IWO vs VOO
iShares Russell 2000 Growth ETF vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. IWO delivered stronger 1-year returns. IWO offers more diversification with 1034 holdings.
Side-by-Side Comparison
| Metric | IWO | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.24% | 0.03% | |
| AUM | $14.4B | $979.0B | |
| Dividend Yield | 0.42% | 1.09% | |
| Holdings | 1,125 | 509 | |
| YTD Return | +19.02% | +13.44% | |
| 1Y Return | +33.91% | +22.62% | |
| 3Y Return (annualized) | +18.08% | +21.47% | |
| 5Y Return (annualized) | +5.93% | +13.27% | |
| Volatility (annualized) | 21.6% | 14.1% | |
| Max Drawdown | -60.3% | -34.3% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jul 24, 2000 | Sep 7, 2010 |
IWO vs VOO Performance
iShares Russell 2000 Growth ETF (IWO) 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 IWO returned +33.91% while VOO returned +22.62%. Year to date, IWO is up 19.02% versus a gain of 13.44% for VOO.
Over three years, IWO compounded at +18.08% per year against +21.47% for VOO; over five years the annualized figures are +5.93% and +13.27% respectively. Across the full 16-year window we track, VOO has the edge at +13.55% annualized vs +6.63%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IWO has been the more volatile fund, with annualized monthly volatility of 21.6% 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 -60.3% for IWO 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 0.86. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IWO charges 0.24% per year while VOO charges 0.03%. On a $10,000 position that is $24 vs $3 annually, a gap of $21 per year that compounds over a long holding period. On income, IWO currently yields 0.42% against 1.09% for VOO.
Holdings Overlap
IWO and VOO share 4 holdings out of 1535 unique holdings combined, representing a 0.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, IWO or VOO?
IWO has an expense ratio of 0.24% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $21 per year of difference.
Which performed better, IWO or VOO?
Over the past year IWO returned +33.91% vs +22.62% for VOO, so IWO leads on 1-year performance. Over the longest common window we track (16 years), IWO annualized +6.63% vs +13.55% for VOO. Past performance does not guarantee future results.
Which is riskier, IWO or VOO?
IWO has been the more volatile fund at 21.6% annualized versus 14.1% for VOO. Worst drawdown: IWO -60.3% vs VOO -34.3%.
Should I hold both IWO and VOO?
IWO and VOO have a monthly-return correlation of 0.86, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IWO and VOO?
IWO and VOO share 4 common holdings with a 0.3% weight overlap. Combined, they hold 1535 unique securities.
Which pays a higher dividend, IWO or VOO?
IWO yields 0.42% while VOO yields 1.09%, so VOO currently pays the higher dividend yield.
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