ETF Versus

IWM vs SPSM

iShares Russell 2000 ETF vs State Street SPDR Portfolio S&P 600 Small Cap ETF

Last updated: 2026-04-02

IWM iShares

iShares Russell 2000 ETF (IWM) is an exchange-traded fund issued by iShares that provides exposure to small-cap U.S. equities with higher growth potential and volatility. It charges a moderate expense ratio of 0.19%. The fund offers a moderate dividend yield of 1.02%. Launched in 2000, the fund has a 26-year track record.

AUM: $69.0B ER: 0.19% Yield: 1.02% Since: May 22, 2000

State Street SPDR Portfolio S&P 600 Small Cap ETF (SPSM) is an exchange-traded fund that provides exposure to small-cap U.S. equities with higher growth potential and volatility. It charges a very low expense ratio of 0.03%. The fund offers a moderate dividend yield of 1.58%. Launched in 2013, the fund has a 13-year track record.

AUM: $13.5B ER: 0.03% Yield: 1.58% Since: Jul 8, 2013

Quick Verdict

SPSM is significantly cheaper at 0.03% vs 0.19% expense ratio, saving you approximately $317 per $10,000 invested over 10 years. Over the past year, IWM has significantly outperformed with a 25.1% return vs 18.9%. Income investors may prefer SPSM for its higher yield (1.6% vs 1.0%).

Key Metrics

Metric IWM SPSM
Expense Ratio 0.19% 0.03%
Dividend Yield 1.0% 1.6%
Fund Family iShares N/A
Category US Small Cap US Small Cap

Performance Chart

Indexed to 100 at start (5-year comparison)

70 80 90 100 110 120 2021-04 2022-06 2023-09 2024-12 2026-04
IWM +10.9%
SPSM +13.0%

Performance Comparison

Period IWM SPSM Difference
1 Month -5.40% -4.42% -0.98%
3 Months +0.31% +2.83% -2.52%
6 Months +1.52% +3.84% -2.32%
YTD +0.31% +2.83% -2.52%
1 Year +25.09% +18.95% +6.14%
3 Years +39.83% +28.78% +11.05%
5 Years +10.93% +12.96% -2.03%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment Period IWM Fees SPSM Fees You Save
$10.000 10 years $377 $60 $317
$10.000 20 years $1.613 $258 $1.355
$10.000 30 years $5.178 $835 $4.342
$50.000 10 years $1.884 $299 $1.585
$50.000 30 years $25.888 $4.176 $21.712
$100.000 30 years $51.776 $8.352 $43.424

Risk Metrics

Based on 5 years of daily returns

Metric IWM SPSM
Annualized Volatility 22.6% 21.5%
Max Drawdown -33.1% -28.7%
Sharpe Ratio 0.01 0.01

Dividend Comparison

Metric IWM SPSM
Annual Dividend (per share) $2.54 $0.77
Dividend Yield 1.02% 1.58%
Distribution Frequency Quarterly Quarterly

Top Holdings

0 of top 10 holdings overlap (0% overlap in top holdings)

IWM Top Holdings

NameWeight
Bloom Energy CorporationBE1.01%
FabrinetFN0.69%
Nextpower Inc.NXT0.61%
COEUR MINING INCCDE.NE0.60%
EchoStar CorporationSATS0.54%
Credo Technology Group Holding LtdCRDO0.53%
Kratos Defense & Security Solutions, Inc.KTOS0.45%
Sterling Infrastructure, Inc.STRL0.43%
Advanced Energy Industries, Inc.AEIS0.41%
Hecla Mining CompanyHL0.39%

SPSM Top Holdings

NameWeight
Eastman Chemical CompanyEMN0.57%
Element Solutions IncESI0.51%
Primoris Services CorporationPRIM0.51%
Viavi Solutions Inc.VIAV0.50%
Argan, Inc.AGX0.49%
FormFactor, Inc.FORM0.49%
LKQ CorporationLKQ0.49%
Jackson Financial Inc.JXN0.49%
ESCO Technologies Inc.ESE0.48%
Match Group, Inc.MTCH0.47%

Which One Should You Choose?

Choose SPSM if...

you want the lowest fees and plan to buy and hold long-term. Over decades, the expense ratio difference compounds significantly.

Choose IWM if...

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

Choose SPSM if...

you prioritize dividend income and want higher regular distributions from your portfolio.

Either works if...

you just need broad us small cap exposure. Both are solid options — pick whichever your brokerage offers commission-free.

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