IWC vs VOO

Quick Verdict

VOO has a lower expense ratio. IWC delivered stronger 1-year returns. IWC offers more diversification with 1279 holdings.

Lower Fees: VOOHigher Returns: IWCMore Diversified: IWC

Side-by-Side Comparison

MetricIWCVOOWinner
Expense Ratio0.60%0.03%
AUM$1.4B$979.0B
Dividend Yield0.94%1.09%
Holdings1,380509
YTD Return+25.25%+13.44%
1Y Return+51.41%+22.62%
3Y Return (annualized)+23.03%+21.47%
5Y Return (annualized)+7.48%+13.27%
Volatility (annualized)21.6%14.1%
Max Drawdown-65.2%-34.3%
Fund FamilyiShares by BlackRock (US)Vanguard (US)
CategoryEquityEquity
InceptionAug 12, 2005Sep 7, 2010

IWC vs VOO Performance

iShares Microcap ETF (IWC) is a ETF from iShares by BlackRock (US) and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year IWC returned +51.41% while VOO returned +22.62%. Year to date, IWC is up 25.25% versus a gain of 13.44% for VOO.

Over three years, IWC compounded at +23.03% per year against +21.47% for VOO; over five years the annualized figures are +7.48% and +13.27% respectively. Across the full 16-year window we track, VOO has the edge at +13.55% 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 14.1% for VOO. 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 -34.3% for VOO. 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 0.79. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

IWC charges 0.60% per year while VOO charges 0.03%. On a $10,000 position that is $60 vs $3 annually, a gap of $57 per year that compounds over a long holding period. On income, IWC currently yields 0.94% against 1.09% for VOO.

Holdings Overlap

0.1%overlap

IWC and VOO share 1 holdings out of 1783 unique holdings combined, representing a 0.1% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in IWCWeight in VOODifference
RCL0.07%0.12%0.05%

Frequently Asked Questions

Which is cheaper, IWC or VOO?

IWC has an expense ratio of 0.60% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $57 per year of difference.

Which performed better, IWC or VOO?

Over the past year IWC returned +51.41% vs +22.62% for VOO, so IWC leads on 1-year performance. Over the longest common window we track (16 years), IWC annualized +7.10% vs +13.55% for VOO. Past performance does not guarantee future results.

Which is riskier, IWC or VOO?

IWC has been the more volatile fund at 21.6% annualized versus 14.1% for VOO. Worst drawdown: IWC -65.2% vs VOO -34.3%.

Should I hold both IWC and VOO?

IWC and VOO have a monthly-return correlation of 0.79, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between IWC and VOO?

IWC and VOO share 1 common holdings with a 0.1% weight overlap. Combined, they hold 1783 unique securities.

Which pays a higher dividend, IWC or VOO?

IWC yields 0.94% while VOO yields 1.09%, so VOO currently pays the higher dividend yield.

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