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EEM vs. IWM
Performance
Return for Risk
Drawdowns
Volatility
Dividends

EEM vs. IWM

Last updated Jun 24, 2026

EEM (iShares MSCI Emerging Markets ETF) and IWM (iShares Russell 2000 ETF) are both exchange-traded funds - EEM is a Emerging Markets Diversified fund tracking the MSCI Emerging Markets Index (Net), while IWM is a Small Cap Blend Equities fund tracking the Russell 2000 Index. Both are passively managed. Over the past 10 years, EEM returned 9.87%/yr vs 11.58%/yr for IWM. A 0.69 correlation means they provide meaningful diversification when combined. EEM charges 0.72%/yr vs 0.19%/yr for IWM.

Performance

EEM vs. IWM - Performance Comparison

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

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Returns By Period

In the year-to-date period, EEM achieves a 23.41% return, which is significantly higher than IWM's 20.47% return. Over the past 10 years, EEM has underperformed IWM with an annualized return of 9.87%, while IWM has yielded a comparatively higher 11.58% annualized return.

EEM

1D
-5.67%
1M
2.49%
YTD
23.41%
6M
24.32%
1Y
46.62%
3Y*
22.58%
5Y*
6.54%
10Y*
9.87%

IWM

1D
-0.96%
1M
3.82%
YTD
20.47%
6M
17.64%
1Y
40.90%
3Y*
19.22%
5Y*
6.27%
10Y*
11.58%
*Multi-year figures are annualized to reflect compound growth (CAGR)

EEM vs. IWM - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
EEM
iShares MSCI Emerging Markets ETF		23.41%33.98%6.49%8.95%-20.56%-3.63%17.02%18.22%-15.31%37.26%
IWM
iShares Russell 2000 ETF		20.47%12.66%11.38%16.83%-20.48%14.54%20.03%25.39%-11.12%14.58%

Correlation

The correlation between EEM and IWM is 0.66, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

Correlation
Correlation (1Y)
Calculated over the trailing 1-year period

0.66

Correlation (3Y)
Calculated over the trailing 3-year period

0.61

Correlation (5Y)
Calculated over the trailing 5-year period

0.63

Correlation (10Y)
Calculated over the trailing 10-year period

0.62

Correlation (All Time)
Calculated using the full available price history since Apr 14, 2003

0.69

The correlation between EEM and IWM has been stable across timeframes, ranging from 0.61 to 0.69 - a consistent structural relationship.

EEM vs. IWM - Sectors Allocation Comparison

Sectors
EEM
IWM

Technology

46.4%
20.1%

Financial Services

17.8%
15.5%

Consumer Cyclical

7.2%
8.0%

Industrials

5.9%
17.3%

Basic Materials

5.7%
4.5%

Communication Services

5.6%
1.7%

Energy

3.0%
6.0%

Consumer Defensive

2.4%
2.0%

Healthcare

2.3%
15.6%

Utilities

1.8%
3.1%

Real Estate

0.9%
5.5%

Technology

EEM
46.4%
IWM
20.1%

Financial Services

EEM
17.8%
IWM
15.5%

Consumer Cyclical

EEM
7.2%
IWM
8.0%

Industrials

EEM
5.9%
IWM
17.3%

Basic Materials

EEM
5.7%
IWM
4.5%

Communication Services

EEM
5.6%
IWM
1.7%

Energy

EEM
3.0%
IWM
6.0%

Consumer Defensive

EEM
2.4%
IWM
2.0%

Healthcare

EEM
2.3%
IWM
15.6%

Utilities

EEM
1.8%
IWM
3.1%

Real Estate

EEM
0.9%
IWM
5.5%

Compare stocks, funds, or ETFs

Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.

iShares MSCI Emerging Markets ETF

iShares Russell 2000 ETF

Often compared with EEM:
EEM vs. VWOEEM vs. SPYEEM vs. IEMGEEM vs. IS3N.DEEEM vs. VXUSEEM vs. EEMSEEM vs. SPEM
Often compared with IWM:
IWM vs. SPYIWM vs. VTWOIWM vs. IJRIWM vs. AVUVIWM vs. IWNIWM vs. VOOIWM vs. TNA

Return for Risk

EEM vs. IWM — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
EEM
EEM Risk / Return Rank: 6767
Overall Rank
EEM Sharpe Ratio Rank: 6565
Sharpe Ratio Rank
EEM Sortino Ratio Rank: 5757
Sortino Ratio Rank
EEM Omega Ratio Rank: 6969
Omega Ratio Rank
EEM Calmar Ratio Rank: 7171
Calmar Ratio Rank
EEM Martin Ratio Rank: 7070
Martin Ratio Rank
IWM
IWM Risk / Return Rank: 6767
Overall Rank
IWM Sharpe Ratio Rank: 6666
Sharpe Ratio Rank
IWM Sortino Ratio Rank: 6464
Sortino Ratio Rank
IWM Omega Ratio Rank: 5757
Omega Ratio Rank
IWM Calmar Ratio Rank: 7575
Calmar Ratio Rank
IWM Martin Ratio Rank: 7373
Martin Ratio Rank
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.

EEM vs. IWM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares MSCI Emerging Markets ETF (EEM) 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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

EEMIWMDifference
Sharpe ratioReturn per unit of total volatility
2.06
2.08

-0.03

Sortino ratioReturn per unit of downside risk
2.63
2.86

-0.23

Omega ratioGain probability vs. loss probability

1.39

1.34

+0.05

Calmar ratioReturn relative to maximum drawdown

3.46

3.73

-0.26

Martin ratioReturn relative to average drawdown

12.70

13.18

-0.49

EEM vs. IWM - Sharpe Ratio Comparison

The current EEM Sharpe Ratio is 2.06, which is comparable to the IWM Sharpe Ratio of 2.08. The chart below compares the historical Sharpe Ratios of EEM 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.

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Drawdowns

EEM vs. IWM - Drawdown Comparison

The maximum EEM drawdown since its inception was -66.43%, which is greater than IWM's maximum drawdown of -59.05%. Use the drawdown chart below to compare losses from any high point for EEM and IWM.

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Drawdown Indicators

EEMIWMDifference

Max Drawdown

Largest peak-to-trough decline

-66.43%

-59.05%

-7.38%

Max Drawdown (1Y)

Largest decline over 1 year

-13.52%

-11.03%

-2.49%

Max Drawdown (3Y)

Largest decline over 3 years

-17.29%

-27.50%

+10.21%

Max Drawdown (5Y)

Largest decline over 5 years

-37.49%

-31.91%

-5.58%

Max Drawdown (10Y)

Largest decline over 10 years

-39.82%

-41.13%

+1.31%

Current Drawdown

Current decline from peak

-5.67%

-0.96%

-4.71%

Average Drawdown

Average peak-to-trough decline

-15.99%

-10.75%

-5.24%

Ulcer Index

Depth and duration of drawdowns from previous peaks

3.68%

3.11%

+0.57%

Volatility

EEM vs. IWM - Volatility Comparison

iShares MSCI Emerging Markets ETF (EEM) has a higher volatility of 12.59% compared to iShares Russell 2000 ETF (IWM) at 6.56%. This indicates that EEM'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

EEMIWMDifference

Volatility (1M)

Calculated over the trailing 1-month period

12.59%

6.56%

+6.03%

Volatility (6M)

Calculated over the trailing 6-month period

20.73%

14.31%

+6.42%

Volatility (1Y)

Calculated over the trailing 1-year period

22.77%

19.74%

+3.03%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

19.55%

22.61%

-3.06%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

20.67%

23.06%

-2.39%

EEM vs. IWM - Expense Ratio Comparison

EEM has a 0.72% expense ratio, which is higher than IWM's 0.19% expense ratio.

Dividends

EEM vs. IWM - Dividend Comparison

EEM's dividend yield for the trailing twelve months is around 1.66%, more than IWM's 0.90% yield.

PositionTTM20252024202320222021202020192018201720162015
EEM
iShares MSCI Emerging Markets ETF		1.66%2.22%2.43%2.63%2.50%1.99%1.45%2.76%2.24%1.89%1.89%2.49%
IWM
iShares Russell 2000 ETF		0.90%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

EEM and IWM have a correlation of 0.66, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

EEM has higher volatility (12.59%) compared to IWM (6.56%). In terms of maximum drawdown, EEM dropped -66.43% vs IWM's -59.05%.

On 10-year performance, IWM leads with 11.58% vs 9.87% for EEM. On fees, IWM is cheaper at 0.19% per year. On volatility, IWM has been the lower-risk option at 6.56%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, IWM has performed better with a 11.58% return vs 9.87%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

IWM is cheaper with a 0.19% expense ratio, compared with 0.72% for EEM.

EEM has the higher dividend yield at 1.66%, compared with 0.90% for IWM.

EEM is categorized as Emerging Markets Diversified, while IWM is Small Cap Blend Equities. EEM tracks MSCI Emerging Markets Index (Net), while IWM tracks Russell 2000 Index. Their fees differ too: 0.72% for EEM and 0.19% for IWM.

IWM currently has the higher Sharpe Ratio (2.08 vs 2.06), 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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