IWD vs VTWV

IWDAiShares Russell 1000 Value ETF

VTWVBVanguard Russell 2000 Value ETF

In short

IWD The original Russell 1000 Value tracker, live since 2000 and still one of the most traded ways to own the value half of US large caps. Roughly 900 stocks, followed closely, at a price that reflects the plumbing.

VTWV Vanguard's take on the unglamorous end of the market: roughly 1,400 small US companies screened onto the value side of the Russell 2000, for six basis points a year.

Stated mandate

IWD The fund seeks to track an index of U.S. large- and mid-cap stocks that may be undervalued relative to comparable companies.

VTWV The fund seeks to track the Russell 2000 Value Index, which represents U.S. small-capitalization value stocks.

Why people hold it

• IWD Follows the Russell 1000 Value Index closely, one of the tightest index-following records among US value funds.
• About 900 large- and mid-cap names, so no single stock or sector drives the result.
• Trading since 2000 and actively traded, it is among the easier value ETFs to move in and out of, in size.

• VTWV Costs 0.06% a year, about a third of the typical fee among US value ETFs and far below the 0.30% on the other fund citing the same declared index (DFSV).
• Breadth over bets: about 1,400 names, the whole value half of the Russell 2000, so no single small-cap story drives the result.
• Russell scores style by probability, so a borderline stock can sit partly in value and partly in growth instead of being forced across a hard line.lseg.com
• Running since 2010 and tracking its benchmark tightly, it sits in the top quartile of its value-ETF peer group on our review.

Worth knowing

• IWD At 0.18% a year, it costs more than several broad value rivals (VTV 0.03%, SCHV 0.04%, IUSV 0.04%). The extra buys the Russell index and the trading depth.
• Holding roughly 900 names out of a 1,000-stock parent index, the value tilt is wide and mild, not a concentrated deep-value bet.ishares.com
• Distributions land quarterly, and the amount rides on what the underlying companies pay.

• VTWV Small-cap value is the bumpy end of equities. This is one of the more volatile risk profiles in its value peer group, and drawdowns can be deep.
• It trades thinly next to the household-name value ETFs, so spreads deserve attention and limit orders earn their keep.
• Membership resets on the index's schedule, not a manager's judgment. Names move between value and growth at reconstitution.lseg.com

Full IWD profile⁠

Full VTWV profile⁠