IWM vs VTWO ETF comparison
IWM vs VTWO
IWM holds about 2,000 of the smallest U.S. public companies, and VTWO holds about 2,000 of the smallest U.S. public companies. Both funds track the Russell 2000 Index, so they hold almost the same companies.
The differences are the fund company, the fee and small details of how each fund trades and rebalances. IWM charges 0.19% and VTWO charges 0.06%. This page lines up what each fund holds, how much they overlap, what each paid and how each performed, with the date next to every number.
IWM vs VTWO, the short answer
IWM and VTWO differ in what they hold and what they charge. Both funds track the Russell 2000 Index, so they hold almost the same companies. The differences are the fund company, the fee and small details of how each fund trades and rebalances. Expense ratios are 0.19% and 0.06%.
Market price total returns, annualized (both to Nov 9, 2026): 1 year 18.12% vs 18.28%; 3 years 20.42% vs 20.62%; 5 years 4.50% vs 4.67%; 10 years 9.12% vs 9.28%. Neither is better for everyone; the choice turns on cost, which markets you want, and what you already own.
IWM vs VTWO overlap, if you own both
IWM · ten largest holdings
As of Nov 6, 2026- 1Glaukos GKOS0.44%Both
- 2BrightSpring Health Services BTSG0.39%Both
- 3JFrog FROG0.38%Both
- 4UMB Financial UMBF0.34%Both
- 5Moog MOG.A0.32%Both
- 6CareTrust REIT CTRE0.31%Only here
- 7Brinker International EAT0.31%Only here
- 8Ryman Hospitality Properties RHP0.31%Only here
- 9Vaxcyte PCVX0.30%Only here
- 10Old National Bancorp ONB0.30%Only here
Ten largest total 3.4%
VTWO · ten largest holdings
As of Sep 30, 2026- 1Twist Bioscience TWST0.42%Only here
- 2Moog MOG.A0.36%Both
- 3JFrog FROG0.35%Both
- 410x Genomics TXG0.35%Only here
- 5UMB Financial UMBF0.32%Both
- 6BrightSpring Health Services BTSG0.31%Both
- 7Glaukos GKOS0.31%Both
- 8Viasat VSAT0.30%Only here
- 9Cytokinetics CYTK0.29%Only here
- 10Hut 8 HUT0.29%Only here
Ten largest total 3.3%
Shared by both · 5 companies
| Company | IWM weight | VTWO weight | Gap |
|---|---|---|---|
| Glaukos GKOS | 0.44% | 0.31% | +0.13 pts |
| BrightSpring Health Services BTSG | 0.39% | 0.31% | +0.08 pts |
| JFrog FROG | 0.38% | 0.35% | +0.03 pts |
| UMB Financial UMBF | 0.34% | 0.32% | +0.02 pts |
| Moog MOG.A | 0.32% | 0.36% | -0.04 pts |
Only in IWM’s top ten: CareTrust REIT, Brinker International, Ryman Hospitality Properties, Vaxcyte, Old National Bancorp. Only in VTWO’s top ten: Twist Bioscience, 10x Genomics, Viasat, Cytokinetics, Hut 8.
The twist
90.3% of the weight sits in stocks both funds hold (matched by ticker in the full holdings files dated Nov 6, 2026 and Sep 30, 2026), and 5 stocks appear in both top-ten lists. Holding both adds almost no diversification: you are paying for two wrappers around nearly the same portfolio.
IWM vs VTWO, one goal, which fund?
IWM vs VTWO, where the money goes
IWM · iShares, Nov 6, 2026
VTWO · Vanguard, Sep 30, 2026
IWM vs VTWO returns compared across calendar years
Calendar-year market price total returns (distributions reinvested), computed from daily adjusted closing prices to Dec 31 of each year. Both funds use the same days, so the years compare like for like. Source: StockAnalysis price history, Nov 9, 2026.
IWM vs VTWO, what each fund costs a year
The data room
Every figure behind the IWM vs VTWO cards above, with its source, date and evidence grade. Open the issuer documents before relying on any number.
IWM vs VTWO key facts
Evidence grade: Issuer issuer page · Mixed issuer plus provider · 3rd party| Metric | IWM | VTWO | Grade and source |
|---|
Portfolio characteristics
| Metric | IWM | VTWO | Grade and source |
|---|
Net assets are for the ETF share class on different dates (IWM $77.87B; VTWO $16.31B), so they are not matched. Figures that were not available are left out rather than estimated.
IWM vs VTWO holdings and top ten
Click a tile · IWM: iShares, Nov 6, 2026 · VTWO: Vanguard, Sep 30, 2026Tile area is proportional to weight.
| # | Holding | Weight |
|---|
| # | Holding | Weight |
|---|
Top ten sums: IWM 3.4% · VTWO 3.3%. 5 shared top-ten stocks. Weights change.
IWM vs VTWO sector exposure
IWM: Nov 6, 2026 · VTWO: Sep 30, 2026The sector mirror
Same funds, different lenses
Company size
Both hold small U.S. companies, and some also hold mid-size names. IWM holds 1,971 stocks and VTWO holds 2,000.
What you actually own
IWM vs VTWO performance
Matched dates, both to Nov 9, 2026; issuer NAV rows dated separatelyThe first rows are market price total returns computed on the same dates for both funds (to Nov 9, 2026), so they compare like for like. The 10-year figure runs from the Dec 30, 2016 close (9.9 years). The issuer NAV rows are dated separately (IWM to Nov 9, 2026, VTWO to Oct 31, 2026) and include the since-inception figures. “Since inception” starts in different years (IWM 2000, VTWO 2010). Past performance does not guarantee future results.
Growth of a hypothetical $10,000 · Market price total return, both to Nov 9, 2026
Both funds derived from annualized market price total returns on matched dates (compounded). Distributions reinvested; fund expenses are already in the price. Illustration, not a forecast.
IWM vs VTWO yield, dividends and dividend growth
Latest eight payouts each| IWM ex-date | Payable | $ / share | VTWO ex-date | Payable | $ / share |
|---|
Paid per share, last 12 months vs the 12 months before
Payouts are listed by ex-dividend date. Small cap funds pay low, uneven dividends, so the like-for-like comparison is the total paid over the last 12 months against the 12 months before (cards above: IWM $2.730 per share, VTWO $1.357 per share). Dividend yields here are 1% to 2%, so most of the return comes from price change. See yield vs total return.
| Measure | IWM | VTWO |
|---|---|---|
| 30-day SEC yield | 1.18% (Sep 30, 2026) | 1.20% (Oct 31, 2026) |
| Trailing 12-month | 0.98% (Sep 30, 2026) | 1.19% (Nov 9) |
| Paid, last 12 months | $2.730 per share | $1.357 per share |
| Frequency | Quarterly | Quarterly |
Per-share payouts differ because share prices differ, so compare yields rather than dollars. Small cap funds pay low dividends and the amounts change from quarter to quarter, so a single quarter says little. Payouts shown: IWM 8, VTWO 8. See what is dividend yield and yield vs total return.
IWM vs VTWO concentration and overlap
Ten largest positions · shared holdingsRank by rank, the ten largest positions of each fund. Top five: IWM 1.9%, VTWO 1.8%. Top ten: IWM 3.4%, VTWO 3.3%.
IWM vs VTWO trading and liquidity
Issuer and fund pages · Nov 6 to Nov 9, 2026Large funds like these usually trade with small spreads, but check the live spread before you trade. A spread of 0.01% is about $10 between the buy and sell price on $100,000. Small company shares can trade less actively than large ones, so spreads can widen on volatile days. Use limit orders for large trades and avoid the first and last minutes of the session. See creation, redemption and trading for how NAV, premiums and spreads arise.
IWM vs VTWO expense ratio and fees in dollars
As stated by each issuer| Balance | IWM (0.19%) | VTWO (0.06%) | Gap per year |
|---|---|---|---|
| $10,000 | $19 | $6 | $13 |
| $50,000 | $95 | $30 | $65 |
| $100,000 | $190 | $60 | $130 |
Expense ratio is taken from fund assets, not billed. It excludes the bid/ask spread, any premium or discount to NAV, brokerage commissions, and taxes.
IWM vs VTWO, how each fund picks its stocks
Index approach, in plain languageIWM · Russell 2000 Index
IWM tracks the Russell 2000 Index. IWM holds about 1,971 stocks and was launched in 2000; the ten largest positions total 3.4%. Index rules and rebalance dates are in the fund’s prospectus.
VTWO · Russell 2000 Index
VTWO tracks the Russell 2000 Index. VTWO holds about 2,000 stocks and was launched in 2010; the ten largest positions total 3.3%. Index rules and rebalance dates are in the fund’s prospectus.
Exact eligibility rules, caps and rebalance dates sit in each prospectus and index methodology; read them before relying on this summary.
IWM vs VTWO, why yield and returns differ
Sector mix explains much of the gapBoth funds track the Russell 2000 Index, so they hold almost the same companies. The differences are the fund company, the fee and small details of how each fund trades and rebalances.
IWM follows the Russell 2000 Index and VTWO follows the Russell 2000 Index. Because each index sets its own rules, the funds hold different numbers of stocks (1,971 against 2,000) and different mixes of sectors such as health care, financials and industrials. Over any window the results can diverge in either direction, and the gap comes mostly from what each index holds and when it rebalances, not from fees.
How to decide between IWM and VTWO
A step-by-step frameworkStart with what separates them: Both funds track the Russell 2000 Index, so they hold almost the same companies. The differences are the fund company, the fee and small details of how each fund trades and rebalances. Then check what you already own: the funds overlap by 90.3%, so holding both adds little.
- Step 1 · Market: IWM holds about 2,000 of the smallest U.S. public companies; VTWO holds about 2,000 of the smallest U.S. public companies.
- Step 2 · Cost: IWM 0.19% vs VTWO 0.06%.
- Step 3 · Concentration: ten largest positions 3.4% vs 3.3%.
- Step 4 · Overlap: use the Diversification Calculator against what you own.
Size the position against your whole portfolio, including any U.S. stock fund you hold.
IWM vs VTWO for Canadian investors
Currency, withholding tax and account typeIWM and VTWO are U.S.-listed and trade in U.S. dollars, so buying them from a Canadian account usually involves converting Canadian dollars, which adds a cost on both entry and exit. Because the funds hold U.S. companies, a move in the U.S. dollar also changes your return in Canadian dollars.
U.S. dividends paid to Canadian residents are generally subject to U.S. withholding tax under the tax treaty; the treaty exemption usually applies inside an RRSP, while a TFSA is not exempt. Rules depend on the fund and the account, so confirm them with a tax professional. This is general education, not tax advice.
Risks of IWM and VTWO
What can go wrongShared risks
- Both hold smaller companies, which usually swing more than large companies and can fall sharply in a downturn.
- Many small companies have thinner finances and less diversified businesses than large ones, so setbacks can hit harder.
- Trading in small company shares can be thin, so spreads can widen in a sell-off.
- Both hold U.S. stocks only, so neither adds foreign or bond diversification.
Fund-specific risks
- IWM: ten largest positions total 3.4% (Nov 6, 2026); 1,971 holdings.
- VTWO: ten largest positions total 3.3% (Sep 30, 2026); 2,000 holdings.
- Both: the funds track different indexes, so holdings and risks are not identical even though both hold small companies.
- Both: exchange-traded structure; see each prospectus for legal form.
IWM vs VTWO taxes and account placement
General education, not tax adviceBoth funds invest in U.S. stocks. Their dividends can include qualified dividends, which may be taxed at lower rates in a taxable U.S. account when holding-period rules are met, and most of the long-run return comes from price gains that are taxed when you sell. Check each fund’s tax documents for details.
For Canadian account types and withholding tax, see the Canadian section above. Confirm the rules for your account with a tax professional, and read how to build an ETF portfolio.
Other ETFs people compare
For context, not recommendationsInvestors comparing IWM and VTWO often also look at the other small cap funds in this group: IWM, VTWO, IJR, VB, SCHA and VBR. See the other Small Cap ETFs comparisons and the ETF research hub.
IWM vs VTWO drawdown arithmetic
What a decline means in dollarsRecovery gain = decline ÷ (1 − decline). The scenarios use illustrative declines of 10%, 20% and 30% so you can see what a drop does to each fund. They are a rough guide to a bad year, not a worst-case figure. See the Position Size Calculator.
Tools to compare IWM vs VTWO
Static weights from this pageIgnores taxes, spreads and holdings differences. ETF Fee Calculator.
Check shared exposure with the Diversification Calculator.
IWM vs VTWO, which fits which job
Characteristics, not recommendationsIWM may suit investors who want…
The widest rank-based small cap index, with no profit screen.
Strengths
- Pays distributions
- Exchange-traded and priced all day
Watch points
- Higher fee: 0.19% against 0.06%
- Fewer holdings: 1,971 against 2,000
- Heavier top ten: 3.4% against 3.3%
- Led in only 0 of 4 return windows (both to Nov 9, 2026)
VTWO may suit investors who want…
The widest rank-based small cap index, with no profit screen.
Strengths
- Lower fee: 0.06% against 0.19%
- More holdings: 2,000 against 1,971
- Flatter top ten: 3.3% against 3.4%
- Led in 4 of 4 return windows (both to Nov 9, 2026)
Watch points
- Not a complete portfolio
- Small company price swings
IWM vs VTWO investor scenarios
Characteristics that fit, not recommendationsIWM vs VTWO key terms
Plain-language definitions
IWM vs VTWO, frequently asked questions
Answers use the figures and dates shown aboveIs IWM or VTWO better?
In the IWM vs VTWO question, neither is better for everyone. IWM and VTWO differ in what they hold and what they charge. Both funds track the Russell 2000 Index, so they hold almost the same companies. The differences are the fund company, the fee and small details of how each fund trades and rebalances.
Expense ratios are 0.19% and 0.06%. Market price total returns, annualized (both to Nov 9, 2026): 1 year 18.12% vs 18.28%; 3 years 20.42% vs 20.62%; 5 years 4.50% vs 4.67%; 10 years 9.12% vs 9.28%. Neither is better for everyone; the choice turns on cost, which markets you want, and what you already own.
IWM vs VTWO, what are the expense ratios?
IWM charges 0.19% and VTWO charges 0.06%, which is $19 and $6 a year per $10,000.
IWM vs VTWO, how much do the funds overlap?
About 90.3% of the weight is held by both funds, matched by ticker in full holdings files dated Nov 6, 2026 and Sep 30, 2026. 5 stocks appear in both top-ten lists.
IWM vs VTWO, what does each ETF track?
IWM tracks the Russell 2000 Index. VTWO tracks the Russell 2000 Index.
IWM vs VTWO, what are the top holdings?
IWM (Nov 6, 2026): Glaukos 0.44%, BrightSpring Health Services 0.39%, JFrog 0.38%, UMB Financial 0.34%, Moog 0.32%. VTWO (Sep 30, 2026): Twist Bioscience 0.42%, Moog 0.36%, JFrog 0.35%, 10x Genomics 0.35%, UMB Financial 0.32%.
IWM vs VTWO, which has performed better?
Market price total returns, annualized (both to Nov 9, 2026): 1 year 18.12% vs 18.28%; 3 years 20.42% vs 20.62%; 5 years 4.50% vs 4.67%; 10 years 9.12% vs 9.28%. Returns depend on what each fund holds, and past performance does not guarantee future results.
IWM vs VTWO, can I own both?
On IWM vs VTWO, you can, but they overlap by about 90.3%. 5 top-ten stocks are shared. Holding both adds almost no diversification: you are paying for two wrappers around nearly the same portfolio.
IWM vs VTWO, how often do the funds pay dividends?
IWM pays quarterly and VTWO pays quarterly. Trailing yields are 1.18% and 1.20%; check each issuer page for the schedule.
IWM vs VTWO, are they suitable for Canadian investors?
On IWM vs VTWO, both are U.S.-listed and trade in U.S. dollars, so Canadians face currency conversion costs and U.S. withholding tax on dividends. Treatment differs across TFSA, RRSP and taxable accounts. This is general education, not tax advice.
IWM vs VTWO, how do the funds differ by sector?
IWM (Nov 6, 2026): health care 20.9%, financials 19.8%, industrials 13.3%. VTWO (Sep 30, 2026): health care 20.0%, financials 18.5%, information technology 13.3%.
IWM vs VTWO documents and sources
Open the issuer documents before relying on any figureIWM · iShares (BlackRock)
VTWO · Vanguard
Third-party sources
StockAnalysis IWM · StockAnalysis VTWO.
Methodology and limits
- IWM figures come from iShares fund pages and VTWO figures from Vanguard fund pages.
- Dates are shown beside each figure; the issuer documents are linked below.
- Holdings overlap is the sum of the smaller weight of each ticker held by both funds, using each issuer’s full holdings file: iShares and Schwab files are dated Nov 6, 2026 and Vanguard files Sep 30, 2026. Cash, futures and unmatched tickers are excluded and dates differ for some pairs, so treat it as an estimate.
- Vanguard figures come from vanguard.com, the Vanguard compare tool and the Sep 30, 2026 fact sheets; iShares figures from ishares.com including the holdings file; Schwab figures from schwabassetmanagement.com and its holdings file; market data (shares, beta, range) from StockAnalysis, dated Nov 9, 2026.
- Sector labels differ by provider; technology, telecommunications and basic materials were mapped to information technology, communication and materials. The VTWO sector table is calculated from its holdings using iShares Russell 2000 sector labels. Cross-provider gaps are approximate.
- Figures that were unavailable are left out, and nothing was filled from memory or from another fund.
- Growth of $10,000 is derived from annualized market price total returns on matched dates; dollar values are approximate.
- Returns are computed from daily adjusted closing prices (distributions reinvested) so both funds share the same dates (the 10-year figure runs from Dec 30, 2016, 9.9 years); issuer NAV returns, where captured, are shown beside them with their dates.
Educational research, not personalized investment, tax or legal advice, and not a recommendation to buy or sell any fund. Investing involves risk, including loss of principal. Past performance does not guarantee future results. Calculators are hypothetical illustrations. Fund data are provided as published by the sources named and may differ from current figures.