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VTHR vs. IWM
Performance
Return for Risk
Drawdowns
Volatility
Dividends

VTHR vs. IWM

Last updated Jun 24, 2026

VTHR (Vanguard Russell 3000 ETF) and IWM (iShares Russell 2000 ETF) are both exchange-traded funds - VTHR is a Large Cap Blend Equities fund tracking the Russell 3000 Index, while IWM is a Small Cap Blend Equities fund tracking the Russell 2000 Index. Both are passively managed. Over the past 10 years, VTHR returned 15.06%/yr vs 11.58%/yr for IWM. Their correlation of 0.84 suggests significant overlap in exposure. VTHR charges 0.06%/yr vs 0.19%/yr for IWM.

Performance

VTHR vs. IWM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Russell 3000 ETF (VTHR) 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, VTHR achieves a 8.70% return, which is significantly lower than IWM's 20.47% return. Over the past 10 years, VTHR has outperformed IWM with an annualized return of 15.06%, while IWM has yielded a comparatively lower 11.58% annualized return.

VTHR

1D
-1.34%
1M
-0.78%
YTD
8.70%
6M
7.51%
1Y
23.90%
3Y*
20.48%
5Y*
11.91%
10Y*
15.06%

IWM

1D
-0.96%
1M
3.82%
YTD
20.47%
6M
17.64%
1Y
40.90%
3Y*
19.22%
5Y*
6.27%
10Y*
11.58%
*Multi-year figures are annualized to reflect compound growth (CAGR)

VTHR vs. IWM - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
VTHR
Vanguard Russell 3000 ETF		8.70%16.99%23.57%25.92%-19.20%25.49%20.93%30.82%-5.65%21.06%
IWM
iShares Russell 2000 ETF		20.47%12.66%11.38%16.83%-20.48%14.54%20.03%25.39%-11.12%14.58%

Correlation

The correlation between VTHR and IWM is 0.84, 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

0.84

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

0.83

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

0.86

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

0.85

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

0.84

The correlation between VTHR and IWM has been stable across timeframes, ranging from 0.83 to 0.86 - a consistent structural relationship.

VTHR vs. IWM - Sectors Allocation Comparison

Sectors
VTHR
IWM

Technology

36.5%
20.1%

Financial Services

11.4%
15.5%

Communication Services

10.0%
1.7%

Consumer Cyclical

9.9%
8.0%

Industrials

9.2%
17.3%

Healthcare

8.9%
15.6%

Consumer Defensive

4.3%
2.0%

Energy

3.4%
6.0%

Real Estate

2.3%
5.5%

Utilities

2.1%
3.1%

Basic Materials

2.0%
4.5%

Technology

VTHR
36.5%
IWM
20.1%

Financial Services

VTHR
11.4%
IWM
15.5%

Communication Services

VTHR
10.0%
IWM
1.7%

Consumer Cyclical

VTHR
9.9%
IWM
8.0%

Industrials

VTHR
9.2%
IWM
17.3%

Healthcare

VTHR
8.9%
IWM
15.6%

Consumer Defensive

VTHR
4.3%
IWM
2.0%

Energy

VTHR
3.4%
IWM
6.0%

Real Estate

VTHR
2.3%
IWM
5.5%

Utilities

VTHR
2.1%
IWM
3.1%

Basic Materials

VTHR
2.0%
IWM
4.5%

Compare stocks, funds, or ETFs

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

Vanguard Russell 3000 ETF

iShares Russell 2000 ETF

Often compared with VTHR:
VTHR vs. VTIVTHR vs. VOOVTHR vs. IWVVTHR vs. VTHRXVTHR vs. VONEVTHR vs. VONGVTHR vs. AVUS
Often compared with IWM:
IWM vs. SPYIWM vs. VTWOIWM vs. IJRIWM vs. AVUVIWM vs. IWNIWM vs. VOOIWM vs. TNA

Return for Risk

VTHR vs. IWM — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
VTHR
VTHR Risk / Return Rank: 5959
Overall Rank
VTHR Sharpe Ratio Rank: 5858
Sharpe Ratio Rank
VTHR Sortino Ratio Rank: 5656
Sortino Ratio Rank
VTHR Omega Ratio Rank: 5656
Omega Ratio Rank
VTHR Calmar Ratio Rank: 5757
Calmar Ratio Rank
VTHR Martin Ratio Rank: 6868
Martin Ratio Rank
IWM
IWM Risk / Return Rank: 6767
Overall Rank
IWM Sharpe Ratio Rank: 6666
Sharpe Ratio Rank
IWM Sortino Ratio Rank: 6464
Sortino Ratio Rank
IWM Omega Ratio Rank: 5757
Omega Ratio Rank
IWM Calmar Ratio Rank: 7575
Calmar Ratio Rank
IWM Martin Ratio Rank: 7373
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.

VTHR vs. IWM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Russell 3000 ETF (VTHR) 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.

VTHRIWMDifference
Sharpe ratioReturn per unit of total volatility
1.87
2.08

-0.22

Sortino ratioReturn per unit of downside risk
2.58
2.86

-0.29

Omega ratioGain probability vs. loss probability

1.33

1.34

-0.01

Calmar ratioReturn relative to maximum drawdown

2.69

3.73

-1.03

Martin ratioReturn relative to average drawdown

11.99

13.18

-1.19

VTHR vs. IWM - Sharpe Ratio Comparison

The current VTHR Sharpe Ratio is 1.87, which is comparable to the IWM Sharpe Ratio of 2.08. The chart below compares the historical Sharpe Ratios of VTHR 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

VTHR vs. IWM - Drawdown Comparison

The maximum VTHR drawdown since its inception was -34.61%, smaller than the maximum IWM drawdown of -59.05%. Use the drawdown chart below to compare losses from any high point for VTHR and IWM.

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Drawdown Indicators

VTHRIWMDifference

Max Drawdown

Largest peak-to-trough decline

-34.61%

-59.05%

+24.44%

Max Drawdown (1Y)

Largest decline over 1 year

-8.91%

-11.03%

+2.12%

Max Drawdown (3Y)

Largest decline over 3 years

-19.36%

-27.50%

+8.14%

Max Drawdown (5Y)

Largest decline over 5 years

-25.06%

-31.91%

+6.85%

Max Drawdown (10Y)

Largest decline over 10 years

-34.61%

-41.13%

+6.52%

Current Drawdown

Current decline from peak

-2.70%

-0.96%

-1.74%

Average Drawdown

Average peak-to-trough decline

-4.03%

-10.75%

+6.72%

Ulcer Index

Depth and duration of drawdowns from previous peaks

2.00%

3.11%

-1.11%

Volatility

VTHR vs. IWM - Volatility Comparison

The current volatility for Vanguard Russell 3000 ETF (VTHR) is 4.78%, while iShares Russell 2000 ETF (IWM) has a volatility of 6.56%. This indicates that VTHR 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

VTHRIWMDifference

Volatility (1M)

Calculated over the trailing 1-month period

4.78%

6.56%

-1.78%

Volatility (6M)

Calculated over the trailing 6-month period

10.12%

14.31%

-4.19%

Volatility (1Y)

Calculated over the trailing 1-year period

12.87%

19.74%

-6.87%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

17.39%

22.61%

-5.22%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

17.86%

23.06%

-5.20%

VTHR vs. IWM - Expense Ratio Comparison

VTHR has a 0.06% 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

VTHR vs. IWM - Dividend Comparison

VTHR's dividend yield for the trailing twelve months is around 1.05%, more than IWM's 0.90% yield.

PositionTTM20252024202320222021202020192018201720162015
IWM
iShares Russell 2000 ETF		0.90%1.04%1.15%1.35%1.48%0.94%1.04%1.26%1.40%1.26%1.38%1.54%
VTHR
Vanguard Russell 3000 ETF		1.05%1.08%1.19%1.47%1.52%1.16%1.37%1.65%1.89%1.63%1.82%1.84%

Frequently Asked Questions

VTHR and IWM have a correlation of 0.84, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

IWM has higher volatility (6.56%) compared to VTHR (4.78%). In terms of maximum drawdown, VTHR dropped -34.61% vs IWM's -59.05%.

On 10-year performance, VTHR leads with 15.06% vs 11.58% for IWM. On fees, VTHR is cheaper at 0.06% per year. On volatility, VTHR has been the lower-risk option at 4.78%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, VTHR has performed better with a 15.06% return vs 11.58%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

VTHR is cheaper with a 0.06% expense ratio, compared with 0.19% for IWM.

VTHR has the higher dividend yield at 1.05%, compared with 0.90% for IWM.

VTHR is categorized as Large Cap Blend Equities, while IWM is Small Cap Blend Equities. VTHR tracks Russell 3000 Index, while IWM tracks Russell 2000 Index. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.06% for VTHR and 0.19% for IWM.

IWM currently has the higher Sharpe Ratio (2.08 vs 1.87), 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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