IWM vs VEU ETF Comparison
Compare IWM and VEU across fund costs, diversification, holdings, performance, income, risk and current AlgovestIQ evidence.
What is the main difference between IWM and VEU?
IWM is iShares Russell 2000 ETF, while VEU is Vanguard FTSE All-World ex-US ETF. IWM is tied to Equity; VEU is tied to International Equity. VEU is broader by holdings count, with 3,690 positions versus 1,950 for IWM. VEU is more concentrated at the top, based on top-10 holdings weight.
| Metric | IWM | VEU | Type |
|---|---|---|---|
| Expense ratio | 0.19% | 0.04% | Fund |
| Assets under management | $79.9B | $95.9B | Fund |
| Holdings | 1,950 | 3,690 | Fund |
| Top-10 concentration | 6% | 15.3% | Fund |
| Average volume | 35,289,965 | 3,258,444 | Fund |
| Underlying exposure | Equity | International Equity | Fund |
| 1Y return | +26.2% | +24.8% | Performance |
| YTD return | +19.9% | +16.6% | Performance |
| Annualized volatility | 18.8% | 17.1% | Risk |
| Max drawdown | -11.2% | -11.6% | Risk |
| Beta | 1.20 | 1.09 | Risk |
| Sharpe ratio | 1.13 | 1.14 | Risk |
| Sortino ratio | 1.92 | 1.62 | Risk |
| AIQ Score | 57/100 | 65/100 | AlgovestIQ |
| AIQ Edge Score | 7/10 | 9/10 | AlgovestIQ |
| Momentum | 32/100 | 63/100 | AlgovestIQ |
| Risk Resilience | 75/100 | 83/100 | AlgovestIQ |
AlgovestIQ AIQ Comparison
iShares Russell 2000 ETF vs Vanguard FTSE All-World ex-US ETF
VEU leads
VEU leads by 8 AIQ points, primarily on Momentum and Risk Resilience, having only recently taken the lead back from IWM.
Fragile: 3 of 4 evidence groups support VEU, the lead recently changed hands, and its current signal state is conflicted.
iShares Russell 2000 ETF
Vanguard FTSE All-World ex-US ETF
The Algovestiq AIQ Score currently favors VEU over IWM, 65 versus 57 as of Sep 5, 2026. VEU's advantage is driven primarily by stronger momentum and risk resilience, while IWM holds the stronger quality profile. VEU also shows the stronger technical structure relative to its 50-day moving average. 3 of 4 covered evidence groups favor VEU today, and the comparison is rated Fragile on stability: the lead has already changed hands inside the comparison window. VEU lead: Reversed — IWM led by 1 AIQ points 30 sessions ago; VEU now leads by 8.
Compare iShares Russell 2000 ETF and Vanguard FTSE All-World ex-US ETF across performance, expense ratio, dividend yield, drawdown, volatility and the Algovestiq AIQ Score.
Compare IWM and VEU against another ticker
Open a multi-ticker workspace without changing this focused pair page.
AIQ Factor Divergence
Where the two separate, on the four dimensions behind the AIQ Score. Bars read outward from a shared zero: further from the centre is a wider gap.
- Momentum25%32 vs 63VEU +31
- Quality30%76 vs 68IWM +8
- Risk Resilience15%75 vs 83VEU +8
- Value30%51 vs 54Even
3 of 4 evidence groups favor VEU. VEU’s edge is concentrated in momentum and risk resilience; IWM keeps a meaningful quality edge.
What changed since the last close
Latest scored session 2026-09-04, compared against the prior scored session 2026-09-03.
Largest factor move: Value -1
No new signals fired.
No factor moved materially.
No new signals fired.
VEU's lead widened by 1 AIQ points in the latest snapshot.
Deeper signal detail for each name lives on its own signals page — IWM and VEU both carry a full feed there.
The central trade-off
VEU (Vanguard FTSE All-World ex-US ETF): the stronger current systematic profile, led by momentum and risk resilience.
IWM (iShares Russell 2000 ETF): the counter-case, on quality.
Which one fits your objective
The same two names rank differently depending on what you are optimizing for. All six reads are shown at once — none of them is hidden behind a toggle.
Balanced
VEUVEU on the overall AIQ Score, which weights Quality and Value at 30% each.
Growth
EvenGrowth figures are not covered for both names.
Value
EvenThe two are level on Value.
Momentum
VEUVEU on the Momentum factor, by 31 points.
Lower downside
VEUVEU on Risk Resilience, by 8 points.
Analyst upside
EvenAnalyst targets are level or not covered for both names.
Fund facts, side by side
Two funds tracking overlapping universes are separated by cost and risk far more than by holdings. Those lead here.
| Measure | IWM | VEU | Why it matters |
|---|---|---|---|
| Expense ratio | 0.19% | 0.04% | Lower is better — it compounds against you every year you hold. |
| Assets under management | $79.9B | $95.9B | Larger funds generally carry tighter spreads. |
| Holdings | 1,961 | 3,823 | More holdings means broader diversification, not better returns. |
| Average volume | 35,289,965 | 3,258,444 | Liquidity — matters most if you trade size. |
| Annualized volatility | 18.8% | 17.1% | Lower is a steadier ride for the same exposure. |
| Max drawdown | -11.2% | -11.6% | The worst peak-to-trough loss on record for the fund. |
| Sharpe ratio | 1.13 | 1.14 | Return per unit of risk. Higher is better. |
| Beta | 1.20 | 1.09 | Sensitivity to the broad market. Neither direction is better — it depends on the role in your portfolio. |
Where the exposure actually sits
IWM and VEU share 0.02% of their weighted exposure across 4 common holdings.
VEU is the more concentrated of the two: its ten largest positions are 15.29% of the fund, against 5.96% for IWM (3690 holdings vs 1950). Concentration cuts both ways — it is what drives outperformance when the top names work, and what makes the drawdown deeper when they do not.
1946 holdings are unique to IWM and 3686 to VEU. Owning both is genuinely additive — most of the capital sits in different securities.
Largest shared positions
| Holding | IWM | VEU | Shared |
|---|---|---|---|
| FRBAFIRST BANK | 0.01% | 0.06% | 0.01% |
| APAMPCO PITTSBURGH CORP | 0.01% | 0% | 0% |
| DMCDEL MONTE | 0.04% | 0% | 0% |
| MEGONTERRIS | 0.04% | 0% | 0% |
Shared weight is the lower of the two positions — the portion of capital both funds genuinely have in the same security.
ETF comparison questions
Short answers to the fund-specific questions behind this comparison.
Which ETF is more diversified, IWM or VEU?
VEU currently has more reported holdings, with 3,690 positions versus 1,950.
Which has the lower expense ratio?
VEU has the lower reported expense ratio in the current fund profile.
Which ETF has the higher distribution yield?
The current dataset does not show a higher-yield winner.
Which ETF has been more volatile?
IWM has the higher annualized volatility in the current risk snapshot.
Which ETF has had the smaller drawdown?
IWM has the less severe max drawdown in the current risk snapshot.
Which ETF has the stronger current AlgovestIQ evidence?
VEU currently leads on supporting AlgovestIQ evidence, 65 to 57.
AIQ Agreement Matrix
3 of 4 covered evidence groups favor VEU. A wide gap backed by one group is a weaker case than a narrow gap backed by five.
| Evidence group | Favors | Reading |
|---|---|---|
| AIQ Score | VEU | 57 vs 65 |
| Fundamentals | Not covered | Not covered |
| Valuation | Even | Value 51 vs 54 |
| Technicals | VEU | Price vs 50-day -0.4% vs 3.1%; vs 200-day 8.4% vs 8% |
| Risk Resilience | VEU | Risk Resilience 75 vs 83 |
| Analyst expectations | Not covered | Not covered |
✓ agrees with the overall verdict · ✕ points the other way. Groups marked “not covered” lack data on one or both of IWM and VEU and are excluded from the count.
AIQ Decision Stability
The conclusion is sensitive to small changes. Treat the lead as provisional and watch the flip conditions below.
- The AIQ gap is moderate at 8 points.
- The lead has already changed hands inside the comparison window. (argues the conclusion is provisional)
- The leader is throwing conflicting signals. (argues the conclusion is provisional)
Stability combines the score gap, how broadly the evidence agrees, how steady the lead has been across daily snapshots, the current signal state on both names, and analyst dispersion on VEU.
How the comparison changed
120 daily snapshots · Apr 23 – Sep 4VEU lead: Reversed — IWM led by 1 AIQ points 30 sessions ago; VEU now leads by 8.
- Today
- VEU +8
- 57 vs 65
- 7 sessions ago
- VEU +7
- 59 vs 66
- 30 sessions ago
- IWM +1
- 69 vs 68
- 90 sessions ago
- IWM +3
- 68 vs 65
The lead changed hands 6 times in this window, most recently on Aug 20 when VEU moved ahead of IWM.
AIQ Signal Divergence
Only the signals that bear on the head-to-head. A conflicted name is carrying bullish and bearish rules at the same time — the technical evidence is not pointing one way.
2 bullish / 1 bearish / 1 neutral, conflicted
- Golden Cross Active — bullish, trend, long horizon (9.07%)
- 52-Week High Proximity — bullish, risk, long horizon (2.9%)
- ATR Contraction - Coiling — neutral, volatility, short horizon (1.13%)
4 bullish / 1 bearish / 2 neutral, conflicted
- Golden Cross Active — bullish, trend, long horizon (5.35%)
- Bollinger Band Squeeze — neutral, volatility, short horizon
- EMA Ribbon Expansion Bullish — bullish, trend, medium horizon
VEU leads the comparison while carrying a conflicted signal state, which is one reason the stability rating is not higher.
Price vs model alignment
Whether the latest session's price move confirms what the model did over the same session, or contradicts it.
Price is up while the AIQ Score moved down 1 points over the same session — price and model disagree (price +0.28%, AIQ -1 points).
Neither the price nor the AIQ Score moved enough in the latest session to confirm or contradict the other (price +0.54%, AIQ 0 points).
What would flip this result
A state, not a forecast. These are the specific, observable changes that would reverse the verdict — not a price prediction.
- 1IWM closes the Momentum gap — currently 31 points behind, the largest single contributor to VEU's edge.
- 2IWM's ATR Contraction - Coiling turns directional — it is neutral today and would confirm a change in trend.
- 3VEU's conflicting signal state resolves bearish — it currently carries 4 bullish and 1 bearish rules at once.
- 4A regime shift changes factor weighting — the composite weights Quality and Value at 30% each, so a rotation toward either would move the result most.
The full evidence
Every number behind the verdict. The leader is called above each group so you are not left to solve it from the table.
Performance
Split across windows| Metric | IWM | VEU |
|---|---|---|
| 1 week (5 sessions) | -1.5% | 0.2% |
| 1 month (20 sessions) | -1% | 1.9% |
| 3 months (63 sessions) | 1.1% | 2% |
| 6 months (126 sessions) | 15% | 11.9% |
| Year to date | 19.9% | 16.6% |
| 1 year (252 sessions) | 26.2% | 24.8% |
Technicals
VEU has the stronger structure| Metric | IWM | VEU |
|---|---|---|
| RSI (14) | 34 | 51.9 |
| ADX (14) | 19.9 | 11.2 |
| Price vs 50-day | -0.4% | 3.1% |
| Price vs 200-day | 8.4% | 8% |
| Volatility (1M, annualized) | 12.8% | 10.9% |
Risk
VEU is the more resilient| Metric | IWM | VEU |
|---|---|---|
| Beta | 1.2 | 1.09 |
| Sharpe ratio | 1.13 | 1.14 |
| Sortino ratio | 1.92 | 1.62 |
| Max drawdown | -11.2% | -11.6% |
| Current drawdown | -3.2% | -0.1% |
| Annualized volatility | 18.8% | 17.1% |
| Value at risk (95%) | -1.8% | -1.7% |
Straight answers
Each answer is regenerated from the current snapshot, not written once and left to age.
Which is better, IWM or VEU?
On the Algovestiq AIQ Score, VEU is the stronger of the two as of Sep 5, 2026, scoring 65 against IWM's 57. The edge comes from momentum and risk resilience. IWM is not without a case — it holds the better quality profile, which matters more if that is the objective you are optimizing for. This is a systematic score, not a recommendation: it ranks the two on the same evidence, it does not know your holding period or tax position.
Is IWM or VEU the better buy right now?
VEU carries the stronger systematic profile as of Sep 5, 2026, and the comparison is rated Fragile — 3 of 4 covered evidence groups agree. A Fragile rating means the conclusion is sensitive: the lead has already changed hands inside the comparison window. Treat the lead as provisional.
Why does the AIQ Score favor VEU over IWM?
The composite weights Quality at 30%, Value at 30%, Momentum at 25% and Risk Resilience at 15%. VEU leads Momentum by 31 points; IWM leads Quality by 8 points; VEU leads Risk Resilience by 8 points. Where the two split, the factor with the larger weight carries the result.
Which is better value, IWM or VEU?
Neither name separates on the peer-relative Value factor. The two are level on Value. The Value factor reads valuation relative to sector peers and to the company's own fundamental quality, so it is not the same as simply having the lower multiple.
Which has stronger growth, IWM or VEU?
Growth figures are not covered for both names. Growth here is measured on reported revenue and earnings, not on forward estimates — it describes what the businesses have delivered, not what the Street expects next.
Which has stronger momentum, IWM or VEU?
VEU on the Momentum factor, by 31 points. Momentum carries 25% of the AIQ composite. It has documented persistence over three- to twelve-month horizons, which makes it a timing input rather than a reason to hold something indefinitely.
Which is riskier, IWM or VEU?
VEU is the more resilient of the two, so the other name carries the higher downside risk. VEU on Risk Resilience, by 8 points. The Risk Resilience factor weights 15% of the composite; position sizing usually responds to it more usefully than the buy/avoid decision does.
Is IWM more profitable than VEU?
Margin data is not comparable for both names in the current snapshot.
Is VEU's lead over IWM getting stronger or weaker?
VEU lead: Reversed — IWM led by 1 AIQ points 30 sessions ago; VEU now leads by 8. This is measured from 120 daily comparison snapshots between 2026-04-23 and 2026-09-04. The lead has changed hands 6 times in that window, most recently on 2026-08-20, when VEU moved ahead of IWM.
What would change the IWM vs VEU verdict?
The result is a state, not a forecast, so it changes when the underlying evidence changes. Concretely: IWM closes the Momentum gap — currently 31 points behind, the largest single contributor to VEU's edge; IWM's ATR Contraction - Coiling turns directional — it is neutral today and would confirm a change in trend; VEU's conflicting signal state resolves bearish — it currently carries 4 bullish and 1 bearish rules at once; a regime shift changes factor weighting — the composite weights Quality and Value at 30% each, so a rotation toward either would move the result most.
What do the current signals say about IWM and VEU?
IWM: 2 bullish / 1 bearish / 1 neutral, conflicted. VEU: 4 bullish / 1 bearish / 2 neutral, conflicted. A conflicted state means bullish and bearish rules are active on the same name at once — the technical evidence is not pointing one way, and a decision taken on it carries more timing risk. The most decision-relevant rule on IWM is Golden Cross Active (bullish, long horizon). On VEU it is Golden Cross Active (bullish, long horizon).
Compare IWM and VEU with others
How this comparison is scored
The Algovestiq AIQ Score composites four factors — Quality (30%), Value (30%), Momentum (25%) and Risk (15%). Sentiment is reported separately as SentimentPulse and is not folded into the composite. Scores refresh every trading day, and this page regenerates from the latest snapshot rather than being written once.
The verdict names a leader, states how broadly six independent evidence groups agree, and rates how durable that conclusion is given the score gap, its recent trajectory and the current signal state on both names.
How to use side-by-side comparison →This comparison is informational and educational, not investment advice. AIQ scores update daily; re-check after earnings, guidance or macro data that materially changes either name’s factor profile.