VTWO vs. IWM

Last updated Apr 1, 2026

Compare and contrast key facts about Vanguard Russell 2000 ETF (VTWO) and iShares Russell 2000 ETF (IWM).

VTWO and IWM 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. IWM is a passively managed fund by iShares that tracks the performance of the Russell 2000 Index. It was launched on May 22, 2000. Both VTWO and IWM are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.

Performance

VTWO vs. IWM - Performance Comparison

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

VTWO vs. IWM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VTWO Vanguard Russell 2000 ETF	0.92%	12.90%	11.55%	17.08%	-20.49%	14.79%	20.22%	25.81%	-11.15%	14.69%
IWM iShares Russell 2000 ETF	0.93%	12.66%	11.38%	16.83%	-20.48%	14.54%	20.03%	25.39%	-11.12%	14.58%

Returns By Period

The year-to-date returns for both investments are quite close, with VTWO having a 0.92% return and IWM slightly higher at 0.93%. Both investments have delivered pretty close results over the past 10 years, with VTWO having a 9.90% annualized return and IWM not far behind at 9.76%.

VTWO

• 1D: 3.51%
• 1M: -5.00%
• YTD: 0.92%
• 6M: 3.08%
• 1Y: 25.83%
• 3Y*: 13.14%
• 5Y*: 3.50%
• 10Y*: 9.90%

IWM

• 1D: 3.50%
• 1M: -4.96%
• YTD: 0.93%
• 6M: 3.02%
• 1Y: 25.66%
• 3Y*: 12.94%
• 5Y*: 3.34%
• 10Y*: 9.76%

*Multi-year figures are annualized to reflect compound growth (CAGR)

VTWO vs. IWM - Expense Ratio Comparison

VTWO has a 0.10% 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%.

IWM

iShares Russell 2000 ETF

VTWO

Vanguard Russell 2000 ETF

Return for Risk

VTWO vs. IWM — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

VTWO

VTWO Risk / Return Rank: 69
VTWO Sharpe Ratio Rank: 67
VTWO Sortino Ratio Rank: 69
VTWO Omega Ratio Rank: 62
VTWO Calmar Ratio Rank: 74
VTWO Martin Ratio Rank: 71

IWM

IWM Risk / Return Rank: 69
IWM Sharpe Ratio Rank: 67
IWM Sortino Ratio Rank: 69
IWM Omega Ratio Rank: 61
IWM Calmar Ratio Rank: 75
IWM Martin Ratio Rank: 71

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. IWM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Russell 2000 ETF (VTWO) 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.

	VTWO	IWM	Difference
Sharpe ratio Return per unit of total volatility	1.11	1.11	0.00
Sortino ratio Return per unit of downside risk	1.66	1.66	0.00
Omega ratio Gain probability vs. loss probability	1.21	1.21	0.00
Calmar ratio Return relative to maximum drawdown	1.82	1.82	-0.01
Martin ratio Return relative to average drawdown	6.81	6.76	+0.04
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. IWM - Sharpe Ratio Comparison

The current VTWO Sharpe Ratio is 1.11, which is comparable to the IWM Sharpe Ratio of 1.11. The chart below compares the historical Sharpe Ratios of VTWO and IWM, offering insights into how both investments have performed under varying market conditions. These values are calculated using daily returns over the previous 12 months.

Sharpe Ratios by Period

	VTWO	IWM	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.11	1.11	0.00
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.16	0.15	+0.01
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.43	0.43	0.00
Sharpe Ratio (All Time) Calculated using the full available price history	0.48	0.34	+0.14

Correlation

The correlation between VTWO and IWM is 0.99, 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.

Dividends

VTWO vs. IWM - Dividend Comparison

VTWO's dividend yield for the trailing twelve months is around 1.26%, more than IWM's 1.02% yield.

	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VTWO Vanguard Russell 2000 ETF	1.26%	1.25%	1.21%	1.45%	1.48%	1.13%	0.92%	1.36%	1.41%	1.18%	1.27%	1.23%
IWM iShares Russell 2000 ETF	1.02%	1.04%	1.15%	1.35%	1.48%	0.94%	1.04%	1.26%	1.40%	1.26%	1.38%	1.54%

Drawdowns

VTWO vs. IWM - Drawdown Comparison

The maximum VTWO drawdown since its inception was -41.19%, smaller than the maximum IWM drawdown of -59.05%. Use the drawdown chart below to compare losses from any high point for VTWO and IWM.

Drawdown Indicators

	VTWO	IWM	Difference
Max Drawdown Largest peak-to-trough decline	-41.19%	-59.05%	+17.86%
Max Drawdown (1Y) Largest decline over 1 year	-13.90%	-13.74%	-0.16%
Max Drawdown (5Y) Largest decline over 5 years	-31.88%	-31.91%	+0.03%
Max Drawdown (10Y) Largest decline over 10 years	-41.19%	-41.13%	-0.06%
Current Drawdown Current decline from peak	-7.86%	-7.91%	+0.05%
Average Drawdown Average peak-to-trough decline	-8.47%	-10.83%	+2.36%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.71%	3.70%	+0.01%

Volatility

VTWO vs. IWM - Volatility Comparison

Vanguard Russell 2000 ETF (VTWO) and iShares Russell 2000 ETF (IWM) have volatilities of 7.49% and 7.47%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VTWO	IWM	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.49%	7.47%	+0.02%
Volatility (6M) Calculated over the trailing 6-month period	14.43%	14.47%	-0.04%
Volatility (1Y) Calculated over the trailing 1-year period	23.29%	23.18%	+0.11%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	22.50%	22.55%	-0.05%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	23.04%	22.99%	+0.05%