# IWM alternatives: 8 similar ETFs compared

> ETFs similar to IWM, closest first, with each fund's fee, what it tracks, and returns and worst drops on the same dates as IWM. Updated daily.

The ETFs most like IWM are SCHA, VB and IJR. SCHA, VB and IJR hold small US companies, like IWM. SCHA costs less: 0.03% a year against 0.19%.

Written by [the Tactfolio research team](https://tactfolio.com/about/editorial-policy). Fund facts checked October 17, 2026. Prices through October 16, 2026.

## Key points

- 8 funds can stand in for IWM: 3 of the same kind and 5 related funds.
- IWM charges 0.19% a year (about $19 on $10,000). The cheapest alternative here, SCHA, charges 0.03%.
- SCHA moved most like IWM: a daily correlation of 0.99 over about the last five years.
- Returns and drops for each pair use the same dates for both funds.

## IWM alternatives at a glance

Each fund below can stand in for IWM, closest first. "Same kind" funds hold the same kind of stocks through a different index. "Related" funds make a different bet that often moves the same way.

| ETF | How close | Yearly fee | Fee on $10,000 | Tracks |
| --- | --- | --- | --- | --- |
| **IWM** | This fund | 0.19% | $19 | Russell 2000 Index |
| [SCHA](https://tactfolio.com/etf/SCHA.md) | Same kind of fund | 0.03% | $3 | Dow Jones U.S. Small-Cap Total Stock Market Index |
| [VB](https://tactfolio.com/etf/VB.md) | Same kind of fund | 0.03% | $3 | Morningstar US Small Cap Index |
| [IJR](https://tactfolio.com/etf/IJR.md) | Same kind of fund | 0.06% | $6 | S&P SmallCap 600 Index |
| [IJT](https://tactfolio.com/etf/IJT.md) | Related fund | 0.18% | $18 | S&P SmallCap 600 Growth Index |
| [IWN](https://tactfolio.com/etf/IWN.md) | Related fund | 0.24% | $24 | Russell 2000 Value Index |
| [VBR](https://tactfolio.com/etf/VBR.md) | Related fund | 0.05% | $5 | Morningstar US Small Cap Value Index |
| [IJS](https://tactfolio.com/etf/IJS.md) | Related fund | 0.18% | $18 | S&P SmallCap 600 Value Index |
| [AVUV](https://tactfolio.com/etf/AVUV.md) | Related fund | 0.25% | $25 | No index |

Fees come from each fund company, checked on the dates shown on each fund's page.

## How IWM and its alternatives did over the same dates

Each row measures the alternative and IWM on the days both traded, so neither gets a head start. Correlation shows how closely their daily moves matched over about the last five years. A value of 1 means they always moved together.

| ETF | Moves with IWM | Per year | IWM per year | Worst drop | IWM worst drop | Since |
| --- | --- | --- | --- | --- | --- | --- |
| [SCHA](https://tactfolio.com/etf/SCHA.md) | 0.99 | 11.8% | 11.1% | −42.4% | −41.1% | November 2009 |
| [VB](https://tactfolio.com/etf/VB.md) | 0.98 | 9.6% | 8.4% | −59.6% | −58.6% | January 2004 |
| [IJR](https://tactfolio.com/etf/IJR.md) | 0.97 | 9.8% | 8.4% | −58.1% | −58.6% | May 2000 |
| [IJT](https://tactfolio.com/etf/IJT.md) | 0.98 | 9.2% | 8.1% | −57.6% | −58.6% | July 2000 |
| [IWN](https://tactfolio.com/etf/IWN.md) | 0.97 | 9.2% | 8.1% | −61.6% | −58.6% | July 2000 |
| [VBR](https://tactfolio.com/etf/VBR.md) | 0.95 | 9.4% | 8.4% | −62.0% | −58.6% | January 2004 |
| [IJS](https://tactfolio.com/etf/IJS.md) | 0.94 | 9.7% | 8.1% | −60.1% | −58.6% | July 2000 |
| [AVUV](https://tactfolio.com/etf/AVUV.md) | 0.93 | 15.0% | 9.8% | −49.4% | −41.1% | September 2019 |

Prices through October 16, 2026. Figures use daily closing prices adjusted for splits, with dividends reinvested. They do not include taxes or the cost of buying and selling. Past results do not tell you what will happen next.

## Each IWM alternative, compared

### SCHA: Schwab U.S. Small-Cap ETF

SCHA also holds small US companies. It tracks the Dow Jones U.S. Small-Cap Total Stock Market Index, while IWM tracks the Russell 2000 Index.

It charges 0.03% a year, about $3 on $10,000, against $19 for IWM. It held 1,721 stocks, against 1,983 for IWM.

From November 2009 to October 2026, SCHA returned about 11.8% a year and IWM returned about 11.1% a year. Over about the last five years they moved almost exactly together (correlation 0.99).

Read the [SCHA fund page](https://tactfolio.com/etf/SCHA.md) for its returns by year and worst drop.

### VB: Vanguard Morningstar Small-Cap ETF

VB also holds small US companies. It tracks the Morningstar US Small Cap Index, while IWM tracks the Russell 2000 Index.

It charges 0.03% a year, about $3 on $10,000, against $19 for IWM. It held 1,301 stocks, against 1,983 for IWM.

From January 2004 to October 2026, VB returned about 9.6% a year and IWM returned about 8.4% a year. Over about the last five years they moved almost exactly together (correlation 0.98).

Read the [VB fund page](https://tactfolio.com/etf/VB.md) for its returns by year and worst drop.

### IJR: iShares Core S&P Small-Cap ETF

IJR also holds small US companies. It tracks the S&P SmallCap 600 Index, while IWM tracks the Russell 2000 Index.

It charges 0.06% a year, about $6 on $10,000, against $19 for IWM. It held 643 stocks, against 1,983 for IWM.

From May 2000 to October 2026, IJR returned about 9.8% a year and IWM returned about 8.4% a year. Over about the last five years they moved almost exactly together (correlation 0.97).

Read the [IJR fund page](https://tactfolio.com/etf/IJR.md) for its returns by year and worst drop.

### IJT: iShares S&P Small-Cap 600 Growth ETF

IJT is a looser match. It holds small US companies whose sales and profits are growing fast, while IWM holds small US companies.

It charges 0.18% a year, about $18 on $10,000, against $19 for IWM. It held 372 stocks, against 1,983 for IWM.

From July 2000 to October 2026, IJT returned about 9.2% a year and IWM returned about 8.1% a year. Over about the last five years they moved almost exactly together (correlation 0.98).

Read the [IJT fund page](https://tactfolio.com/etf/IJT.md) for its returns by year and worst drop.

### IWN: iShares Russell 2000 Value ETF

IWN is a looser match. It holds small US companies that look cheap compared with their earnings and assets, while IWM holds small US companies.

It charges 0.24% a year, about $24 on $10,000, against $19 for IWM. It held 1,410 stocks, against 1,983 for IWM.

From July 2000 to October 2026, IWN returned about 9.2% a year and IWM returned about 8.1% a year. Over about the last five years they moved almost exactly together (correlation 0.97).

Read the [IWN fund page](https://tactfolio.com/etf/IWN.md) for its returns by year and worst drop.

### VBR: Vanguard Morningstar Small-Cap Value ETF

VBR is a looser match. It holds small US companies that look cheap compared with their earnings and assets, while IWM holds small US companies.

It charges 0.05% a year, about $5 on $10,000, against $19 for IWM. It held 820 stocks, against 1,983 for IWM.

From January 2004 to October 2026, VBR returned about 9.4% a year and IWM returned about 8.4% a year. Over about the last five years they moved almost exactly together (correlation 0.95).

Read the [VBR fund page](https://tactfolio.com/etf/VBR.md) for its returns by year and worst drop.

### IJS: iShares S&P Small-Cap 600 Value ETF

IJS is a looser match. It holds small US companies that look cheap compared with their earnings and assets, while IWM holds small US companies.

It charges 0.18% a year, about $18 on $10,000, against $19 for IWM. It held 480 stocks, against 1,983 for IWM.

From July 2000 to October 2026, IJS returned about 9.7% a year and IWM returned about 8.1% a year. Over about the last five years they moved together on most days (correlation 0.94).

Read the [IJS fund page](https://tactfolio.com/etf/IJS.md) for its returns by year and worst drop.

### AVUV: Avantis U.S. Small Cap Value ETF

AVUV is a looser match. It holds small US companies that look cheap compared with their earnings and assets, while IWM holds small US companies.

It charges 0.25% a year, about $25 on $10,000, against $19 for IWM. It held 794 stocks, against 1,983 for IWM.

From September 2019 to October 2026, AVUV returned about 15.0% a year and IWM returned about 9.8% a year. Over about the last five years they moved together on most days (correlation 0.93).

Read the [AVUV fund page](https://tactfolio.com/etf/AVUV.md) for its returns by year and worst drop.

## IWM versions from other fund companies

Some people keep all their funds with one company. Here is the closest fund to IWM from each other company on this page:

- **Schwab:** [SCHA](https://tactfolio.com/etf/SCHA.md), Schwab U.S. Small-Cap ETF (same kind of fund, 0.03% a year)
- **Vanguard:** [VB](https://tactfolio.com/etf/VB.md), Vanguard Morningstar Small-Cap ETF (same kind of fund, 0.03% a year)
- **Avantis Investors (American Century):** [AVUV](https://tactfolio.com/etf/AVUV.md), Avantis U.S. Small Cap Value ETF (related fund, 0.25% a year)

Most brokers let you buy any ETF, whoever runs it. Mutual fund versions, such as a fund company's index mutual fund, are not listed here.

## How to choose between IWM and its alternatives

- **What it tracks.** A fund on the same index holds the same stocks. A different index can mean different weights, more or fewer holdings, or a different mix.
- **The fee.** The difference is often small. On $10,000, IWM costs about $19 a year. SCHA costs about $3.
- **History.** An older fund has been through more bad markets, so you can see how far it fell.
- **What you already own.** Two funds that move together add little variety. A fund with a low correlation behaves more on its own.

## Swapping IWM to harvest a tax loss

Some investors sell a fund at a loss to lower their taxes, then buy a similar fund so they stay invested. This is called tax-loss harvesting.

The IRS wash sale rule blocks the loss if you buy a "substantially identical" security within 30 days before or after the sale. The IRS has not said exactly when two funds count. Funds on the same index are more likely to. Funds on a different index, such as SCHA, VB or IJR, are less likely to.

Ask a tax professional before you rely on this. Read the IRS rules in [Publication 550](https://www.irs.gov/publications/p550).

## Test IWM and its alternatives in a backtest

Tactfolio is a platform where you build rules-based investing strategies, backtest them on decades of real prices, share them, and run them automatically in your own Alpaca account. Open the [builder](https://tactfolio.com/builder), add IWM and SCHA, and see how each would have done on the same dates, or how a mix of both would have done.

## The details

Alternatives are picked from facts, not from returns. First come funds that track the same index as IWM. Then come funds that hold the same kind of stocks through another index. Last come funds from a close category that make a different bet. Leveraged funds are only listed as alternatives to other leveraged funds.

Within each group, the funds whose daily returns moved most like IWM over about the last five years come first. Returns and worst drops use Tactfolio's stored daily prices, adjusted for splits, with dividends reinvested. Each alternative is measured with IWM only on days both traded. Read [what a backtest simulates](https://tactfolio.com/docs/backtests.md) for more on these measures.

## Research and test it

- [S&P 500 index](https://tactfolio.com/learn/sp500-index): The S&P 500 tracks about 500 large US companies. Learn how stocks get in, how the index is weighted, how to invest in it, and how far it has fallen before.
- [What is an ETF](https://tactfolio.com/learn/what-is-an-etf): An ETF is a fund that trades like a stock. Learn how ETFs work, what they cost, the main types, and the risks, with SEC sources.
- [ETF screener](https://tactfolio.com/screener.md): A free ETF screener for 162 US-listed funds. Filter by type, issuer and fee, sort by returns or worst drop, and compare funds side by side.
- [ETF expense ratio](https://tactfolio.com/learn/etf-expense-ratio): What an ETF expense ratio is, how the fund charges it, and how 0.03% vs 1% adds up over 10 and 30 years, with real fund examples.
- [Backtest a portfolio](https://tactfolio.com/trading-tools/backtest-portfolio): Backtest a portfolio of US stocks and ETFs. Enter tickers and shares, pick when to rebalance, and get the results with a link to share.
- [Backtesting](https://tactfolio.com/backtesting): Free backtesting software for stocks, ETFs, and crypto perps.

## Common questions

### What ETF is most similar to IWM?

SCHA is the closest. SCHA also holds small US companies. It tracks the Dow Jones U.S. Small-Cap Total Stock Market Index, while IWM tracks the Russell 2000 Index. Over about the last five years they moved almost exactly together.

### Is there a cheaper alternative to IWM?

Yes. SCHA charges 0.03% a year, VB charges 0.03% a year and VBR charges 0.05% a year, against 0.19% for IWM. On $10,000 that is about $3 a year instead of $19.

### Is IWM or SCHA better?

Neither is better for everyone. From November 2009 to October 2026, IWM returned about 11.1% a year and SCHA returned about 11.8% a year. IWM charges 0.19% a year and SCHA charges 0.03%. Past returns do not tell you what comes next.

### What if I had put $10,000 in IWM 10 years ago?

It would have grown to about $25,446 by October 16, 2026, with dividends reinvested. That is about 9.8% a year. Past returns do not tell you what comes next.

## Sources

- [iShares (BlackRock): iShares Russell 2000 ETF fund page](https://www.ishares.com/us/products/239710/ishares-russell-2000-etf)
- [Schwab: Schwab U.S. Small-Cap ETF fund page](https://www.sec.gov/Archives/edgar/data/1454889/000088454626000252/c497k.htm)
- [Vanguard: Vanguard Morningstar Small-Cap ETF fund page](https://investor.vanguard.com/investment-products/etfs/profile/vb)
- [iShares (BlackRock): iShares Core S&P Small-Cap ETF fund page](https://www.ishares.com/us/products/239774/ishares-core-s-p-small-cap-etf)
- [iShares (BlackRock): iShares S&P Small-Cap 600 Growth ETF fund page](https://www.ishares.com/us/products/239773/ishares-s-p-small-cap-600-growth-etf)
- [iShares (BlackRock): iShares Russell 2000 Value ETF fund page](https://www.ishares.com/us/products/239712/ishares-russell-2000-value-etf)
- [Vanguard: Vanguard Morningstar Small-Cap Value ETF fund page](https://investor.vanguard.com/investment-products/etfs/profile/vbr)
- [iShares (BlackRock): iShares S&P Small-Cap 600 Value ETF fund page](https://www.ishares.com/us/products/239775/ishares-s-p-small-cap-600-value-etf)
- [Avantis Investors (American Century): Avantis U.S. Small Cap Value ETF fund page](https://www.avantisinvestors.com/avantis-investments/avantis-us-small-cap-value-etf/)
- [IRS Publication 550: wash sales](https://www.irs.gov/publications/p550)

> Not financial advice. Tactfolio is a research and automation tool. It is not a broker or a financial adviser. This page is for education only. Backtests are hypothetical. They show how rules would have done on past prices, not how they will do. All investing involves risk, including losing the money you put in.