ADP vs. IWM
ADP (Automatic Data Processing, Inc.) is a stock, while IWM (iShares Russell 2000 ETF) is Small Cap Blend Equities fund tracking the Russell 2000 Index. Over the past 10 years, ADP returned 12.50%/yr vs 10.78%/yr for IWM. A 0.54 correlation means they provide meaningful diversification when combined.
Performance
ADP vs. IWM - Performance Comparison
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Returns By Period
In the year-to-date period, ADP achieves a -10.21% return, which is significantly lower than IWM's 15.62% return. Over the past 10 years, ADP has outperformed IWM with an annualized return of 12.50%, while IWM has yielded a comparatively lower 10.78% annualized return.
ADP
- 1D
- -1.24%
- 1M
- 7.55%
- YTD
- -10.21%
- 6M
- -10.14%
- 1Y
- -28.14%
- 3Y*
- 4.26%
- 5Y*
- 5.16%
- 10Y*
- 12.50%
IWM
- 1D
- 0.87%
- 1M
- -0.02%
- YTD
- 15.62%
- 6M
- 13.83%
- 1Y
- 35.52%
- 3Y*
- 16.64%
- 5Y*
- 5.48%
- 10Y*
- 10.78%
ADP vs. IWM - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
ADP Automatic Data Processing, Inc. | -10.21% | -10.18% | 28.41% | -0.25% | -1.29% | 42.60% | 5.86% | 32.71% | 14.25% | 16.54% |
IWM iShares Russell 2000 ETF | 15.62% | 12.66% | 11.38% | 16.83% | -20.48% | 14.54% | 20.03% | 25.39% | -11.12% | 14.58% |
Correlation
The correlation between ADP and IWM is 0.16, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.16 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.30 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.45 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.49 |
Correlation (All Time) Calculated using the full available price history since May 30, 2000 | 0.54 |
Over the past year, the correlation between ADP and IWM has dropped to 0.16 - well below their long-term average of 0.54, suggesting their price drivers have been diverging.
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Return for Risk
ADP vs. IWM — Risk / Return Rank
ADP
IWM
ADP vs. IWM - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Automatic Data Processing, Inc. (ADP) and iShares Russell 2000 ETF (IWM). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
| ADP | IWM | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -2.99 | ||
| Sortino ratioReturn per unit of downside risk | -4.22 | ||
| Omega ratioGain probability vs. loss probability | 0.80 | 1.30 | -0.50 |
| Calmar ratioReturn relative to maximum drawdown | -0.72 | 3.24 | -3.96 |
| Martin ratioReturn relative to average drawdown | -1.33 | 11.44 | -12.76 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| ADP | IWM | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | -1.16 | 1.83 | -2.99 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.24 | 0.24 | -0.01 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.51 | 0.47 | +0.04 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.54 | 0.36 | +0.18 |
Drawdowns
ADP vs. IWM - Drawdown Comparison
The maximum ADP drawdown since its inception was -59.51%, roughly equal to the maximum IWM drawdown of -59.05%. Use the drawdown chart below to compare losses from any high point for ADP and IWM.
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Drawdown Indicators
| ADP | IWM | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -59.51% | -59.05% | -0.46% |
Max Drawdown (1Y)Largest decline over 1 year | -39.25% | -11.03% | -28.22% |
Max Drawdown (3Y)Largest decline over 3 years | -40.78% | -27.50% | -13.28% |
Max Drawdown (5Y)Largest decline over 5 years | -40.78% | -31.91% | -8.87% |
Max Drawdown (10Y)Largest decline over 10 years | -40.78% | -41.13% | +0.35% |
Current DrawdownCurrent decline from peak | -28.14% | -2.71% | -25.43% |
Average DrawdownAverage peak-to-trough decline | -12.59% | -10.76% | -1.83% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 22.88% | 3.11% | +19.77% |
Volatility
ADP vs. IWM - Volatility Comparison
Automatic Data Processing, Inc. (ADP) has a higher volatility of 9.30% compared to iShares Russell 2000 ETF (IWM) at 6.52%. This indicates that ADP's price experiences larger fluctuations and is considered to be riskier than IWM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| ADP | IWM | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 9.30% | 6.52% | +2.78% |
Volatility (6M)Calculated over the trailing 6-month period | 20.42% | 14.00% | +6.42% |
Volatility (1Y)Calculated over the trailing 1-year period | 24.35% | 19.53% | +4.82% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 22.05% | 22.58% | -0.53% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 24.48% | 23.07% | +1.41% |
Dividends
ADP vs. IWM - Dividend Comparison
ADP's dividend yield for the trailing twelve months is around 2.83%, more than IWM's 0.89% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
ADP Automatic Data Processing, Inc. | 2.83% | 2.46% | 1.96% | 2.21% | 1.83% | 1.55% | 2.08% | 1.92% | 2.14% | 2.00% | 2.10% | 2.36% |
IWM iShares Russell 2000 ETF | 0.89% | 1.04% | 1.15% | 1.35% | 1.48% | 0.94% | 1.04% | 1.26% | 1.40% | 1.26% | 1.38% | 1.54% |
Frequently Asked Questions
ADP and IWM have a correlation of 0.16, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
ADP has higher volatility (9.30%) compared to IWM (6.52%). In terms of maximum drawdown, ADP dropped -59.51% vs IWM's -59.05%.
IWM currently has the higher Sharpe Ratio (1.83 vs -1.16), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.
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