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EWU vs. IWM
Performance
Return for Risk
Drawdowns
Volatility
Dividends

EWU vs. IWM

Last updated Jun 5, 2026

EWU (iShares MSCI United Kingdom ETF) and IWM (iShares Russell 2000 ETF) are both exchange-traded funds - EWU is a Europe Equities fund tracking the MSCI United Kingdom Index, while IWM is a Small Cap Blend Equities fund tracking the Russell 2000 Index. Both are passively managed. Over the past 10 years, EWU returned 7.86%/yr vs 10.97%/yr for IWM. A 0.63 correlation means they provide meaningful diversification when combined. EWU charges 0.50%/yr vs 0.19%/yr for IWM.

Performance

EWU vs. IWM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares MSCI United Kingdom ETF (EWU) 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, EWU achieves a 6.59% return, which is significantly lower than IWM's 18.84% return. Over the past 10 years, EWU has underperformed IWM with an annualized return of 7.86%, while IWM has yielded a comparatively higher 10.97% annualized return.

EWU

1D
0.99%
1M
0.93%
YTD
6.59%
6M
10.05%
1Y
21.33%
3Y*
17.73%
5Y*
10.86%
10Y*
7.86%

IWM

1D
1.51%
1M
3.34%
YTD
18.84%
6M
16.56%
1Y
41.60%
3Y*
19.00%
5Y*
6.43%
10Y*
10.97%
*Multi-year figures are annualized to reflect compound growth (CAGR)

EWU vs. IWM - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
EWU
iShares MSCI United Kingdom ETF		6.59%34.95%6.74%12.40%-4.39%18.19%-11.80%21.29%-14.30%21.54%
IWM
iShares Russell 2000 ETF		18.84%12.66%11.38%16.83%-20.48%14.54%20.03%25.39%-11.12%14.58%

Correlation

The correlation between EWU and IWM is 0.59, 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

0.59

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

0.60

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

0.63

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

0.63

Correlation (All Time)
Calculated using the full available price history since May 30, 2000

0.63

The correlation between EWU and IWM has been stable across timeframes, ranging from 0.59 to 0.63 - a consistent structural relationship.

EWU vs. IWM - Sectors Allocation Comparison

Sectors
EWU
IWM

Financial Services

26.0%
15.8%

Consumer Defensive

14.2%
2.1%

Healthcare

13.9%
15.8%

Industrials

12.1%
17.1%

Energy

11.0%
6.0%

Basic Materials

9.3%
4.5%

Utilities

5.1%
3.0%

Consumer Cyclical

4.0%
7.8%

Communication Services

2.4%
2.0%

Technology

0.6%
19.5%

Real Estate

0.6%
5.7%

Financial Services

EWU
26.0%
IWM
15.8%

Consumer Defensive

EWU
14.2%
IWM
2.1%

Healthcare

EWU
13.9%
IWM
15.8%

Industrials

EWU
12.1%
IWM
17.1%

Energy

EWU
11.0%
IWM
6.0%

Basic Materials

EWU
9.3%
IWM
4.5%

Utilities

EWU
5.1%
IWM
3.0%

Consumer Cyclical

EWU
4.0%
IWM
7.8%

Communication Services

EWU
2.4%
IWM
2.0%

Technology

EWU
0.6%
IWM
19.5%

Real Estate

EWU
0.6%
IWM
5.7%

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 United Kingdom ETF

iShares Russell 2000 ETF

Often compared with EWU:
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Often compared with IWM:
IWM vs. SPYIWM vs. VTWOIWM vs. IJRIWM vs. AVUVIWM vs. IWNIWM vs. VOOIWM vs. IWO

Return for Risk

EWU vs. IWM — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
EWU
EWU Risk / Return Rank: 4444
Overall Rank
EWU Sharpe Ratio Rank: 4343
Sharpe Ratio Rank
EWU Sortino Ratio Rank: 4343
Sortino Ratio Rank
EWU Omega Ratio Rank: 4141
Omega Ratio Rank
EWU Calmar Ratio Rank: 4444
Calmar Ratio Rank
EWU Martin Ratio Rank: 4848
Martin Ratio Rank
IWM
IWM Risk / Return Rank: 6868
Overall Rank
IWM Sharpe Ratio Rank: 6767
Sharpe Ratio Rank
IWM Sortino Ratio Rank: 6666
Sortino Ratio Rank
IWM Omega Ratio Rank: 5959
Omega Ratio Rank
IWM Calmar Ratio Rank: 7676
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.

EWU vs. IWM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares MSCI United Kingdom ETF (EWU) 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.

EWUIWMDifference
Sharpe ratioReturn per unit of total volatility
1.49
2.18

-0.69

Sortino ratioReturn per unit of downside risk
2.12
3.00

-0.88

Omega ratioGain probability vs. loss probability

1.26

1.36

-0.09

Calmar ratioReturn relative to maximum drawdown

2.16

3.79

-1.63

Martin ratioReturn relative to average drawdown

7.80

13.45

-5.65

Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

EWU vs. IWM - Sharpe Ratio Comparison

The current EWU Sharpe Ratio is 1.49, which is lower than the IWM Sharpe Ratio of 2.18. The chart below compares the historical Sharpe Ratios of EWU 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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Sharpe Ratios by Period

EWUIWMDifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

1.49

2.18

-0.69

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

0.66

0.29

+0.38

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

0.42

0.48

-0.06

Sharpe Ratio (All Time)

Calculated using the full available price history

0.26

0.37

-0.10

Drawdowns

EWU vs. IWM - Drawdown Comparison

The maximum EWU drawdown since its inception was -63.99%, which is greater than IWM's maximum drawdown of -59.05%. Use the drawdown chart below to compare losses from any high point for EWU and IWM.

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Drawdown Indicators

EWUIWMDifference

Max Drawdown

Largest peak-to-trough decline

-63.99%

-59.05%

-4.94%

Max Drawdown (1Y)

Largest decline over 1 year

-9.92%

-11.03%

+1.11%

Max Drawdown (3Y)

Largest decline over 3 years

-12.63%

-27.50%

+14.87%

Max Drawdown (5Y)

Largest decline over 5 years

-24.91%

-31.91%

+7.00%

Max Drawdown (10Y)

Largest decline over 10 years

-43.33%

-41.13%

-2.20%

Current Drawdown

Current decline from peak

-3.70%

-0.01%

-3.69%

Average Drawdown

Average peak-to-trough decline

-14.16%

-10.77%

-3.39%

Ulcer Index

Depth and duration of drawdowns from previous peaks

2.74%

3.10%

-0.36%

Volatility

EWU vs. IWM - Volatility Comparison

iShares MSCI United Kingdom ETF (EWU) and iShares Russell 2000 ETF (IWM) have volatilities of 5.64% and 5.70%, 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.

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Volatility by Period

EWUIWMDifference

Volatility (1M)

Calculated over the trailing 1-month period

5.64%

5.70%

-0.06%

Volatility (6M)

Calculated over the trailing 6-month period

12.33%

13.60%

-1.27%

Volatility (1Y)

Calculated over the trailing 1-year period

14.40%

19.19%

-4.79%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

16.43%

22.53%

-6.10%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

18.84%

23.04%

-4.20%

EWU vs. IWM - Expense Ratio Comparison

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

Dividends

EWU vs. IWM - Dividend Comparison

EWU's dividend yield for the trailing twelve months is around 3.50%, more than IWM's 0.87% yield.

PositionTTM20252024202320222021202020192018201720162015
EWU
iShares MSCI United Kingdom ETF		3.50%3.73%4.16%4.14%3.43%4.35%2.48%4.13%4.98%3.91%3.97%4.11%
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

EWU and IWM have a correlation of 0.59, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

IWM has higher volatility (5.70%) compared to EWU (5.64%). In terms of maximum drawdown, EWU dropped -63.99% vs IWM's -59.05%.

On 10-year performance, IWM leads with 10.97% vs 7.86% for EWU. On fees, IWM is cheaper at 0.19% per year. Their volatility is very similar. 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 10.97% return vs 7.86%. 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 0.50% for EWU.

EWU has the higher dividend yield at 3.50%, compared with 0.87% for IWM.

EWU is categorized as Europe Equities, while IWM is Small Cap Blend Equities. EWU tracks MSCI United Kingdom Index, while IWM tracks Russell 2000 Index. Their fees differ too: 0.50% for EWU and 0.19% for IWM.

IWM currently has the higher Sharpe Ratio (2.18 vs 1.49), 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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