What is the expense ratio of IWO vs VBK?

IWO has an expense ratio of 0.24%, while VBK has an expense ratio of 0.05%.

IWO vs VBK

iShares Russell 2000 Growth ETF vs Vanguard Small-Cap Growth Index Fund ETF Shares

Last updated: 2026-04-02

iShares Russell 2000 Growth ETF (IWO) is an exchange-traded fund that provides exposure to us small cap growth securities. It charges a moderate expense ratio of 0.24%. The fund offers a modest dividend yield of 0.48%. Launched in 2000, the fund has a 26-year track record.

AUM: $11.9B ER: 0.24% Yield: 0.48% Since: Jul 24, 2000

VBK

Vanguard Small-Cap Growth Index Fund ETF Shares (VBK) is an exchange-traded fund that provides exposure to us small cap growth securities. It charges a very low expense ratio of 0.05%. The fund offers a modest dividend yield of 0.52%. Launched in 2004, the fund has a 22-year track record.

AUM: $19.7B ER: 0.05% Yield: 0.52% Since: Jan 26, 2004

Quick Verdict

VBK is significantly cheaper at 0.05% vs 0.24% expense ratio, saving you approximately $375 per $10,000 invested over 10 years. IWO has edged ahead over the past year (23.7% vs 20.5%).

Key Metrics

Metric	IWO	VBK
Expense Ratio	0.24%	0.05%
Dividend Yield	0.5%	0.5%
Fund Family	N/A	N/A
Category	US Small Cap Growth	US Small Cap Growth

Performance Chart

Indexed to 100 at start (5-year comparison)

IWO +3.0%

VBK +8.6%

Performance Comparison

Period	IWO	VBK	Difference
1 Month	-6.60%	-5.61%	-0.99%
3 Months	-3.35%	-0.71%	-2.64%
6 Months	-2.86%	+0.80%	-3.66%
YTD	-3.35%	-0.71%	-2.64%
1 Year	+23.66%	+20.52%	+3.14%
3 Years	+38.97%	+40.90%	-1.93%
5 Years	+2.98%	+8.56%	-5.58%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment	Period	IWO Fees	VBK Fees	You Save
$10.000	10 years	$475	$100	$375
$10.000	20 years	$2.028	$430	$1.599
$10.000	30 years	$6.497	$1.388	$5.108
$50.000	10 years	$2.375	$499	$1.876
$50.000	30 years	$32.483	$6.941	$25.542
$100.000	30 years	$64.967	$13.882	$51.084

Risk Metrics

Based on 5 years of daily returns

Metric	IWO	VBK
Annualized Volatility	24.5%	23.5%
Max Drawdown	-40.7%	-38.5%
Sharpe Ratio	-0.04	0.00

Dividend Comparison

Metric	IWO	VBK
Annual Dividend (per share)	$1.51	$1.59
Dividend Yield	0.48%	0.52%
Distribution Frequency	Quarterly	Quarterly

Top Holdings

1 of top 9 holdings overlap (11% overlap in top holdings)

IWO Top Holdings

Name	Weight
Bloom Energy CorporationBE	2.00%
FabrinetFN	1.37%
Credo Technology Group Holding LtdCRDO	1.05%
Nextpower Inc.NXT	0.96%
Kratos Defense & Security Solutions, Inc.KTOS	0.89%
Sterling Infrastructure, Inc.STRL	0.86%
Advanced Energy Industries, Inc.AEIS	0.80%
The Ensign Group, Inc.ENSG	0.77%
Modine Manufacturing CompanyMOD	0.77%
BridgeBio Pharma, Inc.BBIO	0.76%

VBK Top Holdings

Name	Weight
Comfort Systems USA, Inc.FIX	1.53%
Lumentum Holdings Inc.LITE	1.51%
Ciena CorporationCIEN	1.49%
Sandisk CorporationSNDK	1.42%
Coherent Corp.COHR	1.23%
Rocket Lab CorporationRKLB	1.12%
Bloom Energy CorporationBE	1.01%
FTAI Aviation Ltd.FTAI	0.95%
Natera, Inc.NTRA	0.83%

Which One Should You Choose?

Choose VBK if...

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

Choose IWO if...

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

Either works if...

you just need broad us small cap growth exposure. Both are solid options — pick whichever your brokerage offers commission-free.