ETF Versus

IWM vs VEA

iShares Russell 2000 ETF vs Vanguard FTSE Developed Markets Index Fund ETF Shares

Last updated: 2026-04-08

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. It charges a moderate expense ratio of 0.19%. The fund offers a moderate dividend yield of 1.00%. Launched in 2000, the fund has a 26-year track record.

AUM: $71.9B ER: 0.19% Yield: 1.00% Since: May 22, 2000
VEA

Vanguard FTSE Developed Markets Index Fund ETF Shares (VEA) is an exchange-traded fund that provides exposure to equities in developed international markets outside the U.S.. It charges a very low expense ratio of 0.03%. The fund offers an attractive dividend yield of 2.88%. Launched in 2007, the fund has a 19-year track record.

AUM: $207.0B ER: 0.03% Yield: 2.88% Since: Jul 20, 2007

Quick Verdict

VEA is significantly cheaper at 0.03% vs 0.19% expense ratio, saving you approximately $317 per $10,000 invested over 10 years. IWM has edged ahead over the past year (44.4% vs 42.6%). Income investors may prefer VEA for its higher yield (2.9% vs 1.0%).

Key Metrics

Metric IWM VEA
Expense Ratio 0.19% 0.03%
Dividend Yield 1.0% 2.9%
Fund Family N/A N/A
Category US Small Cap International Developed

Performance Chart

Indexed to 100 at start (5-year comparison)

70 84 98 112 126 140 2021-04 2022-07 2023-09 2024-12 2026-04
IWM +13.4%
VEA +29.1%

Performance Comparison

Period IWM VEA Difference
1 Month -0.50% -1.20% +0.70%
3 Months -2.29% +1.85% -4.14%
6 Months +6.13% +10.04% -3.91%
YTD +1.44% +3.04% -1.60%
1 Year +44.35% +42.65% +1.70%
3 Years +43.59% +43.53% +0.06%
5 Years +13.37% +28.80% -15.43%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment Period IWM Fees VEA 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 VEA
Annualized Volatility 22.6% 16.4%
Max Drawdown -33.1% -32.3%
Sharpe Ratio 0.03 0.12

Dividend Comparison

Metric IWM VEA
Annual Dividend (per share) $2.54 $1.88
Dividend Yield 1.01% 2.88%
Distribution Frequency Quarterly Quarterly

Top Holdings

0 of top 9 holdings overlap (0% overlap in top holdings)

IWM Top Holdings

NameWeight
Bloom Energy CorporationBE0.99%
FabrinetFN0.67%
COEUR MINING INCCDE.NE0.63%
EchoStar CorporationSATS0.57%
Credo Technology Group Holding LtdCRDO0.55%
Nextpower Inc.NXT0.53%
Kratos Defense & Security Solutions, Inc.KTOS0.45%
Advanced Energy Industries, Inc.AEIS0.42%
Hecla Mining CompanyHL0.41%
Sterling Infrastructure, Inc.STRL0.39%

VEA Top Holdings

NameWeight
Samsung Electronics Co., Ltd.!krx/0059302.18%
ASML Holding N.V.!ams/ASML1.77%
SK hynix Inc.!krx/0006601.24%
Roche Holding AGROC1.L1.03%
Novartis AG!swx/NOVN1.00%
HSBC Holdings plc!lon/HSBA0.99%
AstraZeneca PLC!lon/AZN0.98%
Nestlé S.A.!swx/NESN0.86%
Toyota Motor Corporation!tyo/72030.80%

Which One Should You Choose?

Choose VEA if...

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

Choose VEA if...

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

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