IWC vs VTWO: Grades, Fees and Holdings Compared

iShares Micro-Cap ETF

IWCCNYSE Arca

Vanguard Russell 2000 ETF

VTWOANasdaq

Overlap

12.9%by weight

Expense ratio

VTWO −0.54pt a year

IWC0.60%VTWO0.06%

Avg volume · 30D

VTWO 11.9×the volume

IWC126KVTWO1.5M

10Y return · a year

VTWO +0.1pt

IWC+10.1%VTWO+10.2%

IWC vs VTWO Performance

Nov 9, 2021 – Nov 9, 2026

+21.0%IWC+25.6%VTWO

Expense ratio: IWC 0.60%; VTWO 0.06%, better
Fund size: IWC $1.19B; VTWO $16.6B
1Y total return: IWC +20.7%, better; VTWO +18.3%
Yield (12M): IWC 1.09%; VTWO 1.19%, better
Holdings: IWC 1363; VTWO 2002
Avg volume (30D): IWC 126K sh; VTWO 1.5M sh, better
NAV per share: IWC $172.25; VTWO $110.58
52W range

ETF.net Grade

Pillar letters and Scores for IWC, VTWO, with each pillar’s weight
Pillar	IWC	VTWO
Cost30% weight	F6	A75Higher
Mission25% weight	A86	A100Higher
Risk15% weight	D25	D38Higher
Tradability15% weight	C44	B57Higher
Holdings10% weight	C44	B69Higher
Durability5% weight	B66	A81Higher

Rank among US Small-Cap funds

How we build Categories ›

Same Category. IWC and VTWO are both graded against the same 16 US Small-Cap funds, so their Grades compare head to head.

US Small-Cap⁠

Category · 16 funds

See all 16 ›

VTWO ranks 3rd and IWC 13th of 16 funds in the US Small-Cap Category.

Rank 1ASCHASchwab U.S. Small-Cap ETFScore 81
Rank 2AVBVanguard Morningstar Small-Cap ETFScore 76
Rank 3AVTWOVanguard Russell 2000 ETFScore 72
Rank 4ABKSEBNY Mellon US Small Cap Core Equity ETFScore 71
Rank 13CEESWisdomTree U.S. SmallCap FundScore 41
Rank 13CIWCiShares Micro-Cap ETFScore 41
Rank 15DTSCVThrivent Small Cap Value ETFScore 39

Our read on each fund

ETF.net Research

IWCCiShares Micro-Cap ETF

VTWOAVanguard Russell 2000 ETF

In short

IWC Most small-cap funds stop short of here. Since 2005, IWC has tracked the Russell Microcap Index, buying the smallest sliver of the US market in one ticket instead of one lottery-ticket stock at a time.

VTWO The Russell 2000 is the small-cap benchmark every headline quotes. VTWO is Vanguard's cheap seat on it: about 2,000 small US companies for 0.06% a year, a fraction of the fee on the best-known fund tracking the same index.

Stated mandate

IWC The fund aims to follow the results of an index made up of U.S. micro-cap equities, using the Russell Microcap Index as its underlying index.

VTWO The fund invests in stocks in the Russell 2000 Index and seeks to closely track that index's return, representing small-cap U.S. stock exposure.

Why people hold it

IWC Running since 2005 as a dedicated micro-cap index fund, not a small-cap fund that occasionally wanders down there.
Rules, not hunches. It follows the Russell Microcap Index and has stayed tight to that mandate rather than drifting up-cap.
A multibillion-dollar iShares fund with quarterly distributions and the standard big-shop ETF plumbing behind it.
One ticket spreads the money across the index's whole micro-cap roster, diluting the single-name risk of picking tiny companies yourself.

VTWO Same index, smaller toll. VTWO charges 0.06% while IWM, the other big Russell 2000 tracker, charges 0.19%. The small-cap category median is 0.25%.vanguard.com
Holds roughly 2,000 stocks, the whole small-cap benchmark rather than a trimmed slice. A multi-billion-dollar fund, actively traded, running since 2010 and paying quarterly.
Tracking has been about as tight as this corner of the market gets, one of the closest index-replication records among US small-cap funds.

Worth knowing

IWC The reach has a price: 0.60% a year, against 0.03% at VB and SCHA and 0.19% at IWM for broad small-cap exposure.
Micro-caps trade thin and swing hard, and the fund itself is only moderately traded, so spreads can widen in rough markets. Limit orders earn their keep.
Cash comes quarterly, but this is a growth-and-volatility corner of the market, not an income sleeve.

VTWO Small-cap stocks swing harder than large caps, and this fund stays fully invested in them through the rough stretches.vanguard.com
Cheaper exists on the shelf: VB and SCHA run 0.03%, though they follow different small-cap indexes with different membership rules.
The Russell 2000 rebuilds its membership on a published schedule (June, plus a December rebalance from 2026), which packs index-driven trading into those dates.lseg.com

Full IWC profile⁠

Full VTWO profile⁠

IWC vs VTWO Holdings

How IWC and VTWO differ

Overlap by weight

12.9%

Shared holdings make up 94.1% of IWC and 12.9% of VTWO.

Level by level

Holdings910 in both12.9%
Sector11 Sectors83.8%
Countryby domicile98.9%
Asset classStocks100%

Sector

Sector weights in IWC and VTWO, widest gap first
Sector	Gap	IWC	VTWO
Financials	IWC +9.6 points	27.6%	18.0%
Health Care	IWC +5.7 points	26.6%	20.9%
Real Estate	VTWO +4.1 points	2.3%	6.4%
Technology	VTWO +4.0 points	10.5%	14.5%
Energy	VTWO +2.3 points	4.1%	6.4%
Utilities	VTWO +1.8 points	0.9%	2.7%
Consumer Discretionary	VTWO +1.4 points	7.2%	8.6%
Industrials	VTWO +1.0 points	12.3%	13.3%
Communication	IWC +1.0 points	3.3%	2.3%
Materials	VTWO +0.9 points	3.4%	4.3%
Consumer Staples	VTWO +0.8 points	1.8%	2.6%

Country, concentration and asset class

Country by domicile

Country weights in IWC and VTWO, widest gap first
Country	More in IWCMore in VTWO	Gap	IWC	VTWO
United States		VTWO +1.1 points	98.9%	100.0%
Other countries (7)		IWC +1.1 points	1.1%	0.0%

Concentration

Weight in the 10 largest Holdings

IWC5.8%
VTWO5.4%

Securities held

IWC1,361
VTWO2,000

Asset class

IWC: Stocks
VTWO: Stocks

Holdings

Only in IWC451
In both910
Only in VTWO1,090

Only in IWC

451 securities, 5.7% of IWC by weight

Faeth Therapeutics Inc0.14%
Avita Medical Inc0.13%
Quantum Corporation0.11%
Vista Gold Corp0.10%
Caledonia Mining PLC0.09%
Ur Energy Inc0.07%
Fate Therapeutics Inc0.05%
American Outdoor Brands Inc0.05%
Treace Medical Concepts0.05%
Bnb Standard Corp0.05%
Nn Inc0.04%
Sb Financial Group Inc0.04%
American Well Class A0.04%
Bassett Furniture Industries Inc0.04%
Hooker Furnishings Corp0.04%
Finward Bancorp0.04%
Dhi Group Inc0.04%
Ultralife Corp0.04%
Clarus Corp0.04%
Eastern0.04%
Optimizerx0.04%
Vera Bradley Inc0.04%
Medifast Inc0.04%
Dmc Global Inc0.04%
Hoyne Bancorp0.04%
Expensify Class A0.03%
Turn Therapeutics Inc0.03%
Lake Shore Bancorp Inc0.03%
Magyar Bancorp Inc0.03%
Neovolta Inc0.03%
Riverview Bancorp Inc0.03%
Hurco Companies Inc0.03%
Skyai Inc0.03%
Red Robin Gourmet Burgers Inc0.03%
Mammoth Energy Services Inc0.03%
Klx Energy Services Holdings Inc0.03%
Ascent Industries0.03%
Ton Strategy0.03%
Ww International Inc0.03%
Immunic0.03%
Apyx Medical Inc0.03%
Pulmonx0.03%
Nine Energy Service Inc0.03%
Pepgen0.03%
Audioeye Inc0.03%
Forrester Research Inc0.03%
Sound Financial Bancorp Inc0.03%
Zevia Class A0.03%
Anixa Biosciences0.03%
Bank of The James Financial Group0.03%

Only in VTWO

1,090 securities, 86.9% of VTWO by weight

SLBBH11422.35%
Twist Bioscience Corp0.42%
Moog Inc0.36%
JFrog Ltd0.35%
10X Genomics Inc0.35%
UMB Financial Corp0.32%
BrightSpring Health Services Inc0.31%
Glaukos Corp0.31%
Viasat Inc0.30%
Cytokinetics Inc0.29%
Hut 8 Corp0.29%
CareTrust REIT Inc0.29%
Krystal Biotech Inc0.29%
Protagonist Therapeutics Inc0.28%
Old National Bancorp/IN0.28%
FirstCash Holdings Inc0.28%
Jackson Financial Inc0.28%
InterDigital Inc0.28%
Brinker International Inc0.28%
SM Energy Co0.27%
TG Therapeutics Inc0.27%
Ryman Hospitality Properties Inc0.27%
MaxLinear Inc0.26%
PBF Energy Inc0.25%
Vaxcyte Inc0.25%
Oscar Health Inc0.24%
HealthEquity Inc0.24%
Silicon Laboratories Inc0.24%
Praxis Precision Medicines Inc0.24%
Arcosa Inc0.24%
Riot Platforms Inc0.24%
Zeta Global Holdings Corp0.24%
Plexus Corp0.23%
StoneX Group Inc0.23%
Zurn Elkay Water Solutions Corp0.23%
ESCO Technologies Inc0.23%
SSR Mining Inc0.23%
Commercial Metals Co0.23%
Kymera Therapeutics Inc0.23%
Terreno Realty Corp0.23%
Spyre Therapeutics Inc0.22%
Alkermes PLC0.22%
Federal Signal Corp0.22%
EnerSys0.22%
Qualys Inc0.22%
Fluor Corp0.22%
Matson Inc0.22%
Enpro Inc0.22%
Lantheus Holdings Inc0.21%
Macerich Co/The0.21%

Weight gaps

The 100 widest of 910 Holdings in both funds.

Holding weights in IWC and VTWO, widest gap first
Holding	Gap	IWC	VTWO
CaredxCDNA	IWC +0.92 points	1.03%	0.11%
Viridian Therapeutics OrsVRDN	IWC +0.66 points	0.73%	0.07%
Xeris Biopharma HoldingsXERS	IWC +0.61 points	0.66%	0.05%
OusterOUST	IWC +0.50 points	0.59%	0.09%
Porch GroupPRCH	IWC +0.45 points	0.51%	0.06%
Penguin Solutions IncPENG	IWC +0.45 points	0.54%	0.09%
Replimune GroupREPL	IWC +0.41 points	0.45%	0.04%
InterfaceTILE	IWC +0.39 points	0.46%	0.07%
Dime Commercial BancsharesDCOM	IWC +0.39 points	0.44%	0.05%
Lindblad Expeditions HoldingsLIND	IWC +0.38 points	0.43%	0.05%
First Tracks Biotherapeutics IncTRAX	IWC +0.37 points	0.41%	0.04%
Qcr Holdings IncQCRH	IWC +0.37 points	0.42%	0.05%
Origin Bancorp IncOBK	IWC +0.36 points	0.41%	0.05%
Connectone BancorpCNOB	IWC +0.36 points	0.41%	0.05%
Hyperliquid Strategies IncPURR	IWC +0.35 points	0.43%	0.08%
Sellas Life Sciences Group IncSLS	IWC +0.35 points	0.43%	0.08%
Mbx BiosciencesMBX	IWC +0.35 points	0.41%	0.06%
Eton Pharmaceutcials IncETON	IWC +0.33 points	0.38%	0.05%
The RealrealREAL	IWC +0.34 points	0.37%	0.03%
Strive Inc Class AASST	IWC +0.34 points	0.41%	0.07%
Bank First CorpBFC	IWC +0.34 points	0.39%	0.05%
Absci CorpABSI	IWC +0.34 points	0.39%	0.05%
Peoples Bancorp IncPEBO	IWC +0.31 points	0.35%	0.04%
Ellington FinancialEFC	IWC +0.31 points	0.36%	0.05%
Idt Class BIDT	IWC +0.31 points	0.35%	0.04%
Nurix TherapeuticsNRIX	IWC +0.30 points	0.37%	0.07%
Arlo TechnologiesARLO	IWC +0.30 points	0.34%	0.04%
Nordic American TankersNAT	IWC +0.30 points	0.35%	0.05%
Butterfly Network Class ABFLY	IWC +0.30 points	0.36%	0.06%
Cra International IncCRAI	IWC +0.29 points	0.32%	0.03%
Turning Point BrandsTPB	IWC +0.28 points	0.32%	0.04%
First Mid Bancshares IncFMBH	IWC +0.28 points	0.32%	0.04%
Old Second Bancorp IncOSBC	IWC +0.28 points	0.32%	0.04%
Maze TherapeuticsMAZE	IWC +0.28 points	0.31%	0.03%
Burke Herbert Financial Services CBHRB	IWC +0.28 points	0.32%	0.04%
Pennant GroupPNTG	IWC +0.28 points	0.32%	0.04%
Universal Insurance Holdings IncUVE	IWC +0.26 points	0.30%	0.04%
OmerosOMER	IWC +0.26 points	0.31%	0.05%
Byline Bancorp IncBY	IWC +0.26 points	0.30%	0.04%
Quinstreet IncQNST	IWC +0.26 points	0.29%	0.03%
Pursuit Attractions and HospitalitPRSU	IWC +0.26 points	0.29%	0.03%
Aveanna Healthcare Holdings IncAVAH	IWC +0.25 points	0.29%	0.04%
Digital TurbineAPPS	IWC +0.26 points	0.30%	0.04%
Univest Financial CorpUVSP	IWC +0.25 points	0.29%	0.04%
Allient IncALNT	IWC +0.26 points	0.31%	0.05%
PersonalisPSNL	IWC +0.25 points	0.29%	0.04%
Rex American ResourcesREX	IWC +0.26 points	0.30%	0.04%
Community Trust BancorpCTBI	IWC +0.25 points	0.29%	0.04%
Bandwidth Class ABAND	IWC +0.25 points	0.31%	0.06%
Si BoneSIBN	IWC +0.24 points	0.27%	0.03%
Horizon Bancorp IncHBNC	IWC +0.24 points	0.27%	0.03%
Metropolitan Bank Holding CorpMCB	IWC +0.24 points	0.27%	0.03%
Cnb Financial CorpCCNE	IWC +0.24 points	0.27%	0.03%
Bjs Restaurants IncBJRI	IWC +0.23 points	0.27%	0.04%
Cadre HoldingsCDRE	IWC +0.23 points	0.26%	0.03%
Marinemax IncHZO	IWC +0.24 points	0.27%	0.03%
Mercantile BankMBWM	IWC +0.24 points	0.27%	0.03%
Liquidity Services IncLQDT	IWC +0.24 points	0.27%	0.03%
InnodataINOD	IWC +0.23 points	0.30%	0.07%
Business First Bancshares IncBFST	IWC +0.23 points	0.26%	0.03%
Unitil CorpUTL	IWC +0.23 points	0.26%	0.03%
Zenas BiopharmaZBIO	IWC +0.23 points	0.26%	0.03%
Amerant Bancorp Class AAMTB	IWC +0.23 points	0.26%	0.03%
United Fire Group IncUFCS	IWC +0.22 points	0.26%	0.04%
Pulse BiosciencesPLSE	IWC +0.23 points	0.26%	0.03%
Esquire Financial Holdings IncESQ	IWC +0.22 points	0.25%	0.03%
RAPID7RPD	IWC +0.22 points	0.25%	0.03%
Orchid Island Capital IncORC	IWC +0.22 points	0.26%	0.04%
Camden National CorpCAC	IWC +0.22 points	0.25%	0.03%
Myers Industries IncMYE	IWC +0.22 points	0.26%	0.04%
Nuvation Bio Class ANUVB	IWC +0.22 points	0.27%	0.05%
Hanmi Financial CorpHAFC	IWC +0.22 points	0.25%	0.03%
Bristow GroupVTOL	IWC +0.21 points	0.25%	0.04%
Willdan GroupWLDN	IWC +0.21 points	0.25%	0.04%
Quanex Building Products CorpNX	IWC +0.22 points	0.25%	0.03%
Trustco Bank CorpTRST	IWC +0.22 points	0.25%	0.03%
Northeast BankNBN	IWC +0.22 points	0.25%	0.03%
TranscatTRNS	IWC +0.21 points	0.24%	0.03%
Castle BiosciencesCSTL	IWC +0.22 points	0.25%	0.03%
Urogen PharmaURGN	IWC +0.21 points	0.27%	0.06%
Lb Pharmaceuticals IncLBRX	IWC +0.21 points	0.24%	0.03%
Farmers National Banc CorpFMNB	IWC +0.21 points	0.24%	0.03%
Amalgamated Financial CorpAMAL	IWC +0.20 points	0.23%	0.03%
Cbl Associates PropertiesCBL	IWC +0.21 points	0.24%	0.03%
Usa Today IncTDAY	IWC +0.20 points	0.23%	0.03%
Green PlainsGPRE	IWC +0.20 points	0.23%	0.03%
First Financial Corporation CorpTHFF	IWC +0.20 points	0.23%	0.03%
Grid Dynamics Holdings Class AGDYN	IWC +0.19 points	0.21%	0.02%
AnterixATEX	IWC +0.20 points	0.23%	0.03%
Nutex Health IncNUTX	IWC +0.20 points	0.23%	0.03%
Critical Metals CorpCRML	IWC +0.19 points	0.21%	0.02%
Diversified Energy CompanyDEC	IWC +0.19 points	0.22%	0.03%
Nb Bancorp IncNBBK	IWC +0.19 points	0.22%	0.03%
Graham CorpGHM	IWC +0.20 points	0.23%	0.03%
Daily Journal CorpDJCO	IWC +0.19 points	0.22%	0.03%
Metrocity Bankshares IncMCBS	IWC +0.19 points	0.22%	0.03%
Orrstown Financial Services IncORRF	IWC +0.19 points	0.22%	0.03%
Tetra TechnologiesTTI	IWC +0.19 points	0.22%	0.03%
Daktronics IncDAKT	IWC +0.19 points	0.21%	0.02%
HarrowHROW	IWC +0.19 points	0.22%	0.03%

All 1,364 IWC holdings⁠All 2,000 VTWO holdings⁠

How we measure overlap

Each holding counts at its smaller weight in the two funds, summed over the full Holdings. Sector, country and asset class use the same rule on each fund’s split. Cash, FX and derivative lines stay out of the counts. Two bond funds get no overlap figure.

IWC vs VTWO Cost

Overpaying IWC vs VTWO

$10,547

On $10,000 over 30 years. 7% growth a year before fees, expense ratio only.

IWC 0.60%
$11,817
VTWO 0.06%
$1,270

Amount$10,000

Years30 years

Cost over time

IWC 0.60%
VTWO 0.06%
Overpaying

Year by year

Year	IWC	VTWO	Overpaying
10	$1,076	$110	$966
20	$4,116	$432	$3,684
30	$11,817	$1,270	$10,547

Expense ratio

0.60%IWC
0.06%VTWO, cheaper

VTWO0.06%IWC0.60%

0.03%0.60%

Middle half of US Small-Cap funds
Median 0.20%

VTWO 4th cheapest of 16 funds

IWC 14th cheapest of 16 funds

IWC vs VTWO Dividends

Last 12 months to Nov 9, 2026

Yield (12M): IWC 1.09%; VTWO 1.19%, better
Payout (12M): IWC $1.94; VTWO $1.36
Last payment: IWC $0.45; VTWO $0.39
Ex-dividend: IWC Sep 15, 2026; VTWO Sep 23, 2026
Paid on: IWC Sep 18, 2026; VTWO Sep 25, 2026
Frequency: IWC Twice a year; VTWO Quarterly

Distribution history

Per share, 2017 to 2026, same scale for both

IWCTwice a year · 39 paymentsAll IWC payments⁠

VTWOQuarterly · 39 paymentsAll VTWO payments⁠

IWC vs VTWO Risk

Fall from peak · 5 years

IWC
VTWO

Risk facts

VolatilityStd dev, 3 years: IWC 21.6%VTWO 19.0%, better
Return per unit of riskSharpe ratio, 3 years: IWC 0.96, betterVTWO 0.86
Worst fallMax drawdown, 5 years: IWC −40.4%VTWO −31.5%, better
Market sensitivityBeta, 5 years: IWC 1.36VTWO 1.15; Market = 1

IWC and VTWO in the news

All news⁠

Best ETFs
Best small-cap ETFs: Vanguard’s VB beats three great funds all charging just 0.03%
Updated Nov 2, 2026VTWO
Head-to-Head
Hold VB over IWM for a small-cap stake
Oct 30, 2026VTWO
New ETFs
Longnook's compounders ETF leads with tankers, Newmont and Exxon Mobil
Oct 5, 2026VTWO
Best ETFs
Schwab and Vanguard charge the same 0.03%. Their small-cap funds are 3.7 percentage points apart
Updated Oct 2, 2026VTWO

Popular comparisons

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IWC vs VTWO

In short

Stated mandate

Why people hold it