# IWR alternatives: 8 similar ETFs compared

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

The ETFs most like IWR are VO, SCHM and IJH. VO, SCHM and IJH hold medium-sized US companies, like IWR. VO costs less: 0.03% a year against 0.18%.

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 IWR: 4 of the same kind and 4 related funds.
- IWR charges 0.18% a year (about $18 on $10,000). The cheapest alternative here, VO, charges 0.03%.
- VO moved most like IWR: 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.

## IWR alternatives at a glance

Each fund below can stand in for IWR, 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 |
| --- | --- | --- | --- | --- |
| **IWR** | This fund | 0.18% | $18 | Russell MidCap Index |
| [VO](https://tactfolio.com/etf/vo.md) | Same kind of fund | 0.03% | $3 | Morningstar US Mid Cap Index |
| [SCHM](https://tactfolio.com/etf/schm.md) | Same kind of fund | 0.03% | $3 | Dow Jones U.S. Mid-Cap Total Stock Market Index |
| [IJH](https://tactfolio.com/etf/ijh.md) | Same kind of fund | 0.05% | $5 | S&P MidCap 400 Index |
| [MDY](https://tactfolio.com/etf/mdy.md) | Same kind of fund | 0.23% | $23 | S&P MidCap 400 Index |
| [VB](https://tactfolio.com/etf/vb.md) | Related fund | 0.03% | $3 | Morningstar US Small Cap Index |
| [SCHA](https://tactfolio.com/etf/scha.md) | Related fund | 0.03% | $3 | Dow Jones U.S. Small-Cap Total Stock Market Index |
| [IWM](https://tactfolio.com/etf/iwm.md) | Related fund | 0.19% | $19 | Russell 2000 Index |
| [IJR](https://tactfolio.com/etf/ijr.md) | Related fund | 0.06% | $6 | S&P SmallCap 600 Index |

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

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

Each row measures the alternative and IWR 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 IWR | Per year | IWR per year | Worst drop | IWR worst drop | Since |
| --- | --- | --- | --- | --- | --- | --- |
| [VO](https://tactfolio.com/etf/vo.md) | 0.99 | 10.2% | 10.1% | −58.9% | −58.8% | January 2004 |
| [SCHM](https://tactfolio.com/etf/schm.md) | 0.98 | 10.9% | 11.2% | −42.4% | −40.6% | January 2011 |
| [IJH](https://tactfolio.com/etf/ijh.md) | 0.98 | 9.6% | 9.9% | −55.1% | −58.8% | August 2001 |
| [MDY](https://tactfolio.com/etf/mdy.md) | 0.98 | 9.4% | 9.9% | −55.3% | −58.8% | August 2001 |
| [VB](https://tactfolio.com/etf/vb.md) | 0.98 | 9.6% | 10.1% | −59.6% | −58.8% | January 2004 |
| [SCHA](https://tactfolio.com/etf/scha.md) | 0.95 | 11.8% | 12.5% | −42.4% | −40.6% | November 2009 |
| [IWM](https://tactfolio.com/etf/iwm.md) | 0.94 | 8.5% | 9.9% | −58.6% | −58.8% | August 2001 |
| [IJR](https://tactfolio.com/etf/ijr.md) | 0.93 | 9.5% | 9.9% | −58.1% | −58.8% | August 2001 |

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 IWR alternative, compared

### VO: Vanguard Morningstar Mid-Cap ETF

VO also holds medium-sized US companies. It tracks the Morningstar US Mid Cap Index, while IWR tracks the Russell MidCap Index.

It charges 0.03% a year, about $3 on $10,000, against $18 for IWR. It held 271 stocks, against 822 for IWR.

From January 2004 to October 2026, VO returned about 10.2% a year and IWR returned about 10.1% a year. Over about the last five years they moved almost exactly together (correlation 0.99).

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

### SCHM: Schwab U.S. Mid-Cap ETF

SCHM also holds medium-sized US companies. It tracks the Dow Jones U.S. Mid-Cap Total Stock Market Index, while IWR tracks the Russell MidCap Index.

It charges 0.03% a year, about $3 on $10,000, against $18 for IWR. It held 497 stocks, against 822 for IWR.

From January 2011 to October 2026, SCHM returned about 10.9% a year and IWR returned about 11.2% a year. Over about the last five years they moved almost exactly together (correlation 0.98).

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

### IJH: iShares Core S&P Mid-Cap ETF

IJH also holds medium-sized US companies. It tracks the S&P MidCap 400 Index, while IWR tracks the Russell MidCap Index.

It charges 0.05% a year, about $5 on $10,000, against $18 for IWR. It held 408 stocks, against 822 for IWR.

From August 2001 to October 2026, IJH returned about 9.6% a year and IWR returned about 9.9% a year. Over about the last five years they moved almost exactly together (correlation 0.98).

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

### MDY: State Street SPDR S&P MidCap 400 ETF Trust

MDY also holds medium-sized US companies. It tracks the S&P MidCap 400 Index, while IWR tracks the Russell MidCap Index.

It charges 0.23% a year, about $23 on $10,000, against $18 for IWR. It held 400 stocks, against 822 for IWR.

From August 2001 to October 2026, MDY returned about 9.4% a year and IWR returned about 9.9% a year. Over about the last five years they moved almost exactly together (correlation 0.98).

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

### VB: Vanguard Morningstar Small-Cap ETF

VB is a looser match. It holds small US companies, while IWR holds medium-sized US companies.

It charges 0.03% a year, about $3 on $10,000, against $18 for IWR. It held 1,301 stocks, against 822 for IWR.

From January 2004 to October 2026, VB returned about 9.6% a year and IWR returned about 10.1% 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.

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

SCHA is a looser match. It holds small US companies, while IWR holds medium-sized US companies.

It charges 0.03% a year, about $3 on $10,000, against $18 for IWR. It held 1,721 stocks, against 822 for IWR.

From November 2009 to October 2026, SCHA returned about 11.8% a year and IWR returned about 12.5% a year. Over about the last five years they moved almost exactly together (correlation 0.95).

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

### IWM: iShares Russell 2000 ETF

IWM is a looser match. It holds small US companies, while IWR holds medium-sized US companies.

It charges 0.19% a year, about $19 on $10,000, against $18 for IWR. It held 1,983 stocks, against 822 for IWR.

From August 2001 to October 2026, IWM returned about 8.5% a year and IWR returned about 9.9% a year. Over about the last five years they moved together on most days (correlation 0.94).

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

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

IJR is a looser match. It holds small US companies, while IWR holds medium-sized US companies.

It charges 0.06% a year, about $6 on $10,000, against $18 for IWR. It held 643 stocks, against 822 for IWR.

From August 2001 to October 2026, IJR returned about 9.5% a year and IWR returned about 9.9% a year. Over about the last five years they moved together on most days (correlation 0.93).

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

## IWR versions from other fund companies

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

- **Vanguard:** [VO](https://tactfolio.com/etf/vo.md), Vanguard Morningstar Mid-Cap ETF (same kind of fund, 0.03% a year)
- **Schwab:** [SCHM](https://tactfolio.com/etf/schm.md), Schwab U.S. Mid-Cap ETF (same kind of fund, 0.03% a year)
- **SPDR (State Street):** [MDY](https://tactfolio.com/etf/mdy.md), State Street SPDR S&P MidCap 400 ETF Trust (same kind of fund, 0.23% 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 IWR 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, IWR costs about $18 a year. VO 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 IWR 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 VO, SCHM or IJH, 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 IWR 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 IWR and VO, 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 IWR. 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 IWR 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 IWR 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 IWR?

VO is the closest. VO also holds medium-sized US companies. It tracks the Morningstar US Mid Cap Index, while IWR tracks the Russell MidCap Index. Over about the last five years they moved almost exactly together.

### Is there a cheaper alternative to IWR?

Yes. VO charges 0.03% a year, SCHM charges 0.03% a year and VB charges 0.03% a year, against 0.18% for IWR. On $10,000 that is about $3 a year instead of $18.

### Is IWR or VO better?

Neither is better for everyone. From January 2004 to October 2026, IWR returned about 10.1% a year and VO returned about 10.2% a year. IWR charges 0.18% a year and VO charges 0.03%. Past returns do not tell you what comes next.

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

It would have grown to about $29,673 by October 16, 2026, with dividends reinvested. That is about 11.5% a year. Past returns do not tell you what comes next.

## Sources

- [iShares (BlackRock): iShares Russell Mid-Cap ETF fund page](https://www.ishares.com/us/products/239718/ishares-russell-mid-cap-etf)
- [Vanguard: Vanguard Morningstar Mid-Cap ETF fund page](https://investor.vanguard.com/investment-products/etfs/profile/vo)
- [Schwab: Schwab U.S. Mid-Cap ETF fund page](https://www.sec.gov/Archives/edgar/data/1454889/000088454626000251/c497k.htm)
- [iShares (BlackRock): iShares Core S&P Mid-Cap ETF fund page](https://www.ishares.com/us/products/239763/ishares-core-sp-midcap-etf)
- [SPDR (State Street): State Street SPDR S&P MidCap 400 ETF Trust fund page](https://www.ssga.com/us/en/intermediary/etfs/state-street-spdr-sp-midcap-400-etf-trust-mdy)
- [Vanguard: Vanguard Morningstar Small-Cap ETF fund page](https://investor.vanguard.com/investment-products/etfs/profile/vb)
- [Schwab: Schwab U.S. Small-Cap ETF fund page](https://www.sec.gov/Archives/edgar/data/1454889/000088454626000252/c497k.htm)
- [iShares (BlackRock): iShares Russell 2000 ETF fund page](https://www.ishares.com/us/products/239710/ishares-russell-2000-etf)
- [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)
- [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.