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ETF Comparison

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

A head-to-head comparison of iShares Russell 2000 ETF and Vanguard S&P 500 ETF covering yield, cost, risk, and income potential.

Data updated September 18, 2026

Best for

  • IWMInvestors who want broad equity exposure.
  • VOOInvestors who want simple, diversified core exposure in one low-cost fund.

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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.

IWM has outpaced VOO over the trailing twelve months, posting a 20.13% total return against 17.16%. The picture flips over 10 years, though — VOO has compounded at 15.46% a year, ahead of IWM at 10.17%. VOO has been the steadier holding, though — annualized volatility of 14.9% against 21.1% 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.
SymbolYTD1Y3Y5Y10YSince Sep 2010Volatility Sharpe Sortino Max drawdown
IWM14.97%20.13%17.39%6.38%10.17%11.31%21.1%0.550.81-27.5%
VOO12.37%17.16%21.27%13.09%15.46%14.89%14.9%1.001.44-18.7%

Total return with all distributions reinvested on the ex-dividend date (a modeling convention, not the cash-settlement date), split-adjusted, as of September 18, 2026. YTD and 1Y are cumulative; windows of one year or longer are annualized. “Since Sep 2010” measures every fund from September 9, 2010 — 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.
MetricIWMVOO
Full nameiShares Russell 2000 ETFVanguard S&P 500 ETF
IssueriSharesVanguard
Underlying indexRussell 2000 IndexS&P 500 Index
Last Close$284.10 as of September 18, 2026$701.78 as of September 18, 2026
Distribution rate1.06%1.12%
Distribution Safety Score™ 94100
Safety-Adjusted Yield 1.00%1.12%
Expense ratio0.19%0.03%
AUM$79.5B$1072B
Distribution frequencyQuarterlyQuarterly
ObjectiveProvide exposure to the fund's underlying index or strategy per issuer materials.Track the performance of the S&P 500 Index, representing 500 of the largest U.S. companies.
Asset classEquityEquity
Inception date05/22/200009/07/2010
Beta1.241.0
Last dividend$0.75 payable today$1.9622
Ex-dividend date09/15/202606/26/2026

Bottom lineChoose IWM if you want broad equity exposure. Choose VOO if you want simple, diversified core exposure in one low-cost fund.

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iShares
ETFs466
Total AUM$4551B

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.

See all iShares ETFs
Vanguard
ETFs116
Total AUM$4663B

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 VOO.

See all Vanguard ETFs

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Quick verdict

IWM (iShares Russell 2000 ETF) and VOO (Vanguard S&P 500 ETF) are both quarterly-pay dividend ETFs, but they take different approaches.

VOO offers the higher yield at 1.12% vs 1.06% for IWM. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.

VOO 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 VOO is linked to S&P 500 Index, which means their performance drivers differ.

VOO is the larger fund by assets ($1072B), but assets alone do not establish trading costs or liquidity.

Deep dive

Yield & income

On a $10,000 investment, IWM would generate roughly $8.83/month, while VOO would produce $9.33/month, at current distribution rates. Both pay quarterly distributions.

IWM yield1.06%
VOO yield1.12%
Monthly diff on $10K$0.50

Cost & efficiency

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

IWM ER0.19%
VOO ER0.03%

Strategy & risk

IWM tracks Russell 2000 Index with a small caps approach, while VOO tracks S&P 500 Index with a large cap approach. Beta is 1.24 for IWM and 1.0 for VOO, making VOO the less volatile of the two by this measure.

IWM beta1.24
VOO beta1.0

Fund details

IWM is managed by iShares (launched 05/22/2000) with $79.5B in assets. VOO is managed by Vanguard (launched 09/07/2010) with $1072B in assets.

IWM AUM$79.5B
VOO AUM$1072B
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Frequently asked questions

What is the current distribution rate for IWM and VOO?

IWM currently distributes 1.06% and VOO 1.12%, based on fund data updated September 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 VOO better for dividend income?

It depends on your goals. VOO 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 VOO?

IWM (iShares Russell 2000 ETF) tracks Russell 2000 Index with a small caps approach, while VOO (Vanguard S&P 500 ETF) tracks S&P 500 Index with a large cap approach. They are issued by iShares and Vanguard respectively.

Can I hold both IWM and VOO?

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 VOO safer?

By Dividend Vision's Distribution Safety Score — a rules-based 0–100 estimate of how resilient a distribution looks, where higher is safer — VOO scores 100, IWM scores 94, so VOO's payout currently looks the more resilient of the two. VOO has also shown lower price volatility (beta 1.00 vs 1.24 for IWM). No score makes an investment risk-free — treat this as a screening signal, not a guarantee.

Which has lower fees, IWM or VOO?

IWM has an expense ratio of 0.19% while VOO 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 VOO generate?

At current rates, $10,000 in IWM would generate roughly $8.83 per month ($106.00 annually). The same in VOO would produce about $9.33 per month ($112.00 annually).

Which has performed better historically, IWM or VOO?

IWM has outpaced VOO over the trailing twelve months, posting a 20.13% total return against 17.16%. The picture flips over 10 years, though — VOO has compounded at 15.46% a year, ahead of IWM at 10.17%. VOO has been the steadier holding, though — annualized volatility of 14.9% against 21.1% 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 VOO — at a glance

Generated September 19, 2026.

Overview

IWM and VOO are both broad-market equity ETFs tracking different segments of the U.S. stock market. The key distinction is market-cap exposure: IWM captures roughly 2,000 smaller firms with higher growth potential and volatility, while VOO captures the 500 largest firms with established market positions.

How they differ

The most fundamental difference is their underlying index and resulting portfolio composition. IWM's 1.24 beta indicates it swings about 24% more sharply than the broad market, whereas VOO's 1.0 beta confirms it moves in line with the S&P 500 itself. IWM's 1.06% distribution rate trails VOO's 1.12% by 6 basis points, reflecting smaller companies' lower dividend yields relative to established large-cap payers. Cost is the second major divider: VOO charges 0.03% while IWM costs 0.19%, a difference that compounds significantly over time on large positions. IWM's $79.5B in assets is dwarfed by VOO's $1072B, reflecting the S&P 500's dominance as the benchmark for U.S. equity investing.

Who each is best for

  • IWM: Fits investors seeking higher potential returns from smaller, faster-growing companies and who have higher risk tolerance for single-day swings of 24% greater amplitude than the broad market.
  • VOO: Fits investors building core portfolio exposure to U.S. large-cap equities and who prioritize lower costs, higher liquidity, and lower volatility over growth potential.

Key risks to know

  • Market-cap cyclicality: Small caps (IWM) and large caps (VOO) tend to outperform in alternating cycles. Extended periods of large-cap dominance can leave IWM lagging for years, and vice versa; past performance in one cycle does not predict the next.
  • Higher volatility in IWM: The 1.24 beta means IWM drawdowns typically exceed those of VOO during market corrections, which may force unwanted portfolio rebalancing or require holding through larger declines.
  • Earnings sensitivity: IWM's smaller constituents are more sensitive to credit conditions, interest-rate rises, and economic slowdowns, since they typically carry higher debt ratios and less financial flexibility than S&P 500 companies.

Bottom line

If you want exposure to the largest, most liquid U.S. companies with minimal fees and lower volatility, VOO's 0.03% cost and $1072B scale reflect that profile. If you believe smaller companies will outperform and can tolerate roughly 24% greater price swings, IWM offers that exposure, though its 0.19% cost and lower distribution rate mean you're paying more to capture that bet. Past performance doesn't predict future results.

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

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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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