The iShares Russell 2000 Growth ETF (NYSEMKT:IWO) and the Vanguard S&P 500 ETF (NYSEMKT:VOO) both provide access to a large swath of the U.S. equities market, but they take distinct approaches that may appeal to different investor priorities.
While IWO targets aggressive growth in smaller companies, VOO represents the core of the U.S. economy by tracking the S&P 500. This comparison highlights how these two distinct segments of the market have behaved over time.
Snapshot (cost & size)
Metric
VOO
IWO
Issuer
Vanguard
iShares
Expense ratio
0.03%
0.24%
1-yr return (as of May 9, 2026)
32.12%
43.20%
Dividend yield
1.08%
0.42%
Beta (5Y monthly)
1.00
1.46
Assets under management (AUM)
$1.6 trillion
$13.9 billion
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
Cost is a primary differentiator, as the Vanguard fund is significantly more affordable for long-term investors. Additionally, those seeking passive income may prefer VOO’s higher dividend yield, reflecting the cash-flow-positive nature of large-cap companies.
Performance & risk comparison
Metric
VOO
IWO
Max drawdown (5 yr)
-24.53%
-42.02%
Growth of $1,000 over 5 years (total return)
$1,876
$1,277
What’s inside
IWO provides exposure to roughly 1,100 holdings, with industrials, technology, and healthcare making up its top three sectors. Its largest positions include Bloom Energy, Credo Technology Group, and Sterling Infrastructure. This fund, which was launched in 2000, has a trailing-12-month dividend of $1.51 per share.
In contrast, VOO tracks the S&P 500 and holds just over 500 stocks, leaning heavily into technology, financial services, and communication services. Its largest positions include Nvidia, Apple, and Microsoft. VOO was launched in 2010 and paid $7.13 per share in dividends over the trailing 12 months.
For more guidance on ETF investing, check out the full guide at this link.
What this means for investors
VOO and IWO take different approaches to U.S. stocks: VOO targets the largest industry leaders, while IWO focuses on smaller, up-and-coming stocks.
VOO offers three major advantages over IWO: greater stability, lower fees, and higher dividend income. Because this ETF holds stocks from 500 of the largest and strongest U.S. companies, it’s more likely to survive periods of volatility. It offers a substantially lower beta and max drawdown than IWO, suggesting smaller price fluctuations over the last five years.
Story Continues
