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VTWO tax-loss harvesting alternatives
Vanguard Russell 2000 ETF (Vanguard) tracks Russell 2000. If you hold VTWO at a loss, these ETFs track a different index, which generally makes them less likely to be considered “substantially identical” — while still moving closely with VTWO during the 31-day wait.
| Held fund | Index tracked | Issuer | Expense ratio | AUM | Holdings | Category |
|---|---|---|---|---|---|---|
| VTWO Vanguard Russell 2000 ETF | Russell 2000 | Vanguard | 0.06% | $16.54B | 2005 | US small cap |
Sources: issuer fund page · public fund profile. Fund data as of 2026-10-16.
VTWO wash sale alternatives (different index)
| ETF | Index tracked | Issuer | Expense ratio | AUM | 1-yr correlation | Holdings overlap | Notes |
|---|---|---|---|---|---|---|---|
| IWO iShares Russell 2000 Growth ETF | Russell 2000 Growth Benchmark | BlackRock | 0.24% | $13.70B | 0.975 | 55.9% | different index |
| VXF Vanguard Extended Market ETF | S&P Completion | Vanguard | 0.05% | $30.34B | 0.967 | 35.1% | different index |
| VB Vanguard Morningstar Small-Cap ETF | Morningstar US Small Cap TR USD | Vanguard | 0.03% | $77.74B | 0.962 | 25.3% | different index |
| SCHA Schwab U.S. Small-Cap ETF | Dow Jones US Total Stock Market Small-Cap | Charles Schwab | 0.03% | $21.66B | 0.955 | n/a | different index |
| IWN iShares Russell 2000 Value ETF | Russell 2000 Value | BlackRock | 0.24% | $13.73B | 0.946 | 54.6% | different index |
| SPSM State Street SPDR Portfolio S&P 600 Small Cap ETF | S&P Small Cap 600 | State Street | 0.03% | $15.70B | 0.931 | 47.5% | different index |
| IJR iShares Core S&P Small Cap ETF | S&P Small Cap 600 | BlackRock | 0.06% | $103.26B | 0.930 | 47.4% | different index |
| SCHM Schwab U.S. Mid-Cap ETF | Dow Jones US Total Stock Market Mid-Cap | Charles Schwab | 0.03% | $14.58B | 0.927 | n/a | different index |
Sorted by 1-year correlation of daily total returns with VTWO (through 2026-10-16). Holdings overlap = sum of the smaller weight of each common stock, from issuer holdings files; “n/a” where the issuer does not offer a free download or for bond/international/commodity funds. Hover a value for its as-of dates.
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Avoid as a replacement: same index as VTWO
These track the same index (Russell 2000). Buying one of them within the window is the classic “substantially identical” risk.
| ETF | Index tracked | Issuer | Expense ratio | AUM | 1-yr correlation | Holdings overlap | Notes |
|---|---|---|---|---|---|---|---|
| IWM iShares Russell 2000 ETF | Russell 2000 | BlackRock | 0.19% | $77.08B | 0.998 | 95.4% | same index — avoid |
Leveraged funds on the same index
Not suggested as swaps. They track Russell 2000 with daily leverage; some practitioners still consider them potentially substantially identical. (Inverse funds on the same index are omitted here.)
| ETF | Index tracked | Issuer | Expense ratio | AUM | 1-yr correlation | Holdings overlap | Notes |
|---|---|---|---|---|---|---|---|
| TNA3x leveraged Direxion Daily Small Cap Bull 3X ETF | Russell 2000 | Direxion | 1.05% | $1.30B | 1.000 | n/a | same index, different leverage — gray area |
| UWM2x leveraged ProShares Ultra Russell2000 | Russell 2000 | ProShares | 0.95% | $218.53M | 0.999 | n/a | same index, different leverage — gray area |
30-day wash-sale calendar for VTWO
The window is 30 calendar days before and after the sale (61 days total, IRC §1091(a)). Buying the replacement fund right away is the point of a swap; the dates above are about buying back the fund you sold, or anything substantially identical to it.
Before you swap
- Turn off dividend reinvestment for VTWO in every account (including IRAs) for the window — a reinvested dividend is a purchase.
- Check automatic investments, a spouse’s accounts, and any VTWO bought in the 30 days before the sale.
- Your broker generally only flags wash sales for the identical security in the same account. You are responsible for the rest.
- Read how wash sales work and the FAQ, then confirm your plan with a tax professional.