IWO vs VTI
iShares Russell 2000 Growth ETF vs Vanguard Morningstar Total Stock Market ETF
Which is better, IWO or VTI?
Small Cap Growth against Large Cap Blend.
VTI has a lower expense ratio. VTI led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.91. IWO is less concentrated, with 6.1% of the fund in its ten largest positions against 33.3%.
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 | IWO | VTI |
|---|---|---|
| Expense Ratio | 0.24% | 0.03%Best |
| AUM | $14.6B | $666.9B |
| Dividend Yield | 0.44% | 1.03% |
| Holdings | 1,125 | 3,543 |
| YTD Return | +11.33% | +12.28%Best |
| 1Y Return | +15.87% | +16.78%Best |
| 3Y Return (annualized) | +17.05% | +20.89%Best |
| 5Y Return (annualized) | +4.42% | +11.94%Best |
| Volatility (annualized) | 20.9% | 15.3%Best |
| Max Drawdown | -58.1% | -56.6%Best |
| $10,000 over 5 years | $12,414 | $17,576Best |
| Top 10 Weight | 6.1%Best | 33.3% |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Small Cap Growth | Large Cap Blend |
| Inception | Jul 24, 2000 | May 24, 2001 |
Volatility and max drawdown are measured over the window both funds cover: May 31, 2001 to Sep 17, 2026 (25.3 years).
IWO vs VTI 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 25.3 years both funds cover.
IWO vs VTI Performance
iShares Russell 2000 Growth ETF (IWO) is an ETF from iShares by BlackRock (US) and Vanguard Morningstar Total Stock Market ETF (VTI) is an ETF from Vanguard (US). Over the past year IWO returned +15.87% while VTI returned +16.78%. Year to date, IWO is up 11.33% versus a gain of 12.28% for VTI.
Over three years, IWO compounded at +17.05% per year against +20.89% for VTI; over five years the annualized figures are +4.42% and +11.94% respectively. Across the full 25-year window we track, VTI has the edge at +8.03% annualized vs +7.32%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IWO has been the more volatile fund, with annualized monthly volatility of 20.9% compared with 15.3% for VTI. 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 -58.1% for IWO and -56.6% for VTI. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.91. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
IWO charges 0.24% per year while VTI 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 0.44% against 1.03% for VTI.
Holdings Overlap
91.0% of IWO's money is in holdings VTI also owns. 1.7% of VTI's money is in holdings IWO also owns.
Most of IWO is already inside VTI. Owning both mostly buys the same companies twice.
928 positions in common, counted across the 1,025 positions we hold weights for in IWO and 3,463 in VTI, against full books of 1,125 and 3,543.
What only one of them owns
Our book lists 981 positions for VTI that do not appear in our book for IWO (95.8% of the fund), and 35 for IWO that do not appear in VTI (2.7%).
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 IWO | Weight in VTI | Difference |
|---|---|---|---|
| MOG.AMoog Inccommon Stock | 0.67% | 0.02% | 0.65% |
| GKOSGlaukos Corp. | 0.65% | 0.01% | 0.64% |
| EATBrinker International, Inc. | 0.63% | 0.01% | 0.62% |
| BTSGBrightspring Health | 0.60% | 0.01% | 0.59% |
| KRYSKrystal Biotech Inc | 0.59% | 0.01% | 0.58% |
| PTGXProtagonist Therapeutics Inc | 0.57% | 0.01% | 0.56% |
| TWSTTwist Bioscience Corp. | 0.57% | 0.01% | 0.56% |
| CRNXCrinetics Pharmaceuticals Inc Com | 0.56% | 0.01% | 0.55% |
| FCFSFirstcash Inc | 0.56% | 0.01% | 0.55% |
| IDCCInterdigital Inc | 0.55% | 0.01% | 0.54% |
91.0% of IWO is already inside VTI.
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, IWO or VTI?
IWO has an expense ratio of 0.24% while VTI charges 0.03%. VTI is the cheaper option, by $21 a year on a $10,000 investment.
Which performed better, IWO or VTI?
Over the past year IWO returned +15.87% vs +16.78% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (25 years), IWO annualized +7.32% vs +8.03% for VTI. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, IWO or VTI?
IWO has been the more volatile fund at 20.9% annualized versus 15.3% for VTI. Worst drawdown: IWO -58.1% vs VTI -56.6%.
Should I hold both IWO and VTI?
IWO and VTI have a monthly-return correlation of 0.91, 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 IWO and VTI?
91.0% of IWO's money is in holdings VTI also owns. 1.7% of VTI's is in holdings IWO also owns. They hold 928 positions in common, counted across the 1,025 positions we hold weights for in IWO and 3,463 in VTI.
Which pays a higher dividend, IWO or VTI?
IWO yields 0.44% while VTI yields 1.03%, so VTI currently pays the higher dividend yield.
Is VTI better than IWO?
VTI has a lower expense ratio. VTI led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.91. IWO is less concentrated, with 6.1% of the fund in its ten largest positions against 33.3%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.