IBM vs. IWM
IBM (International Business Machines Corporation) is a stock, while IWM (iShares Russell 2000 ETF) is Small Cap Blend Equities fund tracking the Russell 2000 Index. Over the past 10 years, IBM returned 7.64%/yr vs 10.65%/yr for IWM. A 0.54 correlation means they provide meaningful diversification when combined.
Performance
IBM vs. IWM - Performance Comparison
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Returns By Period
In the year-to-date period, IBM achieves a -27.15% return, which is significantly lower than IWM's 19.24% return. Over the past 10 years, IBM has underperformed IWM with an annualized return of 7.64%, while IWM has yielded a comparatively higher 10.65% annualized return.
IBM
- 1D
- 0.16%
- 1M
- -14.49%
- 6M
- -29.40%
- YTD
- -27.15%
- 1Y
- -23.58%
- 3Y*
- 19.09%
- 5Y*
- 13.91%
- 10Y*
- 7.64%
- ALL TIME*
- 7.00%
IWM
- 1D
- -0.59%
- 1M
- -1.11%
- 6M
- 10.45%
- YTD
- 19.24%
- 1Y
- 32.84%
- 3Y*
- 15.91%
- 5Y*
- 6.97%
- 10Y*
- 10.65%
- ALL TIME*
- 8.76%
IBM vs. IWM - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
IBM International Business Machines Corporation | -27.15% | 38.23% | 39.27% | 21.85% | 10.64% | 16.65% | -1.16% | 23.58% | -22.56% | -3.99% |
IWM iShares Russell 2000 ETF | 19.24% | 12.66% | 11.38% | 16.83% | -20.48% | 14.54% | 20.03% | 25.39% | -11.12% | 14.58% |
Correlation
The correlation between IBM and IWM is 0.26, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.26 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.36 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.42 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.48 |
Correlation (All Time) Calculated using the full available price history since May 26, 2000 | 0.54 |
Over the past year, the correlation between IBM and IWM has dropped to 0.26 - well below their long-term average of 0.54, suggesting their price drivers have been diverging.
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Return for Risk
IBM vs. IWM — Risk / Return Rank
IBM
IWM
IBM vs. IWM - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for International Business Machines Corporation (IBM) 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.
| IBM | IWM | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -2.20 | ||
| Sortino ratioReturn per unit of downside risk | -2.82 | ||
| Omega ratioGain probability vs. loss probability | 0.94 | 1.29 | -0.35 |
| Calmar ratioReturn relative to maximum drawdown | -0.66 | 2.99 | -3.65 |
| Martin ratioReturn relative to average drawdown | -1.53 | 10.54 | -12.08 |
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Drawdowns
IBM vs. IWM - Drawdown Comparison
The maximum IBM drawdown since its inception was -69.40%, which is greater than IWM's maximum drawdown of -59.05%. Use the drawdown chart below to compare losses from any high point for IBM and IWM.
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Drawdown Indicators
| IBM | IWM | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -69.40% | -59.05% | -10.35% |
Max Drawdown (1Y)Largest decline over 1 year | -35.85% | -11.03% | -24.82% |
Max Drawdown (3Y)Largest decline over 3 years | -35.85% | -27.50% | -8.35% |
Max Drawdown (5Y)Largest decline over 5 years | -35.85% | -31.91% | -3.94% |
Max Drawdown (10Y)Largest decline over 10 years | -40.59% | -41.13% | +0.54% |
Current DrawdownCurrent decline from peak | -35.30% | -2.71% | -32.59% |
Average DrawdownAverage peak-to-trough decline | -20.12% | -10.72% | -9.40% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 15.44% | 3.12% | +12.32% |
Volatility
IBM vs. IWM - Volatility Comparison
International Business Machines Corporation (IBM) has a higher volatility of 32.02% compared to iShares Russell 2000 ETF (IWM) at 3.62%. This indicates that IBM'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.
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Volatility by Period
| IBM | IWM | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 32.02% | 3.62% | +28.40% |
Volatility (6M)Calculated over the trailing 6-month period | 46.34% | 14.17% | +32.17% |
Volatility (1Y)Calculated over the trailing 1-year period | 48.36% | 19.38% | +28.98% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 29.86% | 22.49% | +7.37% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 27.97% | 23.00% | +4.97% |
Dividends
IBM vs. IWM - Dividend Comparison
IBM's dividend yield for the trailing twelve months is around 3.16%, more than IWM's 0.91% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IBM International Business Machines Corporation | 3.16% | 2.27% | 3.03% | 4.05% | 4.68% | 4.74% | 5.17% | 4.80% | 5.46% | 3.85% | 3.31% | 3.63% |
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
IBM and IWM have a correlation of 0.26, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
IBM has higher volatility (32.02%) compared to IWM (3.62%). In terms of maximum drawdown, IBM dropped -69.40% vs IWM's -59.05%.
IWM currently has the higher Sharpe Ratio (1.71 vs -0.49), 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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