IWM vs VBR
iShares Russell 2000 ETF vs Vanguard Morningstar Small-Cap Value ETF
Which is better, IWM or VBR?
Small Cap Blend against Small Cap Value.
VBR has a lower expense ratio. IWM led over 1Y and 3Y, VBR over 5Y and the full window. The two have moved almost in lockstep, correlation 0.97. IWM is less concentrated, with 3.2% of the fund in its ten largest positions against 5.9%.
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 | VBR |
|---|---|---|
| Expense Ratio | 0.19% | 0.05%Best |
| AUM | $79.0B | $37.3B |
| Dividend Yield | 0.91% | 1.76% |
| Holdings | 1,996 | 847 |
| YTD Return | +15.57%Best | +12.32% |
| 1Y Return | +18.04%Best | +15.68% |
| 3Y Return (annualized) | +18.87%Best | +16.72% |
| 5Y Return (annualized) | +6.97% | +9.73%Best |
| Volatility (annualized) | 19.6% | 19.0%Best |
| Max Drawdown | -59.9%Best | -64.0% |
| $10,000 over 5 years | $14,006 | $15,908Best |
| Top 10 Weight | 3.2%Best | 5.9% |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Small Cap Blend | Small Cap Value |
| Inception | May 22, 2000 | Jan 26, 2004 |
Volatility and max drawdown are measured over the window both funds cover: Jan 30, 2004 to Sep 21, 2026 (22.6 years).
IWM vs VBR 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 22.6 years both funds cover.
IWM vs VBR Performance
iShares Russell 2000 ETF (IWM) is an ETF from iShares by BlackRock (US) and Vanguard Morningstar Small-Cap Value ETF (VBR) is an ETF from Vanguard (US). Over the past year IWM returned +18.04% while VBR returned +15.68%. Year to date, IWM is up 15.57% versus a gain of 12.32% for VBR.
Over three years, IWM compounded at +18.87% per year against +16.72% for VBR; over five years the annualized figures are +6.97% and +9.73% respectively. Across the full 23-year window we track, VBR has the edge at +7.76% annualized vs +7.63%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IWM has been the more volatile fund, with annualized monthly volatility of 19.6% compared with 19.0% for VBR. 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 -64.0% for VBR. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.97. 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 VBR charges 0.05%. On a $10,000 position that is $19 vs $5 annually, a gap of $14 per year that compounds over a long holding period. On income, IWM currently yields 0.91% against 1.76% for VBR.
Holdings Overlap
40.2% of IWM's money is in holdings VBR also owns. 25.1% of VBR's money is in holdings IWM also owns.
The two portfolios partly overlap.
435 positions in common, counted across the 1,956 positions we hold weights for in IWM and 836 in VBR, against full books of 1,996 and 847.
What only one of them owns
Our book lists 382 positions for VBR that do not appear in our book for IWM (71.9% of the fund), and 1,259 for IWM that do not appear in VBR (55.6%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in IWM | Weight in VBR | Difference |
|---|---|---|---|
| MOG.AMoog Inccommon Stock | 0.37% | 0.26% | 0.11% |
| VSATViasat Inc | 0.32% | 0.25% | 0.07% |
| UMBFUmb Financial Corp. | 0.34% | 0.21% | 0.13% |
| COMPSturm Ruger & Company Inc. | 0.29% | 0.20% | 0.09% |
| ONBOld National Bancorp/In Common Stock | 0.30% | 0.19% | 0.11% |
| PRAXPraxis Precision Medicines, Inc. | 0.25% | 0.20% | 0.05% |
| FCFSFirstcash Inc | 0.27% | 0.17% | 0.10% |
| CMCCommercial Metals Co | 0.27% | 0.15% | 0.12% |
| ZWSZurn Elkay Water Solutions | 0.25% | 0.17% | 0.08% |
| TEXTerex Corp | 0.24% | 0.17% | 0.07% |
40.2% of IWM is already inside VBR.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, IWM or VBR?
IWM has an expense ratio of 0.19% while VBR charges 0.05%. VBR is the cheaper option, by $14 a year on a $10,000 investment.
Which performed better, IWM or VBR?
Over the past year IWM returned +18.04% vs +15.68% for VBR, so IWM leads on 1-year performance. Over the longest common window we track (23 years), IWM annualized +7.63% vs +7.76% for VBR. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, IWM or VBR?
IWM has been the more volatile fund at 19.6% annualized versus 19.0% for VBR. Worst drawdown: IWM -59.9% vs VBR -64.0%.
Should I hold both IWM and VBR?
IWM and VBR have a monthly-return correlation of 0.97, 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.
What is the holdings overlap between IWM and VBR?
40.2% of IWM's money is in holdings VBR also owns. 25.1% of VBR's is in holdings IWM also owns. They hold 435 positions in common, counted across the 1,956 positions we hold weights for in IWM and 836 in VBR.
Which pays a higher dividend, IWM or VBR?
IWM yields 0.91% while VBR yields 1.76%, so VBR currently pays the higher dividend yield.
Is VBR better than IWM?
VBR has a lower expense ratio. IWM led over 1Y and 3Y, VBR over 5Y and the full window. The two have moved almost in lockstep, correlation 0.97. IWM is less concentrated, with 3.2% of the fund in its ten largest positions against 5.9%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.