Dividend comparison

IWM vs SPY: Which Is Better?

Fees, yield, total returns, drawdowns, holdings overlap and dividend history for iShares Russell 2000 ETF and State Street SPDR S&P 500 ETF, side by side. Updated October 21, 2026.

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IWM vs SPY: key differences
The short answer, from the latest data on this page.
  • Fees. SPY is cheaper at 0.09% a year versus 0.19% for IWM. On $10,000 that is $10 a year less in fees.
  • Income. Their trailing yields are almost the same: 0.99% for IWM and 0.98% for SPY. Both pay quarterly.
  • Performance. Over the last 5 years, SPY returned 81.3% versus 28.7% for IWM, with dividends reinvested. $10,000 would have grown to $18,129 in SPY and $12,869 in IWM.
  • Risk. IWM has been the bumpier ride. Its worst peak-to-trough decline over the last 5 years was -31.9%, against -24.5% for SPY.
  • Diversification. IWM holds 1,981 positions and SPY holds 504. The ten largest positions make up 3.3% of IWM and 38.7% of SPY.
  • Dividend growth. SPY grew its yearly payout 6.4% a year over the last 4 years, versus 5.1% for IWM.
  • Size. SPY is the larger fund with $816.6 billion in assets, against $74.9 billion for IWM.

Bottom line: IWM fits better if you care most about broader diversification. SPY fits better if you care most about lower fees, stronger 5-year returns, smaller drawdowns and faster dividend growth.

Side-by-side snapshot
Trailing twelve-month figures where available. Higher yield is highlighted — not a buy recommendation.
MetricIWM
iShares Russell 2000 ETF
SPY
State Street SPDR S&P 500 ETF
Dividend yield (TTM)0.99%0.98%
Dividend / share (TTM)$2.73$7.53
Payout frequencyQuarterlyQuarterly
Last dividend$0.7504 on Sep 18, 2026$1.9035 on Jul 31, 2026
Ex-dividend dateSep 15, 2026Sep 18, 2026
Next payment—$1.8888 on Oct 30, 2026
Dividend growth (CAGR)5.1% over 4 yrs6.4% over 4 yrs
Price$275.78$769.05
Dividend growth streak1 year16 years
Beta1.141.01
Max drawdown (5Y)-31.9%-24.5%
Market cap$77.59B$813.99B
ExchangeAMEXAMEX
Expense ratio0.19%0.09%
Assets under management$74.85B$816.57B
Number of holdings1981504
Top 10 concentration3.3%38.7%
Income on a $10,000 investment
Illustrative only — assumes current TTM yield stays constant. Actual distributions change.

IWM

$8.25/mo

$99 /yr at 0.99% yield

SPY

$8.15/mo

$98 /yr at 0.98% yield

Dividend history
Total dividends paid per share in each calendar year. IWM pays quarterly; SPY pays quarterly.
YearIWMSPY
2025$2.5547$7.2533
2024$2.5305$7.0056
2023$2.7021$6.5091
2022$2.5850$6.1723
2021$2.0900$5.6618
Strategy: Broad index
Low-cost funds that hold an entire market or index at market-cap weights and make no attempt to select securities. Return is the index return less a small fee, and dividends are a by-product of what the underlying companies choose to pay rather than an objective of the strategy. Differences between funds tracking the same index usually come down to fee, wrapper structure, share price and trading liquidity, not to holdings.

Current income is low and outside your control, so these need pairing with something else if the portfolio has to produce cash today.

What IWM vs SPY actually do

SPY
The original S&P 500 ETF, launched in 1993 and still the most heavily traded equity fund in the world.

It holds the same 500 companies as its rivals, but it is structured as a unit investment trust rather than an open-end fund, an older wrapper that must hold every constituent and cannot put dividends back to work inside the fund before the quarterly payment date. That leaves a small cash drag and it carries a higher expense ratio than the newer S&P 500 trackers, around three times VOO's. What it buys instead is unmatched liquidity and by far the deepest options market of any S&P 500 fund.

Suits traders, options sellers and anyone who needs to move size with tight spreads. For a long-term buy-and-hold position the structural drag and higher fee work against it compared with the newer alternatives.

Core holding, trading vehicle

Performance
Total returns with dividends reinvested, from the adjusted closing price series. $10,000 invested on Oct 20, 2021 would now be worth $12,869 in IWM and $18,129 in SPY.
PeriodIWMSPY
1 month-2.93%0.97%
3 months-5.41%3.63%
Year to date12.79%13.37%
1 year12.26%15.51%
3 years70.87%88.86%
5 years28.69%81.29%
  • IWM
  • SPY
66128191202120222023202420252026129181

Both series indexed to 100 on 2021-10-20 using the adjusted closing price series. Past performance does not guarantee future results.

Sector allocation
Weight of each sector within the fund. Sectors are aligned on the same row so the two funds can be read against each other directly.
  • IWM
  • SPY
0%10%19%29%38%Technology14.0%38.4%Healthcare20.5%9.6%Financial Services18.1%11.7%Industrials13.7%8.0%Health Care20.2%Financials19.4%Consumer Cyclical8.5%8.8%Information Technology13.2%Communication Services2.1%9.8%Energy6.8%3.6%Other34.5%10.3%
IWM vs SPY holdings overlap
At least 0% overlap by weight, with 0 holdings in common. Overlap adds up the smaller of the two weights for every stock both funds own, so 100% would mean identical portfolios.
Top 10 holdings
Largest positions by portfolio weight.

IWM1981 holdings total

NameWeight
MOG-AMOOG INC CLASS A0.36%
BTSGBRIGHTSPRING HEALTH SERVICES INC0.35%
UMBFUMB FINANCIAL0.34%
SMSM ENERGY0.33%
GKOSGLAUKOS0.33%
FROGJFROG0.32%
EATBRINKER INTERNATIONAL INC0.31%
FCFSFIRSTCASH HOLDINGS INC0.31%
ONBOLD NATIONAL BANCORP0.31%
CTRECARETRUST REIT0.30%

SPY504 holdings total

NameWeight
NVDANVIDIA CORP7.93%
AAPLAPPLE INC7.55%
MSFTMICROSOFT CORP5.98%
AMZNAMAZON.COM INC3.89%
GOOGLALPHABET INC CL A3.05%
GOOGALPHABET INC CL C2.44%
AVGOBROADCOM INC2.40%
METAMETA PLATFORMS INC CLASS A2.35%
TSLATESLA INC1.57%
MUMICRON TECHNOLOGY INC1.54%

Quick verdict

IWM fits better if you care most about broader diversification. SPY fits better if you care most about lower fees, stronger 5-year returns, smaller drawdowns and faster dividend growth. Model the holding inside your real portfolio before deciding.

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Frequently asked questions

Is IWM or SPY better for dividend income?
It depends on your goals. IWM currently yields 0.99% Trailing Twelve Months (TTM) while SPY yields 0.98%. Higher yield means more current income per dollar invested, but may come with different risk, growth, or NAV characteristics. Compare total return and payout sustainability — not just the headline yield.
What is the difference between IWM and SPY?
iShares Russell 2000 ETF (IWM) is an ETF listed on AMEX. State Street SPDR S&P 500 ETF (SPY) is an ETF listed on AMEX. Side-by-side metrics on this page cover yield, fees, returns, drawdowns, holdings overlap and dividend history when available.
Which is cheaper, IWM or SPY?
SPY has the lower expense ratio. IWM charges 0.19% a year and SPY charges 0.09%, a difference of $10 a year on a $10,000 investment.
Which has performed better, IWM or SPY?
Over the last 5 years, SPY has the higher total return with dividends reinvested: IWM returned 28.7% and SPY returned 81.3%. Past performance does not predict future returns.
Which is riskier, IWM or SPY?
Measured by the worst peak-to-trough decline over the last five years, IWM has been riskier: IWM fell as much as 31.9% and SPY as much as 24.5%. Their betas are 1.14 and 1.01.
How often do IWM and SPY pay dividends?
Both pay quarterly. The most recent payments were $0.7504 for IWM and $1.9035 for SPY.
How much income does $10,000 in IWM vs SPY generate?
At current TTM yields, $10,000 in IWM would generate roughly $8.25 per month ($99 annually). The same amount in SPY would produce about $8.15 per month ($98 annually). Actual payouts vary with distribution changes and reinvestment.
Can I hold both IWM and SPY?
Yes. Many income investors hold both to diversify strategy or index exposure. Whether the combination actually diversifies depends on overlapping holdings and factor exposure. Model both inside Dividend Wealth to see combined income, sector mix, and forecast impact.
Where can I compare IWM vs SPY with my full portfolio?
Create a free Dividend Wealth account to import or enter holdings, forecast dividend income, and see how IWM and SPY fit alongside the rest of your portfolio. A 14-day free trial of Standard is available with no credit card required; a limited Free plan is also available.

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For informational and educational purposes only. Not investment advice. Past performance and current yields do not guarantee future results. Verify figures independently before making investment decisions.