IWM vs VB

Portfolio characteristics

Net assets are for the ETF share class on different dates (IWM $77.87B; VB $77.22B), so they are not matched. Figures that were not available are left out rather than estimated.

Top ten sums: IWM 3.4% · VB 5.0%. 0 shared top-ten stocks. Weights change.

The 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 VB holds 1,301.

What you actually own

The 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, VB to Oct 31, 2026) and include the since-inception figures. “Since inception” starts in different years (IWM 2000, VB 2004). 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.

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, VB $3.649 per share). Dividend yields here are 1% to 2%, so most of the return comes from price change. See yield vs total return.

Rank by rank, the ten largest positions of each fund. Top five: IWM 1.9%, VB 2.9%. Top ten: IWM 3.4%, VB 5.0%.

Large 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.

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.

Exact eligibility rules, caps and rebalance dates sit in each prospectus and index methodology; read them before relying on this summary.

The two funds follow different indexes. The Russell 2000 Index ranks companies by size and takes the 2,000 smallest of the Russell 3000, with no profit test. The Morningstar US Small Cap Index covers the small slice of the market by size and also includes some mid-size companies.

IWM follows the Russell 2000 Index and VB follows the Morningstar US Small Cap Index. Because each index sets its own rules, the funds hold different numbers of stocks (1,971 against 1,301) 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.

Start with what separates them: The two funds follow different indexes. The Russell 2000 Index ranks companies by size and takes the 2,000 smallest of the Russell 3000, with no profit test. The Morningstar US Small Cap Index covers the small slice of the market by size and also includes some mid-size companies. Then check what you already own: the funds overlap by 24.6%, so holding both is a real decision about how much of each market you want.

• Step 1 · Market: IWM holds about 2,000 of the smallest U.S. public companies; VB holds U.S. small companies and some mid-size ones.
• Step 2 · Cost: IWM 0.19% vs VB 0.03%.
• Step 3 · Concentration: ten largest positions 3.4% vs 5.0%.
• 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 and VB 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.

Both 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.

Investors comparing IWM and VB 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.

Is IWM or VB better?

In the IWM vs VB question, neither is better for everyone. IWM and VB differ in what they hold and what they charge. The two funds follow different indexes. The Russell 2000 Index ranks companies by size and takes the 2,000 smallest of the Russell 3000, with no profit test. The Morningstar US Small Cap Index covers the small slice of the market by size and also includes some mid-size companies.

Expense ratios are 0.19% and 0.03%. Market price total returns, annualized (both to Nov 9, 2026): 1 year 18.12% vs 17.75%; 3 years 20.42% vs 19.21%; 5 years 4.50% vs 5.85%; 10 years 9.12% vs 10.29%. Neither is better for everyone; the choice turns on cost, which markets you want, and what you already own.

IWM vs VB, what are the expense ratios?

IWM charges 0.19% and VB charges 0.03%, which is $19 and $3 a year per $10,000.

IWM vs VB, how much do the funds overlap?

About 24.6% of the weight is held by both funds, matched by ticker in full holdings files dated Nov 6, 2026 and Sep 30, 2026. 0 stocks appear in both top-ten lists.

IWM vs VB, what does each ETF track?

IWM tracks the Russell 2000 Index. VB tracks the Morningstar US Small Cap Index.

IWM vs VB, 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%. VB (Sep 30, 2026): Natera 0.72%, Twilio 0.57%, Revolution Medicines 0.53%, Illumina 0.52%, Everpure 0.52%.

IWM vs VB, which has performed better?

Market price total returns, annualized (both to Nov 9, 2026): 1 year 18.12% vs 17.75%; 3 years 20.42% vs 19.21%; 5 years 4.50% vs 5.85%; 10 years 9.12% vs 10.29%. Returns depend on what each fund holds, and past performance does not guarantee future results.

IWM vs VB, can I own both?

On IWM vs VB, you can, but they overlap by about 24.6%. 0 top-ten stocks are shared. The funds overlap only partly, so owning both is a real choice about how much of each market you want.

IWM vs VB, how often do the funds pay dividends?

IWM pays quarterly and VB pays quarterly. Trailing yields are 1.18% and 1.33%; check each issuer page for the schedule.

IWM vs VB, are they suitable for Canadian investors?

On IWM vs VB, 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 VB, how do the funds differ by sector?

IWM (Nov 6, 2026): health care 20.9%, financials 19.8%, industrials 13.3%. VB (Sep 30, 2026): industrials 20.3%, information technology 16.1%, health care 14.1%.

Third-party sources

StockAnalysis IWM · StockAnalysis VB.

Methodology and limits

• IWM figures come from iShares fund pages and VB 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.

Pathways, not rankings or recommendations.