HSMV vs. IWC

Last updated Jun 5, 2026

HSMV (First Trust Horizon Managed Volatility Small/Mid ETF) and IWC (iShares Micro-Cap ETF) are both Small Cap Blend Equities funds. HSMV is actively managed, while IWC is passively managed. Over the past 5 years, HSMV returned 3.79%/yr vs 5.88%/yr for IWC. A 0.75 correlation means they provide meaningful diversification when combined. HSMV charges 0.80%/yr vs 0.60%/yr for IWC.

Performance

HSMV vs. IWC - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust Horizon Managed Volatility Small/Mid ETF (HSMV) and iShares Micro-Cap ETF (IWC). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, HSMV achieves a 3.62% return, which is significantly lower than IWC's 21.41% return.

HSMV

• 1D: 0.49%
• 1M: -2.16%
• YTD: 3.62%
• 6M: 4.04%
• 1Y: 5.27%
• 3Y*: 9.10%
• 5Y*: 3.79%
• 10Y*: —

IWC

• 1D: 2.06%
• 1M: 2.80%
• YTD: 21.41%
• 6M: 19.33%
• 1Y: 58.00%
• 3Y*: 22.83%
• 5Y*: 5.88%
• 10Y*: 11.44%

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

HSMV vs. IWC - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
HSMV First Trust Horizon Managed Volatility Small/Mid ETF	3.62%	1.57%	13.17%	5.01%	-9.44%	23.72%	34.70%
IWC iShares Micro-Cap ETF	21.41%	22.45%	13.63%	8.99%	-21.93%	18.67%	83.36%

Correlation

The correlation between HSMV and IWC is 0.46, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.46
Correlation (3Y) Calculated over the trailing 3-year period	0.67
Correlation (5Y) Calculated over the trailing 5-year period	0.74
Correlation (All Time) Calculated using the full available price history since Apr 8, 2020	0.75

Over the past year, the correlation between HSMV and IWC has dropped to 0.46 - well below their long-term average of 0.75, suggesting their price drivers have been diverging.

HSMV vs. IWC - Sectors Allocation Comparison

Sectors	HSMV	IWC
Real Estate	23.8%	3.5%
Financial Services	16.6%	18.1%
Industrials	15.0%	13.3%
Utilities	11.9%	0.6%
Consumer Defensive	7.9%	1.9%
Consumer Cyclical	7.8%	5.3%
Basic Materials	5.4%	4.4%
Healthcare	4.9%	28.1%
Energy	2.8%	4.7%
Communication Services	2.3%	1.8%
Technology	1.7%	18.4%

Return for Risk

HSMV vs. IWC — Risk / Return Rank

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

HSMV

HSMV Risk / Return Rank: 17
HSMV Sharpe Ratio Rank: 17
HSMV Sortino Ratio Rank: 17
HSMV Omega Ratio Rank: 16
HSMV Calmar Ratio Rank: 17
HSMV Martin Ratio Rank: 19

IWC

IWC Risk / Return Rank: 76
IWC Sharpe Ratio Rank: 77
IWC Sortino Ratio Rank: 72
IWC Omega Ratio Rank: 64
IWC Calmar Ratio Rank: 86
IWC Martin Ratio Rank: 80

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.

HSMV vs. IWC - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Horizon Managed Volatility Small/Mid ETF (HSMV) and iShares Micro-Cap ETF (IWC). 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.

	HSMV	IWC	Difference
Sharpe ratio: Return per unit of total volatility	0.51	2.47	-1.96
Sortino ratio: Return per unit of downside risk	0.83	3.22	-2.39
Omega ratio: Gain probability vs. loss probability	1.09	1.38	-0.29
Calmar ratio: Return relative to maximum drawdown	0.68	4.69	-4.01
Martin ratio: Return relative to average drawdown	2.03	15.50	-13.47
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

HSMV vs. IWC - Sharpe Ratio Comparison

The current HSMV Sharpe Ratio is 0.51, which is lower than the IWC Sharpe Ratio of 2.47. The chart below compares the historical Sharpe Ratios of HSMV and IWC, 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

	HSMV	IWC	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.51	2.47	-1.96
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.25	0.24	+0.01
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.47	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.68	0.32	+0.36

Drawdowns

HSMV vs. IWC - Drawdown Comparison

The maximum HSMV drawdown since its inception was -19.16%, smaller than the maximum IWC drawdown of -64.61%. Use the drawdown chart below to compare losses from any high point for HSMV and IWC.

Drawdown Indicators

	HSMV	IWC	Difference
Max Drawdown Largest peak-to-trough decline	-19.16%	-64.61%	+45.45%
Max Drawdown (1Y) Largest decline over 1 year	-7.83%	-12.43%	+4.60%
Max Drawdown (3Y) Largest decline over 3 years	-15.45%	-29.46%	+14.01%
Max Drawdown (5Y) Largest decline over 5 years	-19.16%	-40.68%	+21.52%
Max Drawdown (10Y) Largest decline over 10 years	—	-47.21%	—
Current Drawdown Current decline from peak	-3.89%	-0.91%	-2.98%
Average Drawdown Average peak-to-trough decline	-5.62%	-15.27%	+9.65%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.60%	3.75%	-1.15%

Volatility

HSMV vs. IWC - Volatility Comparison

The current volatility for First Trust Horizon Managed Volatility Small/Mid ETF (HSMV) is 2.83%, while iShares Micro-Cap ETF (IWC) has a volatility of 7.26%. This indicates that HSMV experiences smaller price fluctuations and is considered to be less risky than IWC based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	HSMV	IWC	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.83%	7.26%	-4.43%
Volatility (6M) Calculated over the trailing 6-month period	7.27%	17.35%	-10.08%
Volatility (1Y) Calculated over the trailing 1-year period	10.37%	23.63%	-13.26%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	15.00%	24.44%	-9.44%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.05%	24.42%	-8.37%

HSMV vs. IWC - Expense Ratio Comparison

HSMV has a 0.80% expense ratio, which is higher than IWC's 0.60% expense ratio.

Dividends

HSMV vs. IWC - Dividend Comparison

HSMV's dividend yield for the trailing twelve months is around 1.99%, more than IWC's 0.89% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
HSMV First Trust Horizon Managed Volatility Small/Mid ETF	1.99%	2.01%	1.43%	1.43%	1.26%	0.76%	0.80%	0.00%	0.00%	0.00%	0.00%	0.00%
IWC iShares Micro-Cap ETF	0.89%	1.10%	1.06%	1.17%	1.18%	0.78%	0.98%	1.19%	1.01%	1.09%	1.16%	1.49%

Frequently Asked Questions

Can I hold both HSMV and IWC in my portfolio?

HSMV and IWC have a correlation of 0.46, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, HSMV or IWC?

IWC has higher volatility (7.26%) compared to HSMV (2.83%). In terms of maximum drawdown, HSMV dropped -19.16% vs IWC's -64.61%.

Which ETF is better, HSMV or IWC?

On 5-year performance, IWC leads with 5.88% vs 3.79% for HSMV. On fees, IWC is cheaper at 0.60% per year. On volatility, HSMV has been the lower-risk option at 2.83%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, HSMV or IWC?

Over the 5-year period, IWC has performed better with a 5.88% return vs 3.79%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, HSMV or IWC?

IWC is cheaper with a 0.60% expense ratio, compared with 0.80% for HSMV.

Which ETF pays a higher dividend yield, HSMV or IWC?

HSMV has the higher dividend yield at 1.99%, compared with 0.89% for IWC.

What is the main difference between HSMV and IWC?

They also come from different issuers: First Trust and iShares. Their fees differ too: 0.80% for HSMV and 0.60% for IWC.

Which has better risk-adjusted returns?

IWC currently has the higher Sharpe Ratio (2.47 vs 0.51), 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.