Is IWM or SPY the Better ETF for Investors? Here's What the Data Says

2026-03-02 20:42:19 ET

The State Street SPDR S&P 500 ETF Trust (NYSEMKT:SPY) and the iShares Russell 2000 ETF (NYSEMKT:IWM) track different parts of the U.S. equity market.

SPY targets large-cap U.S. stocks and aims to mirror the S&P 500 Index, while IWM targets small-cap U.S. equities and tracks the Russell 2000 Index. This comparison highlights how the two funds differ in cost, performance, and risk, helping investors consider which may better fit their goals.

Beta measures price volatility relative to the S&P 500. The 1-yr return represents total return over the trailing 12 months.

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