IWM vs VXUS
iShares Russell 2000 ETF vs Vanguard Total International Stock ETF
Quick Verdict
VXUS has a lower expense ratio. IWM delivered stronger 1-year returns. VXUS offers more diversification with 8,747 holdings.
Side-by-Side Comparison
| Metric | IWM | VXUS | Winner |
|---|---|---|---|
| Expense Ratio | 0.19% | 0.05% | |
| AUM | $82.2B | $158.1B | |
| Dividend Yield | 0.91% | 2.59% | |
| Holdings | 1,996 | 8,747 | |
| YTD Return | +21.07% | +15.23% | |
| 1Y Return | +34.12% | +26.78% | |
| 3Y Return (annualized) | +19.14% | +20.86% | |
| 5Y Return (annualized) | +7.78% | +9.66% | |
| Volatility (annualized) | 20.0% | 15.1% | |
| Max Drawdown | -59.9% | -39.9% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | May 22, 2000 | Jan 26, 2011 |
IWM vs VXUS Performance
iShares Russell 2000 ETF (IWM) is a ETF from iShares by BlackRock (US) and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year IWM returned +34.12% while VXUS returned +26.78%. Year to date, IWM is up 21.07% versus a gain of 15.23% for VXUS.
Over three years, IWM compounded at +19.14% per year against +20.86% for VXUS; over five years the annualized figures are +7.78% and +9.66% respectively. Across the full 16-year window we track, IWM has the edge at +7.70% annualized vs +4.89%. 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 15.1% for VXUS. 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 -39.9% for VXUS. 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 0.77. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IWM charges 0.19% per year while VXUS 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 2.59% for VXUS.
Holdings Overlap
IWM and VXUS share 17 holdings out of 9447 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, IWM or VXUS?
IWM has an expense ratio of 0.19% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $14 per year of difference.
Which performed better, IWM or VXUS?
Over the past year IWM returned +34.12% vs +26.78% for VXUS, so IWM leads on 1-year performance. Over the longest common window we track (16 years), IWM annualized +7.70% vs +4.89% for VXUS. Past performance does not guarantee future results.
Which is riskier, IWM or VXUS?
IWM has been the more volatile fund at 20.0% annualized versus 15.1% for VXUS. Worst drawdown: IWM -59.9% vs VXUS -39.9%.
Should I hold both IWM and VXUS?
IWM and VXUS have a monthly-return correlation of 0.77, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IWM and VXUS?
IWM and VXUS share 17 common holdings with a 0.1% weight overlap. Combined, they hold 9447 unique securities.
Which pays a higher dividend, IWM or VXUS?
IWM yields 0.91% while VXUS yields 2.59%, so VXUS currently pays the higher dividend yield.
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