VTWO vs. IWB
Compare and contrast key facts about Vanguard Russell 2000 ETF (VTWO) and iShares Russell 1000 ETF (IWB).
VTWO and IWB are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. VTWO is a passively managed fund by Vanguard that tracks the performance of the Russell 2000 Index. It was launched on Sep 20, 2010. IWB is a passively managed fund by iShares that tracks the performance of the Russell 1000 Index. It was launched on May 15, 2000. Both VTWO and IWB are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: VTWO or IWB.
Key characteristics
| VTWO | IWB | |
|---|---|---|
| YTD Return | 2.26% | 9.50% |
| 1Y Return | 20.39% | 28.65% |
| 3Y Return (Ann) | -1.06% | 8.41% |
| 5Y Return (Ann) | 7.44% | 14.32% |
| 10Y Return (Ann) | 8.02% | 12.46% |
| Sharpe Ratio | 1.03 | 2.41 |
| Daily Std Dev | 19.72% | 11.79% |
| Max Drawdown | -41.19% | -55.38% |
| Current Drawdown | -12.30% | -0.62% |
Correlation
The correlation between VTWO and IWB is 0.86, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
VTWO vs. IWB - Performance Comparison
In the year-to-date period, VTWO achieves a 2.26% return, which is significantly lower than IWB's 9.50% return. Over the past 10 years, VTWO has underperformed IWB with an annualized return of 8.02%, while IWB has yielded a comparatively higher 12.46% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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VTWO vs. IWB - Expense Ratio Comparison
VTWO has a 0.10% expense ratio, which is lower than IWB's 0.15% 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%.
Risk-Adjusted Performance
VTWO vs. IWB - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Russell 2000 ETF (VTWO) and iShares Russell 1000 ETF (IWB). 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.
Dividends
VTWO vs. IWB - Dividend Comparison
VTWO's dividend yield for the trailing twelve months is around 1.37%, more than IWB's 1.22% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VTWO Vanguard Russell 2000 ETF | 1.37% | 1.45% | 1.48% | 1.13% | 0.92% | 1.36% | 1.41% | 1.18% | 1.27% | 1.23% | 1.12% | 1.04% |
IWB iShares Russell 1000 ETF | 1.22% | 1.31% | 1.56% | 1.09% | 1.37% | 1.71% | 2.06% | 1.64% | 1.89% | 1.95% | 1.70% | 1.68% |
Drawdowns
VTWO vs. IWB - Drawdown Comparison
The maximum VTWO drawdown since its inception was -41.19%, smaller than the maximum IWB drawdown of -55.38%. Use the drawdown chart below to compare losses from any high point for VTWO and IWB. For additional features, visit the drawdowns tool.
Volatility
VTWO vs. IWB - Volatility Comparison
Vanguard Russell 2000 ETF (VTWO) has a higher volatility of 4.74% compared to iShares Russell 1000 ETF (IWB) at 3.65%. This indicates that VTWO's price experiences larger fluctuations and is considered to be riskier than IWB based on this measure. The chart below showcases a comparison of their rolling one-month volatility.