ETF Versus

IWM vs SPY

iShares Russell 2000 ETF vs State Street SPDR S&P 500 ETF Trust

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
SPY State Street

State Street SPDR S&P 500 ETF Trust (SPY) is an exchange-traded fund issued by State Street that provides exposure to large-cap U.S. equities across growth and value styles. It charges a low expense ratio of 0.09%. The fund offers a moderate dividend yield of 1.13%. Launched in 1993, the fund has a 33-year track record.

AUM: $636.7B ER: 0.09% Yield: 1.13% Since: Jan 22, 1993

Quick Verdict

SPY is significantly cheaper at 0.09% vs 0.19% expense ratio, saving you approximately $198 per $10,000 invested over 10 years. Over the past year, IWM has significantly outperformed with a 25.1% return vs 16.8%.

Key Metrics

Metric IWM SPY
Expense Ratio 0.19% 0.09%
Dividend Yield 1.0% 1.1%
Fund Family iShares State Street
Category US Small Cap US Large Cap Blend

Performance Chart

Indexed to 100 at start (5-year comparison)

70 91 112 133 154 175 2021-04 2022-06 2023-09 2024-12 2026-04
IWM +10.9%
SPY +61.2%

Performance Comparison

Period IWM SPY Difference
1 Month -5.40% -4.54% -0.86%
3 Months +0.31% -4.09% +4.40%
6 Months +1.52% -2.09% +3.61%
YTD +0.31% -4.09% +4.40%
1 Year +25.09% +16.80% +8.29%
3 Years +39.83% +59.45% -19.62%
5 Years +10.93% +61.25% -50.32%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment Period IWM Fees SPY Fees You Save
$10.000 10 years $377 $179 $198
$10.000 20 years $1.613 $771 $842
$10.000 30 years $5.178 $2.486 $2.692
$50.000 10 years $1.884 $896 $988
$50.000 30 years $25.888 $12.428 $13.460
$100.000 30 years $51.776 $24.855 $26.921

Risk Metrics

Based on 5 years of daily returns

Metric IWM SPY
Annualized Volatility 22.6% 17.1%
Max Drawdown -33.1% -25.4%
Sharpe Ratio 0.01 0.38

Dividend Comparison

Metric IWM SPY
Annual Dividend (per share) $2.54 $7.38
Dividend Yield 1.02% 1.13%
Distribution Frequency Quarterly Quarterly

Top Holdings

0 of top 9 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%

SPY Top Holdings

NameWeight
NVIDIA CorporationNVDA7.58%
Apple Inc.AAPL6.66%
Microsoft CorporationMSFT4.91%
Amazon.com, Inc.AMZN3.64%
Broadcom Inc.AVGO2.62%
Alphabet Inc.GOOG2.40%
Meta Platforms, Inc.META2.24%
Tesla, Inc.TSLA1.87%
Berkshire Hathaway Inc.BRK.B1.57%

Which One Should You Choose?

Choose SPY 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.

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