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VTWO vs. ISCB
Performance
Return for Risk
Drawdowns
Volatility
Dividends

VTWO vs. ISCB

Last updated Jun 4, 2026

VTWO (Vanguard Russell 2000 ETF) and ISCB (iShares Morningstar Small-Cap ETF) are both Small Cap Blend Equities funds - VTWO tracks the Russell 2000 Index while ISCB tracks the Morningstar US Small Cap Extended Index. Both are passively managed. Over the past 10 years, VTWO returned 11.07%/yr vs 9.30%/yr for ISCB. With a 0.95 correlation, they move nearly in lockstep. VTWO charges 0.10%/yr vs 0.04%/yr for ISCB.

Performance

VTWO vs. ISCB - Performance Comparison

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

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Returns By Period

In the year-to-date period, VTWO achieves a 17.08% return, which is significantly higher than ISCB's 11.43% return. Over the past 10 years, VTWO has outperformed ISCB with an annualized return of 11.07%, while ISCB has yielded a comparatively lower 9.30% annualized return.

VTWO

1D
-1.38%
1M
3.51%
YTD
17.08%
6M
15.89%
1Y
39.34%
3Y*
18.11%
5Y*
6.28%
10Y*
11.07%

ISCB

1D
-0.67%
1M
2.77%
YTD
11.43%
6M
11.42%
1Y
29.48%
3Y*
16.41%
5Y*
5.72%
10Y*
9.30%
*Multi-year figures are annualized to reflect compound growth (CAGR)

VTWO vs. ISCB - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
VTWO
Vanguard Russell 2000 ETF		17.08%12.90%11.55%17.08%-20.49%14.79%20.22%25.81%-11.15%14.69%
ISCB
iShares Morningstar Small-Cap ETF		11.43%12.46%10.90%19.51%-19.04%17.46%6.29%29.42%-13.92%12.95%

Correlation

The correlation between VTWO and ISCB 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

0.98

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

0.98

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

0.96

Correlation (All Time)
Calculated using the full available price history since Sep 23, 2010

0.95

The correlation between VTWO and ISCB has been stable across timeframes, ranging from 0.95 to 0.98 - a consistent structural relationship.

VTWO vs. ISCB - Sectors Allocation Comparison

Sectors
VTWO
ISCB

Industrials

17.7%
18.5%

Technology

17.0%
14.6%

Healthcare

16.5%
13.3%

Financial Services

15.7%
15.9%

Consumer Cyclical

8.4%
11.8%

Real Estate

6.1%
8.2%

Energy

6.1%
4.9%

Basic Materials

4.8%
4.6%

Utilities

2.9%
2.3%

Communication Services

2.4%
2.6%

Consumer Defensive

2.4%
3.4%

Industrials

VTWO
17.7%
ISCB
18.5%

Technology

VTWO
17.0%
ISCB
14.6%

Healthcare

VTWO
16.5%
ISCB
13.3%

Financial Services

VTWO
15.7%
ISCB
15.9%

Consumer Cyclical

VTWO
8.4%
ISCB
11.8%

Real Estate

VTWO
6.1%
ISCB
8.2%

Energy

VTWO
6.1%
ISCB
4.9%

Basic Materials

VTWO
4.8%
ISCB
4.6%

Utilities

VTWO
2.9%
ISCB
2.3%

Communication Services

VTWO
2.4%
ISCB
2.6%

Consumer Defensive

VTWO
2.4%
ISCB
3.4%

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 2000 ETF

iShares Morningstar Small-Cap ETF

Often compared with VTWO:
VTWO vs. IWMVTWO vs. VBVTWO vs. VOOVTWO vs. VTWVVTWO vs. VTWGVTWO vs. FSSNXVTWO vs. VIOO
Often compared with ISCB:
ISCB vs. VBISCB vs. ISCGISCB vs. IJRISCB vs. SPSMISCB vs. IMCBISCB vs. IWMISCB vs. SCHA

Return for Risk

VTWO vs. ISCB — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
VTWO
VTWO Risk / Return Rank: 6262
Overall Rank
VTWO Sharpe Ratio Rank: 6060
Sharpe Ratio Rank
VTWO Sortino Ratio Rank: 6060
Sortino Ratio Rank
VTWO Omega Ratio Rank: 5454
Omega Ratio Rank
VTWO Calmar Ratio Rank: 7171
Calmar Ratio Rank
VTWO Martin Ratio Rank: 6868
Martin Ratio Rank
ISCB
ISCB Risk / Return Rank: 5656
Overall Rank
ISCB Sharpe Ratio Rank: 5252
Sharpe Ratio Rank
ISCB Sortino Ratio Rank: 5353
Sortino Ratio Rank
ISCB Omega Ratio Rank: 4949
Omega Ratio Rank
ISCB Calmar Ratio Rank: 6363
Calmar Ratio Rank
ISCB Martin Ratio Rank: 6262
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.

VTWO vs. ISCB - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Russell 2000 ETF (VTWO) and iShares Morningstar Small-Cap ETF (ISCB). 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.

VTWOISCBDifference
Sharpe ratioReturn per unit of total volatility
2.07
1.80

+0.27

Sortino ratioReturn per unit of downside risk
2.88
2.60

+0.28

Omega ratioGain probability vs. loss probability

1.34

1.31

+0.03

Calmar ratioReturn relative to maximum drawdown

3.60

3.15

+0.45

Martin ratioReturn relative to average drawdown

12.79

11.26

+1.53

Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VTWO vs. ISCB - Sharpe Ratio Comparison

The current VTWO Sharpe Ratio is 2.07, which is comparable to the ISCB Sharpe Ratio of 1.80. The chart below compares the historical Sharpe Ratios of VTWO and ISCB, 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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Sharpe Ratios by Period

VTWOISCBDifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

2.07

1.80

+0.27

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

0.28

0.27

+0.01

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

0.48

0.41

+0.07

Sharpe Ratio (All Time)

Calculated using the full available price history

0.52

0.38

+0.14

Drawdowns

VTWO vs. ISCB - Drawdown Comparison

The maximum VTWO drawdown since its inception was -41.19%, smaller than the maximum ISCB drawdown of -61.25%. Use the drawdown chart below to compare losses from any high point for VTWO and ISCB.

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Drawdown Indicators

VTWOISCBDifference

Max Drawdown

Largest peak-to-trough decline

-41.19%

-61.25%

+20.06%

Max Drawdown (1Y)

Largest decline over 1 year

-10.99%

-9.39%

-1.60%

Max Drawdown (3Y)

Largest decline over 3 years

-27.57%

-26.22%

-1.35%

Max Drawdown (5Y)

Largest decline over 5 years

-31.88%

-29.94%

-1.94%

Max Drawdown (10Y)

Largest decline over 10 years

-41.19%

-44.18%

+2.99%

Current Drawdown

Current decline from peak

-1.50%

-0.67%

-0.83%

Average Drawdown

Average peak-to-trough decline

-8.39%

-9.80%

+1.41%

Ulcer Index

Depth and duration of drawdowns from previous peaks

3.08%

2.63%

+0.45%

Volatility

VTWO vs. ISCB - Volatility Comparison

Vanguard Russell 2000 ETF (VTWO) has a higher volatility of 5.73% compared to iShares Morningstar Small-Cap ETF (ISCB) at 4.28%. This indicates that VTWO's price experiences larger fluctuations and is considered to be riskier than ISCB based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

VTWOISCBDifference

Volatility (1M)

Calculated over the trailing 1-month period

5.73%

4.28%

+1.45%

Volatility (6M)

Calculated over the trailing 6-month period

13.50%

11.43%

+2.07%

Volatility (1Y)

Calculated over the trailing 1-year period

19.12%

16.51%

+2.61%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

22.48%

21.39%

+1.09%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

23.08%

22.68%

+0.40%

VTWO vs. ISCB - Expense Ratio Comparison

VTWO has a 0.10% expense ratio, which is higher than ISCB's 0.04% 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

VTWO vs. ISCB - Dividend Comparison

VTWO's dividend yield for the trailing twelve months is around 1.08%, less than ISCB's 1.27% yield.

PositionTTM20252024202320222021202020192018201720162015
ISCB
iShares Morningstar Small-Cap ETF		1.27%1.38%1.31%1.49%1.63%1.26%1.26%1.25%1.60%1.24%1.58%1.40%
VTWO
Vanguard Russell 2000 ETF		1.08%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 0.96, VTWO and ISCB 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 (5.73%) compared to ISCB (4.28%). In terms of maximum drawdown, VTWO dropped -41.19% vs ISCB's -61.25%.

On 10-year performance, VTWO leads with 11.07% vs 9.30% for ISCB. On fees, ISCB is cheaper at 0.04% per year. On volatility, ISCB has been the lower-risk option at 4.28%. 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 11.07% return vs 9.30%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

ISCB is cheaper with a 0.04% expense ratio, compared with 0.10% for VTWO.

ISCB has the higher dividend yield at 1.27%, compared with 1.08% for VTWO.

VTWO tracks Russell 2000 Index, while ISCB tracks Morningstar US Small Cap Extended Index. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.10% for VTWO and 0.04% for ISCB.

VTWO currently has the higher Sharpe Ratio (2.07 vs 1.80), 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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