ETF Versus

IWM vs VIG

iShares Russell 2000 ETF vs Vanguard Dividend Appreciation 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
VIG

Vanguard Dividend Appreciation Index Fund ETF Shares (VIG) is an exchange-traded fund that provides exposure to U.S. dividend-paying stocks selected for yield or dividend growth. It charges a very low expense ratio of 0.04%. The fund offers a moderate dividend yield of 1.59%. Launched in 2006, the fund has a 20-year track record.

AUM: $99.7B ER: 0.04% Yield: 1.59% Since: Apr 21, 2006

Quick Verdict

VIG is significantly cheaper at 0.04% vs 0.19% expense ratio, saving you approximately $297 per $10,000 invested over 10 years. Over the past year, IWM has significantly outperformed with a 44.4% return vs 24.8%. Income investors may prefer VIG for its higher yield (1.6% vs 1.0%).

Key Metrics

Metric IWM VIG
Expense Ratio 0.19% 0.04%
Dividend Yield 1.0% 1.6%
Fund Family N/A N/A
Category US Small Cap US Dividend

Performance Chart

Indexed to 100 at start (5-year comparison)

70 87 104 121 138 155 2021-04 2022-07 2023-09 2024-12 2026-04
IWM +13.4%
VIG +44.7%

Performance Comparison

Period IWM VIG Difference
1 Month -0.50% -2.67% +2.17%
3 Months -2.29% -2.87% +0.58%
6 Months +6.13% +1.99% +4.14%
YTD +1.44% -1.71% +3.15%
1 Year +44.35% +24.82% +19.53%
3 Years +43.59% +40.19% +3.40%
5 Years +13.37% +43.70% -30.33%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment Period IWM Fees VIG Fees You Save
$10,000 10 years $377 $80 $297
$10,000 20 years $1,613 $344 $1,269
$10,000 30 years $5,178 $1,112 $4,065
$50,000 10 years $1,884 $399 $1,485
$50,000 30 years $25,888 $5,560 $20,327
$100,000 30 years $51,776 $11,121 $40,655

Risk Metrics

Based on 5 years of daily returns

Metric IWM VIG
Annualized Volatility 22.6% 14.3%
Max Drawdown -33.1% -21.5%
Sharpe Ratio 0.03 0.28

Dividend Comparison

Metric IWM VIG
Annual Dividend (per share) $2.54 $3.45
Dividend Yield 1.01% 1.59%
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%

VIG Top Holdings

NameWeight
Broadcom Inc.AVGO5.92%
Apple Inc.AAPL3.89%
Eli Lilly and CompanyLLY3.70%
Microsoft CorporationMSFT3.45%
JPMorgan Chase & Co.JPM3.42%
Exxon Mobil CorporationXOM2.87%
Johnson & JohnsonJNJ2.65%
Walmart Inc.WMT2.48%
Visa Inc.V2.23%
Costco Wholesale CorporationCOST1.98%

Which One Should You Choose?

Choose VIG 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 VIG if...

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

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