IWM vs SCHA
iShares Russell 2000 ETF vs Schwab US Small-Cap ETF
Which is better, IWM or SCHA?
Nearly the same fund. SCHA costs less.
SCHA has a lower expense ratio. SCHA led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.99.
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 | IWM | SCHA |
|---|---|---|
| Expense Ratio | 0.19% | 0.03%Best |
| AUM | $75.4B | $21.7B |
| Dividend Yield | 0.96% | 1.10% |
| Holdings | 3,982 | 3,507 |
| YTD Return | +14.56% | +17.23%Best |
| 1Y Return | +17.08% | +20.61%Best |
| 3Y Return (annualized) | +20.08% | +20.60%Best |
| 5Y Return (annualized) | +4.71% | +5.73%Best |
| Volatility (annualized) | 19.4% | 19.2%Best |
| Max Drawdown | -42.3%Best | -43.0% |
| $10,000 over 5 years | $12,588 | $13,213Best |
| Fund Family | iShares by BlackRock (US) | Charles Schwab Asset Management |
| Category | Equity | Equity |
| Style | Small Cap Blend | Small Cap Blend |
| Inception | May 22, 2000 | Nov 3, 2009 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Nov 3, 2009 to Nov 11, 2026 (17 years).
IWM vs SCHA 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 17 years both funds cover.
IWM vs SCHA Performance
iShares Russell 2000 ETF (IWM) is an ETF from iShares by BlackRock (US) and Schwab US Small-Cap ETF (SCHA) is an ETF from Charles Schwab Asset Management. Over the past year IWM returned +17.08% while SCHA returned +20.61%. Year to date, IWM is up 14.56% versus a gain of 17.23% for SCHA.
Over three years, IWM compounded at +20.08% per year against +20.60% for SCHA; over five years the annualized figures are +4.71% and +5.73% respectively. Across the full 17-year window we track, SCHA has the edge at +10.98% annualized vs +10.31%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IWM has been the more volatile fund, with annualized monthly volatility of 19.4% compared with 19.2% for SCHA. 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 -42.3% for IWM and -43.0% for SCHA. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.99. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
IWM charges 0.19% per year while SCHA charges 0.03%. On a $10,000 position that is $19 vs $3 annually, a gap of $16 per year that compounds over a long holding period. On income, IWM currently yields 0.96% against 1.10% for SCHA.
You are not choosing between two funds in isolation.
Whichever of IWM and SCHA 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, IWM or SCHA?
IWM has an expense ratio of 0.19% while SCHA charges 0.03%. SCHA is the cheaper option, by $16 a year on a $10,000 investment.
Which performed better, IWM or SCHA?
Over the past year IWM returned +17.08% vs +20.61% for SCHA, so SCHA leads on 1-year performance. Over the longest common window we track (17 years), IWM annualized +10.31% vs +10.98% for SCHA. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, IWM or SCHA?
IWM has been the more volatile fund at 19.4% annualized versus 19.2% for SCHA. Worst drawdown: IWM -42.3% vs SCHA -43.0%.
Should I hold both IWM and SCHA?
IWM and SCHA have a monthly-return correlation of 0.99, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
Which pays a higher dividend, IWM or SCHA?
IWM yields 0.96% while SCHA yields 1.10%, so SCHA currently pays the higher dividend yield.
Is SCHA better than IWM?
SCHA has a lower expense ratio. SCHA led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.99. Which one suits a particular account depends on what it is for. This is information, not a recommendation.