What is the expense ratio of IWM vs VO?

IWM has an expense ratio of 0.19%, while VO has an expense ratio of 0.03%.

IWM vs VO

iShares Russell 2000 ETF vs Vanguard Mid-Cap Index Fund ETF Shares

Last updated: 2026-04-08

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

Vanguard Mid-Cap Index Fund ETF Shares (VO) is an exchange-traded fund that provides exposure to mid-cap U.S. companies balancing growth potential and stability. It charges a very low expense ratio of 0.03%. The fund offers a moderate dividend yield of 1.49%. Launched in 2004, the fund has a 22-year track record.

AUM: $93.2B ER: 0.03% Yield: 1.49% Since: Jan 26, 2004

Quick Verdict

VO 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 44.4% return vs 27.5%.

Key Metrics

Metric	IWM	VO
Expense Ratio	0.19%	0.03%
Dividend Yield	1.0%	1.5%
Fund Family	N/A	N/A
Category	US Small Cap	US Mid Cap

Performance Chart

Indexed to 100 at start (5-year comparison)

IWM +13.4%

VO +28.4%

Performance Comparison

Period	IWM	VO	Difference
1 Month	-0.50%	-2.20%	+1.70%
3 Months	-2.29%	-1.90%	-0.39%
6 Months	+6.13%	+1.79%	+4.34%
YTD	+1.44%	-0.43%	+1.87%
1 Year	+44.35%	+27.50%	+16.85%
3 Years	+43.59%	+39.69%	+3.90%
5 Years	+13.37%	+27.94%	-14.57%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment	Period	IWM Fees	VO 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	VO
Annualized Volatility	22.6%	17.6%
Max Drawdown	-33.1%	-28.6%
Sharpe Ratio	0.03	0.12

Dividend Comparison

Metric	IWM	VO
Annual Dividend (per share)	$2.54	$4.33
Dividend Yield	1.01%	1.49%
Distribution Frequency	Quarterly	Quarterly

Top Holdings

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

IWM Top Holdings

Name	Weight
Bloom Energy CorporationBE	0.99%
FabrinetFN	0.67%
COEUR MINING INCCDE.NE	0.63%
EchoStar CorporationSATS	0.57%
Credo Technology Group Holding LtdCRDO	0.55%
Nextpower Inc.NXT	0.53%
Kratos Defense & Security Solutions, Inc.KTOS	0.45%
Advanced Energy Industries, Inc.AEIS	0.42%
Hecla Mining CompanyHL	0.41%
Sterling Infrastructure, Inc.STRL	0.39%

VO Top Holdings

Name	Weight
Newmont CorporationNEM	1.46%
Corning IncorporatedGLW	1.20%
Howmet Aerospace Inc.HWM	1.09%
Constellation Energy CorporationCEG	1.06%
Vertiv Holdings CoVRT	0.99%
Western Digital CorporationWDC	0.99%
Seagate Technology Holdings plcSTX	0.90%
Quanta Services, Inc.PWR	0.87%
Cummins Inc.CMI	0.83%
CRH plcCRH	0.83%

Which One Should You Choose?

Choose VO 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 VO if...

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

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