IWM vs IJR: Head-to-Head Comparison
IWM vs IJR: iShares Russell 2000 ETF has an expense ratio of 0.19% while iShares Core S&P Small-Cap ETF charges 0.06%. IWM holds 1,955 securities vs IJR's 600. 5-year returns: 8.20% vs 9.50%.
Last updated: April 2026
Small Cap
Quick Verdict
IJR edges out IWM with a stronger Beginner Suitability Score (9 vs 8.5). It offers lower fees for new investors.
Side-by-Side Comparison
| Metric | IWM | IJR |
|---|---|---|
| Expense Ratio | 0.19% | 0.06% |
| AUM | $72.0B | $80.0B |
| Dividend Yield | 1.30% | 1.50% |
| Holdings | 1,955 | 600 |
| 1-Year Return | 17.80% | 11.00% |
| 5-Year Return (Ann.) | 8.20% | 9.50% |
| 10-Year Return (Ann.) | 7.80% | 9.00% |
| Beta | 1.22 | 1.12 |
| P/E Ratio | 28.5 | 18.5 |
IWM 5-year annualized return is 8.20% compared to IJR's 9.50%. Over 10 years, IWM returned 7.80% vs IJR's 9.00%.
View data table
| Period | IWM Return | IJR Return |
|---|---|---|
| YTD | 1.50% | 2.20% |
| 1 Year | 17.80% | 11.00% |
| 3 Year | 2.50% | 6.00% |
| 5 Year | 8.20% | 9.50% |
| 10 Year | 7.80% | 9.00% |
Key Differences Between IWM and IJR
IWM (iShares Russell 2000 ETF) is a u.s. small-cap blend fund managed by BlackRock. IWM tracks the Russell 2000 index, which includes 2,000 small-cap U.S. companies. Small-cap stocks are younger, faster-growing companies that have historically delivered higher returns than large-caps over very long time periods, but with significantly more volatility. Beginners should view IWM as a way to add growth potential through smaller companies that could become the large-caps of tomorrow.
IJR (iShares Core S&P Small-Cap ETF) is a us small-cap fund managed by BlackRock. IJR tracks the S&P SmallCap 600 Index, which screens for profitability before including companies, making it a higher-quality small-cap option. Unlike broader small-cap indexes, the S&P 600 requires positive earnings, filtering out unprofitable speculative companies. This quality screen has historically helped IJR deliver better risk-adjusted returns than many competing small-cap funds.
The most notable differences are in fees (0.19% vs 0.06%), number of holdings (1,955 vs 600), and 5-year returns (8.20% vs 9.50%).
IWM vs IJR multi-factor comparison: IWM has a 0.19% expense ratio, 8.20% 5-year return, 1,955 holdings, 1.22 beta, and 1.30% yield. IJR has 0.06% expense ratio, 9.50% 5-year return, 600 holdings, 1.12 beta, and 1.50% yield.
View data table
| Metric | IWM | IJR |
|---|---|---|
| Expense Ratio | 0.19% | 0.06% |
| 5-Year Return | 8.20% | 9.50% |
| Holdings | 1,955 | 600 |
| Beta | 1.22 | 1.12 |
| Dividend Yield | 1.30% | 1.50% |
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Holdings Overlap Analysis
5%
Holdings Overlap
IWM and IJR share only 5% of their top holdings. These funds are quite different, making them complementary choices if you want broader market coverage.
IWM and IJR share 5% of their top holdings (low overlap). IWM has 1,955 total holdings and IJR has 600. Common holdings include MWA.
View data table
| Metric | IWM | IJR |
|---|---|---|
| Overlap | 5% | 5% |
| Unique Holdings | 95% | 95% |
| Total Holdings | 1,955 | 600 |
Cost Comparison Over Time
If you invest $10,000 and hold for 20 years (assuming 8% annual returns):
IWM
Fee cost: $1,613
IJR
Fee cost: $515
Over 20 years, the fee difference amounts to $1,098 on a $10,000 investment. IJR saves you more in fees over time.
On a $10,000 investment over 20 years at 8% return, IWM (0.19% fee) grows to $44,997 while IJR (0.06% fee) grows to $46,094. The fee difference costs $1,097.
View data table
| Year | IWM Value | IJR Value |
|---|---|---|
| 0 | $10,000 | $10,000 |
| 5 | $14,564 | $14,653 |
| 10 | $21,212 | $21,470 |
| 15 | $30,895 | $31,458 |
| 20 | $44,997 | $46,094 |
Which One Should a Beginner Choose?
Choose IWM if: You want investors with a long time horizon who want small-cap growth exposure, those looking to diversify beyond large-cap stocks in their portfolio, investors who believe small-cap stocks are poised for a rebound relative to large-caps. It's managed by BlackRock with an expense ratio of 0.19%.
Choose IJR if: You want quality-conscious investors wanting small-cap exposure without the junkiest stocks, core small-cap allocation in a diversified portfolio, investors who prefer index methodology with built-in quality screening. It's managed by BlackRock with an expense ratio of 0.06%.
Can You Own Both IWM and IJR?
Absolutely! With only 5% overlap, IWM and IJR complement each other well. A simple portfolio might allocate 60% to one and 40% to the other, or you could pair them with a bond ETF like BND for a complete three-fund portfolio.
Frequently Asked Questions
Should I buy IWM or IJR?▾
IJR edges out IWM with a stronger Beginner Suitability Score (9 vs 8.5). It offers lower fees for new investors. However, both are solid options. IWM is best for investors who want investors with a long time horizon who want small-cap growth exposure, while IJR is better suited for quality-conscious investors wanting small-cap exposure without the junkiest stocks.
What is the difference between IWM and IJR?▾
IWM (iShares Russell 2000 ETF) tracks u.s. small-cap blend investments with 1,955 holdings and a 0.19% expense ratio. IJR (iShares Core S&P Small-Cap ETF) focuses on us small-cap with 600 holdings at 0.06%. Their top holdings overlap by 5%.
Can I own both IWM and IJR?▾
Yes! With only 5% holdings overlap, IWM and IJR complement each other well. Owning both gives you broader diversification.