Dividend comparison
IWM vs VTWO: Which Is Better?
Fees, yield, total returns, drawdowns, holdings overlap and dividend history for iShares Russell 2000 ETF and Vanguard Russell 2000 ETF, side by side. Updated October 21, 2026.
IWM vs VTWO: key differences
The short answer, from the latest data on this page.
- Fees. VTWO is cheaper at 0.06% a year versus 0.19% for IWM. On $10,000 that is $13 a year less in fees.
- Income. VTWO pays more income, yielding 1.22% over the last twelve months versus 0.99% for IWM. That is about $23 more a year on $10,000. IWM pays quarterly, VTWO pays annual.
- Performance. Over the last 5 years, VTWO returned 29.6% versus 28.7% for IWM, with dividends reinvested. $10,000 would have grown to $12,963 in VTWO and $12,869 in IWM.
- Risk. Their worst declines over the last 5 years were similar: -31.9% for IWM and -31.9% for VTWO from peak to trough.
- Diversification. IWM holds 1,981 positions and VTWO holds 1,969. The ten largest positions make up 3.3% of IWM and 3.3% of VTWO.
- Overlap. At least 19% of the two portfolios overlap by weight, across 84 shared holdings. They mostly own different companies, so they can complement each other.
- Dividend growth. IWM grew its yearly payout 5.1% a year over the last 4 years, versus 5.1% for VTWO.
- Size. IWM is the larger fund with $74.9 billion in assets, against $17.3 billion for VTWO.
Bottom line: VTWO has the edge on these figures, with lower fees. 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 | VTWO Vanguard Russell 2000 ETF |
|---|---|---|
| Dividend yield (TTM) | 0.99% | 1.22% |
| Dividend / share (TTM) | $2.73 | $1.36 |
| Payout frequency | Quarterly | Annual |
| Last dividend | $0.7504 on Sep 18, 2026 | $0.3911 on Sep 25, 2026 |
| Ex-dividend date | Sep 15, 2026 | Sep 23, 2026 |
| Dividend growth (CAGR) | 5.1% over 4 yrs | 5.1% over 4 yrs |
| Price | $275.78 | $111.40 |
| Dividend growth streak | 1 year | 1 year |
| Beta | 1.14 | 1.14 |
| Max drawdown (5Y) | -31.9% | -31.9% |
| Market cap | $77.59B | $17.30B |
| Exchange | AMEX | NASDAQ |
| Expense ratio | 0.19% | 0.06% |
| Assets under management | $74.85B | $17.30B |
| Number of holdings | 1981 | 1969 |
| Top 10 concentration | 3.3% | 3.3% |
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
VTWO
$10.15/mo
$122 /yr at 1.22% yield
Dividend history
Total dividends paid per share in each calendar year. IWM pays quarterly; VTWO pays annual.
| Year | IWM | VTWO |
|---|---|---|
| 2025 | $2.5547 | $1.2429 |
| 2024 | $2.5305 | $1.0821 |
| 2023 | $2.7021 | $1.1739 |
| 2022 | $2.5850 | $1.0413 |
| 2021 | $2.0900 | $1.0173 |
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 $12,963 in VTWO.
| Period | IWM | VTWO |
|---|---|---|
| 1 month | -2.93% | -2.94% |
| 3 months | -5.41% | -5.41% |
| Year to date | 12.79% | 12.89% |
| 1 year | 12.26% | 12.46% |
| 3 years | 70.87% | 71.49% |
| 5 years | 28.69% | 29.63% |
- IWM
- VTWO
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
- VTWO
IWM vs VTWO holdings overlap
At least 19% overlap by weight, with 84 holdings in common. Overlap adds up the smaller of the two weights for every stock both funds own, so 100% would mean identical portfolios.
| Largest shared holdings | IWM weight | VTWO weight |
|---|---|---|
| MOG-AMOOG INC CLASS A | 0.36% | 0.36% |
| FROGJFROG | 0.32% | 0.35% |
| UMBFUMB FINANCIAL | 0.34% | 0.32% |
| BTSGBRIGHTSPRING HEALTH SERVICES INC | 0.35% | 0.31% |
| GKOSGLAUKOS | 0.33% | 0.31% |
| TWSTTWIST BIOSCIENCE | 0.30% | 0.42% |
| CTRECARETRUST REIT | 0.30% | 0.29% |
| CYTKCYTOKINETICS | 0.29% | 0.29% |
| KRYSKRYSTAL BIOTECH | 0.28% | 0.29% |
| ONBOLD NATIONAL BANCORP | 0.31% | 0.28% |
Top 10 holdings
Largest positions by portfolio weight.
IWM1981 holdings total
Quick verdict
VTWO has the edge on these figures, with lower fees. 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
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Frequently asked questions
Is IWM or VTWO better for dividend income?
It depends on your goals. IWM currently yields 0.99% Trailing Twelve Months (TTM) while VTWO yields 1.22%. 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 VTWO?
iShares Russell 2000 ETF (IWM) is an ETF listed on AMEX. Vanguard Russell 2000 ETF (VTWO) is an ETF listed on NASDAQ. Side-by-side metrics on this page cover yield, fees, returns, drawdowns, holdings overlap and dividend history when available.
Which is cheaper, IWM or VTWO?
VTWO has the lower expense ratio. IWM charges 0.19% a year and VTWO charges 0.06%, a difference of $13 a year on a $10,000 investment.
Which has performed better, IWM or VTWO?
Over the last 5 years, VTWO has the higher total return with dividends reinvested: IWM returned 28.7% and VTWO returned 29.6%. Past performance does not predict future returns.
Which is riskier, IWM or VTWO?
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 VTWO as much as 31.9%. Their betas are 1.14 and 1.14.
How much do IWM and VTWO overlap?
At least 19% of the two portfolios overlap by weight, across 84 shared holdings. The largest shared positions are MOG-A, FROG, UMBF. Holding both still adds meaningful diversification.
How often do IWM and VTWO pay dividends?
IWM pays quarterly and VTWO pays annual.
How much income does $10,000 in IWM vs VTWO generate?
At current TTM yields, $10,000 in IWM would generate roughly $8.25 per month ($99 annually). The same amount in VTWO would produce about $10.15 per month ($122 annually). Actual payouts vary with distribution changes and reinvestment.
Can I hold both IWM and VTWO?
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 VTWO with my full portfolio?
Create a free Dividend Wealth account to import or enter holdings, forecast dividend income, and see how IWM and VTWO 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.