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Dividend Vision

ETF Comparison

IWM vs VB: Two Ways to Own US Small Caps

A head-to-head of iShares Russell 2000 and Vanguard Small Cap covering index rules, cost, and concentration.

Updated October 16, 2026

How these figures are calculated: methodology.

Best for

  • IWMInvestors who want broad equity exposure.
  • VBInvestors who want broad equity exposure.

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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

100% reinvested · ex-date convention. Period returns use this fixed assumption, independent of chart settings. YTD and 1Y are cumulative period returns; 3Y, 5Y, and 10Y are annualized. The shared Since-start window is annualized only when it covers at least one year.

IWM has lagged VB over the trailing twelve months, posting a 11.48% total return against 13.78%. The lead holds up over 10 years too: VB has compounded at 10.72% a year, against 9.79% for IWM. Figures are total returns: price change plus every distribution reinvested.

Total return and risk statistics by fund. Each row is one fund; each column is one period or statistic.
SymbolYTD cumulative1Y cumulative3Y annualized5Y annualized10Y annualizedSince Jan 2004Volatility Sharpe Sortino Max drawdown
IWM10.61%11.48%17.34%5.02%9.79%8.44%21.0%0.560.83-27.5%
VB11.29%13.78%16.58%6.21%10.72%9.61%18.7%0.600.87-25.4%

Total return with all distributions reinvested on the ex-dividend date (a modeling convention, not the cash-settlement date), split-adjusted, as of October 16, 2026. YTD and 1Y are cumulative period returns; 3Y, 5Y, and 10Y are annualized. The shared Since-start window is annualized only when it covers at least one year. “Since Jan 2004” measures every fund from January 30, 2004 — the start of shared available history — 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.

Side-by-side snapshot

Side-by-side snapshot. Each row is one metric; each column is one fund.
MetricIWMVB
Full nameiShares Russell 2000 ETFVanguard Morningstar Small-Cap ETF
IssueriSharesVanguard
Underlying indexRussell 2000 IndexMorningstar US Small Cap Index
Last Close$270.44 as of October 16, 2026$284.32 as of October 16, 2026
Distribution rate1.11%1.19%
Trailing 12-month yield1.01%1.28%
Distribution Safety Score™ 9293
Safety-Adjusted Yield 1.02%1.11%
Expense ratio0.19%0.03%
AUM$78.7B$78.2B
Distribution frequencyQuarterlyQuarterly
ObjectiveProvide exposure to the fund's underlying index or strategy per issuer materials.Seeks to track the Morningstar US Small Cap Index.
Asset classEquityEquity
Inception date05/22/200001/26/2004
Beta1.271.11
Last dividend$0.75$0.849
Ex-dividend date09/15/202609/28/2026

Bottom lineIWM and VB are both for investors who want broad equity exposure — so strategy isn't the deciding factor here. Cost is: VB charges 0.03% against 0.19% for IWM, and between two funds this similar that gap comes straight out of your return every year you hold.

IWM vs VB: Russell 2000 or broader small caps?

IWM is the Russell 2000. VB is a broader CRSP small-cap index. Construction is the decision.

IWMVB
IndexRussell 2000 IndexMorningstar US Small Cap Index
Expense ratio0.19%0.03%
Distribution rate1.11%1.19%
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iShares
ETFs468
Total AUM$4.70T

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

iShares, operated by BlackRock, is one of the largest and most established ETF providers globally, known for offering broad, liquid index-tracking funds across nearly all asset classes and investment styles. The lineup encompasses a comprehensive range of strategies including core equity and bond exposure, dividend and income-focused funds, covered call strategies, ESG and thematic investments, factor-based approaches, alternatives, commodities, and municipal bonds, serving both individual and institutional investors. With numerous popular ticker symbols and extensive diversification across geographies, sectors, and investment objectives, iShares provides one of the market's widest selections of ETFs for building diversified portfolios.

See our curated list of related YouTube videos on IWM.

See all ETFs from iShares
Vanguard
ETFs116
Total AUM$4.71T

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

Vanguard is one of the largest and most established ETF issuers, known for low-cost, broadly diversified fund offerings built on passive indexing principles. Their lineup spans multiple asset classes and strategies, including core equity and bond index funds, dividend-focused portfolios, ESG-screened options, factor-based strategies, sector exposure, target-date retirement funds, and international investments across developed and emerging markets. The platform is characterized by its emphasis on accessibility and cost efficiency across a comprehensive range of fund families, serving both individual investors seeking broad market exposure and those pursuing specific income, sustainability, or thematic objectives.

See our curated list of related YouTube videos on VB.

See all ETFs from Vanguard

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Quick verdict

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

VB offers the higher yield at 1.19% vs 1.11% 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 0.03% compared to 0.19%.

They have different reference exposures: IWM is linked to Russell 2000 Index while VB is linked to Morningstar US Small Cap Index, which means their performance drivers differ.

IWM is the larger fund by assets ($78.7B), but assets alone do not establish trading costs or liquidity.

Deep dive

Yield & income

On a $10,000 investment, IWM would generate roughly $27.75 cash per distribution, while VB would produce $29.75 cash per distribution, at current distribution rates. Both pay quarterly distributions.

IWM yield1.11%
VB yield1.19%
Cash diff on $10K$2.00

Cost & efficiency

Over 10 years on $10,000, IWM would cost approximately $190 in fees vs $30 for VB (simplified, not compounded). The $160.00 difference may be offset by yield or performance.

IWM ER0.19%
VB ER0.03%

Strategy & risk

IWM tracks Russell 2000 Index with a small caps approach, while VB tracks Morningstar US Small Cap Index with a small caps approach. Beta is 1.27 for IWM and 1.11 for VB, making VB the less volatile of the two by this measure.

IWM beta1.27
VB beta1.11

Fund details

IWM is managed by iShares (launched 05/22/2000) with $78.7B in assets. VB is managed by Vanguard (launched 01/26/2004) with $78.2B in assets.

IWM AUM$78.7B
VB AUM$78.2B
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Frequently asked questions

What is the difference between IWM and VB?

IWM (iShares Russell 2000 ETF) tracks Russell 2000 Index. VB (Vanguard Morningstar Small-Cap ETF) tracks Morningstar US Small Cap Index, a broader small-cap book. Cost is 0.19% versus 0.03%; distributions are 1.11% and 1.19% as of October 2026. Russell 2000 versus a broader small-cap index is the decision.

What is the current distribution rate for IWM and VB?

IWM currently distributes 1.11% and VB 1.19%, based on fund data updated October 2026. Distribution rate moves with both the payout and the share price, so check the as-of date before relying on either figure.

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.

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.

Is IWM or VB safer?

By Dividend Vision's Distribution Safety Score — a rules-based 0–100 estimate of how resilient a distribution looks, where higher is safer — they are effectively tied: VB scores 93, IWM scores 92. Neither has a clear safety edge on that measure. VB has also shown lower price volatility (beta 1.11 vs 1.27 for IWM). No score makes an investment risk-free — treat this as a screening signal, not a guarantee.

Which has lower fees, IWM or VB?

IWM has an expense ratio of 0.19% while VB charges 0.03%. 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 $27.75 cash per distribution ($111.00 annually). The same in VB would produce about $29.75 cash per distribution ($119.00 annually).

Which has performed better historically, IWM or VB?

IWM has lagged VB over the trailing twelve months, posting a 11.48% total return against 13.78%. The lead holds up over 10 years too: VB has compounded at 10.72% a year, against 9.79% for IWM. Figures are total returns: price change plus every distribution reinvested. Past performance does not guarantee future results.

More comparisons to explore

IWM vs VB — at a glance

Generated October 17, 2026.

Overview

IWM and VB are both ETFs providing small-cap US equity exposure, but they track different indexes and employ different construction approaches. Both offer quarterly distributions and negligible expense ratios by small-cap standards, making the choice turn on index selection and a notable cost gap. Yield is nearly identical (1.11% versus 1.19%), and both distribute quarterly. IWM carries a higher beta of 1.27, reflecting the Russell 2000's concentration in lower-cap names, versus VB's 1.11. AUM is comparable ($78.7B for IWM, $78.2B for VB).

Who each is best for

  • IWM: Fits investors who want pure Russell 2000 exposure—either because a portfolio benchmark or mandate specifies that index, or because they believe the index's lower-cap tilt represents authentic small-cap opportunity despite higher volatility.
  • VB: Designed for investors prioritizing cost efficiency and a slightly broader small-cap definition. The 0.03% expense ratio makes a material difference in a buy-and-hold small-cap position held over 20+ years. Portfolio turnover and tax outcomes can differ between the two as a result.
  • Beta and volatility: IWM's 1.27 beta versus VB's 1.11 signals meaningfully higher sensitivity to market swings. In downturns, IWM's concentrated lower-cap exposure may amplify losses.
  • Small-cap style drift: Both funds hold true small-caps, but the difference between tracking Russell 2000 rules and Morningstar rules can produce subtle style divergence—one fund may skew slightly more growth-oriented or value-oriented than the other over time.

Bottom line

If you want the pure Russell 2000 benchmark and accept higher beta, IWM delivers it at reasonable cost. If you prioritize the lowest possible expense ratio and are comfortable with Morningstar's small-cap definition, VB's 0.03% edge makes a real difference over a multi-decade horizon. Past performance doesn't predict future results, and both indexes can underperform large-caps during extended periods of market concentration.

AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.

Learn the method

The metrics behind this comparison, explained in the Academy.

How to read a fund's stats How expense ratios eat returns Correlation between two funds

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These comparisons follow the Dividend Vision methodology.