DIA tracks solely 30 blue-chip shares and reveals decrease volatility and drawdown than IWM’s 1,954-stock small-cap portfolio
IWM delivered the next 1-year return, however DIA’s yield and risk-adjusted metrics presently look extra defensive
DIA’s expense ratio is barely decrease, and its sector tilt is heavier to financials and know-how
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SPDR Dow Jones Industrial Common ETF Belief (NYSEMKT:DIA) and iShares Russell 2000 ETF (NYSEMKT:IWM) differ sharply in market protection, sector publicity, and danger profile, with DIA providing concentrated blue-chip publicity and IWM concentrating on the broad U.S. small-cap phase.
IWM goals to seize the efficiency of 1,954 U.S. small-cap shares, whereas DIA supplies entry to simply 30 of the most important, most established U.S. corporations within the Dow Jones Industrial Common. This comparability appears to be like at value, returns, danger, and portfolio make-up to assist buyers determine which strategy might match their objectives.
Metric | IWM | DIA |
|---|
Issuer | IShares | SPDR |
Expense ratio | 0.19% | 0.16% |
1-yr return (as of 2026-01-09) | 20.0% | 18.1% |
Dividend yield | 1.0% | 1.4% |
Beta | 1.13 | 0.91 |
AUM | $77.7 billion | $44.6 billion |
Beta measures value volatility relative to the S&P 500; beta is calculated from five-year weekly returns. The 1-yr return represents complete return over the trailing 12 months.
DIA is modestly cheaper than IWM and presently affords the next dividend yield, which can attraction to these looking for a barely lower-cost, higher-payout possibility amongst main index ETFs.
Metric | IWM | DIA |
|---|
Max drawdown (5 y) | -31.91% | -20.76% |
Progress of $1,000 over 5 years | $1,341 | $1,749 |
DIA tracks the Dow Jones Industrial Common, holding simply 30 blue-chip U.S. shares—making it one of the crucial concentrated main index ETFs. Its sector publicity leans closely on monetary providers (28%), know-how (20%), and industrials (15%). The biggest positions embrace Goldman Sachs Group Inc (NYSE:GS), Caterpillar Inc (NYSE:CAT), and Microsoft Corp (NASDAQ:MSFT). With 28 years of historical past and a centered lineup, DIA might attraction to these looking for established names and decrease volatility.
IWM, against this, holds roughly 1,950 U.S. small-cap shares, delivering broad diversification throughout the market’s smaller corporations. Its sector allocation is extra balanced, with healthcare (19%), monetary providers (16%), and know-how (16%) as the principle weights. High positions like Bloom Power Class A Corp (NYSE:BE), Credo Know-how Group Holding Ltd (NASDAQ:CRDO), and Kratos Protection And Safety Options (NASDAQ:KTOS) comprise a a lot smaller slice of belongings, reflecting the ETF’s large attain.
For extra steering on ETF investing, take a look at the total information at this hyperlink.
The SPDR Dow Jones Industrial Common ETF Belief (DIA) and iShares Russell 2000 ETF (IWM) are two of the best-known and largest ETFs round. Every fund tracks an iconic inventory market index, the Dow Jones Industrial Common and the Russell 2000 index, respectively. So, here is what retail buyers have to find out about these two ETFs.
To begin, probably the most important distinction between these two funds is the dimensions and sort of their holdings. The DIA holds solely 30 shares, whereas IWM holds near 2,000. As well as, the DIA tilts closely in direction of massive and megacap shares. In the meantime, IWM’s intensive portfolio tilts way more in direction of medium and small caps.
As for the important thing monetary and efficiency metrics, DIA comes out forward of IWM. DIA has the decrease expense ratio, larger dividend yield, and larger complete return over the past 5 years. What’s extra, it additionally has skilled much less volatility, with its max drawdown being -21% as in comparison with -32% for IWM.
Due to this fact, many buyers might favor DIA over IWM given its mixture of optimistic attributes. Nonetheless, IWM should still maintain attraction for buyers which are looking for diversification and larger publicity to small and mid cap shares.
ETF: Trade-traded fund that holds a basket of belongings and trades on inventory exchanges like a inventory.
Index ETF: An ETF designed to trace the efficiency of a particular market index, earlier than charges and bills.
Small-cap: Corporations with comparatively low market worth, usually extra risky and faster-growing than massive, established corporations.
Blue-chip shares: Shares of enormous, established corporations with secure earnings and lengthy information of reliability.
Expense ratio: Annual fund working prices expressed as a share of the fund’s common belongings.
Dividend yield: Annual dividends per share divided by the share value, displaying revenue return share.
Beta: Measure of an funding’s volatility relative to a benchmark index, typically the S&P 500.
AUM (Property beneath administration): Complete market worth of belongings {that a} fund or supervisor oversees.
Max drawdown: The biggest peak-to-trough decline in an funding’s worth over a particular interval.
Threat-adjusted metrics: Measures that examine funding returns to the quantity of danger taken to attain them.
Sector publicity: The share of a fund’s belongings invested in particular industries or sectors.
Diversification: Spreading investments throughout many securities to cut back the affect of any single holding’s efficiency.
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Jake Lerch has positions in Caterpillar and iShares Belief – iShares Russell 2000 ETF. The Motley Idiot has positions in and recommends Bloom Power, Goldman Sachs Group, Kratos Protection & Safety Options, and Microsoft. The Motley Idiot recommends the next choices: lengthy January 2026 $395 calls on Microsoft and brief January 2026 $405 calls on Microsoft. The Motley Idiot has a disclosure coverage.
DIA vs. IWM: DIA Combines Larger Yield With Decrease Price, Whereas IWM Affords Larger Diversification was initially revealed by The Motley Idiot
