ETF Versus

IWM vs QQQ

iShares Russell 2000 ETF vs Invesco QQQ Trust

Last updated: 2026-04-10

IWM iShares

iShares Russell 2000 ETF (IWM) is an exchange-traded fund issued by iShares that provides exposure to small-cap U.S. equities with higher growth potential and volatility. It charges a moderate expense ratio of 0.19%. The fund offers a modest dividend yield of 0.97%. Launched in 2000, the fund has a 26-year track record.

AUM: $72.8B ER: 0.19% Yield: 0.97% Since: May 22, 2000
QQQ Invesco

Invesco QQQ Trust (QQQ) is an exchange-traded fund issued by Invesco that provides exposure to large-cap U.S. growth stocks with above-average earnings potential. It charges a moderate expense ratio of 0.18%. The fund offers a modest dividend yield of 0.46%. Launched in 1999, the fund has a 27-year track record.

AUM: $389.6B ER: 0.18% Yield: 0.46% Since: Mar 10, 1999

Quick Verdict

Both funds have nearly identical expense ratios (0.18% vs 0.19%), so fees are not a differentiator here. Over the past year, IWM has significantly outperformed with a 43.7% return vs 37.0%. Income investors may prefer IWM for its higher yield (1.0% vs 0.5%).

Key Metrics

Metric IWM QQQ
Expense Ratio 0.19% 0.18%
Dividend Yield 1.0% 0.5%
Fund Family iShares Invesco
Category US Small Cap US Large Cap Growth

Performance Chart

Indexed to 100 at start (5-year comparison)

70 94 118 142 166 190 2021-04 2022-07 2023-10 2025-01 2026-04
IWM +17.8%
QQQ +81.6%

Performance Comparison

Period IWM QQQ Difference
1 Month +3.30% +0.58% +2.72%
3 Months -0.12% -2.54% +2.42%
6 Months +6.86% +1.53% +5.33%
YTD +4.99% -0.31% +5.30%
1 Year +43.74% +36.99% +6.75%
3 Years +47.45% +93.53% -46.08%
5 Years +17.80% +81.55% -63.75%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment Period IWM Fees QQQ Fees You Save
$10,000 10 years $377 $357 $20
$10,000 20 years $1,613 $1,529 $84
$10,000 30 years $5,178 $4,912 $266
$50,000 10 years $1,884 $1,786 $98
$50,000 30 years $25,888 $24,558 $1,330
$100,000 30 years $51,776 $49,116 $2,660

Risk Metrics

Based on 5 years of daily returns

Metric IWM QQQ
Annualized Volatility 22.6% 22.4%
Max Drawdown -33.1% -35.6%
Sharpe Ratio 0.06 0.45

Dividend Comparison

Metric IWM QQQ
Annual Dividend (per share) $2.54 $2.81
Dividend Yield 0.97% 0.46%
Distribution Frequency Quarterly Quarterly

Top Holdings

0 of top 9 holdings overlap (0% overlap in top holdings)

IWM Top Holdings

NameWeight
Bloom Energy CorporationBE1.04%
FabrinetFN0.71%
COEUR MINING INCCDE.NE0.65%
Credo Technology Group Holding LtdCRDO0.58%
Nextpower Inc.NXT0.55%
EchoStar CorporationSATS0.54%
Advanced Energy Industries, Inc.AEIS0.45%
Kratos Defense & Security Solutions, Inc.KTOS0.44%
Sterling Infrastructure, Inc.STRL0.41%
Hecla Mining CompanyHL0.40%

QQQ Top Holdings

NameWeight
NVIDIA CorporationNVDA8.69%
Apple Inc.AAPL7.47%
Microsoft CorporationMSFT5.55%
Amazon.com, Inc.AMZN4.61%
Tesla, Inc.TSLA3.47%
Meta Platforms, Inc.META3.41%
Alphabet Inc.GOOG3.32%
Walmart Inc.WMT3.32%
Broadcom Inc.AVGO3.18%

Which One Should You Choose?

Choose IWM if...

recent performance momentum matters to your strategy. Note that past performance doesn't guarantee future results.

Choose IWM if...

you prioritize dividend income and want higher regular distributions from your portfolio.

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