BGRFX vs. IWM

Last updated Jun 3, 2026

BGRFX (Baron Growth Fund) and IWM (iShares Russell 2000 ETF) are both funds - BGRFX is a Mid Cap Growth Equities fund managed by Baron Capital Group, Inc., while IWM is a Small Cap Blend Equities fund tracking the Russell 2000 Index. Over the past 10 years, BGRFX returned 7.46%/yr vs 11.08%/yr for IWM. Their correlation of 0.86 suggests significant overlap in exposure. BGRFX charges 1.29%/yr vs 0.19%/yr for IWM.

Performance

BGRFX vs. IWM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Baron Growth Fund (BGRFX) and iShares Russell 2000 ETF (IWM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, BGRFX achieves a -8.74% return, which is significantly lower than IWM's 18.69% return. Over the past 10 years, BGRFX has underperformed IWM with an annualized return of 7.46%, while IWM has yielded a comparatively higher 11.08% annualized return.

BGRFX

• 1D: 2.88%
• 1M: 4.29%
• YTD: -8.74%
• 6M: -6.79%
• 1Y: -17.96%
• 3Y*: -4.77%
• 5Y*: -3.77%
• 10Y*: 7.46%

IWM

• 1D: 0.93%
• 1M: 4.43%
• YTD: 18.69%
• 6M: 19.57%
• 1Y: 43.31%
• 3Y*: 18.42%
• 5Y*: 6.49%
• 10Y*: 11.08%

*Multi-year figures are annualized to reflect compound growth (CAGR)

BGRFX vs. IWM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
BGRFX Baron Growth Fund	-8.74%	-14.51%	4.62%	14.68%	-22.55%	19.82%	32.77%	40.18%	-2.93%	27.14%
IWM iShares Russell 2000 ETF	18.69%	12.66%	11.38%	16.83%	-20.48%	14.54%	20.03%	25.39%	-11.12%	14.58%

Correlation

The correlation between BGRFX and IWM is 0.39, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.39
Correlation (3Y) Calculated over the trailing 3-year period	0.62
Correlation (5Y) Calculated over the trailing 5-year period	0.74
Correlation (10Y) Calculated over the trailing 10-year period	0.78
Correlation (All Time) Calculated using the full available price history since May 30, 2000	0.86

Over the past year, the correlation between BGRFX and IWM has dropped to 0.39 - well below their long-term average of 0.86, suggesting their price drivers have been diverging.

Return for Risk

BGRFX vs. IWM — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

BGRFX

BGRFX Risk / Return Rank: 1
BGRFX Sharpe Ratio Rank: 1
BGRFX Sortino Ratio Rank: 1
BGRFX Omega Ratio Rank: 1
BGRFX Calmar Ratio Rank: 1
BGRFX Martin Ratio Rank: 1

IWM

IWM Risk / Return Rank: 69
IWM Sharpe Ratio Rank: 68
IWM Sortino Ratio Rank: 67
IWM Omega Ratio Rank: 60
IWM Calmar Ratio Rank: 77
IWM Martin Ratio Rank: 73

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

BGRFX vs. IWM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Baron Growth Fund (BGRFX) 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.

	BGRFX	IWM	Difference
Sharpe ratio Return per unit of total volatility	-0.97	2.27	-3.24
Sortino ratio Return per unit of downside risk	-1.31	3.12	-4.42
Omega ratio Gain probability vs. loss probability	0.85	1.37	-0.52
Calmar ratio Return relative to maximum drawdown	-0.67	3.97	-4.64
Martin ratio Return relative to average drawdown	-1.22	14.12	-15.34
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

BGRFX vs. IWM - Sharpe Ratio Comparison

The current BGRFX Sharpe Ratio is -0.97, which is lower than the IWM Sharpe Ratio of 2.27. The chart below compares the historical Sharpe Ratios of BGRFX and IWM, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	BGRFX	IWM	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-0.97	2.27	-3.24
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.19	0.29	-0.48
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.35	0.48	-0.13
Sharpe Ratio (All Time) Calculated using the full available price history	0.48	0.37	+0.11

Drawdowns

BGRFX vs. IWM - Drawdown Comparison

The maximum BGRFX drawdown since its inception was -56.10%, roughly equal to the maximum IWM drawdown of -59.05%. Use the drawdown chart below to compare losses from any high point for BGRFX and IWM.

Drawdown Indicators

	BGRFX	IWM	Difference
Max Drawdown Largest peak-to-trough decline	-56.10%	-59.05%	+2.95%
Max Drawdown (1Y) Largest decline over 1 year	-26.95%	-11.03%	-15.92%
Max Drawdown (3Y) Largest decline over 3 years	-32.68%	-27.50%	-5.18%
Max Drawdown (5Y) Largest decline over 5 years	-34.70%	-31.91%	-2.79%
Max Drawdown (10Y) Largest decline over 10 years	-41.14%	-41.13%	-0.01%
Current Drawdown Current decline from peak	-28.66%	-0.13%	-28.53%
Average Drawdown Average peak-to-trough decline	-8.83%	-10.77%	+1.94%
Ulcer Index Depth and duration of drawdowns from previous peaks	14.89%	3.10%	+11.79%

Volatility

BGRFX vs. IWM - Volatility Comparison

Baron Growth Fund (BGRFX) has a higher volatility of 6.94% compared to iShares Russell 2000 ETF (IWM) at 5.56%. This indicates that BGRFX'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.

Volatility by Period

	BGRFX	IWM	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.94%	5.56%	+1.38%
Volatility (6M) Calculated over the trailing 6-month period	14.84%	13.52%	+1.32%
Volatility (1Y) Calculated over the trailing 1-year period	18.81%	19.14%	-0.33%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	20.10%	22.52%	-2.42%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.13%	23.04%	-1.91%

BGRFX vs. IWM - Expense Ratio Comparison

BGRFX has a 1.29% expense ratio, which is higher than IWM's 0.19% expense ratio.

Dividends

BGRFX vs. IWM - Dividend Comparison

BGRFX's dividend yield for the trailing twelve months is around 22.91%, more than IWM's 0.87% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
BGRFX Baron Growth Fund	22.91%	20.91%	12.05%	1.79%	6.02%	7.73%	4.64%	3.68%	8.38%	11.68%	12.84%	9.53%
IWM iShares Russell 2000 ETF	0.87%	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

Can I hold both BGRFX and IWM in my portfolio?

BGRFX and IWM have a correlation of 0.39, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, BGRFX or IWM?

BGRFX has higher volatility (6.94%) compared to IWM (5.56%). In terms of maximum drawdown, BGRFX dropped -56.10% vs IWM's -59.05%.

Which has better risk-adjusted returns?

IWM currently has the higher Sharpe Ratio (2.27 vs -0.97), 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.