IWM vs VTWO Stock Comparison: AI Score, Valuation, Performance and Upside
IWM and VTWO both target small-cap blend exposure but take different paths to get there — IWM via the Russell 2000 Index, and VTWO via the Russell 2000 Index. The practical differences come down to issuer, cost structure, and the specific index rules each fund follows, since both are pursuing a similar investment outcome.
IWM vs VTWO is largely a question of which issuer and index methodology you trust more for small-cap blend exposure — the underlying investment case is similar, so cost, liquidity, and tracking precision tend to be the deciding factors.
VTWO holds the edge across 4 of 5 key metrics in this comparison. VTWO has delivered stronger 1-year price return (+17.42% vs +17.21% for IWM).
- want the most liquid way to trade or hold small-cap exposure
- prefer iShares (BlackRock)'s approach and fund lineup
- value by far the deepest options market of any small-cap ETF
- are comfortable with higher expense ratio than newer small-cap index funds
- want the low-cost, buy-and-hold version of the small-cap benchmark
- prefer Vanguard's approach and fund lineup
- value significantly cheaper than IWM for the same index exposure
- are comfortable with far less liquid and no meaningful options market versus IWM
| Metric | IWM | VTWO |
|---|---|---|
| ETF scorei | 71.0 | 73.0 |
| Latest closei | $284.10 | $115.16 |
| 1M returni | -5.59% | -5.61% |
| 6M returni | +17.88% | +18.01% |
| 1Y returni | +17.21% | +17.42% |
The ETF score weights long-term returns and risk-adjusted performance most heavily, but still rewards low expense ratios, larger fund size, and broader diversification — so it can favor low-cost, broad, mega-cap funds over smaller thematic or actively-managed funds even when the latter have delivered stronger returns.
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | IWM | VTWO |
|---|---|---|
| 1Y ago | $11.84K (+18.4%) started 2025-09-18 | $11.89K (+18.9%) started 2025-09-18 |
| 5Y ago | $14.93K (+49.3%) started 2021-09-20 | $15.12K (+51.2%) started 2021-09-20 |
| 10Y ago | $30.18K (+201.8%) started 2016-09-19 | $30.72K (+207.2%) started 2016-09-19 |
Hypothetical — past performance does not guarantee future results.
| Metric | IWM | VTWO |
|---|---|---|
| Expense ratioi | 0.19% | 0.06% |
| Total assets (AUM)i | $80.46B | $17.95B |
| Dividend yieldi | 0.90% | 1.10% |
| Trailing P/Ei | 16.73 | 16.77 |
| Betai | 1.16 | 1.16 |
| 52-week change | 17.21% | 17.42% |
| Metric | IWM | VTWO |
|---|---|---|
| 1Y returni | +17.21% | +17.42% |
| 6M returni | +17.88% | +18.01% |
| 1M returni | -5.59% | -5.61% |
| 1Y Sharpe ratio | 0.71 | 0.72 |
| Betai | 1.16 | 1.16 |
| Dividend yieldi | 0.90% | 1.10% |
| 5Y CAGR | +6.90% | +7.08% |
Over the past year, IWM and VTWO have moved strongly in the same direction (correlation of 1.00), based on daily returns.
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
| Period | Metric | IWM | VTWO |
|---|---|---|---|
| 1Y | Growthi | +17.21% | +17.42% |
| CAGRi | +17.23% | +17.43% | |
| Volatilityi | 18.60% | 18.54% | |
| Sharpe ratioi | 0.71 | 0.72 | |
| Sortino ratioi | 1.03 | 1.05 | |
| Max drawdowni | 11.03% | 10.99% | |
| Current drawdowni | 6.64% | 6.61% | |
| Avg drawdowni | 2.37% | 2.35% | |
| Ulcer Indexi | 3.33% | 3.32% | |
| Max daily dropi | 3.55% | 3.53% | |
| Max wkly dropi | 4.62% | 4.59% | |
| 5Y | Growthi | +39.57% | +40.71% |
| CAGRi | +6.90% | +7.08% | |
| Volatilityi | 22.40% | 22.36% | |
| Sharpe ratioi | 0.21 | 0.22 | |
| Sortino ratioi | 0.30 | 0.31 | |
| Max drawdowni | 31.91% | 31.88% | |
| Current drawdowni | 6.64% | 6.61% | |
| Avg drawdowni | 13.38% | 13.25% | |
| Ulcer Indexi | 16.32% | 16.20% | |
| Max daily dropi | 6.42% | 6.50% | |
| Max wkly dropi | 12.38% | 12.51% | |
| 10Y | Growthi | +163.20% | +166.86% |
| CAGRi | +10.17% | +10.32% | |
| Volatilityi | 23.00% | 23.05% | |
| Sharpe ratioi | 0.34 | 0.35 | |
| Sortino ratioi | 0.48 | 0.49 | |
| Max drawdowni | 41.13% | 41.19% | |
| Current drawdowni | 6.64% | 6.61% | |
| Avg drawdowni | 9.89% | 9.81% | |
| Ulcer Indexi | 13.34% | 13.25% | |
| Max daily dropi | 13.27% | 13.47% | |
| Max wkly dropi | 24.00% | 24.32% |
| Category | IWM | VTWO |
|---|---|---|
| Fund name | iShares Russell 2000 ETF | Vanguard Russell 2000 Index Fund ETF Shares |
| Type | ETF | ETF |
| Expense ratioi | 0.19% | 0.06% |
| Total assets (AUM)i | $80.46B | $17.95B |
| Dividend yieldi | 0.90% | 1.10% |
- By far the deepest options market of any small-cap ETF
- Extremely high trading volume for tactical positioning
- Long-standing benchmark status
- Significantly cheaper than IWM for the same index exposure
- Vanguard's tax-efficient structure
- Ideal for long-term small-cap allocations rather than trading
- Higher expense ratio than newer small-cap index funds
- Russell 2000 includes many unprofitable, speculative companies
- More rate-sensitive and volatile than large-cap funds
- Far less liquid and no meaningful options market versus IWM
- Same inclusion of unprofitable small-caps as any Russell 2000 fund
- Small-caps remain volatile and rate-sensitive
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