What is the expense ratio of IWM vs XLK?

IWM has an expense ratio of 0.19%, while XLK has an expense ratio of 0.08%.

IWM vs XLK

iShares Russell 2000 ETF vs State Street Technology Select Sector SPDR ETF

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

XLK

State Street Technology Select Sector SPDR ETF (XLK) is an exchange-traded fund that provides exposure to us sector - technology securities. It charges a low expense ratio of 0.08%. The fund offers a modest dividend yield of 0.56%. Launched in 1998, the fund has a 28-year track record.

AUM: $86.3B ER: 0.08% Yield: 0.56% Since: Dec 16, 1998

Quick Verdict

XLK is significantly cheaper at 0.08% vs 0.19% expense ratio, saving you approximately $217 per $10,000 invested over 10 years. Over the past year, XLK has significantly outperformed with a 52.2% return vs 44.4%.

Key Metrics

Metric	IWM	XLK
Expense Ratio	0.19%	0.08%
Dividend Yield	1.0%	0.6%
Fund Family	N/A	N/A
Category	US Small Cap	US Sector - Technology

Performance Chart

Indexed to 100 at start (5-year comparison)

IWM +13.4%

XLK +94.8%

Performance Comparison

Period	IWM	XLK	Difference
1 Month	-0.50%	-2.13%	+1.63%
3 Months	-2.29%	-5.17%	+2.88%
6 Months	+6.13%	-1.73%	+7.86%
YTD	+1.44%	-5.21%	+6.65%
1 Year	+44.35%	+52.21%	-7.86%
3 Years	+43.59%	+83.61%	-40.02%
5 Years	+13.37%	+92.96%	-79.59%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment	Period	IWM Fees	XLK Fees	You Save
$10,000	10 years	$377	$159	$217
$10,000	20 years	$1,613	$686	$927
$10,000	30 years	$5,178	$2,212	$2,965
$50,000	10 years	$1,884	$797	$1,087
$50,000	30 years	$25,888	$11,061	$14,826
$100,000	30 years	$51,776	$22,123	$29,653

Risk Metrics

Based on 5 years of daily returns

Metric	IWM	XLK
Annualized Volatility	22.6%	24.7%
Max Drawdown	-33.1%	-34.0%
Sharpe Ratio	0.03	0.48

Dividend Comparison

Metric	IWM	XLK
Annual Dividend (per share)	$2.54	$0.77
Dividend Yield	1.01%	0.56%
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%

XLK Top Holdings

Name	Weight
NVIDIA CorporationNVDA	15.35%
Apple Inc.AAPL	13.51%
Microsoft CorporationMSFT	9.84%
Broadcom Inc.AVGO	5.30%
Micron Technology, Inc.MU	3.68%
Advanced Micro Devices, Inc.AMD	3.11%
Palantir Technologies Inc.PLTR	2.93%
Cisco Systems, Inc.CSCO	2.75%
Applied Materials, Inc.AMAT	2.42%
Lam Research CorporationLRCX	2.39%

Which One Should You Choose?

Choose XLK if...

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

Choose XLK 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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