A head-to-head comparison of iShares Russell 2000 ETF and Vanguard Russell 2000 Index Fund ETF Shares covering yield, cost, risk, and income potential.
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.
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 VTWO.
Provide exposure to the fund's underlying index or strategy per issuer materials.
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Asset class
Equity
Equity
Inception date
05/22/2000
09/20/2010
Beta
1.26
1.26
Last dividend
$0.6950
$0.3010
Ex-dividend date
06/15/2026
06/18/2026
Bottom lineIWM and VTWO are nearly interchangeable — both track the Russell 2000 with very similar cost and risk. The clearest tie-breaker is cost: VTWO is cheaper at 0.10% vs 0.19%.
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Projections assume the current yield and share price remain constant. Actual results will vary.
Total returns
IWM has lagged VTWO over the trailing twelve months, posting a 33.33% total return against 33.66%. The lead holds up over 10 years too: VTWO has compounded at 10.99% a year, against 10.84% for IWM. Figures are total returns: price change plus every distribution reinvested.
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 Sep 2010” measures every fund from September 24, 2010 — 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 VTWO (Vanguard Russell 2000 Index Fund ETF Shares) are both quarterly-pay dividend ETFs, but they take different approaches.
VTWO offers the higher yield at 1.01% vs 0.94% for IWM. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.
VTWO is cheaper with an expense ratio of 0.10% compared to 0.19%.
They track different benchmarks: IWM is linked to Russell 2000 Index while VTWO tracks Vanguard Russell 2000 Index, which means their performance drivers differ.
IWM is the larger fund by assets ($77.5B), 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 VTWO would produce $8.42/month, at current distribution rates. Both pay quarterly distributions.
IWM yield0.94%
VTWO yield1.01%
Monthly diff on $10K$0.58
Cost & efficiency
Over 10 years on $10,000, IWM would cost approximately $190 in fees vs $100 for VTWO (simplified, not compounded). The $90.00 difference may be offset by yield or performance.
IWM ER0.19%
VTWO ER0.10%
Strategy & risk
Both IWM and VTWO wrap Russell 2000 Index with similar strategies (index and small caps). The practical differences are yield target, fee structure, and issuer track record — not the underlying mechanic.
IWM beta1.26
VTWO beta1.26
Fund details
IWM is managed by iShares (launched 05/22/2000) with $77.5B in assets. VTWO is managed by Vanguard (launched 09/20/2010) with $16.4B in assets.
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Frequently asked questions
Is IWM or VTWO better for dividend income?
It depends on your goals. VTWO 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 VTWO?
Both IWM (iShares Russell 2000 ETF) and VTWO (Vanguard Russell 2000 Index Fund ETF Shares) track Russell 2000 Index with similar approaches — the labels "index" and "small caps" describe closely related mechanics. The real differences show up in yield target (0.94% vs 1.01%), expense ratio (0.19% vs 0.10%), and issuer (iShares vs Vanguard).
Can I hold both IWM and VTWO?
You can, but expect significant overlap. Both funds use similar strategies on Russell 2000 Index, so holding them together gives you two wrappers around effectively the same exposure — not true diversification. Weigh issuer, fee, and yield differences rather than treating them as complementary.
Which has lower fees, IWM or VTWO?
IWM has an expense ratio of 0.19% while VTWO charges 0.10%. Lower fees mean more of your investment returns stay in your pocket over time.
How much income does $10,000 in IWM vs VTWO generate?
At current rates, $10,000 in IWM would generate roughly $7.83 per month ($94.00 annually). The same in VTWO would produce about $8.42 per month ($101.00 annually).
Which has performed better historically, IWM or VTWO?
IWM has lagged VTWO over the trailing twelve months, posting a 33.33% total return against 33.66%. The lead holds up over 10 years too: VTWO has compounded at 10.99% a year, against 10.84% for IWM. Figures are total returns: price change plus every distribution reinvested. Past performance does not guarantee future results.
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