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.

Is the Russell 2000 a good buy?

The Russell 2000 tends to be more volatile than the S&P 500, but its returns have been similar over a long period of time. The Russell 2000 tends to outperform in bull markets and when interest rates are falling.

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 1.04% as of January 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 0.07%.

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 Feb 27, 2026 at 4:51 PM EST | Fact-checked by Frank Bass

Key Points

Russell 2000 ETFs offer broad exposure to small-cap stocks, ideal for investors with a high risk tolerance.
Falling interest rates present a good buying opportunity for Russell 2000 ETFs as they tend to perform well.
Investor choices range widely from low-cost options to high-volatility growth or value-focused ETFs.

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 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. But with interest rates currently coming down, now could be an opportune moment to buy a Russell 2000 ETF since the index tends to do well when interest rates are falling.

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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Source: Yahoo Finance! Data current as of Jan. 15, 2026. ETF = exchange-traded fund.

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1. iShares Russell 2000 ETF

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NYSEMKT: IWM

iShares Trust - iShares Russell 2000 ETF

Today's Change

(-0.25%) $-0.66

Current Price

$261.30

Key Data Points

Day's Range

$260.34 - $262.75

52wk Range

$180.76 - $271.60

Volume

22M

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2. Vanguard Russell 2000 ETF

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NASDAQ: VTWO

Vanguard Russell 2000 ETF

Today's Change

(-0.22%) $-0.23

Current Price

$105.58

Key Data Points

Day's Range

$105.18 - $106.13

52wk Range

$73.06 - $109.76

Volume

97K

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The Vanguard Russell 2000 ETF (VTWO -0.22%) is the best option if you're looking for a low expense ratio, as it charges only 0.07% 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 industrials as its biggest sector, accounting for almost 20% of its holdings. It also pays a slightly better dividend yield, at 1.16% as of Dec. 31, 2025, and is less concentrated in its top holdings than the iShares Russell 2000 ETF.

3. Vanguard Russell 2000 Growth ETF

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NASDAQ: VTWG

Vanguard Scottsdale Funds - Vanguard Russell 2000 Growth ETF

Today's Change

(-0.27%) $-0.65

Current Price

$242.15

Key Data Points

Day's Range

$241.72 - $243.95

52wk Range

$170.01 - $259.59

Volume

14K

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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 -0.27%) 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 1,110 stocks with a median market cap of $4.3 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 Credo Technology, Fabrinet (FN +7.10%), Kratos Defense & Security (KTOS +2.94%), Bloom Energy, and IonQ. Those five stocks comprise between 0.83% and 1.44% of the fund.

The biggest sector in this growth ETF is healthcare. That sector makes up 26% of the total fund, and the ETF had a P/E ratio of 24 as of Dec. 31, 2025.

4. Vanguard Russell 2000 Value ETF

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NASDAQ: VTWV

Vanguard Scottsdale Funds - Vanguard Russell 2000 Value ETF

Today's Change

(-0.24%) $-0.43

Current Price

$175.63

Key Data Points

Day's Range

$175.16 - $176.53

52wk Range

$120.14 - $178.60

Volume

11K

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As you might guess, the Vanguard Russell 2000 Value ETF (VTWV -0.24%) 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 1,429 stocks. Its largest holdings present a different makeup from the growth ETF or Russell 2000 ETFs.

Its top five holdings include EchoStar (SATS +7.08%), Hecla Mining, Cadence Bank (NYSE:BXS), Commercial Metals Co. (CMC +0.34%), and UMB Financial (UMBF -0.48%). Each holding makes up between 0.55% and 1.05% of the fund.

Financials are the biggest component of this value ETF, making up 25.9% 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 1.91%, 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, 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 Shares

Today's Change

(-0.81%) $-0.42

Current Price

$51.36

Key Data Points

Day's Range

$50.80 - $52.21

52wk Range

$20.45 - $60.44

Volume

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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 -0.81%). 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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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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@TMFBowman

Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bloom Energy and Kratos Defense & Security Solutions. 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.