IWO vs MMSC
iShares Russell 2000 Growth ETF vs First Trust Multi-Manager Small Cap Opportunities ETF
Which is better, IWO or MMSC?
Nearly the same fund. IWO costs less.
IWO has a lower expense ratio. MMSC led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.97. IWO is less concentrated, with 6.5% of the fund in its ten largest positions against 14.0%.
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 | IWO | MMSC |
|---|---|---|
| Expense Ratio | 0.24%Best | 0.95% |
| AUM | $13.7B | $51M |
| Dividend Yield | 0.47% | 0.00% |
| Holdings | 1,105 | 420 |
| YTD Return | +4.95% | +5.41%Best |
| 1Y Return | +4.16% | +6.60%Best |
| 3Y Return (annualized) | +16.84% | +19.22%Best |
| 5Y Return (annualized) | +3.25% | +4.63%Best |
| Volatility (annualized) | 22.1% | 21.3%Best |
| Max Drawdown | -40.5%Best | -40.8% |
| $10,000 over 5 years | $11,734 | $12,540Best |
| Top 10 Weight | 6.5%Best | 14.0% |
| Fund Family | iShares by BlackRock (US) | First Trust Portfolios (US) |
| Category | Equity | Equity |
| Style | Small Cap Growth | Small Cap Growth |
| Inception | Jul 24, 2000 | Oct 13, 2021 |
Volatility and max drawdown are measured over the window both funds cover: Oct 14, 2021 to Oct 14, 2026 (5 years).
IWO vs MMSC 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 5 years both funds cover.
IWO vs MMSC Performance
iShares Russell 2000 Growth ETF (IWO) is an ETF from iShares by BlackRock (US) and First Trust Multi-Manager Small Cap Opportunities ETF (MMSC) is an ETF from First Trust Portfolios (US). Over the past year IWO returned +4.16% while MMSC returned +6.60%. Year to date, IWO is up 4.95% versus a gain of 5.41% for MMSC.
Over three years, IWO compounded at +16.84% per year against +19.22% for MMSC; over five years the annualized figures are +3.25% and +4.63% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IWO has been the more volatile fund, with annualized monthly volatility of 22.1% compared with 21.3% for MMSC. 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 -40.5% for IWO and -40.8% for MMSC. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.97. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
IWO charges 0.24% per year while MMSC charges 0.95%. On a $10,000 position that is $24 vs $95 annually, a gap of $71 per year that compounds over a long holding period. On income, IWO currently yields 0.47% against 0.00% for MMSC.
Holdings Overlap
28.8% of IWO's money is in holdings MMSC also owns. 58.0% of MMSC's money is in holdings IWO also owns.
The two portfolios partly overlap.
115 positions in common, counted across the 1,119 positions we hold weights for in IWO and 203 in MMSC, against full books of 1,105 and 420.
What only one of them owns
Our book lists 80 positions for MMSC that do not appear in our book for IWO (39.6% of the fund), and 819 for IWO that do not appear in MMSC (66.9%).
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 IWO | Weight in MMSC | Difference |
|---|---|---|---|
| TWSTTwist Bioscience Corp. | 0.83% | 1.46% | 0.63% |
| FCFSFirstcash Inc | 0.56% | 1.52% | 0.96% |
| ZETAZeta Global Holdings Corp-A | 0.49% | 1.55% | 1.06% |
| TVTXTravere Therapeutics Inc | 0.34% | 1.68% | 1.34% |
| XMTRXometry, Inc. | 0.36% | 1.58% | 1.22% |
| PTGXProtagonist Therapeutics Inc | 0.57% | 1.11% | 0.54% |
| PRAXPraxis Precision Medicines, Inc. | 0.48% | 1.09% | 0.61% |
| SYRESpyre Therapeutics Inc | 0.46% | 1.05% | 0.59% |
| VRNSVaronis Systems Inc | 0.36% | 1.10% | 0.74% |
| LGNDLigand Pharmaceuticals, Inc. | 0.40% | 1.04% | 0.64% |
58.0% of MMSC is already inside IWO.
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, IWO or MMSC?
IWO has an expense ratio of 0.24% while MMSC charges 0.95%. IWO is the cheaper option, by $71 a year on a $10,000 investment.
Which performed better, IWO or MMSC?
Over the past year IWO returned +4.16% vs +6.60% for MMSC, so MMSC leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, IWO or MMSC?
IWO has been the more volatile fund at 22.1% annualized versus 21.3% for MMSC. Worst drawdown: IWO -40.5% vs MMSC -40.8%.
Should I hold both IWO and MMSC?
IWO and MMSC have a monthly-return correlation of 0.97, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
What is the holdings overlap between IWO and MMSC?
58.0% of MMSC's money is in holdings IWO also owns. 58.0% of MMSC's is in holdings IWO also owns. They hold 115 positions in common, counted across the 1,119 positions we hold weights for in IWO and 203 in MMSC.
Which pays a higher dividend, IWO or MMSC?
IWO yields 0.47% while MMSC yields 0.00%, so IWO currently pays the higher dividend yield.
Is MMSC better than IWO?
IWO has a lower expense ratio. MMSC led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.97. IWO is less concentrated, with 6.5% of the fund in its ten largest positions against 14.0%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.