Which Small-Cap ETF Is the Better Buy: iShares' Growth-Focused IWO or Invesco's Revenue-Weighted RWJ?

The iShares Russell 2000 Growth ETF (IWO) and Invesco S&P SmallCap 600 Revenue ETF (RWJ) are both small-cap ETFs, but they employ different strategies. IWO offers broad, low-cost exposure to growth-oriented small-cap stocks, while RWJ focuses on revenue-weighted holdings within the S&P SmallCap 600 Index. As of August 10, 2026, IWO boasts a lower expense ratio (0.24%) compared to RWJ (0.35%) and provides an identical 0.4% trailing-12-month dividend yield.

IWO's portfolio comprises 1,106 holdings, with healthcare, technology, and industrials being the most represented sectors. RWJ, on the other hand, maintains a more concentrated approach, holding 127 stocks with a strong emphasis on healthcare, industrials, and financial services. Top holdings in RWJ include ACM Research, Protagonist Therapeutics, and Acadian Asset Management.

While IWO has delivered $1.64 per share in trailing 12-month dividends, RWJ has paid $0.30 per share over the same period. The small-cap sector has experienced significant growth over the past year, outperforming the S&P 500, making IWO and RWJ attractive options for investors seeking exposure to this rally.