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VTI vs. IWM
Performance
Return for Risk
Drawdowns
Volatility
Dividends

VTI vs. IWM

Last updated Jun 13, 2026

VTI (Vanguard Total Stock Market ETF) and IWM (iShares Russell 2000 ETF) are both exchange-traded funds - VTI is a Large Cap Blend Equities fund tracking the CRSP US Total Market Index, while IWM is a Small Cap Blend Equities fund tracking the Russell 2000 Index. Both are passively managed. Over the past 10 years, VTI returned 15.02%/yr vs 11.27%/yr for IWM. Their correlation of 0.89 suggests significant overlap in exposure. VTI charges 0.03%/yr vs 0.19%/yr for IWM.

Performance

VTI vs. IWM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Total Stock Market ETF (VTI) 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, VTI achieves a 9.62% return, which is significantly lower than IWM's 19.22% return. Over the past 10 years, VTI has outperformed IWM with an annualized return of 15.02%, while IWM has yielded a comparatively lower 11.27% annualized return.

VTI

1D
0.57%
1M
0.45%
YTD
9.62%
6M
9.69%
1Y
24.78%
3Y*
20.60%
5Y*
12.20%
10Y*
15.02%

IWM

1D
0.87%
1M
3.64%
YTD
19.22%
6M
16.00%
1Y
39.16%
3Y*
17.23%
5Y*
6.07%
10Y*
11.27%
*Multi-year figures are annualized to reflect compound growth (CAGR)

VTI vs. IWM - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
VTI
Vanguard Total Stock Market ETF		9.62%17.10%23.81%26.05%-19.52%25.68%21.08%30.67%-5.23%21.21%
IWM
iShares Russell 2000 ETF		19.22%12.66%11.38%16.83%-20.48%14.54%20.03%25.39%-11.12%14.58%

Correlation

The correlation between VTI and IWM is 0.85, 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

0.85

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

0.83

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

0.87

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

0.86

Correlation (All Time)
Calculated using the full available price history since May 31, 2001

0.89

The correlation between VTI and IWM has been stable across timeframes, ranging from 0.83 to 0.89 - a consistent structural relationship.

VTI vs. IWM - Sectors Allocation Comparison

Sectors
VTI
IWM

Technology

33.5%
19.5%

Financial Services

12.0%
15.6%

Communication Services

10.3%
2.1%

Consumer Cyclical

10.0%
7.9%

Industrials

9.8%
17.2%

Healthcare

9.2%
16.1%

Consumer Defensive

4.7%
2.1%

Energy

3.7%
5.8%

Real Estate

2.4%
5.6%

Utilities

2.3%
3.0%

Basic Materials

2.0%
4.5%

Technology

VTI
33.5%
IWM
19.5%

Financial Services

VTI
12.0%
IWM
15.6%

Communication Services

VTI
10.3%
IWM
2.1%

Consumer Cyclical

VTI
10.0%
IWM
7.9%

Industrials

VTI
9.8%
IWM
17.2%

Healthcare

VTI
9.2%
IWM
16.1%

Consumer Defensive

VTI
4.7%
IWM
2.1%

Energy

VTI
3.7%
IWM
5.8%

Real Estate

VTI
2.4%
IWM
5.6%

Utilities

VTI
2.3%
IWM
3.0%

Basic Materials

VTI
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 Total Stock Market ETF

iShares Russell 2000 ETF

Often compared with VTI:
VTI vs. VOOVTI vs. VXUSVTI vs. SPYVTI vs. VTVTI vs. SCHDVTI vs. FZROXVTI vs. QQQ
Often compared with IWM:
IWM vs. SPYIWM vs. VTWOIWM vs. IJRIWM vs. AVUVIWM vs. IWNIWM vs. VOOIWM vs. TNA

Return for Risk

VTI vs. IWM — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
VTI
VTI Risk / Return Rank: 7070
Overall Rank
VTI Sharpe Ratio Rank: 7070
Sharpe Ratio Rank
VTI Sortino Ratio Rank: 6868
Sortino Ratio Rank
VTI Omega Ratio Rank: 6969
Omega Ratio Rank
VTI Calmar Ratio Rank: 6464
Calmar Ratio Rank
VTI Martin Ratio Rank: 7676
Martin Ratio Rank
IWM
IWM Risk / Return Rank: 7272
Overall Rank
IWM Sharpe Ratio Rank: 7171
Sharpe Ratio Rank
IWM Sortino Ratio Rank: 7171
Sortino Ratio Rank
IWM Omega Ratio Rank: 6363
Omega Ratio Rank
IWM Calmar Ratio Rank: 7979
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.

VTI vs. IWM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Total Stock Market ETF (VTI) 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.

VTIIWMDifference
Sharpe ratioReturn per unit of total volatility
1.97
1.99

-0.02

Sortino ratioReturn per unit of downside risk
2.67
2.75

-0.07

Omega ratioGain probability vs. loss probability

1.35

1.33

+0.03

Calmar ratioReturn relative to maximum drawdown

2.79

3.57

-0.78

Martin ratioReturn relative to average drawdown

12.52

12.63

-0.11

VTI vs. IWM - Sharpe Ratio Comparison

The current VTI Sharpe Ratio is 1.97, which is comparable to the IWM Sharpe Ratio of 1.99. The chart below compares the historical Sharpe Ratios of VTI 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

VTI vs. IWM - Drawdown Comparison

The maximum VTI drawdown since its inception was -55.45%, smaller than the maximum IWM drawdown of -59.05%. Use the drawdown chart below to compare losses from any high point for VTI and IWM.

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Drawdown Indicators

VTIIWMDifference

Max Drawdown

Largest peak-to-trough decline

-55.45%

-59.05%

+3.60%

Max Drawdown (1Y)

Largest decline over 1 year

-8.92%

-11.03%

+2.11%

Max Drawdown (3Y)

Largest decline over 3 years

-19.30%

-27.50%

+8.20%

Max Drawdown (5Y)

Largest decline over 5 years

-25.36%

-31.91%

+6.55%

Max Drawdown (10Y)

Largest decline over 10 years

-35.00%

-41.13%

+6.13%

Current Drawdown

Current decline from peak

-2.14%

0.00%

-2.14%

Average Drawdown

Average peak-to-trough decline

-8.02%

-10.76%

+2.74%

Ulcer Index

Depth and duration of drawdowns from previous peaks

1.99%

3.12%

-1.13%

Volatility

VTI vs. IWM - Volatility Comparison

The current volatility for Vanguard Total Stock Market ETF (VTI) is 4.50%, while iShares Russell 2000 ETF (IWM) has a volatility of 7.16%. This indicates that VTI 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

VTIIWMDifference

Volatility (1M)

Calculated over the trailing 1-month period

4.50%

7.16%

-2.66%

Volatility (6M)

Calculated over the trailing 6-month period

9.82%

14.29%

-4.47%

Volatility (1Y)

Calculated over the trailing 1-year period

12.64%

19.73%

-7.09%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

17.47%

22.61%

-5.14%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

18.33%

23.08%

-4.75%

VTI vs. IWM - Expense Ratio Comparison

VTI has a 0.03% 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

VTI vs. IWM - Dividend Comparison

VTI's dividend yield for the trailing twelve months is around 1.03%, more than IWM's 0.87% yield.

PositionTTM20252024202320222021202020192018201720162015
IWM
iShares Russell 2000 ETF		0.87%1.04%1.15%1.35%1.48%0.94%1.04%1.26%1.40%1.26%1.38%1.54%
VTI
Vanguard Total Stock Market ETF		1.03%1.12%1.27%1.44%1.66%1.21%1.42%1.78%2.04%1.71%1.92%1.98%

Frequently Asked Questions

VTI and IWM have a correlation of 0.85, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

IWM has higher volatility (7.16%) compared to VTI (4.50%). In terms of maximum drawdown, VTI dropped -55.45% vs IWM's -59.05%.

On 10-year performance, VTI leads with 15.02% vs 11.27% for IWM. On fees, VTI is cheaper at 0.03% per year. On volatility, VTI has been the lower-risk option at 4.50%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, VTI has performed better with a 15.02% return vs 11.27%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

VTI is cheaper with a 0.03% expense ratio, compared with 0.19% for IWM.

VTI has the higher dividend yield at 1.03%, compared with 0.87% for IWM.

VTI is categorized as Large Cap Blend Equities, while IWM is Small Cap Blend Equities. VTI tracks CRSP US Total Market Index, while IWM tracks Russell 2000 Index. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.03% for VTI and 0.19% for IWM.

IWM currently has the higher Sharpe Ratio (1.99 vs 1.97), 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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