IWM vs VNQ: 6% overlap
iShares Russell 2000 ETF and Vanguard Real Estate ETF share 6.0% of their portfolios by weight — computed as Σ min(wA, wB) over every holding both funds own.
You would hold two tickers and get the diversification of 1.9. Two funds that shared nothing would score 2.0; two identical funds score 1.0.
Top shared holdings
IWM and VNQ hold 77 of the same securities. The ten contributing most to the overlap figure:
| Holding | in IWM | in VNQ | Δ |
|---|---|---|---|
| CTRE | 0.3% | 0.5% | 0.2% |
| RHP | 0.3% | 0.4% | 0.1% |
| TRNO | 0.2% | 0.4% | 0.1% |
| COMP | 0.2% | 0.4% | 0.2% |
| MAC | 0.2% | 0.3% | 0.1% |
| EPRT | 0.2% | 0.3% | 0.1% |
| KRG | 0.2% | 0.3% | 0.1% |
| SBRA | 0.2% | 0.3% | 0.1% |
| PECO | 0.2% | 0.3% | 0.1% |
| OUT | 0.2% | 0.3% | 0.1% |
Where IWM and VNQ differ
Sector weights as a share of each fund, ordered by the size of the gap rather than the size of the sector — two funds that overlap heavily still usually diverge somewhere.
| Sector | IWM | VNQ | Δ |
|---|---|---|---|
| Real Estate | 5.9% | 84.0% | −78.1pp |
| Health Care | 19.9% | 0.0% | +19.9pp |
| Financials | 19.0% | 0.3% | +18.8pp |
| Unclassified | 0.0% | 14.7% | −14.7pp |
| Industrials | 14.7% | 0.0% | +14.7pp |
| Information Technology | 12.8% | 0.0% | +12.8pp |
| Consumer Discretionary | 9.4% | 0.2% | +9.2pp |
| Energy | 6.1% | 0.0% | +6.1pp |
Δ is IWM minus VNQ, in percentage points. Sector data is not published by every issuer, so “Unclassified” is a real category rather than a gap in the table.
What each fund holds alone
94.0% of IWM by weight, held in no part of VNQ.
90.1% of VNQ by weight, held in no part of IWM.
A large count with a small weight is the usual shape: the positions one fund adds are typically its smallest ones.
Concentration and cost
| IWM | VNQ | |
|---|---|---|
| Top 10 holdings | 3.3% | 54.1% |
| Positions held | 1,967 | 145 |
| Cost per $10,000 held, per year | $19 | $13 |
Cost is the expense ratio applied to $10,000; it excludes any brokerage commission, bid-ask spread or tax consequence. Figures are facts about the funds, not a suggestion about which to hold.
Frequently asked
How much do IWM and VNQ overlap?
IWM and VNQ overlap 6.0% by portfolio weight — largely distinct portfolios. They share 77 holdings. The figure comes from current issuer holdings files (IWM as of 2026-07-23, VNQ as of 2026-06-30).
How is the overlap between IWM and VNQ calculated?
As the sum of the smaller weight in each fund, over every holding both funds own: Σ min(wA, wB). If IWM holds a stock at 6% and VNQ holds the same stock at 4%, 4% counts as shared. The result is bounded between 0% and 100%, and it is computed after looking through any fund-of-funds to the underlying holdings.
Is it redundant to hold both IWM and VNQ?
That depends on your goals — we state facts, not advice. At 6.0% overlap, each fund still contributes meaningfully distinct exposure.
What does IWM own that VNQ doesn't?
IWM holds 1,967 positions and VNQ holds 145; 1,889 of IWM's positions don't appear in VNQ at all, and they are 94.0% of IWM by weight.
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Related comparisons
Sources: issuer holdings files, IWM as of 2026-07-23, VNQ as of 2026-06-30. Weights are fractions of each fund. Diagnostics, not advice.