IWD vs VTV: Which ETF Is Better in 2026?
A metric-by-metric comparison of iShares Russell 1000 Value ETF (IWD) and Vanguard Value Index Fund ETF Shares (VTV) — both US Large Cap Value funds — using ETFValuer's daily-updated rankings.
Educational content — not financial advice. Data as of July 25, 2026. ~5 minute read.
The Verdict
IWD and VTV compete directly — both are US Large Cap Value funds chasing the same job in a portfolio. That makes this a genuine either/or: the index each tracks, what it costs, and how it has handled drawdowns are what separate them, not the broad exposure they give you.
On ETFValuer's overall model — which blends return, risk-adjusted performance, cost, drawdown, size and volatility — VTV scores higher: 86.5 (Grade A) versus 84.1 for IWD. That doesn't make IWD a bad fund; it means VTV currently edges it out on this specific mix of factors. Read the metric-by-metric breakdown below before deciding which matters more for your own portfolio.
Head-to-Head: Every Metric
| IWD | VTV | |
|---|---|---|
| Category | US Large Cap Value | US Large Cap Value |
| Expense ratio | 0.18% | 0.03% |
| Fund size (AUM) | $79.7B | $254.5B |
| Dividend yield | 1.07% | 1.38% |
| 1-year return | +26.77% | +24.96% |
| 3-year return | +60.69% | +61.07% |
| Volatility | 11.29% | 10.28% |
| Max drawdown | -15.71% | -14.52% |
| Sharpe ratio | 1.93 | 1.94 |
| ETFValuer score | 84.1 | 86.5 |
| Grade | B+ | A |
| Overall rank | #4 | #1 |
Bold marks the better value in each row. "Better" is directional only (e.g. lower cost, higher return) — it isn't a recommendation by itself. See the full methodology.
Cost
VTV is the cheaper fund, charging 0.03% a year versus 0.18% for IWD — a gap of 0.15 percentage points (about $15.00/year on a $10,000 position) that compounds meaningfully over a multi-decade holding period. See the ETF Fee Calculator for the exact dollar impact at your investment size and horizon.
What IWD's Fees Cost You
IWD charges an expense ratio of 0.18% a year, deducted automatically from the fund's value. Small percentages compound into real money — adjust the figures below to see the impact on your own numbers.
Assumes a constant gross return and no additional contributions — a simplification, but it isolates exactly what the expense ratio costs. Try the full fee calculator to model contributions and compare any two funds.
Performance & Risk
Over the trailing 3 years, VTV returned +61.07% versus +60.69% for IWD — a gap of about 0.4 percentage points. On risk, VTV has held up better historically, with a shallower max drawdown (-14.52% vs. -15.71%). VTV currently has the better risk-adjusted return (Sharpe ratio of 1.94 vs. 1.93), meaning it delivered more return per unit of volatility taken on.
How Closely Do They Track Each Other?
Over the last 3.0 years of daily returns (752 shared trading days), IWD and VTV show a extremely high correlation of 0.981 — very close substitutes. Holding both would add very little diversification: when one falls, the other almost always falls with it. Treat these as alternatives to each other, not as complements in the same portfolio.
| Measure | Value | What it means |
|---|---|---|
| Daily return correlation | 0.981 | Extremely high — very close substitutes |
| R-squared | 96.2% | 96.2% of IWD's daily moves are explained by VTV's |
| Tracking error (annualised) | 2.64% | Typical yearly spread between the two funds' returns |
| Annualised return over 3.0y | IWD +17.27% · VTV +17.28% | VTV ahead by 0.01 points a year |
Correlation alone understates how far these can drift. Across every rolling 12-month window in the period, IWD finished as much as +3.7 points ahead of VTV at the best extreme and -3.0 points at the worst — a 6.8-point spread between the best and worst year of relative performance. Two funds can correlate tightly day to day and still deliver very different outcomes over any single year you happen to hold them.
Calculated from daily total returns over the trailing 3-year window, recomputed every day this site refreshes. Correlation of 1.00 means the two funds moved in lockstep; 0.00 means their daily moves were unrelated.
Holdings Overlap
IWD and VTV hold 7 of the same companies among their top 10 positions. Those shared names make up 14.0% of IWD and 16.8% of VTV. That's heavy duplication — owning both largely doubles down on the same companies rather than spreading risk. Most investors should pick one.
| Shared Holding | IWD Weight | VTV Weight |
|---|---|---|
| BERKSHIRE HATHAWAY INC. | 2.91% | 3.06% |
| JPMORGAN CHASE & CO. | 2.63% | 3.03% |
| EXXON MOBIL CORPORATION | 2.36% | 2.90% |
| JOHNSON & JOHNSON | 1.94% | 2.41% |
| WALMART INC. | 1.60% | 2.23% |
| CHEVRON CORPORATION | 1.28% | 1.61% |
| MICRON TECHNOLOGY, INC. | 1.24% | 1.56% |
Compares the top 10 reported holdings from each fund's most recent SEC N-PORT-P filing, so it understates total overlap — funds tracking similar indexes overlap far more deeply than the top 10 alone can show. Search any company across all tracked funds with the Stock Overlap tool.
Which One Should You Pick?
Lean IWD if…
- You prefer to keep holdings under one roof at iShares
Lean VTV if…
- You want the lower running cost — 0.03% vs 0.18%, about $15 a year less on a $10,000 position
- Current income matters to you — it yields 1.38% against 1.07%
- You want the deeper, more liquid market ($254B in assets vs $80B) and the tighter spread (0.566% vs 1.104%)
Whichever you pick, holding both at full weight is usually the wrong answer — see the overlap and correlation sections above.
Frequently Asked Questions
Is IWD or VTV better?
On ETFValuer's overall model — which blends return, risk-adjusted performance, cost, drawdown, size and volatility — VTV scores higher: 86.5 (Grade A) versus 84.1 for IWD. That doesn't make IWD a bad fund; it means VTV currently edges it out on this specific mix of factors. Read the metric-by-metric breakdown below before deciding which matters more for your own portfolio.
Which has the lower expense ratio, IWD or VTV?
VTV currently has the lower expense ratio (0.03% vs. 0.18%).
Can I hold both IWD and VTV?
You can, but there's little point. IWD and VTV have a daily return correlation of 0.98 over the past 3.0 years, meaning they move almost in lockstep. Holding both roughly doubles a single bet rather than spreading it — pick whichever wins on cost and liquidity and put the money in one place.
Go deeper on either fund
Full daily-updated metrics, holdings context, and category peers.