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VTWO vs. VIOO
Performance
Return for Risk
Drawdowns
Volatility
Dividends

VTWO vs. VIOO

Last updated Jun 24, 2026

VTWO (Vanguard Russell 2000 ETF) and VIOO (Vanguard S&P Small-Cap 600 ETF) are both Small Cap Blend Equities funds from Vanguard - VTWO tracks the Russell 2000 Index while VIOO tracks the S&P SmallCap 600 Index. Both are passively managed. Over the past 10 years, VTWO returned 11.73%/yr vs 11.31%/yr for VIOO. Their correlation of 0.95 suggests significant overlap in exposure. VTWO charges 0.06%/yr vs 0.07%/yr for VIOO.

Performance

VTWO vs. VIOO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Russell 2000 ETF (VTWO) and Vanguard S&P Small-Cap 600 ETF (VIOO). 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 20.53% return, which is significantly higher than VIOO's 19.31% return. Both investments have delivered pretty close results over the past 10 years, with VTWO having a 11.73% annualized return and VIOO not far behind at 11.31%.

VTWO

1D
-0.94%
1M
3.85%
YTD
20.53%
6M
17.73%
1Y
41.24%
3Y*
19.49%
5Y*
6.45%
10Y*
11.73%

VIOO

1D
-0.35%
1M
4.23%
YTD
19.31%
6M
16.84%
1Y
34.71%
3Y*
16.19%
5Y*
6.28%
10Y*
11.31%
*Multi-year figures are annualized to reflect compound growth (CAGR)

VTWO vs. VIOO - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
VTWO
Vanguard Russell 2000 ETF		20.53%12.90%11.55%17.08%-20.49%14.79%20.22%25.81%-11.15%14.69%
VIOO
Vanguard S&P Small-Cap 600 ETF		19.31%6.04%8.48%16.16%-16.26%26.79%11.47%22.68%-8.65%13.16%

Correlation

The correlation between VTWO and VIOO is 0.93, 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

0.93

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

0.96

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

0.97

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

0.97

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

0.95

The correlation between VTWO and VIOO has been stable across timeframes, ranging from 0.93 to 0.97 - a consistent structural relationship.

VTWO vs. VIOO - Sectors Allocation Comparison

Sectors
VTWO
VIOO

Technology

19.1%
15.5%

Industrials

17.9%
15.5%

Healthcare

16.3%
11.0%

Financial Services

15.5%
16.9%

Consumer Cyclical

7.9%
13.4%

Real Estate

5.9%
7.7%

Energy

5.3%
5.9%

Basic Materials

4.7%
5.1%

Utilities

2.8%
2.0%

Communication Services

2.5%
3.6%

Consumer Defensive

2.2%
3.5%

Technology

VTWO
19.1%
VIOO
15.5%

Industrials

VTWO
17.9%
VIOO
15.5%

Healthcare

VTWO
16.3%
VIOO
11.0%

Financial Services

VTWO
15.5%
VIOO
16.9%

Consumer Cyclical

VTWO
7.9%
VIOO
13.4%

Real Estate

VTWO
5.9%
VIOO
7.7%

Energy

VTWO
5.3%
VIOO
5.9%

Basic Materials

VTWO
4.7%
VIOO
5.1%

Utilities

VTWO
2.8%
VIOO
2.0%

Communication Services

VTWO
2.5%
VIOO
3.6%

Consumer Defensive

VTWO
2.2%
VIOO
3.5%

Compare stocks, funds, or ETFs

Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.

Vanguard Russell 2000 ETF

Vanguard S&P Small-Cap 600 ETF

Often compared with VTWO:
VTWO vs. IWMVTWO vs. VBVTWO vs. VOOVTWO vs. VTWVVTWO vs. VTWGVTWO vs. FSSNXVTWO vs. IJR
Often compared with VIOO:
VIOO vs. VBVIOO vs. IJRVIOO vs. VOVIOO vs. AVUVVIOO vs. VIOVVIOO vs. VIOGVIOO vs. SPSM

Return for Risk

VTWO vs. VIOO — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
VTWO
VTWO Risk / Return Rank: 6868
Overall Rank
VTWO Sharpe Ratio Rank: 6767
Sharpe Ratio Rank
VTWO Sortino Ratio Rank: 6565
Sortino Ratio Rank
VTWO Omega Ratio Rank: 5858
Omega Ratio Rank
VTWO Calmar Ratio Rank: 7676
Calmar Ratio Rank
VTWO Martin Ratio Rank: 7373
Martin Ratio Rank
VIOO
VIOO Risk / Return Rank: 6767
Overall Rank
VIOO Sharpe Ratio Rank: 6262
Sharpe Ratio Rank
VIOO Sortino Ratio Rank: 6464
Sortino Ratio Rank
VIOO Omega Ratio Rank: 5757
Omega Ratio Rank
VIOO Calmar Ratio Rank: 7979
Calmar Ratio Rank
VIOO Martin Ratio Rank: 7474
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. VIOO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Russell 2000 ETF (VTWO) and Vanguard S&P Small-Cap 600 ETF (VIOO). 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.

VTWOVIOODifference
Sharpe ratioReturn per unit of total volatility
2.11
1.97

+0.14

Sortino ratioReturn per unit of downside risk
2.89
2.85

+0.04

Omega ratioGain probability vs. loss probability

1.34

1.34

+0.01

Calmar ratioReturn relative to maximum drawdown

3.77

3.98

-0.21

Martin ratioReturn relative to average drawdown

13.36

13.43

-0.06

VTWO vs. VIOO - Sharpe Ratio Comparison

The current VTWO Sharpe Ratio is 2.11, which is comparable to the VIOO Sharpe Ratio of 1.97. The chart below compares the historical Sharpe Ratios of VTWO and VIOO, 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. VIOO - Drawdown Comparison

The maximum VTWO drawdown since its inception was -41.19%, smaller than the maximum VIOO drawdown of -44.15%. Use the drawdown chart below to compare losses from any high point for VTWO and VIOO.

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Drawdown Indicators

VTWOVIOODifference

Max Drawdown

Largest peak-to-trough decline

-41.19%

-44.15%

+2.96%

Max Drawdown (1Y)

Largest decline over 1 year

-10.99%

-8.77%

-2.22%

Max Drawdown (3Y)

Largest decline over 3 years

-27.57%

-27.93%

+0.36%

Max Drawdown (5Y)

Largest decline over 5 years

-31.88%

-27.93%

-3.95%

Max Drawdown (10Y)

Largest decline over 10 years

-41.19%

-44.15%

+2.96%

Current Drawdown

Current decline from peak

-0.94%

-0.47%

-0.47%

Average Drawdown

Average peak-to-trough decline

-8.36%

-7.31%

-1.05%

Ulcer Index

Depth and duration of drawdowns from previous peaks

3.10%

2.59%

+0.51%

Volatility

VTWO vs. VIOO - Volatility Comparison

Vanguard Russell 2000 ETF (VTWO) has a higher volatility of 6.57% compared to Vanguard S&P Small-Cap 600 ETF (VIOO) at 4.97%. This indicates that VTWO's price experiences larger fluctuations and is considered to be riskier than VIOO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

VTWOVIOODifference

Volatility (1M)

Calculated over the trailing 1-month period

6.57%

4.97%

+1.60%

Volatility (6M)

Calculated over the trailing 6-month period

14.28%

12.11%

+2.17%

Volatility (1Y)

Calculated over the trailing 1-year period

19.68%

17.77%

+1.91%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

22.56%

21.40%

+1.16%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

23.11%

22.98%

+0.13%

VTWO vs. VIOO - Expense Ratio Comparison

VTWO has a 0.06% expense ratio, which is lower than VIOO's 0.07% 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

VTWO vs. VIOO - Dividend Comparison

VTWO's dividend yield for the trailing twelve months is around 1.10%, less than VIOO's 1.14% yield.

PositionTTM20252024202320222021202020192018201720162015
VIOO
Vanguard S&P Small-Cap 600 ETF		1.14%1.36%1.48%1.47%1.51%1.16%1.09%1.37%1.32%1.11%1.06%1.26%
VTWO
Vanguard Russell 2000 ETF		1.10%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 0.93, VTWO and VIOO 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 (6.57%) compared to VIOO (4.97%). In terms of maximum drawdown, VTWO dropped -41.19% vs VIOO's -44.15%.

On 10-year performance, VTWO leads with 11.73% vs 11.31% for VIOO. On fees, VTWO is cheaper at 0.06% per year. On volatility, VIOO has been the lower-risk option at 4.97%. 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 11.73% return vs 11.31%. 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 0.07% for VIOO.

VIOO has the higher dividend yield at 1.14%, compared with 1.10% for VTWO.

VTWO tracks Russell 2000 Index, while VIOO tracks S&P SmallCap 600 Index. Their fees differ too: 0.06% for VTWO and 0.07% for VIOO.

VTWO currently has the higher Sharpe Ratio (2.11 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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