IWM vs VOO
iShares Russell 2000 ETF vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. IWM delivered stronger 1-year returns. IWM offers more diversification with 1594 holdings.
Side-by-Side Comparison
| Metric | IWM | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.19% | 0.03% | |
| AUM | $79.5B | $979.0B | |
| Dividend Yield | 0.88% | 1.09% | |
| Holdings | 1,996 | 509 | |
| YTD Return | +22.18% | +13.72% | |
| 1Y Return | +34.85% | +21.63% | |
| 3Y Return (annualized) | +18.08% | +21.55% | |
| 5Y Return (annualized) | +7.62% | +13.26% | |
| Volatility (annualized) | 20.0% | 14.1% | |
| Max Drawdown | -59.9% | -34.3% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | May 22, 2000 | Sep 7, 2010 |
IWM vs VOO Performance
iShares Russell 2000 ETF (IWM) 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 IWM returned +34.85% while VOO returned +21.63%. Year to date, IWM is up 22.18% versus a gain of 13.72% for VOO.
Over three years, IWM compounded at +18.08% per year against +21.55% for VOO; over five years the annualized figures are +7.62% and +13.26% respectively. Across the full 16-year window we track, VOO has the edge at +13.56% annualized vs +7.75%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IWM has been the more volatile fund, with annualized monthly volatility of 20.0% 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 -59.9% for IWM 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 0.87. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IWM charges 0.19% per year while VOO 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 0.88% against 1.09% for VOO.
Holdings Overlap
Frequently Asked Questions
Which is cheaper, IWM or VOO?
IWM has an expense ratio of 0.19% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $16 per year of difference.
Which performed better, IWM or VOO?
Over the past year IWM returned +34.85% vs +21.63% for VOO, so IWM leads on 1-year performance. Over the longest common window we track (16 years), IWM annualized +7.75% vs +13.56% for VOO. Past performance does not guarantee future results.
Which is riskier, IWM or VOO?
IWM has been the more volatile fund at 20.0% annualized versus 14.1% for VOO. Worst drawdown: IWM -59.9% vs VOO -34.3%.
Should I hold both IWM and VOO?
IWM and VOO have a monthly-return correlation of 0.87, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IWM and VOO?
IWM and VOO share 2 common holdings with a 0.1% weight overlap. Combined, they hold 2097 unique securities.
Which pays a higher dividend, IWM or VOO?
IWM yields 0.88% while VOO yields 1.09%, so VOO currently pays the higher dividend yield.
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