Is IWM or SPY the Better ETF for Investors? Here's What the Data Says
PUBLISHED Tuesday, March 3, 2026 · The Motley Fool
AI BRIEFING
- ⬤ SPY provides a broad exposure to large-cap US stocks, while IWM offers a more specialized focus on small-cap US equities.
- ⬤ IWM tends to perform well during economic downturns, as small-cap stocks are often more sensitive to interest rate changes and economic cycles.
- ⬤ SPY generally has lower fees and trading costs compared to IWM, making it a more cost-effective option for investors seeking broad market exposure.
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