What is the expense ratio of IWM vs VWO?

IWM has an expense ratio of 0.19%, while VWO has an expense ratio of 0.06%.

IWM vs VWO

iShares Russell 2000 ETF vs Vanguard Emerging Markets Stock Index Fund

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

VWO

Vanguard Emerging Markets Stock Index Fund (VWO) is an exchange-traded fund that provides exposure to stocks in emerging market economies with higher growth potential. It charges a low expense ratio of 0.06%. The fund offers an attractive dividend yield of 2.77%. Launched in 2005, the fund has a 21-year track record.

AUM: $109.6B ER: 0.06% Yield: 2.77% Since: Mar 4, 2005

Quick Verdict

VWO is significantly cheaper at 0.06% vs 0.19% expense ratio, saving you approximately $257 per $10,000 invested over 10 years. Over the past year, IWM has significantly outperformed with a 44.4% return vs 35.4%. Income investors may prefer VWO for its higher yield (2.8% vs 1.0%).

Key Metrics

Metric	IWM	VWO
Expense Ratio	0.19%	0.06%
Dividend Yield	1.0%	2.8%
Fund Family	N/A	N/A
Category	US Small Cap	Emerging Markets

Performance Chart

Indexed to 100 at start (5-year comparison)

IWM +13.4%

VWO +2.6%

Performance Comparison

Period	IWM	VWO	Difference
1 Month	-0.50%	-2.03%	+1.53%
3 Months	-2.29%	-2.35%	+0.06%
6 Months	+6.13%	+2.80%	+3.33%
YTD	+1.44%	-1.67%	+3.11%
1 Year	+44.35%	+35.40%	+8.95%
3 Years	+43.59%	+33.69%	+9.90%
5 Years	+13.37%	+3.47%	+9.90%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment	Period	IWM Fees	VWO Fees	You Save
$10,000	10 years	$377	$120	$257
$10,000	20 years	$1,613	$515	$1,098
$10,000	30 years	$5,178	$1,664	$3,514
$50,000	10 years	$1,884	$598	$1,286
$50,000	30 years	$25,888	$8,318	$17,570
$100,000	30 years	$51,776	$16,637	$35,139

Risk Metrics

Based on 5 years of daily returns

Metric	IWM	VWO
Annualized Volatility	22.6%	17.3%
Max Drawdown	-33.1%	-35.9%
Sharpe Ratio	0.03	-0.14

Dividend Comparison

Metric	IWM	VWO
Annual Dividend (per share)	$2.54	$1.45
Dividend Yield	1.01%	2.69%
Distribution Frequency	Quarterly	Quarterly

Top Holdings

0 of top 8 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%

VWO Top Holdings

Name	Weight
Taiwan Semiconductor Manufacturing Company Limited!tpe/2330	12.71%
Tencent Holdings Limited!hkg/0700	3.44%
Alibaba Group Holding Limited!hkg/9988	2.74%
HDFC Bank Limited!nse/HDFCBANK	0.93%
Reliance Industries Limited!nse/RELIANCE	0.88%
Hon Hai Precision Industry Co., Ltd.!tpe/2317	0.78%
MediaTek Inc.!tpe/2454	0.76%
China Construction Bank Corporation!hkg/0939	0.75%

Which One Should You Choose?

Choose VWO 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 VWO if...

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

Related Comparisons

AGG vs IWM AGG vs VWO BND vs IWM BND vs VWO BNDX vs IWM BNDX vs VWO EEM vs VWO EFA vs IWM