VOO vs IWM: Head-to-Head Comparison
VOO vs IWM: Vanguard S&P 500 ETF has an expense ratio of 0.03% while iShares Russell 2000 ETF charges 0.19%. VOO holds 503 securities vs IWM's 1,955. 5-year returns: 15.80% vs 8.20%.
Last updated: April 2026
Large vs Small Cap
Quick Verdict
VOO edges out IWM with a stronger Beginner Suitability Score (9.5 vs 8.5). It offers lower fees for new investors.
Side-by-Side Comparison
| Metric | VOO | IWM |
|---|---|---|
| Expense Ratio | 0.03% | 0.19% |
| AUM | $560.0B | $72.0B |
| Dividend Yield | 1.30% | 1.30% |
| Holdings | 503 | 1,955 |
| 1-Year Return | 26.70% | 17.80% |
| 5-Year Return (Ann.) | 15.80% | 8.20% |
| 10-Year Return (Ann.) | 13.30% | 7.80% |
| Beta | 1.00 | 1.22 |
| P/E Ratio | 25.8 | 28.5 |
VOO 5-year annualized return is 15.80% compared to IWM's 8.20%. Over 10 years, VOO returned 13.30% vs IWM's 7.80%.
View data table
| Period | VOO Return | IWM Return |
|---|---|---|
| YTD | 3.20% | 1.50% |
| 1 Year | 26.70% | 17.80% |
| 3 Year | 11.20% | 2.50% |
| 5 Year | 15.80% | 8.20% |
| 10 Year | 13.30% | 7.80% |
Key Differences Between VOO and IWM
VOO (Vanguard S&P 500 ETF) is a u.s. large-cap blend fund managed by Vanguard. VOO tracks the S&P 500 index, giving you ownership in 500 of the largest U.S. companies in a single investment. It is one of the most popular ETFs in the world thanks to its ultra-low expense ratio and broad market exposure. For beginners, VOO is often recommended as a core portfolio holding because it provides instant diversification across America's leading businesses.
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.
The most notable differences are in fees (0.03% vs 0.19%), number of holdings (503 vs 1,955), and 5-year returns (15.80% vs 8.20%).
VOO vs IWM multi-factor comparison: VOO has a 0.03% expense ratio, 15.80% 5-year return, 503 holdings, 1.00 beta, and 1.30% yield. IWM has 0.19% expense ratio, 8.20% 5-year return, 1,955 holdings, 1.22 beta, and 1.30% yield.
View data table
| Metric | VOO | IWM |
|---|---|---|
| Expense Ratio | 0.03% | 0.19% |
| 5-Year Return | 15.80% | 8.20% |
| Holdings | 503 | 1,955 |
| Beta | 1.00 | 1.22 |
| Dividend Yield | 1.30% | 1.30% |
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Holdings Overlap Analysis
0%
Holdings Overlap
VOO and IWM share only 0% of their top holdings. These funds are quite different, making them complementary choices if you want broader market coverage.
VOO and IWM share 0% of their top holdings (low overlap). VOO has 503 total holdings and IWM has 1,955.
View data table
| Metric | VOO | IWM |
|---|---|---|
| Overlap | 0% | 0% |
| Unique Holdings | 100% | 100% |
| Total Holdings | 503 | 1,955 |
Cost Comparison Over Time
If you invest $10,000 and hold for 20 years (assuming 8% annual returns):
VOO
Fee cost: $258
IWM
Fee cost: $1,613
Over 20 years, the fee difference amounts to $1,355 on a $10,000 investment. VOO saves you more in fees over time.
On a $10,000 investment over 20 years at 8% return, VOO (0.03% fee) grows to $46,351 while IWM (0.19% fee) grows to $44,997. The fee difference costs $1,354.
View data table
| Year | VOO Value | IWM Value |
|---|---|---|
| 0 | $10,000 | $10,000 |
| 5 | $14,673 | $14,564 |
| 10 | $21,529 | $21,212 |
| 15 | $31,590 | $30,895 |
| 20 | $46,351 | $44,997 |
Which One Should a Beginner Choose?
Choose VOO if: You want beginning investors looking for a simple core portfolio holding, long-term buy-and-hold investors seeking broad u.s. market exposure, cost-conscious investors who want minimal fees. It's managed by Vanguard with an expense ratio of 0.03%.
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%.
Can You Own Both VOO and IWM?
Absolutely! With only 0% overlap, VOO and IWM 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 VOO or IWM?▾
VOO edges out IWM with a stronger Beginner Suitability Score (9.5 vs 8.5). It offers lower fees for new investors. However, both are solid options. VOO is best for investors who want beginning investors looking for a simple core portfolio holding, while IWM is better suited for investors with a long time horizon who want small-cap growth exposure.
What is the difference between VOO and IWM?▾
VOO (Vanguard S&P 500 ETF) tracks u.s. large-cap blend investments with 503 holdings and a 0.03% expense ratio. IWM (iShares Russell 2000 ETF) focuses on u.s. small-cap blend with 1,955 holdings at 0.19%. Their top holdings overlap by 0%.
Can I own both VOO and IWM?▾
Yes! With only 0% holdings overlap, VOO and IWM complement each other well. Owning both gives you broader diversification.