IWC vs SPY
iShares Microcap ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. IWC delivered stronger 1-year returns. IWC offers more diversification with 1279 holdings.
Side-by-Side Comparison
| Metric | IWC | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.60% | 0.09% | |
| AUM | $1.4B | $789.1B | |
| Dividend Yield | 0.94% | 1.01% | |
| Holdings | 1,380 | 505 | |
| YTD Return | +25.25% | +13.39% | |
| 1Y Return | +51.41% | +22.52% | |
| 3Y Return (annualized) | +23.03% | +21.36% | |
| 5Y Return (annualized) | +7.48% | +13.19% | |
| Volatility (annualized) | 21.6% | 15.3% | |
| Max Drawdown | -65.2% | -56.5% | |
| Fund Family | iShares by BlackRock (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Aug 12, 2005 | Jan 22, 1993 |
IWC vs SPY Performance
iShares Microcap ETF (IWC) is a ETF from iShares by BlackRock (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year IWC returned +51.41% while SPY returned +22.52%. Year to date, IWC is up 25.25% versus a gain of 13.39% for SPY.
Over three years, IWC compounded at +23.03% per year against +21.36% for SPY; over five years the annualized figures are +7.48% and +13.19% respectively. Across the full 21-year window we track, SPY has the edge at +8.84% annualized vs +7.10%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IWC has been the more volatile fund, with annualized monthly volatility of 21.6% compared with 15.3% for SPY. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -65.2% for IWC and -56.5% for SPY. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.83. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IWC charges 0.60% per year while SPY charges 0.09%. On a $10,000 position that is $60 vs $9 annually, a gap of $51 per year that compounds over a long holding period. On income, IWC currently yields 0.94% against 1.01% for SPY.
Holdings Overlap
IWC and SPY share 1 holdings out of 1781 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in IWC | Weight in SPY | Difference |
|---|---|---|---|
| RCL | 0.07% | 0.11% | 0.04% |
Frequently Asked Questions
Which is cheaper, IWC or SPY?
IWC has an expense ratio of 0.60% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $51 per year of difference.
Which performed better, IWC or SPY?
Over the past year IWC returned +51.41% vs +22.52% for SPY, so IWC leads on 1-year performance. Over the longest common window we track (21 years), IWC annualized +7.10% vs +8.84% for SPY. Past performance does not guarantee future results.
Which is riskier, IWC or SPY?
IWC has been the more volatile fund at 21.6% annualized versus 15.3% for SPY. Worst drawdown: IWC -65.2% vs SPY -56.5%.
Should I hold both IWC and SPY?
IWC and SPY have a monthly-return correlation of 0.83, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IWC and SPY?
IWC and SPY share 1 common holdings with a 0.1% weight overlap. Combined, they hold 1781 unique securities.
Which pays a higher dividend, IWC or SPY?
IWC yields 0.94% while SPY yields 1.01%, so SPY currently pays the higher dividend yield.
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