ETF Versus

IWM vs VGT

iShares Russell 2000 ETF vs Vanguard Information Technology 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
VGT

Vanguard Information Technology Index Fund ETF Shares (VGT) is an exchange-traded fund that provides exposure to us sector - technology securities. It charges a low expense ratio of 0.09%. The fund offers a modest dividend yield of 0.43%. Launched in 2004, the fund has a 22-year track record.

AUM: $107.2B ER: 0.09% Yield: 0.43% Since: Jan 26, 2004

Quick Verdict

VGT 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, VGT has significantly outperformed with a 52.3% return vs 44.4%. Income investors may prefer IWM for its higher yield (1.0% vs 0.4%).

Key Metrics

Metric IWM VGT
Expense Ratio 0.19% 0.09%
Dividend Yield 1.0% 0.4%
Fund Family N/A N/A
Category US Small Cap US Sector - Technology

Performance Chart

Indexed to 100 at start (5-year comparison)

70 99 128 157 186 215 2021-04 2022-07 2023-09 2024-12 2026-04
IWM +13.4%
VGT +89.1%

Performance Comparison

Period IWM VGT Difference
1 Month -0.50% -2.14% +1.64%
3 Months -2.29% -5.11% +2.82%
6 Months +6.13% -2.73% +8.86%
YTD +1.44% -5.26% +6.70%
1 Year +44.35% +52.27% -7.92%
3 Years +43.59% +88.65% -45.06%
5 Years +13.37% +87.52% -74.15%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment Period IWM Fees VGT 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 VGT
Annualized Volatility 22.6% 25.1%
Max Drawdown -33.1% -35.5%
Sharpe Ratio 0.03 0.46

Dividend Comparison

Metric IWM VGT
Annual Dividend (per share) $2.54 $3.06
Dividend Yield 1.01% 0.43%
Distribution Frequency Quarterly Quarterly

Top Holdings

0 of top 10 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%

VGT Top Holdings

NameWeight
NVIDIA CorporationNVDA18.07%
Apple Inc.AAPL15.84%
Microsoft CorporationMSFT10.39%
Broadcom Inc.AVGO4.34%
Micron Technology, Inc.MU2.37%
Advanced Micro Devices, Inc.AMD1.65%
Cisco Systems, Inc.CSCO1.63%
Palantir Technologies Inc.PLTR1.57%
Applied Materials, Inc.AMAT1.54%
Lam Research CorporationLRCX1.53%

Which One Should You Choose?

Choose VGT if...

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

Choose VGT if...

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

Choose IWM if...

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

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