EZU vs. IWM

Last updated Jun 3, 2026

EZU (iShares MSCI Eurozone ETF) and IWM (iShares Russell 2000 ETF) are both exchange-traded funds - EZU is a Europe Equities fund tracking the MSCI EMU, while IWM is a Small Cap Blend Equities fund tracking the Russell 2000 Index. Both are passively managed. Over the past 10 years, EZU returned 9.96%/yr vs 11.08%/yr for IWM. A 0.69 correlation means they provide meaningful diversification when combined. EZU charges 0.51%/yr vs 0.19%/yr for IWM.

Performance

EZU vs. IWM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares MSCI Eurozone ETF (EZU) 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, EZU achieves a 8.17% return, which is significantly lower than IWM's 18.69% return. Over the past 10 years, EZU has underperformed IWM with an annualized return of 9.96%, while IWM has yielded a comparatively higher 11.08% annualized return.

EZU

• 1D: 0.73%
• 1M: 3.97%
• YTD: 8.17%
• 6M: 11.21%
• 1Y: 19.95%
• 3Y*: 18.60%
• 5Y*: 9.36%
• 10Y*: 9.96%

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)

EZU vs. IWM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
EZU iShares MSCI Eurozone ETF	8.17%	40.00%	2.23%	23.44%	-17.25%	13.92%	7.62%	23.27%	-16.76%	27.89%
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 EZU 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	0.64
Correlation (5Y) Calculated over the trailing 5-year period	0.69
Correlation (10Y) Calculated over the trailing 10-year period	0.68
Correlation (All Time) Calculated using the full available price history since Jan 3, 2001	0.69

The correlation between EZU and IWM has been stable across timeframes, ranging from 0.64 to 0.69 - a consistent structural relationship.

EZU vs. IWM - Sectors Allocation Comparison

Sectors	EZU	IWM
Financial Services	24.2%	15.8%
Industrials	21.3%	17.1%
Technology	14.6%	19.5%
Consumer Cyclical	8.3%	7.8%
Utilities	6.8%	3.0%
Healthcare	5.8%	15.8%
Consumer Defensive	5.6%	2.1%
Energy	4.2%	6.0%
Basic Materials	4.1%	4.5%
Communication Services	4.1%	2.0%
Real Estate	1.0%	5.7%

Return for Risk

EZU vs. IWM — Risk / Return Rank

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

EZU

EZU Risk / Return Rank: 33
EZU Sharpe Ratio Rank: 33
EZU Sortino Ratio Rank: 32
EZU Omega Ratio Rank: 32
EZU Calmar Ratio Rank: 33
EZU Martin Ratio Rank: 37

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.

EZU vs. IWM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares MSCI Eurozone ETF (EZU) 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.

	EZU	IWM	Difference
Sharpe ratio Return per unit of total volatility	1.19	2.27	-1.09
Sortino ratio Return per unit of downside risk	1.75	3.12	-1.37
Omega ratio Gain probability vs. loss probability	1.22	1.37	-0.15
Calmar ratio Return relative to maximum drawdown	1.62	3.97	-2.35
Martin ratio Return relative to average drawdown	5.88	14.12	-8.23
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

EZU vs. IWM - Sharpe Ratio Comparison

The current EZU Sharpe Ratio is 1.19, which is lower than the IWM Sharpe Ratio of 2.27. The chart below compares the historical Sharpe Ratios of EZU 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

	EZU	IWM	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.19	2.27	-1.09
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.47	0.29	+0.18
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.49	0.48	+0.01
Sharpe Ratio (All Time) Calculated using the full available price history	0.21	0.37	-0.16

Drawdowns

EZU vs. IWM - Drawdown Comparison

The maximum EZU drawdown since its inception was -65.32%, which is greater than IWM's maximum drawdown of -59.05%. Use the drawdown chart below to compare losses from any high point for EZU and IWM.

Drawdown Indicators

	EZU	IWM	Difference
Max Drawdown Largest peak-to-trough decline	-65.32%	-59.05%	-6.27%
Max Drawdown (1Y) Largest decline over 1 year	-13.06%	-11.03%	-2.03%
Max Drawdown (3Y) Largest decline over 3 years	-15.02%	-27.50%	+12.48%
Max Drawdown (5Y) Largest decline over 5 years	-36.11%	-31.91%	-4.20%
Max Drawdown (10Y) Largest decline over 10 years	-41.37%	-41.13%	-0.24%
Current Drawdown Current decline from peak	0.00%	-0.13%	+0.13%
Average Drawdown Average peak-to-trough decline	-19.24%	-10.77%	-8.47%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.60%	3.10%	+0.50%

Volatility

EZU vs. IWM - Volatility Comparison

iShares MSCI Eurozone ETF (EZU) has a higher volatility of 6.82% compared to iShares Russell 2000 ETF (IWM) at 5.56%. This indicates that EZU'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

	EZU	IWM	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.82%	5.56%	+1.26%
Volatility (6M) Calculated over the trailing 6-month period	14.07%	13.52%	+0.55%
Volatility (1Y) Calculated over the trailing 1-year period	16.89%	19.14%	-2.25%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.85%	22.52%	-2.67%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.49%	23.04%	-2.55%

EZU vs. IWM - Expense Ratio Comparison

EZU has a 0.51% expense ratio, which is higher than IWM's 0.19% expense ratio.

Dividends

EZU vs. IWM - Dividend Comparison

EZU's dividend yield for the trailing twelve months is around 2.64%, more than IWM's 0.87% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
EZU iShares MSCI Eurozone ETF	2.64%	2.85%	2.90%	2.56%	2.79%	2.46%	2.13%	2.84%	3.47%	1.91%	3.07%	2.18%
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 EZU and IWM in my portfolio?

EZU 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.

Which is riskier, EZU or IWM?

EZU has higher volatility (6.82%) compared to IWM (5.56%). In terms of maximum drawdown, EZU dropped -65.32% vs IWM's -59.05%.

Which ETF is better, EZU or IWM?

On 10-year performance, IWM leads with 11.08% vs 9.96% for EZU. On fees, IWM is cheaper at 0.19% per year. On volatility, IWM has been the lower-risk option at 5.56%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, EZU or IWM?

Over the 10-year period, IWM has performed better with a 11.08% return vs 9.96%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, EZU or IWM?

IWM is cheaper with a 0.19% expense ratio, compared with 0.51% for EZU.

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

EZU has the higher dividend yield at 2.64%, compared with 0.87% for IWM.

What is the main difference between EZU and IWM?

EZU is categorized as Europe Equities, while IWM is Small Cap Blend Equities. EZU tracks MSCI EMU, while IWM tracks Russell 2000 Index. Their fees differ too: 0.51% for EZU and 0.19% for IWM.

Which has better risk-adjusted returns?

IWM currently has the higher Sharpe Ratio (2.27 vs 1.19), 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.