IJR vs IWM: fees, holdings and returns
IJR holds about 600 small US companies in the S&P SmallCap 600. IWM holds about 2,000 small US companies in the Russell 2000. The S&P index requires a company to have made a profit before it joins. The Russell index does not. Over the same dates since May 2000, IJR returned about 9.9% a year and IWM returned about 8.4% a year.
Written by the Tactfolio research team. Fund facts checked October 16, 2026. Prices through October 20, 2026.
Key points
- IJR costs less: 0.06% a year against 0.19%.
- IJR started trading in May 2000. IWM started in May 2000.
- Worst drops since 2000: IJR −58.1%, IWM −58.6%.
- Daily correlation: 0.98 (1 means they always move together).
What is the difference between IJR and IWM?#
The profit rule is the main difference. The Russell 2000 takes the next 2,000 companies by size after the largest 1,000, whether they make money or not, so it holds many young and money-losing firms. The S&P 600 is picked by a committee that requires positive earnings to join. Over long periods that screen has helped IJR at times, and it charges a much lower fee. IWM trades in far larger amounts each day and has a very busy options market.
| Fact | IJR | IWM |
|---|---|---|
| Full name | iShares Core S&P Small-Cap ETF | iShares Russell 2000 ETF |
| Issuer | iShares (BlackRock) | iShares (BlackRock) |
| Expense ratio | 0.06% a year | 0.19% a year |
| Started trading | May 22, 2000 | May 22, 2000 |
| Tracks | S&P SmallCap 600 Index | Russell 2000 Index |
| Holdings | 643 holdings as of October 15, 2026 | 1,983 holdings as of October 15, 2026 |
| Type | US stocks, ETF | US stocks, ETF |
Fund facts checked on the iShares (BlackRock) IJR page and the iShares (BlackRock) IWM page.
Is IJR or IWM cheaper?#
IJR costs less: 0.06% a year against 0.19%. On $10,000, that is about $6 a year for IJR and $19 for IWM. The fund takes its fee out of its own value a little each day, so you never get a bill.
IJR vs IWM performance over the same dates#
Both funds are measured from May 2000 to October 2026, the dates both traded. IJR returned about 9.9% a year and IWM returned about 8.4% a year. IJR came out ahead over this period, which does not mean it will again.
| Measure | IJR | IWM |
|---|---|---|
| $10,000 grew to | $119,613 | $84,840 |
| Total return | 1,096% | 748.4% |
| Return per year (CAGR) | 9.9% | 8.4% |
| Worst drop from a high | −58.1% | −58.6% |
| Volatility (how much it swings) | 22.9% | 23.8% |
| Last 12 months | 16.7% | 12.3% |
| Last 3 years, per year | 17.2% | 19.7% |
| Last 5 years, per year | 5.6% | 5.2% |
| Last 10 years, per year | 10.2% | 9.9% |
Prices through October 20, 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.
IJR and IWM returns by year#
| Year | IJR | IWM |
|---|---|---|
| 2026 (part of the year) | 15.5% | 12.8% |
| 2025 | 5.9% | 12.7% |
| 2024 | 8.6% | 11.4% |
| 2023 | 16.1% | 16.8% |
| 2022 | −16.2% | −20.5% |
| 2021 | 26.6% | 14.5% |
| 2020 | 11.3% | 20.0% |
| 2019 | 22.8% | 25.4% |
| 2018 | −8.5% | −11.1% |
| 2017 | 13.2% | 14.6% |
| 2016 | 26.6% | 21.6% |
| 2015 | −2.1% | −4.5% |
| 2014 | 5.9% | 5.0% |
| 2013 | 41.3% | 38.7% |
| 2012 | 16.3% | 16.7% |
| 2011 | 0.8% | −4.4% |
| 2010 | 26.6% | 26.9% |
| 2009 | 25.9% | 28.5% |
| 2008 | −31.5% | −34.1% |
| 2007 | −0.5% | −1.8% |
| 2006 | 15.1% | 18.3% |
| 2005 | 7.5% | 4.5% |
| 2004 | 22.4% | 18.1% |
| 2003 | 38.5% | 47.9% |
| 2002 | −14.3% | −20.4% |
| 2001 | 6.4% | 1.8% |
| 2000 (part of the year) | 14.4% | 5.6% |
Which fell further in bad times?#
A drawdown is how far a fund falls from its last high point. IJR’s worst fall was −58.1%, from July 19, 2007 to March 9, 2009. It got back to that high on February 7, 2011.
IWM’s worst fall was −58.6%, from July 13, 2007 to March 9, 2009. It got back to that high on February 8, 2011.
Their daily moves had a correlation of 0.98. A correlation of 1 means two funds always move up and down together. Near 0 means they move on their own. So holding both adds little variety.
Why people choose IJR or IWM#
IJR. Long-term investors often pick IJR for its profit screen and lower fee.
IWM. Traders often pick IWM because so much trades each day, and many use the Russell 2000 as the measure of small companies.
Strategies that hold IJR or IWM#
These classic strategies hold one or both at least some of the time. Each is a set of written rules you can open, test and copy.
- Mama Bear Portfolio (Muscular Portfolios), by Brian Livingston, 2018 (holds IJR)
- Hybrid Asset Allocation (HAA), by Wouter Keller and JW Keuning, 2023 (holds IWM)
- Bold Asset Allocation (BAA), by Wouter Keller, 2022 (holds IWM)
- Defensive Asset Allocation (DAA), by Wouter Keller and JW Keuning, 2018 (holds IWM)
- Protective Asset Allocation (PAA), by Wouter Keller and JW Keuning, 2016 (holds IWM)
- Vigilant Asset Allocation G12 (VAA-G12), by Wouter Keller and JW Keuning, 2017 (holds IWM)
- GTAA 13: Faber’s 13-asset tactical allocation, by Mebane Faber, 2013 (holds IWM)
- GTAA Aggressive 3 (Faber GTAA AGG3), by Mebane Faber, 2013 (holds IWM)
- GTAA Aggressive 6 (Faber GTAA AGG6), by Mebane Faber, 2013 (holds IWM)
- US Risk Parity Trend-Following (The Trend is Our Friend), by Andrew Clare, James Seaton, Peter N. Smith, and Stephen Thomas, 2016 (holds IWM)
Other funds like IJR and IWM#
Each fund has more funds that hold the same kind of investments, ranked by how closely they move with it: IJR alternatives and IWM alternatives.
Test a mix of IJR and IWM#
Open the builder, add IJR and IWM, and give each a weight, such as 50% and 50%. The backtest shows how the mix would have done, with its worst drop, on daily prices. You can also add a rule, for example to switch between them, and compare. Read the full pages for IJR and IWM, or see more ETF comparisons.
The details#
Both funds use Tactfolio’s stored daily prices, adjusted for splits, with dividends reinvested. They are compared only on days both traded, starting the later fund’s first day, so neither gets a head start. Correlation uses daily returns over the same days. Read what a backtest simulates for more on these measures.
Common questions#
Why does IJR require profits?#
The S&P SmallCap 600 adds only companies whose recent earnings add up to a profit. That leaves out many money-losing small companies that the Russell 2000 holds.
Which holds more companies, IJR or IWM?#
IWM holds about 2,000 small companies and IJR about 600.
Which is cheaper, IJR or IWM?#
IJR costs less: 0.06% a year against 0.19%. Fees come from each issuer and were checked on October 16, 2026.
Which did better, IJR or IWM?#
From May 2000 to October 2026, IJR returned about 9.9% a year and IWM returned about 8.4% a year, with dividends reinvested. Their worst drops were −58.1% and −58.6%. Past returns do not tell you what comes next.