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IWM vs IAU: iShares Russell 2000 ETF vs iShares Gold Trust Comparison

Compare IWM (iShares Russell 2000 ETF) and IAU (iShares Gold Trust) by expense ratio, dividend yield, holdings, and more.

Key Differences

  • 1Expense ratio: IWM 0.19% vs IAU 0.25% (IWM is 0.06%p cheaper)
  • 2Dividend yield: IWM 1.24% vs IAU 0%
  • 3Category: IWM is Small Cap, IAU is Bonds & Commodities
  • 4Holdings: IWM 1,990 vs IAU 1

Conclusion

Recommended:IWM

IWM has an overall advantage with lower expense ratio (0.19% vs 0.25%), higher dividend yield (1.24% vs 0%). However, IAU also offers Lower expense ratio than GLD, making it worth considering depending on your portfolio goals.

CategoryIWMIAU
Fund NameiShares Russell 2000 ETFiShares Gold Trust
Current Price......
CategorySmall CapBonds & Commodities
Expense Ratio0.19%0.25%
Dividend Yield1.24%0%
Holdings19901

IWM Top Holdings

  1. 1. Super Micro Computer
  2. 2. MicroStrategy
  3. 3. Comfort Systems

IAU Top Holdings

  1. 1. Physical Gold

IWM Features

  • •Small-cap specialized
  • •Growth potential
  • •Tracks the Russell 2000
  • •High volatility

IAU Features

  • •Gold investing
  • •Inflation hedge
  • •Safe-haven asset
  • •Low cost

Pros & Cons

IWM

Advantages
  • ✓ Captures small-cap growth
  • ✓ Benefits from economic recovery
  • ✓ M&A premium
Disadvantages
  • ⚠ High volatility
  • ⚠ Liquidity risk
  • ⚠ Economically sensitive

IAU

Advantages
  • ✓ Lower expense ratio than GLD
  • ✓ Inflation defense
  • ✓ Portfolio diversification
Disadvantages
  • ⚠ No interest income
  • ⚠ Storage costs
  • ⚠ Disadvantaged during dollar strength

Investment Strategy

Best For: IWM

Allocate 10-20% of total portfolio; adjust based on business cycle

Best For: IAU

Allocate 5-10% of portfolio to gold; alternative to GLD

Detailed Analysis

1. 분석

IWM (iShares Russell 2000 ETF) and IAU (iShares Gold Trust) They belong to different categories — Small Cap and Bonds & Commodities — representing distinct investment areas. IWM: iShares Russell 2000 ETF (IWM) is an exchange-traded fund that provides investors with exposure to small-capitalization companies. It carries an expense ratio of 0.19%. The fund offers a dividend yield of approximately 1.24%. The portfolio holds 1990 securities. With an expense ratio of 0.19% and dividend yield of 1.24%, its top holdings include Super Micro Computer, MicroStrategy, Comfort Systems. Key features include Small-cap specialized, Growth potential, with Captures small-cap growth being a major advantage. IAU: iShares Gold Trust (IAU) is an exchange-traded fund that provides investors with exposure to bonds, gold, and other commodities. It carries an expense ratio of 0.25%. The portfolio holds 1 securities. With an expense ratio of 0.25% and dividend yield of 0%, top holdings include Physical Gold. Notable features are Gold investing, Inflation hedge, with Lower expense ratio than GLD as a core strength. In terms of expense ratio, IWM is 0.06%p cheaper, which can lead to significant cost savings through compounding over long-term investment. Over 20 years with a $100,000 investment, this difference can amount to thousands of dollars.

2. 추천

IWM is suitable for Allocate 10-20% of total portfolio; adjust based on business cycle, while IAU is suitable for Allocate 5-10% of portfolio to gold; alternative to GLD. Since they are in different categories, holding both can provide portfolio diversification benefits. Adjust the allocation based on your risk tolerance and investment horizon. For beginners, we recommend a core-satellite strategy: choose a low-cost, well-diversified ETF as your core holding, and allocate the rest to satellite positions.

3. 결론

Both IWM and IAU are excellent ETFs for their respective investment objectives. The key is to choose based on your investment goals, time horizon, and risk tolerance. Rather than focusing on a single metric (dividend yield, fees, etc.), evaluate from a holistic portfolio perspective. Use our rebalancing calculator to easily determine the optimal asset allocation including both ETFs.

IWM vs IAU Investment Guide

Both IWM and IAU are popular US ETFs, but they differ in investment strategy and portfolio role. IWM has an expense ratio of 0.19%, while IAU charges 0.25%, giving IWM a cost advantage. In terms of dividend yield, IWM offers 1.24% while IAU offers 0%, making IWM the better choice for income investors.

When choosing between the two, consider your investment goals, time horizon, and risk tolerance. If long-term growth is your priority, favor the ETF with lower fees and broader diversification. If you need steady cash flow, the higher-yielding ETF may be more suitable. You can also hold both in your portfolio for a complementary approach.

Regardless of which ETF you choose, maintaining your target allocation through regular rebalancing is key to long-term performance. Review your portfolio quarterly or semi-annually, and adjust if weights have drifted significantly. Our rebalancing calculator can automatically determine the buy/sell quantities for each holding.

5 Things to Check When Comparing ETFs

1.

Expense Ratio: Even a 0.1% difference in fees can translate to thousands of dollars over long-term investing. When two ETFs track a similar index, the lower-cost option has the edge.

2.

Tracking Index & Holdings: Even ETFs in the same category may track different indices. Review the top holdings and sector weights to find the best fit for your investment goals.

3.

Dividend Policy: Compare dividend frequency (monthly vs quarterly), yield, and dividend growth rate. Monthly dividend ETFs may be preferable if you need regular cash flow.

4.

Trading Volume & Liquidity: Sufficient daily trading volume ensures you can buy and sell at fair prices. Low-volume ETFs may have wider bid-ask spreads, increasing your trading costs.

5.

Portfolio Role: Determine whether the ETF serves as a core or satellite holding in your portfolio, and size your position accordingly.

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