IWM vs VB: returns, risk and drawdowns compared
iShares Russell 2000 ETF against Vanguard Small-Cap ETF, over the same 6 years (July 2020 to October 2026) with dividends reinvested.
Data updated October 2026
From July 2020 to October 2026, IWM returned 11.9% a year and VB 12.7% a year on average, so VB came out ahead by 0.8% a year. IWM was the more volatile of the two (20.6% against 18.5% a year), and the deepest falls from a month-end high were 27.0% for IWM and 24.4% for VB.
The correlation of monthly returns was 0.98: they moved almost in lockstep. Over 41 rolling 3-year periods, IWM did better in 20% and VB in 80%.
Side by side
| IWM | VB | |
|---|---|---|
| Annual return (CAGR) | +11.9% | +12.7% |
| Total return | +104% | +114% |
| Annual volatility | 20.6% | 18.5% |
| Maximum drawdown (month-end) | −27.0% | −24.4% |
| Worst month | −9.9% | −9.6% |
| Best month | +18.2% | +15.8% |
| Positive months | 59% | 61% |
| Best year | 2023: +16.8% | 2023: +18.2% |
| Worst year | 2022: −20.5% | 2022: −17.5% |
| 1-year return | +12.6% | +13.8% |
| 5 years, a year | +5.0% | +6.1% |
| 10 years, a year | +9.7% | — |
| Trading currency | USD | USD |
First nine rows: the same 76 months for both funds. Trailing returns: to each fund’s last close.
Growth of 10,000: IWM vs VB
Returns by calendar year
| Year | IWM | VB |
|---|---|---|
| 2025 | +12.7% | +8.9% |
| 2024 | +11.4% | +14.2% |
| 2023 | +16.8% | +18.2% |
| 2022 | −20.5% | −17.5% |
| 2021 | +14.5% | +17.6% |
How the figures are calculated
Total return in the fund’s trading currency, from end-of-day prices with dividends reinvested on the ex-date. The fund’s own ongoing charges are already reflected in its price; trading costs, taxes and currency conversion are not included. Past returns do not predict future returns.
The comparison uses only the months in which both funds have prices, so the figures cover the same period even when one fund is older.
Questions
Which has returned more, IWM or VB?
From July 2020 to October 2026, IWM returned +11.9% a year and VB +12.7% a year, with dividends reinvested. Over rolling 3-year periods IWM did better in 20% of cases. Past returns do not predict future returns.
Which is riskier, IWM or VB?
Over the same months annual volatility was 20.6% for IWM and 18.5% for VB; the deepest fall from a month-end high was 27.0% and 24.4%, and the worst single month −9.9% and −9.6%.
How correlated are IWM and VB?
The correlation of their monthly returns was 0.98: they moved almost in lockstep. Holding both adds little diversification compared with holding one.
More comparisons
Source: MarketStack end-of-day prices, total return with dividends reinvested. Figures are historical and descriptive; they are not forecasts and not investment advice. MEDGE Capital does not recommend buying or selling any instrument. Risk disclaimer.