IWO vs VXUS
iShares Russell 2000 Growth ETF vs Vanguard Total International Stock ETF
Quick Verdict
VXUS has a lower expense ratio. IWO delivered stronger 1-year returns. VXUS offers more diversification with 7861 holdings.
Side-by-Side Comparison
| Metric | IWO | VXUS | Winner |
|---|---|---|---|
| Expense Ratio | 0.24% | 0.05% | |
| AUM | $14.4B | $156.5B | |
| Dividend Yield | 0.42% | 2.60% | |
| Holdings | 1,125 | 8,747 | |
| YTD Return | +19.31% | +14.57% | |
| 1Y Return | +34.54% | +27.82% | |
| 3Y Return (annualized) | +17.70% | +19.27% | |
| 5Y Return (annualized) | +5.92% | +9.28% | |
| Volatility (annualized) | 21.6% | 15.1% | |
| Max Drawdown | -60.3% | -39.9% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jul 24, 2000 | Jan 26, 2011 |
IWO vs VXUS Performance
iShares Russell 2000 Growth ETF (IWO) 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 IWO returned +34.54% while VXUS returned +27.82%. Year to date, IWO is up 19.31% versus a gain of 14.57% for VXUS.
Over three years, IWO compounded at +17.70% per year against +19.27% for VXUS; over five years the annualized figures are +5.92% and +9.28% respectively. Across the full 16-year window we track, IWO has the edge at +6.65% annualized vs +4.86%. 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 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 -60.3% for IWO 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 0.75. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IWO charges 0.24% per year while VXUS charges 0.05%. On a $10,000 position that is $24 vs $5 annually, a gap of $19 per year that compounds over a long holding period. On income, IWO currently yields 0.42% against 2.60% for VXUS.
Holdings Overlap
IWO and VXUS share 6 holdings out of 8889 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, IWO or VXUS?
IWO has an expense ratio of 0.24% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $19 per year of difference.
Which performed better, IWO or VXUS?
Over the past year IWO returned +34.54% vs +27.82% for VXUS, so IWO leads on 1-year performance. Over the longest common window we track (16 years), IWO annualized +6.65% vs +4.86% for VXUS. Past performance does not guarantee future results.
Which is riskier, IWO or VXUS?
IWO has been the more volatile fund at 21.6% annualized versus 15.1% for VXUS. Worst drawdown: IWO -60.3% vs VXUS -39.9%.
Should I hold both IWO and VXUS?
IWO and VXUS have a monthly-return correlation of 0.75, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IWO and VXUS?
IWO and VXUS share 6 common holdings with a 0.0% weight overlap. Combined, they hold 8889 unique securities.
Which pays a higher dividend, IWO or VXUS?
IWO yields 0.42% while VXUS yields 2.60%, so VXUS currently pays the higher dividend yield.
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