DIA vs. IWM: DIA Combines Higher Yield With Lower Cost, While IWM Offers Greater Diversification

2 hours ago 1

Jake Lerch, The Motley Fool

Sat, January 24, 2026 astatine 4:48 PM CST 5 min read

DIA tracks lone 30 blue-chip stocks and shows little volatility and drawdown than IWM’s 1,954-stock small-cap portfolio
IWM delivered a higher 1-year return, but DIA’s output and risk-adjusted metrics presently look much defensive
DIA’s disbursal ratio is somewhat lower, and its assemblage tilt is heavier to financials and technology
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SPDR Dow Jones Industrial Average ETF Trust (NYSEMKT:DIA) and iShares Russell 2000 ETF (NYSEMKT:IWM) disagree sharply successful marketplace coverage, assemblage exposure, and hazard profile, with DIA offering concentrated blue-chip vulnerability and IWM targeting the wide U.S. small-cap segment.

IWM aims to seizure the show of 1,954 U.S. small-cap stocks, portion DIA provides entree to conscionable 30 of the largest, astir established U.S. companies successful the Dow Jones Industrial Average. This examination looks astatine cost, returns, risk, and portfolio constitution to assistance investors determine which attack whitethorn acceptable their goals.

Metric

IWM

DIA

Issuer	IShares	SPDR
Expense ratio	0.19%	0.16%
1-yr instrumentality (as of 2026-01-09)	20.0%	18.1%
Dividend yield	1.0%	1.4%
Beta	1.13	0.91
AUM	$77.7 billion	$44.6 billion

Beta measures terms volatility comparative to the S&P 500; beta is calculated from five-year play returns. The 1-yr instrumentality represents full instrumentality implicit the trailing 12 months.

DIA is modestly little costly than IWM and presently offers a higher dividend yield, which whitethorn entreaty to those seeking a somewhat lower-cost, higher-payout enactment among large scale ETFs.

Metric

IWM

DIA

Max drawdown (5 y)	-31.91%	-20.76%
Growth of $1,000 implicit 5 years	$1,341	$1,749

DIA tracks the Dow Jones Industrial Average, holding conscionable 30 blue-chip U.S. stocks—making it 1 of the astir concentrated large scale ETFs. Its assemblage vulnerability leans heavy connected fiscal services (28%), exertion (20%), and industrials (15%). The largest positions see Goldman Sachs Group Inc (NYSE:GS), Caterpillar Inc (NYSE:CAT), and Microsoft Corp (NASDAQ:MSFT). With 28 years of past and a focused lineup, DIA whitethorn entreaty to those seeking established names and little volatility.

IWM, by contrast, holds astir 1,950 U.S. small-cap stocks, delivering wide diversification crossed the market’s smaller companies. Its assemblage allocation is much balanced, with healthcare (19%), fiscal services (16%), and exertion (16%) arsenic the main weights. Top positions similar Bloom Energy Class A Corp (NYSE:BE), Credo Technology Group Holding Ltd (NASDAQ:CRDO), and Kratos Defense And Security Solutions (NASDAQ:KTOS) comprise a overmuch smaller portion of assets, reflecting the ETF’s wide reach.