ETF Versus

IWM vs MGC

iShares Russell 2000 ETF vs Vanguard Mega Cap Index Fund

Last updated: 2026-04-02

IWM

iShares Russell 2000 ETF (IWM) is an exchange-traded fund that provides exposure to small-cap U.S. equities with higher growth potential and volatility. Launched in 2000, the fund has a 26-year track record.

AUM: N/A ER: N/A Yield: N/A Since: 2000-05-26
MGC

Vanguard Mega Cap Index Fund (MGC) is an exchange-traded fund that provides exposure to large-cap U.S. equities across growth and value styles. Launched in 2007, the fund has a 19-year track record.

AUM: N/A ER: N/A Yield: N/A Since: 2007-12-27

Quick Verdict

Over the past year, IWM has significantly outperformed with a 23.1% return vs 17.1%.

Key Metrics

Metric IWM MGC
Expense Ratio N/A N/A
Dividend Yield N/A N/A
Fund Family N/A N/A
Category US Small Cap US Large Cap Blend

Performance Chart

Indexed to 100 at start (5-year comparison)

70 92 114 136 158 180 2021-04 2022-06 2023-09 2024-12 2026-04
IWM +10.9%
MGC +65.6%

Performance Comparison

Period IWM MGC Difference
1 Month -3.73% -3.61% -0.12%
3 Months +0.31% -5.14% +5.45%
6 Months +1.11% -3.23% +4.34%
YTD +0.31% -5.14% +5.45%
1 Year +23.14% +17.08% +6.06%
3 Years +39.83% +65.68% -25.85%
5 Years +10.93% +65.63% -54.70%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment Period IWM Fees MGC Fees You Save
$10,000 10 years $0 $0 $0
$10,000 20 years $0 $0 $0
$10,000 30 years $0 $0 $0
$50,000 10 years $0 $0 $0
$50,000 30 years $0 $0 $0
$100,000 30 years $0 $0 $0

Risk Metrics

Based on 5 years of daily returns

Metric IWM MGC
Annualized Volatility 22.6% 17.3%
Max Drawdown -33.1% -26.6%
Sharpe Ratio 0.01 0.41

Dividend Comparison

Metric IWM MGC
Annual Dividend (per share) $2.54 $2.42
Dividend Yield 1.02% 1.01%
Distribution Frequency Quarterly Quarterly

Which One Should You Choose?

Choose IWM if...

recent performance momentum matters to your strategy. Note that past performance doesn't guarantee future results.

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