IWM vs VXUS
iShares Russell 2000 ETF vs Vanguard Total International Stock ETF
Which is better, IWM or VXUS?
Small Cap Blend against Large Cap Blend.
VXUS has a lower expense ratio. IWM led over the full window, VXUS over 1Y, 3Y and 5Y.
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 | VXUS |
|---|---|---|
| Expense Ratio | 0.19% | 0.05%Best |
| AUM | $76.0B | $163.2B |
| Dividend Yield | 0.98% | 2.34% |
| Holdings | 1,972 | 8,844 |
| YTD Return | +9.82% | +10.00%Best |
| 1Y Return | +10.58% | +17.01%Best |
| 3Y Return (annualized) | +17.51% | +19.55%Best |
| 5Y Return (annualized) | +5.03% | +8.55%Best |
| Volatility (annualized) | 19.2% | 15.0%Best |
| Max Drawdown | -42.3% | -39.9%Best |
| $10,000 over 5 years | $12,781 | $15,071Best |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Small Cap Blend | Large Cap Blend |
| Inception | May 22, 2000 | Jan 26, 2011 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Jan 28, 2011 to Oct 14, 2026 (15.7 years).
IWM vs VXUS 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 15.7 years both funds cover.
IWM vs VXUS Performance
iShares Russell 2000 ETF (IWM) is an ETF from iShares by BlackRock (US) and Vanguard Total International Stock ETF (VXUS) is an ETF from Vanguard (US). Over the past year IWM returned +10.58% while VXUS returned +17.01%. Year to date, IWM is up 9.82% versus a gain of 10.00% for VXUS.
Over three years, IWM compounded at +17.51% per year against +19.55% for VXUS; over five years the annualized figures are +5.03% and +8.55% respectively. Across the full 16-year window we track, IWM has the edge at +8.78% annualized vs +4.53%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IWM has been the more volatile fund, with annualized monthly volatility of 19.2% compared with 15.0% for VXUS. 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 -42.3% for IWM and -39.9% for VXUS. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.77. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IWM charges 0.19% per year while VXUS charges 0.05%. On a $10,000 position that is $19 vs $5 annually, a gap of $14 per year that compounds over a long holding period. On income, IWM currently yields 0.98% against 2.34% for VXUS.
Holdings Overlap
At least 1.0% of IWM's money is in holdings VXUS also owns.
Stated as a floor: for VXUS, our book for it covers 91.3% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
We cannot see either book well enough to say how much of this pair is duplicated.
14 positions in common, counted across the 1,973 positions we hold weights for in IWM and 8,425 in VXUS, against full books of 1,972 and 8,844.
Top Shared Holdings
| Stock | Weight in IWM | Weight in VXUS | Difference |
|---|---|---|---|
| SSRMSsr Mining Inc | 0.24% | 0.02% | 0.22% |
| BIPCBrookfield Infrastructure Corporation Class A Ordinary Shares - Subordinate Voting Shares | 0.15% | 0.01% | 0.14% |
| SIG:LNSignet Jewelers Limited Common Shares | 0.14% | 0.02% | 0.12% |
| FBKFb Financial Corp | 0.09% | 0.04% | 0.05% |
| EFR:CAEnergy Fuels Inc | 0.09% | 0.01% | 0.08% |
| PPTA:CAPerpetua Resources Corp | 0.06% | 0.00% | 0.06% |
| BBUCBrookfield Business Corp., Class 'A' | 0.06% | 0.00% | 0.06% |
| CASHMeta Financial Group Inc | 0.05% | 0.00% | 0.05% |
| SCLStepan Co | 0.05% | 0.00% | 0.05% |
| RAILFreightcar America Inc | 0.00% | 0.05% | 0.05% |
You are not choosing between two funds in isolation.
Whichever of IWM and VXUS you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, IWM or VXUS?
IWM has an expense ratio of 0.19% while VXUS charges 0.05%. VXUS is the cheaper option, by $14 a year on a $10,000 investment.
Which performed better, IWM or VXUS?
Over the past year IWM returned +10.58% vs +17.01% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (16 years), IWM annualized +8.78% vs +4.53% for VXUS. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, IWM or VXUS?
IWM has been the more volatile fund at 19.2% annualized versus 15.0% for VXUS. Worst drawdown: IWM -42.3% vs VXUS -39.9%.
Should I hold both IWM and VXUS?
IWM and VXUS have a monthly-return correlation of 0.77, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, IWM or VXUS?
IWM yields 0.98% while VXUS yields 2.34%, so VXUS currently pays the higher dividend yield.
Is VXUS better than IWM?
VXUS has a lower expense ratio. IWM led over the full window, VXUS over 1Y, 3Y and 5Y. Which one suits a particular account depends on what it is for. This is information, not a recommendation.