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ETF Comparison

IWM vs VB: Which Is the Better Pick in 2026?

A head-to-head comparison of iShares Russell 2000 ETF and Vanguard Small Cap ETF covering yield, cost, risk, and income potential.

Data updated July 15, 2026

ETFs481
Total AUM$4450B

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

iShares is one of the largest ETF providers globally, known for offering a broad, diversified lineup of exchange-traded funds across multiple asset classes and investment strategies. The company operates 215 funds spanning 15 distinct families, including popular offerings in dividend income, covered call strategies, bonds, equities, ESG-focused investments, and factor-based approaches, with widely-held tickers like AGG (bond), ACWI (global equity), and AOA (allocation). iShares is characterized by its comprehensive fund ecosystem that serves both core portfolio holdings and specialized investment strategies, making it a prominent player for investors seeking both traditional and alternative income-generating ETF solutions.

See our curated list of related YouTube videos on IWM.

ETFs115
Total AUM$4484B

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

Vanguard is known for offering low-cost, passively managed ETFs that emphasize broad market exposure and long-term investing. The company operates 175 ETFs across diverse fund families including Index, Bond, Equity, Dividend, Income, International, Factor, and ESG strategies, serving investors with various goals from core portfolio building to specialized income generation. Notable for its scale and popular tickers like VB (total U.S. small-cap), BND (total bond market), and VBIAX (international bonds), Vanguard focuses on providing comprehensive, index-based investment solutions with an emphasis on cost efficiency and accessibility.

See our curated list of related YouTube videos on VB.

Side-by-side snapshot

IWMVB
Full nameiShares Russell 2000 ETFVanguard Small Cap ETF
IssueriSharesVanguard
Last Close$294.51 as of July 15, 2026$296.89 as of July 15, 2026
Distribution yield0.94%1.20%
Distribution Safety Score 9696
Expense ratio0.19%0.05%
AUM$77.5B$79.4B
Distribution frequencyQuarterlyQuarterly
Underlying indexRussell 2000 IndexCRSP US Small Cap Index
ObjectiveProvide exposure to the fund's underlying index or strategy per issuer materials.Provide exposure to the fund's underlying index or strategy per issuer materials.
Asset classEquityEquity
Inception date05/22/200001/26/2004
Beta1.261.1
Last dividend$0.6950$0.8920
Ex-dividend date06/15/202606/26/2026

Bottom lineIWM and VB are nearly interchangeable — both track the Russell 2000 with very similar cost and risk. The clearest tie-breaker is cost: VB is cheaper at 0.05% vs 0.19%.

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Visual comparison

Key metrics

Projected income on $10K

Projections assume the current yield and share price remain constant. Actual results will vary.

Total returns

IWM has outpaced VB over the trailing twelve months, posting a 33.33% total return against 23.75%. The picture flips over 10 years, though — VB has compounded at 11.14% a year, ahead of IWM at 10.84%. Figures are total returns: price change plus every distribution reinvested.

SymbolYTD1Y3Y5Y10YSince Jan 2004Volatility Sharpe Sortino Max drawdown
IWM18.87%33.33%16.79%7.11%10.84%8.94%21.1%0.530.77-27.5%
VB14.28%23.75%15.09%7.64%11.14%9.92%18.9%0.510.74-25.4%

Total return with all distributions reinvested on the ex-dividend date, split-adjusted, as of July 14, 2026. YTD and 1Y are cumulative; longer windows are annualized. “Since Jan 2004” measures every fund from January 30, 2004 — the youngest fund's first trading day — so all funds share one comparison window. Volatility is the annualized standard deviation of daily total returns over the trailing 3 years. Sharpe and Sortino divide the annualized return in excess of the risk-free rate by, respectively, that volatility and the downside deviation (both over the trailing 3 years) — higher is better. Max drawdown is the largest peak-to-trough total-return decline over the same window — shallower is better.

Quick verdict

IWM (iShares Russell 2000 ETF) and VB (Vanguard Small Cap ETF) are both quarterly-pay dividend ETFs, but they take different approaches.

VB offers the higher yield at 1.20% vs 0.94% for IWM. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.

VB is cheaper with an expense ratio of 0.05% compared to 0.19%.

They track different benchmarks: IWM is linked to Russell 2000 Index while VB tracks CRSP US Small Cap Index, which means their performance drivers differ.

VB is the larger fund by assets ($79.4B), which generally means tighter spreads and better liquidity.

Deep dive

Yield & income

On a $10,000 investment, IWM would generate roughly $7.83/month, while VB would produce $10.00/month, at current distribution rates. Both pay quarterly distributions.

IWM yield0.94%
VB yield1.20%
Monthly diff on $10K$2.17

Cost & efficiency

Over 10 years on $10,000, IWM would cost approximately $190 in fees vs $50 for VB (simplified, not compounded). The $140.00 difference may be offset by yield or performance.

IWM ER0.19%
VB ER0.05%

Strategy & risk

IWM tracks Russell 2000 Index with an index approach, while VB tracks CRSP US Small Cap Index with an index approach. Beta is 1.26 for IWM and 1.1 for VB, indicating VB is less volatile relative to the market.

IWM beta1.26
VB beta1.1

Fund details

IWM is managed by iShares (launched 05/22/2000) with $77.5B in assets. VB is managed by Vanguard (launched 01/26/2004) with $79.4B in assets.

IWM AUM$77.5B
VB AUM$79.4B

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Frequently asked questions

Is IWM or VB better for dividend income?

It depends on your goals. VB currently offers the higher distribution yield, which means more income per dollar invested. However, a lower-yield fund may offer better total return or lower volatility. Consider your time horizon and risk tolerance.

What is the difference between IWM and VB?

IWM (iShares Russell 2000 ETF) tracks Russell 2000 Index with an index approach, while VB (Vanguard Small Cap ETF) tracks CRSP US Small Cap Index with an index approach. They are issued by iShares and Vanguard respectively.

Can I hold both IWM and VB?

Yes — nothing prevents holding both. Whether the combination actually diversifies depends on how much the underlying exposures overlap, which isn't fully measurable from the data on this page; review each security's holdings, sector, and strategy before treating them as complementary.

Which has lower fees, IWM or VB?

IWM has an expense ratio of 0.19% while VB charges 0.05%. Lower fees mean more of your investment returns stay in your pocket over time.

How much income does $10,000 in IWM vs VB generate?

At current rates, $10,000 in IWM would generate roughly $7.83 per month ($94.00 annually). The same in VB would produce about $10.00 per month ($120.00 annually).

Which has performed better historically, IWM or VB?

IWM has outpaced VB over the trailing twelve months, posting a 33.33% total return against 23.75%. The picture flips over 10 years, though — VB has compounded at 11.14% a year, ahead of IWM at 10.84%. Figures are total returns: price change plus every distribution reinvested. Past performance does not guarantee future results.

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