IWC vs VOO
iShares Microcap ETF vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. IWC delivered stronger 1-year returns. IWC offers more diversification with 1279 holdings.
Side-by-Side Comparison
| Metric | IWC | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.60% | 0.03% | |
| AUM | $1.4B | $979.0B | |
| Dividend Yield | 0.94% | 1.09% | |
| Holdings | 1,380 | 509 | |
| 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 Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Aug 12, 2005 | Sep 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
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
| Stock | Weight in IWC | Weight in VOO | Difference |
|---|---|---|---|
| RCL | 0.07% | 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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