ESML vs. IWM

Last updated Aug 2, 2026

ESML (iShares ESG Aware MSCI USA Small-Cap ETF) and IWM (iShares Russell 2000 ETF) are both exchange-traded funds - ESML is a Small Cap Growth Equities fund tracking the MSCI USA Small Cap Extended ESG Focus Index, while IWM is a Small Cap Blend Equities fund tracking the Russell 2000 Index. Both are passively managed. Over the past 5 years, ESML returned 7.63%/yr vs 6.99%/yr for IWM. Their 0.98 correlation means they have historically moved very closely together. ESML charges 0.17%/yr vs 0.19%/yr for IWM.

Performance

ESML vs. IWM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares ESG Aware MSCI USA Small-Cap ETF (ESML) 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, ESML achieves a 17.35% return, which is significantly lower than IWM's 18.79% return.

ESML

• 1D: -0.17%
• 1M: -2.10%
• 6M: 11.46%
• YTD: 17.35%
• 1Y: 31.31%
• 3Y*: 14.39%
• 5Y*: 7.63%
• 10Y*: —
• ALL TIME*: 10.66%

IWM

• 1D: -0.48%
• 1M: -2.14%
• 6M: 12.62%
• YTD: 18.79%
• 1Y: 36.90%
• 3Y*: 15.11%
• 5Y*: 6.99%
• 10Y*: 10.70%
• ALL TIME*: 8.73%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
ESML iShares ESG Aware MSCI USA Small-Cap ETF	$4.23M	$5.41M	$10.96M
IWM iShares Russell 2000 ETF	$6.67B	$6.32B	$7.45B

ESML vs. IWM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018
ESML iShares ESG Aware MSCI USA Small-Cap ETF	17.35%	10.62%	12.01%	17.27%	-17.28%	19.28%	19.56%	29.12%	-10.72%
IWM iShares Russell 2000 ETF	18.79%	12.66%	11.38%	16.83%	-20.48%	14.54%	20.03%	25.39%	-12.05%

Correlation

The correlation between ESML and IWM is 0.96 - they have historically moved very closely together. At this level, their price movements offset little of one another.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.96
Correlation (3Y) Balances recent behavior with more history.	0.98
Correlation (5Y) Shows whether the relationship held over a longer period.	0.98
Correlation (All Time) Calculated using the full available price history since Apr 12, 2018	0.98

The correlation between ESML and IWM has been stable across timeframes, ranging from 0.96 to 0.98 - a consistent structural relationship.

ESML vs. IWM - Sectors Allocation Comparison

Sectors	ESML	IWM
Technology	21.1%	13.6%
Industrials	17.7%	13.7%
Healthcare	13.8%	20.0%
Financial Services	13.6%	18.3%
Consumer Cyclical	10.8%	9.2%
Real Estate	6.5%	7.0%
Energy	4.4%	5.6%
Basic Materials	3.6%	4.5%
Consumer Defensive	3.4%	2.8%
Utilities	2.6%	2.9%
Communication Services	2.4%	2.0%

Return for Risk

ESML vs. IWM — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

ESML

ESML Risk / Return Rank: 79
ESML Sharpe Ratio Rank: 76
ESML Sortino Ratio Rank: 78
ESML Omega Ratio Rank: 71
ESML Calmar Ratio Rank: 85
ESML Martin Ratio Rank: 83

IWM

IWM Risk / Return Rank: 79
IWM Sharpe Ratio Rank: 78
IWM Sortino Ratio Rank: 78
IWM Omega Ratio Rank: 72
IWM Calmar Ratio Rank: 83
IWM Martin Ratio Rank: 83

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

ESML vs. IWM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares ESG Aware MSCI USA Small-Cap ETF (ESML) 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.

	ESML	IWM	Difference
Sharpe ratio: Return per unit of total volatility	1.71	1.77	-0.06
Sortino ratio: Return per unit of downside risk	2.51	2.51	0.00
Omega ratio: Gain probability vs. loss probability	1.30	1.30	0.00
Calmar ratio: Return relative to maximum drawdown	3.24	3.11	+0.14
Martin ratio: Return relative to average drawdown	11.36	11.02	+0.34

ESML vs. IWM - Sharpe Ratio Comparison

The current ESML Sharpe Ratio is 1.71, which is comparable to the IWM Sharpe Ratio of 1.77. The chart below compares the historical Sharpe Ratios of ESML 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.

Drawdowns

ESML vs. IWM - Drawdown Comparison

The maximum ESML drawdown since its inception was -41.97%, smaller than the maximum IWM drawdown of -59.05%. Use the drawdown chart below to compare losses from any high point for ESML and IWM.

Drawdown Indicators

	ESML	IWM	Difference
Max Drawdown Largest peak-to-trough decline	-41.97%	-59.05%	+17.08%
Max Drawdown (1Y) Largest decline over 1 year	-9.04%	-11.03%	+1.99%
Max Drawdown (3Y) Largest decline over 3 years	-26.68%	-27.50%	+0.82%
Max Drawdown (5Y) Largest decline over 5 years	-28.61%	-31.91%	+3.30%
Max Drawdown (10Y) Largest decline over 10 years	—	-41.13%	—
Current Drawdown Current decline from peak	-3.95%	-3.08%	-0.87%
Average Drawdown Average peak-to-trough decline	-8.83%	-10.71%	+1.88%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.58%	3.11%	-0.53%

Volatility

ESML vs. IWM - Volatility Comparison

iShares ESG Aware MSCI USA Small-Cap ETF (ESML) and iShares Russell 2000 ETF (IWM) have volatilities of 3.85% and 3.82%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ESML	IWM	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.85%	3.82%	+0.03%
Volatility (6M) Calculated over the trailing 6-month period	12.35%	14.12%	-1.77%
Volatility (1Y) Calculated over the trailing 1-year period	17.16%	19.41%	-2.25%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.20%	22.48%	-1.28%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	23.29%	23.01%	+0.28%

ESML vs. IWM - Expense Ratio Comparison

ESML has a 0.17% expense ratio, which is lower than IWM's 0.19% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

ESML vs. IWM - Dividend Comparison

ESML's dividend yield for the trailing twelve months is around 0.92%, more than IWM's 0.91% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ESML iShares ESG Aware MSCI USA Small-Cap ETF	0.92%	1.08%	1.22%	1.31%	1.46%	0.94%	0.99%	1.10%	1.07%	0.00%	0.00%	0.00%
IWM iShares Russell 2000 ETF	0.91%	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 ESML and IWM in my portfolio?

With a correlation of 0.96, ESML and IWM move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, ESML or IWM?

ESML has higher volatility (3.85%) compared to IWM (3.82%). In terms of maximum drawdown, ESML dropped -41.97% vs IWM's -59.05%.

Which ETF is better, ESML or IWM?

On 5-year performance, ESML leads with 7.63% vs 6.99% for IWM. On fees, ESML is cheaper at 0.17% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, ESML or IWM?

Over the 5-year period, ESML has performed better with a 7.63% return vs 6.99%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, ESML or IWM?

ESML is cheaper with a 0.17% expense ratio, compared with 0.19% for IWM.

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

ESML and IWM have nearly identical dividend yields, around 0.92%.

What is the main difference between ESML and IWM?

ESML is categorized as Small Cap Growth Equities, while IWM is Small Cap Blend Equities. ESML tracks MSCI USA Small Cap Extended ESG Focus Index, while IWM tracks Russell 2000 Index. Their fees differ too: 0.17% for ESML and 0.19% for IWM.

Which has better risk-adjusted returns?

IWM currently has the higher Sharpe Ratio (1.77 vs 1.71), 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.