IWM vs VTWO
iShares Russell 2000 ETF vs Vanguard Russell 2000 Index Fund ETF Shares
Last updated: 2026-04-10
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.
Vanguard Russell 2000 Index Fund ETF Shares (VTWO) is an exchange-traded fund issued by Vanguard that provides exposure to small-cap U.S. equities with higher growth potential and volatility. It charges a low expense ratio of 0.06%. The fund offers a moderate dividend yield of 1.19%. Launched in 2010, the fund has a 16-year track record.
Quick Verdict
VTWO is significantly cheaper at 0.06% vs 0.19% expense ratio, saving you approximately $257 per $10,000 invested over 10 years. Both funds have delivered similar 1-year returns (43.7% vs 43.7%), tracking closely.
Key Metrics
Performance Chart
Indexed to 100 at start (5-year comparison)
Performance Comparison
Fee Impact Over Time
Estimated fee cost difference assuming 8% annual returns
Risk Metrics
Based on 5 years of daily returns
Dividend Comparison
Top Holdings
7 of top 9 holdings overlap (78% overlap in top holdings)
IWM Top Holdings
| Name | Weight |
|---|---|
| Bloom Energy CorporationBE | 1.04% |
| FabrinetFN | 0.71% |
| COEUR MINING INCCDE.NE | 0.65% |
| Credo Technology Group Holding LtdCRDO | 0.58% |
| Nextpower Inc.NXT | 0.55% |
| EchoStar CorporationSATS | 0.54% |
| Advanced Energy Industries, Inc.AEIS | 0.45% |
| Kratos Defense & Security Solutions, Inc.KTOS | 0.44% |
| Sterling Infrastructure, Inc.STRL | 0.41% |
| Hecla Mining CompanyHL | 0.40% |
VTWO Top Holdings
| Name | Weight |
|---|---|
| Bloom Energy CorporationBE | 1.09% |
| FabrinetFN | 0.63% |
| Coeur Mining, Inc.CDE | 0.56% |
| Credo Technology Group Holding LtdCRDO | 0.55% |
| Hecla Mining CompanyHL | 0.51% |
| EchoStar CorporationSATS | 0.50% |
| Nextpower Inc.NXT | 0.49% |
| Kratos Defense & Security Solutions, Inc.KTOS | 0.48% |
| IonQ, Inc.IONQ | 0.42% |
Which One Should You Choose?
Choose VTWO if...
you want the lowest fees and plan to buy and hold long-term. Over decades, the expense ratio difference compounds significantly.
Either works if...
you just need broad us small cap exposure. Both are solid options — pick whichever your brokerage offers commission-free.