Better ETF: iShares' Small-Cap IWO vs. Vanguard's Large-Cap VOO

2026-03-02 15:59:24 ET

The Vanguard S&P 500 ETF (NYSEMKT:VOO) and the iShares Russell 2000 Growth ETF (NYSEMKT:IWO) differ sharply in expense ratio, yield, and portfolio focus, with IWO leaning into small-cap growth stocks and higher risk, while VOO tracks large-cap U.S. equities at a lower cost.

Both funds aim to capture U.S. equity market growth, but VOO tracks the S&P 500 ’s large-cap companies, whereas IWO targets smaller, growth-oriented stocks in the Russell 2000 . This comparison looks at cost, returns, risk, and portfolio construction to help clarify which ETF may appeal depending on investor goals.

Continue reading