Small Cap ETFs: How IWO and IJT Compare on Costs and Holdings
Key Points
iShares Russell 2000 Growth ETF manages $15.1 billion in assets under management (AUM) and carries a higher expense ratio than iShares S&P Small-Cap 600 Growth ETF
iShares S&P Small-Cap 600 Growth ETF has historically demonstrated lower volatility and a significantly smaller maximum drawdown than its counterpart
iShares Russell 2000 Growth ETF provides heavier concentration in the technology and healthcare sectors while tracking a broader small-cap index
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iShares Russell 2000 Growth ETF (NYSEMKT:IWO) offers broad exposure to the small-cap market but carries higher costs and historical volatility than the iShares S&P Small-Cap 600 Growth ETF (NASDAQ:IJT).
Both funds target the small-cap growth segment but utilize different indexing philosophies. While IWO tracks the Russell 2000 Growth Index, IJT follows the S&P Small-Cap 600 Growth Index, which includes profitability screens that often lead to more stable performance profiles for its holdings.
Snapshot (cost & size)
| Metric | IJT | IWO |
|---|---|---|
| Issuer | iShares | iShares |
| Share price | $176.31 (as of 2026-06-26) | $388.31 (as of 2026-06-26) |
| Expense ratio | 0.18% | 0.24% |
| 1-yr return (as of June 26, 2026) | 34.20% | 37.10% |
| Dividend yield | 0.85% | 0.51% |
| Beta | 1.01 | 1.19 |
| AUM | $7.9 billion | $15.0 billion |
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
IJT is the more affordable option with an expense ratio of 0.18%, compared to 0.24% for IWO. Additionally, IJT offers a slightly higher payout, maintaining a 0.24 percentage-point yield advantage over its counterpart.
Performance & risk comparison
| Metric | IJT | IWO |
|---|---|---|
| Max drawdown (5 yr) | (29.20%) | (40.50%) |
| Growth of $1,000 over 5 years (total return) | ~$1.4k | ~$1.3k |
What's inside
iShares Russell 2000 Growth ETF (IWO) targets companies in the Russell 2000 index that exhibit growth characteristics. Its sector exposure focuses on technology at 26.00%, industrials at 23.00%, and healthcare at 22.00%. Its largest positions include Moog (NYSE:MOGA) at 0.75%, Brightspring Health Services (NASDAQ:BTSG) at 0.69%, and Argan (NYSE:AGX) at 0.65%. It was launched in 2000.
iShares S&P Small-Cap 600 Growth ETF (IJT) focuses on the growth slice of the S&P Small-Cap 600. Its sector breakdown includes technology at 21.00%, industrials at 19.00%, and healthcare at 15.00%. Its largest positions include Brightspring Health Services (NASDAQ:BTSG) at 1.21%, Argan (NYSE:AGX) at 1.19%, and Formfactor (NASDAQ:FORM) at 1.13%. It holds 371 positions and was launched in 2000.
For more guidance on ETF investing, check out the full guide at this link.
Which looks like the better buy
The iShares Russell 2000 Growth ETF (IWO) and the iShares S&P Small-Cap 600 Growth ETF (IJT) are both exchange-traded funds (ETFs) focusing on the small-cap growth sector of the market. Here’s is how they stack up against one another.
First, there’s IWO. This fund is a passive fund that targets growth stocks within the Russell 2000 index. A heavy share of this fund’s holdings is in the tech sector (26%). The fund holds over 1,000 stocks, providing strong diversification. However, since the fund focuses on the small-cap sector, you won’t see many familiar names. The stock has no positions in tech giants like Apple, Nvidia, or Microsoft. Those companies are far too large to be included in this ETF.
As for IJT, this fund is more concentrated. It holds about 370 stocks, with a smaller allocation to technology (about 21%). On two key measures, IJT comes out ahead. It boasts a lower expense ratio of 0.18%, compared to IWO’s 0.24%. It also has a higher dividend yield of 0.85% as opposed to 0.51%.
Turning to performance, both funds have underperformed the S&P 500 index, which is heavily weighted to the tech giants, over the last decade. IWO has generated a total return of 216%, equating to a compound annual growth rate (CAGR) of 12.2%. IJT has a very similar return of 214%, with a CAGR of 12.1%. By comparison, the S&P 500 has generated a total return of 322% over the last decade, with a CAGR of 15.5%.
In summary, both funds are viable choices for investors seeking exposure to the small-cap growth market sector. IJT may be favored by cost-conscious investors, thanks to its slightly lower expense ratio, and nearly identical long-term performance to IWO.
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Jake Lerch has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Moog. The Motley Fool has a disclosure policy.
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