ETF Versus

IWM vs IYR

iShares Russell 2000 ETF vs iShares U.S. Real Estate ETF

Last updated: 2026-04-02

IWM iShares

iShares Russell 2000 ETF (IWM) is an exchange-traded fund issued by iShares that provides exposure to small-cap U.S. equities with higher growth potential and volatility. It charges a moderate expense ratio of 0.19%. The fund offers a moderate dividend yield of 1.02%. Launched in 2000, the fund has a 26-year track record.

AUM: $69.0B ER: 0.19% Yield: 1.02% Since: May 22, 2000
IYR iShares

iShares U.S. Real Estate ETF (IYR) is an exchange-traded fund issued by iShares that provides exposure to U.S. real estate investment trusts (REITs) and real estate companies. It charges an above-average expense ratio of 0.38%. The fund offers a moderate dividend yield of 2.37%. Launched in 2000, the fund has a 26-year track record.

AUM: $3.9B ER: 0.38% Yield: 2.37% Since: Jun 12, 2000

Quick Verdict

IWM is significantly cheaper at 0.19% vs 0.38% expense ratio, saving you approximately $371 per $10,000 invested over 10 years. Over the past year, IWM has significantly outperformed with a 25.1% return vs -1.0%. Income investors may prefer IYR for its higher yield (2.4% vs 1.0%).

Key Metrics

Metric IWM IYR
Expense Ratio 0.19% 0.38%
Dividend Yield 1.0% 2.4%
Fund Family iShares iShares
Category US Small Cap US Real Estate

Performance Chart

Indexed to 100 at start (5-year comparison)

70 81 92 103 114 125 2021-04 2022-06 2023-09 2024-12 2026-04
IWM +10.9%
IYR +1.0%

Performance Comparison

Period IWM IYR Difference
1 Month -5.40% -6.56% +1.16%
3 Months +0.31% +0.95% -0.64%
6 Months +1.52% -2.23% +3.75%
YTD +0.31% +0.95% -0.64%
1 Year +25.09% -0.97% +26.06%
3 Years +39.83% +12.64% +27.19%
5 Years +10.93% +0.99% +9.94%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment Period IWM Fees IYR Fees You Save
$10.000 10 years $377 $748 $371
$10.000 20 years $1.613 $3.173 $1.560
$10.000 30 years $5.178 $10.097 $4.920
$50.000 10 years $1.884 $3.739 $1.854
$50.000 30 years $25.888 $50.486 $24.598
$100.000 30 years $51.776 $100.972 $49.196

Risk Metrics

Based on 5 years of daily returns

Metric IWM IYR
Annualized Volatility 22.6% 18.8%
Max Drawdown -33.1% -36.9%
Sharpe Ratio 0.01 -0.13

Dividend Comparison

Metric IWM IYR
Annual Dividend (per share) $2.54 $2.25
Dividend Yield 1.02% 2.37%
Distribution Frequency Quarterly Quarterly

Top Holdings

0 of top 10 holdings overlap (0% overlap in top holdings)

IWM Top Holdings

NameWeight
Bloom Energy CorporationBE1.01%
FabrinetFN0.69%
Nextpower Inc.NXT0.61%
COEUR MINING INCCDE.NE0.60%
EchoStar CorporationSATS0.54%
Credo Technology Group Holding LtdCRDO0.53%
Kratos Defense & Security Solutions, Inc.KTOS0.45%
Sterling Infrastructure, Inc.STRL0.43%
Advanced Energy Industries, Inc.AEIS0.41%
Hecla Mining CompanyHL0.39%

IYR Top Holdings

NameWeight
Welltower Inc.WELL10.03%
Prologis, Inc.PLD9.11%
Equinix, Inc.EQIX4.68%
Digital Realty Trust, Inc.DLR4.59%
Simon Property Group, Inc.SPG4.50%
Realty Income CorporationO4.44%
American Tower CorporationAMT4.39%
Public StoragePSA3.40%
Ventas, Inc.VTR3.15%
CBRE Group, Inc.CBRE3.10%

Which One Should You Choose?

Choose IWM if...

you want the lowest fees and plan to buy and hold long-term. Over decades, the expense ratio difference compounds significantly.

Choose IWM if...

recent performance momentum matters to your strategy. Note that past performance doesn't guarantee future results.

Choose IYR if...

you prioritize dividend income and want higher regular distributions from your portfolio.

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