IWC vs VTI
iShares Microcap ETF vs Vanguard Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. IWC delivered stronger 1-year returns. VTI offers more diversification with 2783 holdings.
Side-by-Side Comparison
| Metric | IWC | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.60% | 0.03% | |
| AUM | $1.4B | $663.5B | |
| Dividend Yield | 0.94% | 1.07% | |
| Holdings | 1,380 | 3,543 | |
| YTD Return | +25.67% | +14.22% | |
| 1Y Return | +47.15% | +22.19% | |
| 3Y Return (annualized) | +23.14% | +21.27% | |
| 5Y Return (annualized) | +7.56% | +12.23% | |
| Volatility (annualized) | 21.6% | 15.3% | |
| Max Drawdown | -65.2% | -56.6% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Aug 12, 2005 | May 24, 2001 |
IWC vs VTI Performance
iShares Microcap ETF (IWC) is a ETF from iShares by BlackRock (US) and Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year IWC returned +47.15% while VTI returned +22.19%. Year to date, IWC is up 25.67% versus a gain of 14.22% for VTI.
Over three years, IWC compounded at +23.14% per year against +21.27% for VTI; over five years the annualized figures are +7.56% and +12.23% respectively. Across the full 21-year window we track, VTI has the edge at +8.14% annualized vs +7.11%. 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 VTI. 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 -56.6% for VTI. 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 0.86. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IWC charges 0.60% per year while VTI 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 1.07% for VTI.
Holdings Overlap
IWC and VTI share 897 holdings out of 3165 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, IWC or VTI?
IWC has an expense ratio of 0.60% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $57 per year of difference.
Which performed better, IWC or VTI?
Over the past year IWC returned +47.15% vs +22.19% for VTI, so IWC leads on 1-year performance. Over the longest common window we track (21 years), IWC annualized +7.11% vs +8.14% for VTI. Past performance does not guarantee future results.
Which is riskier, IWC or VTI?
IWC has been the more volatile fund at 21.6% annualized versus 15.3% for VTI. Worst drawdown: IWC -65.2% vs VTI -56.6%.
Should I hold both IWC and VTI?
IWC and VTI have a monthly-return correlation of 0.86, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IWC and VTI?
IWC and VTI share 897 common holdings with a 0.1% weight overlap. Combined, they hold 3165 unique securities.
Which pays a higher dividend, IWC or VTI?
IWC yields 0.94% while VTI yields 1.07%, so VTI currently pays the higher dividend yield.
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