EMHY vs. IWM

Last updated Jun 4, 2026

EMHY (iShares J.P. Morgan EM High Yield Bond ETF) and IWM (iShares Russell 2000 ETF) are both exchange-traded funds - EMHY is a Emerging Markets Bonds fund tracking the J.P. Morgan USD Emerging Markets High Yield Bond Index, while IWM is a Small Cap Blend Equities fund tracking the Russell 2000 Index. Both are passively managed. Over the past 10 years, EMHY returned 4.73%/yr vs 10.93%/yr for IWM. At a 0.42 correlation, their price movements are largely independent. EMHY charges 0.50%/yr vs 0.19%/yr for IWM.

Performance

EMHY vs. IWM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares J.P. Morgan EM High Yield Bond ETF (EMHY) 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, EMHY achieves a 2.80% return, which is significantly lower than IWM's 17.07% return. Over the past 10 years, EMHY has underperformed IWM with an annualized return of 4.73%, while IWM has yielded a comparatively higher 10.93% annualized return.

EMHY

• 1D: -0.37%
• 1M: 1.38%
• YTD: 2.80%
• 6M: 3.49%
• 1Y: 12.96%
• 3Y*: 13.15%
• 5Y*: 4.25%
• 10Y*: 4.73%

IWM

• 1D: -1.37%
• 1M: 3.52%
• YTD: 17.07%
• 6M: 15.83%
• 1Y: 39.10%
• 3Y*: 17.88%
• 5Y*: 6.11%
• 10Y*: 10.93%

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

EMHY vs. IWM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
EMHY iShares J.P. Morgan EM High Yield Bond ETF	2.80%	13.70%	11.97%	11.47%	-13.03%	-1.91%	3.83%	12.98%	-5.21%	8.54%
IWM iShares Russell 2000 ETF	17.07%	12.66%	11.38%	16.83%	-20.48%	14.54%	20.03%	25.39%	-11.12%	14.58%

Correlation

The correlation between EMHY and IWM is 0.58, 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	0.58
Correlation (3Y) Calculated over the trailing 3-year period	0.59
Correlation (5Y) Calculated over the trailing 5-year period	0.57
Correlation (10Y) Calculated over the trailing 10-year period	0.48
Correlation (All Time) Calculated using the full available price history since Apr 4, 2012	0.42

The correlation between EMHY and IWM shifts across timeframes, from 0.42 (all time) to 0.59 (3 years), reflecting how their relationship changes across market environments.

EMHY vs. IWM - Sectors Allocation Comparison

Sectors	EMHY	IWM
Industrials	100.0%	17.1%
Basic Materials	-	4.5%
Communication Services	-	2.0%
Consumer Cyclical	-	7.8%
Consumer Defensive	-	2.1%
Energy	-	6.0%
Financial Services	-	15.8%
Healthcare	-	15.8%
Real Estate	-	5.7%
Technology	-	19.5%
Utilities	-	3.0%

Return for Risk

EMHY vs. IWM — Risk / Return Rank

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

EMHY

EMHY Risk / Return Rank: 71
EMHY Sharpe Ratio Rank: 69
EMHY Sortino Ratio Rank: 75
EMHY Omega Ratio Rank: 77
EMHY Calmar Ratio Rank: 60
EMHY Martin Ratio Rank: 72

IWM

IWM Risk / Return Rank: 62
IWM Sharpe Ratio Rank: 59
IWM Sortino Ratio Rank: 59
IWM Omega Ratio Rank: 53
IWM Calmar Ratio Rank: 70
IWM Martin Ratio Rank: 67

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.

EMHY vs. IWM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares J.P. Morgan EM High Yield Bond ETF (EMHY) 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.

	EMHY	IWM	Difference
Sharpe ratio: Return per unit of total volatility	2.30	2.05	+0.25
Sortino ratio: Return per unit of downside risk	3.44	2.85	+0.59
Omega ratio: Gain probability vs. loss probability	1.47	1.34	+0.13
Calmar ratio: Return relative to maximum drawdown	3.00	3.56	-0.56
Martin ratio: Return relative to average drawdown	13.63	12.64	+0.98
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

EMHY vs. IWM - Sharpe Ratio Comparison

The current EMHY Sharpe Ratio is 2.30, which is comparable to the IWM Sharpe Ratio of 2.05. The chart below compares the historical Sharpe Ratios of EMHY 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

	EMHY	IWM	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.30	2.05	+0.25
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.47	0.27	+0.20
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.44	0.48	-0.03
Sharpe Ratio (All Time) Calculated using the full available price history	0.50	0.37	+0.14

Drawdowns

EMHY vs. IWM - Drawdown Comparison

The maximum EMHY drawdown since its inception was -30.11%, smaller than the maximum IWM drawdown of -59.05%. Use the drawdown chart below to compare losses from any high point for EMHY and IWM.

Drawdown Indicators

	EMHY	IWM	Difference
Max Drawdown Largest peak-to-trough decline	-30.11%	-59.05%	+28.94%
Max Drawdown (1Y) Largest decline over 1 year	-4.34%	-11.03%	+6.69%
Max Drawdown (3Y) Largest decline over 3 years	-5.95%	-27.50%	+21.55%
Max Drawdown (5Y) Largest decline over 5 years	-25.83%	-31.91%	+6.08%
Max Drawdown (10Y) Largest decline over 10 years	-30.11%	-41.13%	+11.02%
Current Drawdown Current decline from peak	-0.37%	-1.49%	+1.12%
Average Drawdown Average peak-to-trough decline	-4.90%	-10.77%	+5.87%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.95%	3.10%	-2.15%

Volatility

EMHY vs. IWM - Volatility Comparison

The current volatility for iShares J.P. Morgan EM High Yield Bond ETF (EMHY) is 1.66%, while iShares Russell 2000 ETF (IWM) has a volatility of 5.75%. This indicates that EMHY experiences smaller price fluctuations and is considered to be less risky than IWM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	EMHY	IWM	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.66%	5.75%	-4.09%
Volatility (6M) Calculated over the trailing 6-month period	4.31%	13.53%	-9.22%
Volatility (1Y) Calculated over the trailing 1-year period	5.65%	19.20%	-13.55%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	9.10%	22.52%	-13.42%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	10.66%	23.04%	-12.38%

EMHY vs. IWM - Expense Ratio Comparison

EMHY has a 0.50% expense ratio, which is higher than IWM's 0.19% expense ratio.

Dividends

EMHY vs. IWM - Dividend Comparison

EMHY's dividend yield for the trailing twelve months is around 6.41%, more than IWM's 0.88% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
EMHY iShares J.P. Morgan EM High Yield Bond ETF	6.41%	6.52%	6.86%	6.73%	7.08%	5.58%	5.44%	5.72%	6.79%	5.59%	6.43%	6.99%
IWM iShares Russell 2000 ETF	0.88%	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 EMHY and IWM in my portfolio?

EMHY and IWM have a correlation of 0.58, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, EMHY or IWM?

IWM has higher volatility (5.75%) compared to EMHY (1.66%). In terms of maximum drawdown, EMHY dropped -30.11% vs IWM's -59.05%.

Which ETF is better, EMHY or IWM?

On 10-year performance, IWM leads with 10.93% vs 4.73% for EMHY. On fees, IWM is cheaper at 0.19% per year. On volatility, EMHY has been the lower-risk option at 1.66%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, EMHY or IWM?

Over the 10-year period, IWM has performed better with a 10.93% return vs 4.73%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, EMHY or IWM?

IWM is cheaper with a 0.19% expense ratio, compared with 0.50% for EMHY.

Which ETF pays a higher dividend yield, EMHY or IWM?

EMHY has the higher dividend yield at 6.41%, compared with 0.88% for IWM.

What is the main difference between EMHY and IWM?

EMHY is categorized as Emerging Markets Bonds, while IWM is Small Cap Blend Equities. EMHY tracks J.P. Morgan USD Emerging Markets High Yield Bond Index, while IWM tracks Russell 2000 Index. Their fees differ too: 0.50% for EMHY and 0.19% for IWM.

Which has better risk-adjusted returns?

EMHY currently has the higher Sharpe Ratio (2.30 vs 2.05), 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.