IWC vs SPY
iShares Microcap ETF vs State Street SPDR S&P 500 ETF Trust
Which is better, IWC or SPY?
Small Cap Blend against Large Cap Blend.
SPY has a lower expense ratio. IWC led over 1Y and 3Y, SPY over 5Y and the full window. IWC is less concentrated, with 5.2% of the fund in its ten largest positions against 38.0%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | IWC | SPY |
|---|---|---|
| Expense Ratio | 0.60% | 0.09%Best |
| AUM | $1.4B | $804.7B |
| Dividend Yield | 1.00% | 0.98% |
| Holdings | 1,380 | 505 |
| YTD Return | +21.77%Best | +12.19% |
| 1Y Return | +35.19%Best | +18.53% |
| 3Y Return (annualized) | +23.89%Best | +20.88% |
| 5Y Return (annualized) | +6.72% | +12.69%Best |
| Volatility (annualized) | 21.5% | 15.0%Best |
| Max Drawdown | -65.2% | -56.5%Best |
| $10,000 over 5 years | $13,843 | $18,173Best |
| Top 10 Weight | 5.2%Best | 38.0% |
| Fund Family | iShares by BlackRock (US) | State Street Investment Management |
| Category | Equity | Equity |
| Style | Small Cap Blend | Large Cap Blend |
| Inception | Aug 12, 2005 | Jan 22, 1993 |
Volatility and max drawdown are measured over the window both funds cover: Aug 16, 2005 to Sep 9, 2026 (21.1 years).
IWC vs SPY growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 21.1 years both funds cover.
IWC vs SPY Performance
iShares Microcap ETF (IWC) is an ETF from iShares by BlackRock (US) and State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management. Over the past year IWC returned +35.19% while SPY returned +18.53%. Year to date, IWC is up 21.77% versus a gain of 12.19% for SPY.
Over three years, IWC compounded at +23.89% per year against +20.88% for SPY; over five years the annualized figures are +6.72% and +12.69% respectively. Across the full 21-year window we track, SPY has the edge at +9.46% annualized vs +6.93%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IWC has been the more volatile fund, with annualized monthly volatility of 21.5% compared with 15.0% 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 what each fund did in the worst stretch of the window measured above.
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 1.00% against 0.98% for SPY.
Holdings Overlap
0.1% of IWC's money is in holdings SPY also owns.
We cannot see either book well enough to say how much of this pair is duplicated.
1 positions in common, counted across the 1,353 positions we hold weights for in IWC and 504 in SPY, against full books of 1,380 and 505.
What only one of them owns
Our book lists 494 positions for SPY that do not appear in our book for IWC (99.4% of the fund), and 1,217 for IWC that do not appear in SPY (96.4%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in IWC | Weight in SPY | Difference |
|---|---|---|---|
| AOSAo Smith Corp. | 0.05% | 0.01% | 0.04% |
You are not choosing between two funds in isolation.
Whichever of IWC and SPY you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
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, by $51 a year on a $10,000 investment.
Which performed better, IWC or SPY?
Over the past year IWC returned +35.19% vs +18.53% for SPY, so IWC leads on 1-year performance. Over the longest common window we track (21 years), IWC annualized +6.93% vs +9.46% for SPY. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, IWC or SPY?
IWC has been the more volatile fund at 21.5% annualized versus 15.0% 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 their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, IWC or SPY?
IWC yields 1.00% while SPY yields 0.98%, so IWC currently pays the higher dividend yield.
Is SPY better than IWC?
SPY has a lower expense ratio. IWC led over 1Y and 3Y, SPY over 5Y and the full window. IWC is less concentrated, with 5.2% of the fund in its ten largest positions against 38.0%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.