What type of companies do IWO and VBK invest in?

Both IWO and VBK are classified as Small Growth ETFs. This means they primarily invest in smaller companies that exhibit characteristics of growth, such as the potential to expand earnings or revenue at a faster rate than the market average. Unlike funds tracking large, established firms, these ETFs focus on the small-cap sector, aiming to capture the upside potential associated with these dynamic, albeit potentially more volatile, businesses.

How do ETF dividend distributions generally work?

ETFs like IWO and VBK do not always pay dividends in the same way individual stocks might. When a fund accumulates income from the dividends paid by the companies it holds, it may distribute this cash to shareholders, usually on a quarterly or annual basis. However, some funds reinvest these earnings automatically. Investors should note that a low yield indicates the fund generates little cash relative to its price, rather than necessarily implying poor performance.

Which fund has a lower expense ratio, and why does this matter?

VBK has a significantly lower expense ratio of 0.05%, compared to IWO's 0.24%. This represents a fee difference of 0.19 percentage points. A lower expense ratio means that a smaller portion of your investment is taken out by the fund provider for management fees each year. Over time, this can theoretically allow more of the fund's gross return to remain in the investor's pocket, assuming the funds' underlying performance is similar.

Do these two ETFs hold the same top companies?

According to the available data, there is no overlap in the top 10 holdings between IWO and VBK. IWO's largest positions include names like TWST and MOG.A, whereas VBK is heavily weighted towards NTRA and RVMD. This suggests that despite both targeting the small-cap growth sector, they select different specific companies. This lack of shared top holdings indicates that their underlying construction methods or index rules likely differ, leading to distinct portfolio compositions.

How do the dividend yields of IWO and VBK compare?

Both ETFs offer very similar and relatively low dividend yields. IWO has a dividend yield of 0.46%, while VBK sits at 0.45%. The difference is minimal. This reflects their focus on growth stocks, which often prioritise reinvesting profits into expanding the business rather than paying them out to shareholders. Investors looking for significant current income might find these yields insufficient, as they are much lower than what is typically found in value-oriented or bond-focused funds.

What is the difference in their inception dates?

IWO was launched on July 24, 2000, providing a longer historical track record for investors to analyse. VBK was introduced later, on January 26, 2004. While both funds have been active for several decades, IWO has approximately three years of additional performance history. This can be useful when assessing how each fund reacted to specific market events in the early 2000s, though past performance does not guarantee future results.

How do the net assets of the two funds compare?

VBK manages $22.9 billion in net assets, whereas IWO manages $14.2 billion. Both figures indicate substantial size and liquidity, which can help facilitate buying and selling shares without significantly impacting the price. The larger asset base of VBK may suggest broader adoption among investors. However, both funds are large enough to be considered highly liquid compared to many niche or newly launched ETFs in the small-cap growth category.

Are sector weights available for these ETFs?

For both IWO and VBK, specific sector weight data is currently not available in this comparison. Without knowing the exact sector breakdowns, it is difficult to determine if one fund is more concentrated in technology or healthcare than the other, for example. Investors must rely on the limited top-holdings list and general category information, keeping in mind that small-cap growth funds typically lean towards sectors with higher innovation potential.

Is there any single-stock concentration risk in these funds?

IWO has a top holding weight of 0.72% for TWST, which is relatively low. VBK's top holding, NTRA, accounts for 1.27% of the portfolio. Neither fund appears to have extreme concentration in a single name based on these figures. However, the higher weight in VBK's top position compared to IWO's top position suggests a slightly different level of diversification in the upper tiers of their portfolios.

Which index do these ETFs track?

The specific index tracked by each fund is not available in the current data provided. While their names suggest IWO tracks the Russell 2000 Growth index and VBK tracks a Vanguard Small-Cap Growth benchmark, the absence of confirmed index data means investors cannot definitively verify the methodology. This lack of transparency regarding the exact index rules makes it harder to predict how each fund might react to future market shifts.

IWO vs VBK

Two funds, one decision: we compare cost, performance and what each ETF actually holds in September 2026.

Compare IWO and VBK to review fees, holdings, dividends, and how each fund tracks its market. iShares Russell 2000 Growth ETF has a 0.24% expense ratio and $14.2 billion in net assets. Vanguard Small-Cap Growth ETF has a 0.05% expense ratio and $22.9 billion in net assets. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

IWO

Metric

VBK

0.24%

Expense Ratio

0.05%

0.46%

Dividend Yield

0.45%

$14.20B

Net Assets

$22.91B

1,131

Holdings

550

Jul 24, 2000

Inception Date

Jan 26, 2004

–

Index Tracked

–

Small Growth

Fund Category

Small Growth

VBK costs about $19.00 less per year for every $10,000 invested.

Shared Top Holdings

These funds do not share any of their top holdings.

Discover More Comparisons

VB vs VBK

Compare VB and VBK on fees, holdings, dividends, tracking. VB: 0.03% expense ratio, 1.23% yield. VBK: 0.05% expense ratio, 0.45% yield. Data from Yahoo Finance.

Investment Analysis

IWO

Pros

Offers access to small-cap growth exposure with assets under management of $14.2 billion
Has a long inception date from July 24 2000 providing established track record data
Provides diversification across a broad set of small-cap growth companies

Considerations

Expense ratio of 0.24% is higher than competing small-cap growth ETFs
Low dividend yield of 0.46% may not suit income-focused investors
Concentration in specific holdings like TWST at 0.72% could increase single-stock risk

VBK

Pros

Expense ratio of 0.05% is lower than comparable small-cap growth ETFs
Has $22.9 billion in net assets providing liquidity for large transactions
Diversified across many small-cap growth holdings with no single stock exceeding 1.27%

Considerations

Low dividend yield of 0.45% may limit income generation potential
Inception date of January 26 2004 offers a shorter historical track record
Lacks available data on index methodology and sector weights for transparency

About IWO and VBK

IWO (IWO)

The iShares Russell 2000 Growth ETF (IWO) provides broad exposure to small-cap US companies with growth characteristics. As part of the Small Growth category, it aims to track a basket of 1,131 holdings, focusing on firms expected to increase revenue and earnings at rates above the broader market. With net assets of USD 14.20 billion and an expense ratio of 0.24%, it offers a relatively liquid vehicle for accessing this sector. Investors should note that while the dividend yield is modest at 0.46%, the fund's value relies heavily on the performance of small-cap equities. Historically, small-cap growth stocks can offer higher potential returns but also come with increased volatility compared to large-cap value counterparts. This ETF does not name a specific index it tracks unless certain, and it is designed for those seeking diversified exposure to US growth-oriented small businesses. Remember, values can rise and fall, and past performance is not a reliable indicator of future results.

VBK (VBK)

The Vanguard Small-Cap Growth ETF aims to track the performance of small companies in the US that exhibit growth characteristics. It offers investors exposure to 550 holdings, focusing on businesses expected to grow faster than the broader market. With a low expense ratio of 0.05% and net assets of USD 22.91 billion, it provides a cost-effective way to access this segment. Established in January 2004, the fund has maintained its objective to mirror the small-cap growth landscape. While it currently pays no dividend, its dividend yield is 0.45%. Investors should note that small-cap stocks can be more volatile than larger counterparts, and values can rise or fall over time.

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IWO vs VBK

Fund Snapshot

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VB vs VBK

Investment Analysis

IWO

Pros

Considerations

VBK

Pros

Considerations

About IWO and VBK

Buy IWO or VBK in Nemo

Zero Commission

Trusted & Regulated

6% Interest on Cash

Frequently asked questions

What type of companies do IWO and VBK invest in?

How do ETF dividend distributions generally work?

Which fund has a lower expense ratio, and why does this matter?

Do these two ETFs hold the same top companies?

How do the dividend yields of IWO and VBK compare?

What is the difference in their inception dates?

How do the net assets of the two funds compare?

Are sector weights available for these ETFs?

Is there any single-stock concentration risk in these funds?

Which index do these ETFs track?

Fund Snapshot

About IWO and VBK

Discover More Comparisons

VB vs VBK