
IWM and VTWO track the same 2000 stocks yet VTWO’s ten-year return crushes IWM by nearly 40 percentage points

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The iShares Russell 2000 ETF (IWM) and Vanguard Russell 2000 ETF (VTWO) track the same 2,000 small-cap stocks but have diverged significantly in returns over ten years, with VTWO outperforming IWM by nearly 40 percentage points. While IWM offers greater liquidity and options depth, VTWO's lower expense ratio and tax efficiency make it a better choice for long-term investors. The decision between the two depends on the investor's strategy—trading versus buy-and-hold.

