IWM vs SMLL
iShares Russell 2000 ETF vs Harbor Active Small Cap ETF
Which is better, IWM or SMLL?
IWM has been ahead.
IWM has a lower expense ratio. IWM led over 1Y and the full window. IWM is less concentrated, with 3.5% of the fund in its ten largest positions against 36.3%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | IWM | SMLL |
|---|---|---|
| Expense Ratio | 0.19%Best | 0.80% |
| AUM | $76.0B | $12M |
| Dividend Yield | 0.98% | 1.63% |
| Holdings | 1,972 | 103 |
| YTD Return | +9.82%Best | +2.49% |
| 1Y Return | +10.58%Best | -0.71% |
| 3Y Return (annualized) | +17.51% | - |
| 5Y Return (annualized) | +5.03% | - |
| Volatility (annualized) | 17.8% | 17.4%Best |
| Max Drawdown | -27.5% | -23.6%Best |
| $10,000 over 2.1 years | $12,673Best | $10,541 |
| Top 10 Weight | 3.5%Best | 36.3% |
| Fund Family | iShares by BlackRock (US) | Harbor Funds |
| Category | Equity | Equity |
| Style | Small Cap Blend | Small Cap Blend |
| Inception | May 22, 2000 | Aug 27, 2024 |
Volatility and max drawdown, and the $10,000 over 2.1 years row, are measured over the window both funds cover: Aug 29, 2024 to Oct 14, 2026 (2.1 years).
IWM vs SMLL growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 2.1 years both funds cover.
IWM vs SMLL Performance
iShares Russell 2000 ETF (IWM) is an ETF from iShares by BlackRock (US) and Harbor Active Small Cap ETF (SMLL) is an ETF from Harbor Funds. Over the past year IWM returned +10.58% while SMLL returned -0.71%. Year to date, IWM is up 9.82% versus a gain of 2.49% for SMLL.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IWM has been the more volatile fund, with annualized monthly volatility of 17.8% compared with 17.4% for SMLL. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -27.5% for IWM and -23.6% for SMLL. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.82. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IWM charges 0.19% per year while SMLL charges 0.80%. On a $10,000 position that is $19 vs $80 annually, a gap of $61 per year that compounds over a long holding period. On income, IWM currently yields 0.98% against 1.63% for SMLL.
Holdings Overlap
1.4% of IWM's money is in holdings SMLL also owns. 33.6% of SMLL's money is in holdings IWM also owns.
The two portfolios partly overlap.
18 positions in common, counted across the 1,973 positions we hold weights for in IWM and 51 in SMLL, against full books of 1,972 and 103.
What only one of them owns
Our book lists 33 positions for SMLL that do not appear in our book for IWM (63.8% of the fund), and 1,674 for IWM that do not appear in SMLL (94.8%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in IWM | Weight in SMLL | Difference |
|---|---|---|---|
| UBSIUnited Bankshares Inc/Wv | 0.20% | 3.38% | 3.18% |
| PLOWDouglas Dynamics, Inc. | 0.03% | 3.48% | 3.45% |
| RLJRlj Lodging Trust | 0.05% | 2.92% | 2.87% |
| APAMArtisan Partners Asset Management, Inc. | 0.08% | 2.51% | 2.43% |
| RELYRemitly Global, Inc. | 0.11% | 2.40% | 2.29% |
| JBIJanus International | 0.02% | 2.40% | 2.38% |
| LBRTLiberty Oilfield Services, Inc. | 0.10% | 2.26% | 2.16% |
| USPHUs Physical Therapy Inc | 0.04% | 2.22% | 2.18% |
| HLMNHillman Solutions Corp | 0.05% | 2.10% | 2.05% |
| FRSHFreshworks Inc-Cl A | 0.10% | 1.76% | 1.66% |
33.6% of SMLL is already inside IWM.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, IWM or SMLL?
IWM has an expense ratio of 0.19% while SMLL charges 0.80%. IWM is the cheaper option, by $61 a year on a $10,000 investment.
Which performed better, IWM or SMLL?
Over the past year IWM returned +10.58% vs -0.71% for SMLL, so IWM leads on 1-year performance. Over the longest common window we track (2 years), IWM annualized +11.94% vs +2.54% for SMLL. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, IWM or SMLL?
IWM has been the more volatile fund at 17.8% annualized versus 17.4% for SMLL. Worst drawdown: IWM -27.5% vs SMLL -23.6%.
Should I hold both IWM and SMLL?
IWM and SMLL have a monthly-return correlation of 0.82, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between IWM and SMLL?
33.6% of SMLL's money is in holdings IWM also owns. 33.6% of SMLL's is in holdings IWM also owns. They hold 18 positions in common, counted across the 1,973 positions we hold weights for in IWM and 51 in SMLL.
Which pays a higher dividend, IWM or SMLL?
IWM yields 0.98% while SMLL yields 1.63%, so SMLL currently pays the higher dividend yield.
Is SMLL better than IWM?
IWM has a lower expense ratio. IWM led over 1Y and the full window. IWM is less concentrated, with 3.5% of the fund in its ten largest positions against 36.3%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.