Comparison

VSMAX has a 0.05% expense ratio, which is lower than IWM's 0.19% 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

VSMAX vs. IWM - Dividend Comparison

VSMAX's dividend yield for the trailing twelve months is around 1.18%, more than IWM's 0.89% yield.

PositionTTM20252024202320222021202020192018201720162015
IWM
iShares Russell 2000 ETF		0.89%1.04%1.15%1.35%1.48%0.94%1.04%1.26%1.40%1.26%1.38%1.54%
VSMAX
Vanguard Small-Cap Index Fund Admiral Shares		1.18%1.33%1.30%1.56%1.54%1.24%1.14%1.39%1.67%1.35%1.49%1.48%

Frequently Asked Questions

With a correlation of 0.96, VSMAX and IWM 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.

IWM has higher volatility (6.47%) compared to VSMAX (5.30%). In terms of maximum drawdown, VSMAX dropped -59.68% vs IWM's -59.05%.

IWM currently has the higher Sharpe Ratio (2.24 vs 1.81), 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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