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VTWO vs. IXG
Performance
Return for Risk
Drawdowns
Volatility
Dividends

VTWO vs. IXG

Last updated Jun 14, 2026

VTWO (Vanguard Russell 2000 ETF) and IXG (iShares Global Financials ETF) are both exchange-traded funds - VTWO is a Small Cap Blend Equities fund tracking the Russell 2000 Index, while IXG is a Financials Equities fund tracking the S&P Global Financials Sector Index. Both are passively managed. Over the past 10 years, VTWO returned 11.41%/yr vs 12.87%/yr for IXG. A 0.77 correlation means they provide meaningful diversification when combined. VTWO charges 0.06%/yr vs 0.46%/yr for IXG.

Performance

VTWO vs. IXG - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Russell 2000 ETF (VTWO) and iShares Global Financials ETF (IXG). 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 19.26% return, which is significantly higher than IXG's 3.78% return. Over the past 10 years, VTWO has underperformed IXG with an annualized return of 11.41%, while IXG has yielded a comparatively higher 12.87% annualized return.

VTWO

1D
0.86%
1M
5.50%
YTD
19.26%
6M
16.09%
1Y
42.05%
3Y*
17.46%
5Y*
6.23%
10Y*
11.41%

IXG

1D
1.28%
1M
4.62%
YTD
3.78%
6M
4.96%
1Y
19.03%
3Y*
23.67%
5Y*
12.27%
10Y*
12.87%
*Multi-year figures are annualized to reflect compound growth (CAGR)

VTWO vs. IXG - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
VTWO
Vanguard Russell 2000 ETF		19.26%12.90%11.55%17.08%-20.49%14.79%20.22%25.81%-11.15%14.69%
IXG
iShares Global Financials ETF		3.78%28.54%25.69%14.97%-8.97%25.07%-2.99%24.60%-16.33%23.78%

Correlation

The correlation between VTWO and IXG is 0.71, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

Correlation
Correlation (1Y)
Calculated over the trailing 1-year period

0.71

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

0.74

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

0.77

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

0.76

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

0.77

The correlation between VTWO and IXG has been stable across timeframes, ranging from 0.71 to 0.77 - a consistent structural relationship.

VTWO vs. IXG - Sectors Allocation Comparison

Sectors
VTWO
IXG

Industrials

17.7%
0.2%

Technology

17.0%
1.1%

Healthcare

16.5%
0.1%

Financial Services

15.7%
97.9%

Consumer Cyclical

8.4%
0.0%

Real Estate

6.1%

-

Energy

6.1%
0.1%

Basic Materials

4.8%

-

Utilities

2.9%

-

Communication Services

2.4%

-

Consumer Defensive

2.4%

-

Industrials

VTWO
17.7%
IXG
0.2%

Technology

VTWO
17.0%
IXG
1.1%

Healthcare

VTWO
16.5%
IXG
0.1%

Financial Services

VTWO
15.7%
IXG
97.9%

Consumer Cyclical

VTWO
8.4%
IXG
0.0%

Real Estate

VTWO
6.1%
IXG

-

Energy

VTWO
6.1%
IXG
0.1%

Basic Materials

VTWO
4.8%
IXG

-

Utilities

VTWO
2.9%
IXG

-

Communication Services

VTWO
2.4%
IXG

-

Consumer Defensive

VTWO
2.4%
IXG

-

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 Global Financials ETF

Often compared with VTWO:
VTWO vs. IWMVTWO vs. VBVTWO vs. VOOVTWO vs. VTWVVTWO vs. VTWGVTWO vs. FSSNXVTWO vs. VIOO
Often compared with IXG:
IXG vs. XLFIXG vs. IYGIXG vs. IYFIXG vs. VFHIXG vs. WFIN.ASIXG vs. FXOIXG vs. KBWB

Return for Risk

VTWO vs. IXG — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
VTWO
VTWO Risk / Return Rank: 7373
Overall Rank
VTWO Sharpe Ratio Rank: 7272
Sharpe Ratio Rank
VTWO Sortino Ratio Rank: 7171
Sortino Ratio Rank
VTWO Omega Ratio Rank: 6363
Omega Ratio Rank
VTWO Calmar Ratio Rank: 7979
Calmar Ratio Rank
VTWO Martin Ratio Rank: 7777
Martin Ratio Rank
IXG
IXG Risk / Return Rank: 3737
Overall Rank
IXG Sharpe Ratio Rank: 3838
Sharpe Ratio Rank
IXG Sortino Ratio Rank: 3838
Sortino Ratio Rank
IXG Omega Ratio Rank: 3535
Omega Ratio Rank
IXG Calmar Ratio Rank: 3434
Calmar Ratio Rank
IXG Martin Ratio Rank: 3838
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. IXG - Risk-Adjusted Trends Comparison

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

VTWOIXGDifference
Sharpe ratioReturn per unit of total volatility
2.02
1.20

+0.81

Sortino ratioReturn per unit of downside risk
2.77
1.78

+0.99

Omega ratioGain probability vs. loss probability

1.33

1.21

+0.12

Calmar ratioReturn relative to maximum drawdown

3.61

1.49

+2.12

Martin ratioReturn relative to average drawdown

12.79

5.26

+7.53

VTWO vs. IXG - Sharpe Ratio Comparison

The current VTWO Sharpe Ratio is 2.02, which is higher than the IXG Sharpe Ratio of 1.20. The chart below compares the historical Sharpe Ratios of VTWO and IXG, 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

VTWO vs. IXG - Drawdown Comparison

The maximum VTWO drawdown since its inception was -41.19%, smaller than the maximum IXG drawdown of -78.42%. Use the drawdown chart below to compare losses from any high point for VTWO and IXG.

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Drawdown Indicators

VTWOIXGDifference

Max Drawdown

Largest peak-to-trough decline

-41.19%

-78.42%

+37.23%

Max Drawdown (1Y)

Largest decline over 1 year

-10.99%

-11.33%

+0.34%

Max Drawdown (3Y)

Largest decline over 3 years

-27.57%

-13.54%

-14.03%

Max Drawdown (5Y)

Largest decline over 5 years

-31.88%

-27.20%

-4.68%

Max Drawdown (10Y)

Largest decline over 10 years

-41.19%

-43.47%

+2.28%

Current Drawdown

Current decline from peak

0.00%

0.00%

0.00%

Average Drawdown

Average peak-to-trough decline

-8.38%

-19.73%

+11.35%

Ulcer Index

Depth and duration of drawdowns from previous peaks

3.10%

3.21%

-0.11%

Volatility

VTWO vs. IXG - Volatility Comparison

Vanguard Russell 2000 ETF (VTWO) has a higher volatility of 7.15% compared to iShares Global Financials ETF (IXG) at 4.30%. This indicates that VTWO's price experiences larger fluctuations and is considered to be riskier than IXG based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

VTWOIXGDifference

Volatility (1M)

Calculated over the trailing 1-month period

7.15%

4.30%

+2.85%

Volatility (6M)

Calculated over the trailing 6-month period

14.26%

11.30%

+2.96%

Volatility (1Y)

Calculated over the trailing 1-year period

19.66%

14.01%

+5.65%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

22.57%

17.38%

+5.19%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

23.13%

20.12%

+3.01%

VTWO vs. IXG - Expense Ratio Comparison

VTWO has a 0.06% expense ratio, which is lower than IXG's 0.46% expense ratio.

Dividends

VTWO vs. IXG - Dividend Comparison

VTWO's dividend yield for the trailing twelve months is around 1.06%, less than IXG's 1.97% yield.

PositionTTM20252024202320222021202020192018201720162015
IXG
iShares Global Financials ETF		1.97%2.04%2.64%2.62%3.71%1.69%2.13%2.87%3.14%2.12%2.21%2.79%
VTWO
Vanguard Russell 2000 ETF		1.06%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

VTWO and IXG have a correlation of 0.71, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

VTWO has higher volatility (7.15%) compared to IXG (4.30%). In terms of maximum drawdown, VTWO dropped -41.19% vs IXG's -78.42%.

On 10-year performance, IXG leads with 12.87% vs 11.41% for VTWO. On fees, VTWO is cheaper at 0.06% per year. On volatility, IXG has been the lower-risk option at 4.30%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, IXG has performed better with a 12.87% return vs 11.41%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

VTWO is cheaper with a 0.06% expense ratio, compared with 0.46% for IXG.

IXG has the higher dividend yield at 1.97%, compared with 1.06% for VTWO.

VTWO is categorized as Small Cap Blend Equities, while IXG is Financials Equities. VTWO tracks Russell 2000 Index, while IXG tracks S&P Global Financials Sector Index. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.06% for VTWO and 0.46% for IXG.

VTWO currently has the higher Sharpe Ratio (2.02 vs 1.20), 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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