Dividend comparison
IWM vs VB: Which Is Better?
Fees, yield, total returns, drawdowns, holdings overlap and dividend history for iShares Russell 2000 ETF and Vanguard Morningstar Small-Cap ETF, side by side. Updated October 21, 2026.
IWM vs VB: key differences
The short answer, from the latest data on this page.
- Fees. VB is cheaper at 0.03% a year versus 0.19% for IWM. On $10,000 that is $16 a year less in fees.
- Income. VB pays more income, yielding 1.27% over the last twelve months versus 0.99% for IWM. That is about $28 more a year on $10,000. Both pay quarterly.
- Performance. Over the last 5 years, VB returned 33.5% versus 28.7% for IWM, with dividends reinvested. $10,000 would have grown to $13,349 in VB 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 -28.2% for VB.
- Diversification. IWM holds 1,981 positions and VB holds 1,357. The ten largest positions make up 3.3% of IWM and 5.0% of VB.
- Dividend growth. VB grew its yearly payout 5.3% a year over the last 4 years, versus 5.1% for IWM.
- Size. VB is the larger fund with $175.8 billion in assets, against $74.9 billion for IWM.
Bottom line: VB has the edge on these figures, with lower fees, more income today, stronger 5-year returns and smaller drawdowns. IWM does not lead on any of the measures compared here.
Side-by-side snapshot
Trailing twelve-month figures where available. Higher yield is highlighted — not a buy recommendation.
| Metric | IWM iShares Russell 2000 ETF | VB Vanguard Morningstar Small-Cap ETF |
|---|---|---|
| Dividend yield (TTM) | 0.99% | 1.27% |
| Dividend / share (TTM) | $2.73 | $3.65 |
| Payout frequency | Quarterly | Quarterly |
| Last dividend | $0.7504 on Sep 18, 2026 | $0.8488 on Sep 30, 2026 |
| Ex-dividend date | Sep 15, 2026 | Sep 28, 2026 |
| Dividend growth (CAGR) | 5.1% over 4 yrs | 5.3% over 4 yrs |
| Price | $275.78 | $288.04 |
| Dividend growth streak | 1 year | 1 year |
| Beta | 1.14 | 1.07 |
| Max drawdown (5Y) | -31.9% | -28.2% |
| Market cap | $77.59B | $175.84B |
| Exchange | AMEX | AMEX |
| Expense ratio | 0.19% | 0.03% |
| Assets under management | $74.85B | $175.80B |
| Number of holdings | 1981 | 1357 |
| Top 10 concentration | 3.3% | 5.0% |
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
VB
$10.56/mo
$127 /yr at 1.27% yield
Dividend history
Total dividends paid per share in each calendar year. IWM pays quarterly; VB pays quarterly.
| Year | IWM | VB |
|---|---|---|
| 2025 | $2.5547 | $3.4386 |
| 2024 | $2.5305 | $3.1318 |
| 2023 | $2.7021 | $3.3170 |
| 2022 | $2.5850 | $2.9121 |
| 2021 | $2.0900 | $2.7956 |
Strategy: Small and mid cap
Funds that hold companies below the large-cap tier, where there is more room for growth and less coverage by analysts. Small-cap indexes differ meaningfully: some screen for profitability, some include every listed company, and value-tilted funds lean toward the cheapest names. Those rules drive more of the difference between funds than fees do.
Smaller companies are more sensitive to recessions and borrowing costs, so drawdowns run deeper than in large-cap funds.
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 $13,349 in VB.
| Period | IWM | VB |
|---|---|---|
| 1 month | -2.93% | -0.54% |
| 3 months | -5.41% | -2.76% |
| Year to date | 12.79% | 11.67% |
| 1 year | 12.26% | 12.20% |
| 3 years | 70.87% | 64.64% |
| 5 years | 28.69% | 33.49% |
- IWM
- VB
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
- VB
IWM vs VB 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
Quick verdict
VB has the edge on these figures, with lower fees, more income today, stronger 5-year returns and smaller drawdowns. IWM does not lead on any of the measures compared here. Model the holding inside your real portfolio before deciding.
Still deciding? Compare them in your portfolio
Forecast dividend income, track payouts, and see how IWM vs VB fits with the rest of your holdings. Free to start — no credit card required for the trial.
Frequently asked questions
Is IWM or VB better for dividend income?
It depends on your goals. IWM currently yields 0.99% Trailing Twelve Months (TTM) while VB yields 1.27%. 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 VB?
iShares Russell 2000 ETF (IWM) is an ETF listed on AMEX. Vanguard Morningstar Small-Cap ETF (VB) 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 VB?
VB has the lower expense ratio. IWM charges 0.19% a year and VB charges 0.03%, a difference of $16 a year on a $10,000 investment.
Which has performed better, IWM or VB?
Over the last 5 years, VB has the higher total return with dividends reinvested: IWM returned 28.7% and VB returned 33.5%. Past performance does not predict future returns.
Which is riskier, IWM or VB?
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 VB as much as 28.2%. Their betas are 1.14 and 1.07.
How often do IWM and VB pay dividends?
Both pay quarterly. The most recent payments were $0.7504 for IWM and $0.8488 for VB.
How much income does $10,000 in IWM vs VB generate?
At current TTM yields, $10,000 in IWM would generate roughly $8.25 per month ($99 annually). The same amount in VB would produce about $10.56 per month ($127 annually). Actual payouts vary with distribution changes and reinvestment.
Can I hold both IWM and VB?
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 VB with my full portfolio?
Create a free Dividend Wealth account to import or enter holdings, forecast dividend income, and see how IWM and VB 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.