What is the best ETF for the Russell 2000?

There are different ETF options depending on the types of stocks you're looking for, but the iShares Russell 2000 ETF is, by far, the largest Russell 2000 ETF.

What is the average return of the Russell 2000 ETF?

The Russell 2000 has had a 9.3% compound annual return since 2005.

Does Vanguard have a Russell 2000 ETF?

Yes, Vanguard has several Russell 2000 ETFs, including some focusing on growth and value stocks, such as the Vanguard Russell 2000 Growth ETF and Vanguard Russell 2000 Value ETF. The Vanguard Russell 2000 ETF tracks the Russell 2000.

Does the Russell 2000 pay a dividend?

Yes, Russell 2000 ETFs do pay dividends. The biggest fund, the iShares Russell 2000 ETF (IWM), paid a dividend yield of 0.9% as of Sept. 2026.

Is the Russell 2000 better than the S&P 500?

The Russell 2000 isn't necessarily better than the S&P 500, but it is different. Because it holds only small-cap stocks, it tends to be more volatile than the S&P 500, and, historically, it has outperformed in bull markets and underperformed in bear markets. It's also more sensitive to interest rates.

How does a Russell 2000 ETF differ from other ETFs?

The defining characteristic of a Russell 2000 ETF is that it tracks the Russell 2000 index of small-cap stocks, or parts of the index. Other ETFs are composed based on other indexes or different themes.

Which Russell 2000 ETF has the lowest expense ratio?

The Russell 2000 ETF with the lowest expense ratio is the Vanguard Russell 2000 Index Fund ETF (VTWO) at 0.06%.

Best 5 Russell 2000 ETFs to Buy in 2026

If you want exposure to hundreds of small-cap stocks, the easiest way is with a Russell 2000 ETF.

By Jeremy Bowman – Updated Sep 1, 2026 at 10:24 PM EST | Fact-checked by Frank Bass

Key Points

Russell 2000 ETF allows broad exposure to small-cap stocks.
Investors should monitor interest rates as they influence Russell 2000 ETF performance.
Diverse Russell 2000 ETF options cater to both growth and value investment preferences.

There are a number of reasons an investor would want to own a Russell 2000 ETF. The Russell 2000 index tracks a broad range of small-cap stocks, so if you want exposure to hundreds of small-cap stocks, the easiest way to get it is with a Russell 2000 ETF.

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An infographic defining and explaining the Russell 2000 Index. — Image source: The Motley Fool.

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The underlying index tends to be more volatile than other stock market indexes, such as the S&P 500, which tracks large-cap stocks. So, a Russell 2000 ETF is better suited to investors with a high risk tolerance. Russell 2000 ETFs also tend to do better when interest rates are falling, so investors should keep interest rates in mind.

In the article below, we'll discuss the key components of the best exchange-traded funds (ETFs) that track the benchmark Russell 2000, including their assets under management, expense ratios, investment results, unique aspects, and other attributes.

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Top 5 Russell 2000 ETFs to consider

There's more variety than you might think from the top Russell 2000 ETFs. Investors can get exposure to the whole index through ETFs like iShares Russell 2000 ETF and the Vanguard Russell 2000 ETF, and ETFs that specialize in growth and value like the Vanguard Russell 2000 Growth ETF and the Vanguard 2000 Value ETF. Finally, there are leveraged Russell 2000 ETFs like the Direxion Daily Small Cap Bull 3x Shares.

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Ticker Information Table
Company name	Company ticker	Current price	Dividend yield
iShares Trust - iShares Russell 2000 ETF	NYSEMKT:IWM	$281.52	0.97%
Vanguard Russell 2000 ETF	NASDAQ:VTWO	$113.70	1.19%
Vanguard Scottsdale Funds - Vanguard Russell 2000 Growth ETF	NASDAQ:VTWG	$263.55	0.66%
Vanguard Scottsdale Funds - Vanguard Russell 2000 Value ETF	NASDAQ:VTWV	$187.04	1.71%
Direxion Shares ETF Trust - Direxion Daily Small Cap Bull 3x ETF	NYSEMKT:TNA	$59.85	0.30%

Data as of Oct 4, 2026. Showing 5 of 5 total entries.

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1. iShares Russell 2000 ETF

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NYSEMKT: IWM

iShares Trust - iShares Russell 2000 ETF

Today's Change

(0.90%) $2.50

Current Price

$281.52

Key Data Points

AUM

$79B

Dividend Yield

0.97%

Expense Ratio

0.19%

Top Holdings

TWST

0.40%

MOG-A

0.37%

TXG

0.35%

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2. Vanguard Russell 2000 ETF

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NASDAQ: VTWO

Vanguard Russell 2000 ETF

Today's Change

(0.91%) $1.03

Current Price

$113.70

Key Data Points

AUM

$18B

Dividend Yield

1.19%

Expense Ratio

0.06%

Top Holdings

FROG

0.34%

MOG-A

0.33%

UMBF

0.33%

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The Vanguard Russell 2000 ETF (VTWO +0.91%) is the best option if you're looking for a low expense ratio, as it charges only 0.06% of assets invested to participate in the fund. The ETF was started in 2010, and since then, its returns have mirrored those of the Russell 2000 index, up roughly 10% annually.

Its top holdings are similar to those of the iShares Russell 2000 ETF, with healthcare as its biggest sector, accounting for nearly 20% of its holdings. It also pays a slightly better dividend yield, at 1.1% as of Sept. 1, 2026.

3. Vanguard Russell 2000 Growth ETF

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NASDAQ: VTWG

Vanguard Scottsdale Funds - Vanguard Russell 2000 Growth ETF

Today's Change

(0.96%) $2.50

Current Price

$263.55

Key Data Points

AUM

$1.7B

Dividend Yield

0.66%

Expense Ratio

0.06%

Top Holdings

FROG

0.68%

MOG-A

0.66%

GKOS

0.64%

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Some ETFs are divided into value and growth funds to make it easier for investors to get exposure to one or the other, and Vanguard has done that here. The Vanguard Russell 2000 Growth ETF (VTWG +0.96%) invests in stocks held by the Russell 2000 Growth index and is riskier and more volatile than the ETFs that track the Russell 2000.

With 1,130 stocks with a median market cap of $4.2 billion, many of its top holdings are the same as those of the ETFs that track the broad Russell 2000. For instance, its five biggest holdings are Moog, BrightSpring Health Services, Glaukos, Brinker International, and Krystal Biotech. Those five stocks comprise between 0.56% and 0.7% of the fund.

The biggest sector in this growth ETF is healthcare, which made up 29% of the total fund, and the ETF had a P/E ratio of 24.9 as of Sept. 1, 2026.

4. Vanguard Russell 2000 Value ETF

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NASDAQ: VTWV

Vanguard Scottsdale Funds - Vanguard Russell 2000 Value ETF

Today's Change

(0.78%) $1.44

Current Price

$187.04

Key Data Points

AUM

$1.4B

Dividend Yield

1.71%

Expense Ratio

0.06%

Top Holdings

UMBF

0.62%

CTRE

0.57%

JXN

0.57%

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As you might guess, the Vanguard Russell 2000 Value ETF (VTWV +0.78%) is the counterpart to Vanguard's growth ETF. Because it holds small-cap stocks, Vanguard describes it similarly to its Russell 2000 Growth ETF, saying the value ETF offers high potential for investment growth but has more market volatility than funds that hold bonds.

This value ETF holds 1,420 stocks. Its largest holdings differ from those of the growth ETF or Russell 2000 ETFs.

Its top five holdings include UMB Financial, ViaSat, CareTrust REIT, Cytokinetics, and Old National Bancorp/IN. Each holding makes up between 0.53% and 0.64% of the fund.

Financials are the biggest component of this value ETF, making up 29% of the index. This makes sense, considering financials typically trade at low earnings multiples and aren't known for growth.

The ETF also offers a yield of 1.6%, showing it has more exposure to dividend stocks than the other ETFs on this list. The Vanguard Russell 2000 Value ETF trades at a P/E ratio of 14.4, making it cheaper than the broad-based Russell 2000 ETF.

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5. Direxion Daily Small Cap Bull 3X Shares

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NYSEMKT: TNA

Direxion Shares ETF Trust - Direxion Daily Small Cap Bull 3x ETF

Today's Change

(2.54%) $1.48

Current Price

$59.85

Key Data Points

AUM

$1.3B

Dividend Yield

0.30%

Expense Ratio

1.07%

Top Holdings

IWM

21.85%

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Another option for investing in Russell 2000 ETFs is to choose a leveraged ETF, such as the Direxion Daily Small Cap Bull 3X Shares (TNA +2.54%). Leveraged ETFs use options and other tactics to magnify the movements of the underlying index fund.

That makes them riskier than typical ETFs and index funds but also offers the potential for outsize returns. Using those tools, the ETF seeks to provide a return that is 200% of the benchmark's return in a single day.

The ETF's five largest holdings and their weightings are the same as those of the iShares Russell 2000 ETF. In fact, Direxion primarily invests in the iShares Russell 2000 ETF and buys swaps to add leverage.

If you're bullish on the recovery and want to own small caps, a leveraged one like the Direxion ETF is a good choice. However, these leveraged ETFs aren't generally intended for long-term ownership, as they decay over time. They are best used for short-term purposes.

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How to buy Russell 2000 stocks

1. Open your brokerage account: Log in to your brokerage account where you handle your investments. If you don't have one yet, take a look at our favorite brokers and trading platforms to find the right one for you.
2. Search for Russell 2000 stocks: Enter the ticker into the search bar to bring up the stock's trading page.
3. Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
4. Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
5. Submit your order: Confirm the details and submit your buy order.
6. Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.

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Benefits and risks of investing in Russell 2000 stocks

Small-cap ETFs have their own benefits and risks. Keep reading to learn how those can affect you.

First, the benefits:

ETFs can be a useful time-saver for investors, especially for a massive index like the Russell 2000. Researching and evaluating 2,000 small-cap stocks isn't realistic for most investors.
ETFs also make it easy to diversify. A Russell 2000 ETF offers exposure across every stock market sector, though industrials tend to be the largest.
A small-cap ETF can be a good choice for risk-seeking investors. Historically, the Russell 2000 has outperformed the S&P 500 during bull markets, and it tends to be more volatile and more sensitive to interest rates, rising when they fall.
Most investors will have most of their stock investments in large-cap stocks. A Russell 2000 ETF provides a good way to diversify and get exposure to small stocks that you may not be familiar with.

Now, here are some of the risks:

The Russell 2000 has historically been more volatile than the S&P 500, so a Russell 2000 ETF is riskier than an S&P 500 index fund, especially over the short term.
The Russell 2000 tends to underperform the S&P 500 in bear markets as small caps are more exposed to bankruptcy and debt. Therefore, a Russell 2000 ETF can be a particularly bad investment in a bear market.
The Russell 2000 has underperformed the S&P 500 over much of the AI bull market. While that's not guaranteed to continue, it does make the bar for investing in the small-cap ETF higher than it would be.
The Russell 2000 has missed out on much of the gains from the AI boom as it lacks exposure to the "Magnificent Seven" stocks and the larger semiconductor stocks that have been the biggest winners.

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Methodology: How these ETFs were chosen

There aren't many small-cap ETFs on that market, but these five, which all track the Russell 2000, do a good job of giving investors choices.

It's easy to find a straight index fund like the IWM, but having the ability to choose from value or growth gives some additional appeal to this group, as small-cap ETFs can't really be substituted with individual stocks.

Finally, interest in leveraged ETFs may be limited, but the Direxion ETF gives small-cap investors the option to get exposure to high-powered short-term returns.

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Should you invest in Russell 2000 stocks?

Whether you should invest in Russell 2000 stocks or ETFs will depend on your investing goals and style.

Thanks to the variety of small-cap ETFs, Russell 2000 ETFs offer both options for both growth and value investors.

If you're looking for growth, you'll want to invest in the Vanguard Russell 2000 Growth ETF. If, on the other hand, you're partial to value stocks, you'll probably want the Vanguard Russell 2000 Value ETF. Whether you choose growth or value will depend on your risk tolerance and other investing preferences.

Before you invest in a Russell 2000 ETF, it's worth asking why you want to invest in small-cap stocks. Some good reasons to invest are that you are looking to diversify from the large-cap stocks found in the S&P 500, or you're anticipating that interest rates will fall and small-cap stocks will benefit. It may also be because small-cap stocks trade at a lower valuation.

The bottom line on small-caps is that if you're looking to diversify away from large-caps or gain exposure to a more volatile, macroeconomically sensitive part of the stock market, investing in Russell 2000 stocks can be a smart move for you.

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Best Russell 2000 ETFs FAQ

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About the Author

Jeremy Bowman has been a contributing Motley Fool stock market analyst, covering technology, consumer goods, and macroeconomic trends since 2011. Before The Motley Fool, Jeremy was a newspaper reporter, restaurant manager, and English teacher abroad. He holds a bachelor’s degree in English from Colorado College and a master’s degree in business administration from American University. One of his Motley Fool headlines was briefly featured on Late Night with Stephen Colbert.

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Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Best Russell 2000 ETFs to Buy in 2026

If you want exposure to hundreds of small-cap stocks, the easiest way is with a Russell 2000 ETF.

Key Points