VB vs IWM: Differences, Fees and Returns
VB is cheaper: it charges 0.03% a year against 0.19% for IWM. That is €16 less a year per 10,000 invested; over a plan of 10,000 up front plus 200 a month for 30 years, the accumulated cost gap comes to about €11,263.
They do not track the same thing: VB follows the CRSP US Small Cap Index and IWM the Russell 2000 Index. Any difference in returns will come mainly from that exposure, not from the fee.
Over the last 10 years, VB returned 10.99% a year against 10.46% for IWM. That is past performance and may not repeat.
Head-to-head comparison
| VB | IWM | |
|---|---|---|
| Name | Vanguard Small-Cap ETF | iShares Russell 2000 ETF |
| Provider | Vanguard | BlackRock |
| Index | CRSP US Small Cap Index | Russell 2000 Index |
| TER | 0.03% | 0.19% |
| Type | ETF | ETF |
| Domicile | United States | United States |
| Dividends | Distributing | Distributing |
| Launch date | January 26, 2004 | May 22, 2000 |
| Fund size | $185B | $81B |
| ISIN | — | — |
| Available to EU retail investors | No | No |
| Tax-free switch (Spain) | No | No |
Historical returns: VB vs IWM (Aug 2016 – Aug 2026)
10,000 invested in Aug 2016 would be worth $28,368 in VB and $27,049 in IWM today.
| VB | IWM | |
|---|---|---|
| Annualised return | 10.99% | 10.46% |
| Total return | 183.68% | 170.49% |
| Annual volatility | 19.33% | 20.83% |
| Maximum drawdown | -30.07% | -32.29% |
| Monthly correlation | 0.98 | |
Calendar-year returns
| Year | VB | IWM |
|---|---|---|
| 2026* | 16.76% | 19.90% |
| 2025 | 8.87% | 12.66% |
| 2024 | 14.17% | 11.39% |
| 2023 | 18.23% | 16.84% |
| 2022 | -17.50% | -20.48% |
| 2021 | 17.56% | 14.54% |
| 2020 | 19.16% | 20.03% |
| 2019 | 27.32% | 25.39% |
| 2018 | -9.33% | -11.11% |
| 2017 | 16.26% | 14.59% |
* Current year, to Aug 2026.
Month-end closing prices adjusted for dividends and net of fund costs. Broker fees and taxes are not included. Past performance does not guarantee future results.