IWM vs SPY
iShares Russell 2000 ETF vs State Street SPDR S&P 500 ETF Trust
Which is better, IWM or SPY?
Small Cap Blend against Large Cap Blend.
SPY has a lower expense ratio. IWM led over 1Y and the full window, SPY over 3Y and 5Y.
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 | SPY |
|---|---|---|
| Expense Ratio | 0.19% | 0.09%Best |
| AUM | $81.2B | $814.4B |
| Dividend Yield | 0.91% | 1.01% |
| Holdings | 1,996 | 505 |
| YTD Return | +19.48%Best | +13.34% |
| 1Y Return | +26.41%Best | +19.97% |
| 3Y Return (annualized) | +17.97% | +21.20%Best |
| 5Y Return (annualized) | +6.84% | +12.81%Best |
| Volatility (annualized) | 19.9% | 15.1%Best |
| Max Drawdown | -59.9% | -56.5%Best |
| $10,000 over 5 years | $13,921 | $18,270Best |
| Fund Family | iShares by BlackRock (US) | State Street Investment Management |
| Category | Equity | Equity |
| Style | Small Cap Blend | Large Cap Blend |
| Inception | May 22, 2000 | Jan 22, 1993 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: May 26, 2000 to Sep 4, 2026 (26.3 years).
IWM 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 26.3 years both funds cover.
IWM vs SPY Performance
iShares Russell 2000 ETF (IWM) 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 IWM returned +26.41% while SPY returned +19.97%. Year to date, IWM is up 19.48% versus a gain of 13.34% for SPY.
Over three years, IWM compounded at +17.97% per year against +21.20% for SPY; over five years the annualized figures are +6.84% and +12.81% respectively. Across the full 26-year window we track, IWM has the edge at +7.64% annualized vs +7.06%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IWM has been the more volatile fund, with annualized monthly volatility of 19.9% compared with 15.1% 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 -59.9% for IWM 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 0.87. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IWM charges 0.19% per year while SPY charges 0.09%. On a $10,000 position that is $19 vs $9 annually, a gap of $10 per year that compounds over a long holding period. On income, IWM currently yields 0.91% against 1.01% for SPY.
Holdings Overlap
At least 0.2% of SPY's money is in holdings IWM also owns.
Stated as a floor: for IWM, our book for it covers 91.8% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
We cannot see either book well enough to say how much of this pair is duplicated.
2 positions in common, counted across the 1,595 positions we hold weights for in IWM and 503 in SPY, against full books of 1,996 and 505.
You are not choosing between two funds in isolation.
Whichever of IWM 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, IWM or SPY?
IWM has an expense ratio of 0.19% while SPY charges 0.09%. SPY is the cheaper option, by $10 a year on a $10,000 investment.
Which performed better, IWM or SPY?
Over the past year IWM returned +26.41% vs +19.97% for SPY, so IWM leads on 1-year performance. Over the longest common window we track (26 years), IWM annualized +7.64% vs +7.06% for SPY. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, IWM or SPY?
IWM has been the more volatile fund at 19.9% annualized versus 15.1% for SPY. Worst drawdown: IWM -59.9% vs SPY -56.5%.
Should I hold both IWM and SPY?
IWM and SPY have a monthly-return correlation of 0.87, 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, IWM or SPY?
IWM yields 0.91% while SPY yields 1.01%, so SPY currently pays the higher dividend yield.
Is SPY better than IWM?
SPY has a lower expense ratio. IWM led over 1Y and the full window, SPY over 3Y and 5Y. Which one suits a particular account depends on what it is for. This is information, not a recommendation.