PortfoliosLab logoPortfoliosLab logo

Documentation

Upgrade your plan
IEF vs. IWM
Performance
Return for Risk
Drawdowns
Volatility
Dividends

IEF vs. IWM

Last updated Jun 4, 2026

IEF (iShares 7-10 Year Treasury Bond ETF) and IWM (iShares Russell 2000 ETF) are both exchange-traded funds - IEF is a Government Bonds fund tracking the ICE U.S. Treasury 7-10 Year Bond Index, while IWM is a Small Cap Blend Equities fund tracking the Russell 2000 Index. Both are passively managed. Over the past 10 years, IEF returned 0.63%/yr vs 10.93%/yr for IWM. At a correlation of -0.25, they often move in opposite directions. IEF charges 0.15%/yr vs 0.19%/yr for IWM.

Performance

IEF vs. IWM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares 7-10 Year Treasury Bond ETF (IEF) and iShares Russell 2000 ETF (IWM). The values are adjusted to include any dividend payments, if applicable.

Loading charts...

Returns By Period

In the year-to-date period, IEF achieves a -0.66% return, which is significantly lower than IWM's 17.07% return. Over the past 10 years, IEF has underperformed IWM with an annualized return of 0.63%, while IWM has yielded a comparatively higher 10.93% annualized return.

IEF

1D
-0.25%
1M
-0.08%
YTD
-0.66%
6M
-1.17%
1Y
4.06%
3Y*
2.47%
5Y*
-1.14%
10Y*
0.63%

IWM

1D
-1.37%
1M
3.52%
YTD
17.07%
6M
15.83%
1Y
39.10%
3Y*
17.88%
5Y*
6.11%
10Y*
10.93%
*Multi-year figures are annualized to reflect compound growth (CAGR)

IEF vs. IWM - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
IEF
iShares 7-10 Year Treasury Bond ETF		-0.66%8.03%-0.63%3.64%-15.15%-3.33%10.01%8.03%0.99%2.55%
IWM
iShares Russell 2000 ETF		17.07%12.66%11.38%16.83%-20.48%14.54%20.03%25.39%-11.12%14.58%

Correlation

The correlation between IEF and IWM is 0.23, which is low. Their price movements are largely independent, making them effective diversification partners.

Correlation
Correlation (1Y)
Calculated over the trailing 1-year period

0.23

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

0.20

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

0.09

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

-0.09

Correlation (All Time)
Calculated using the full available price history since Jul 29, 2002

-0.25

The correlation between IEF and IWM shifts across timeframes, from -0.25 (all time) to 0.23 (1 year), reflecting how their relationship changes across market environments.

Compare stocks, funds, or ETFs

Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.

iShares 7-10 Year Treasury Bond ETF

iShares Russell 2000 ETF

Often compared with IEF:
IEF vs. TLTIEF vs. VGITIEF vs. LQDIEF vs. BNDIEF vs. SHYIEF vs. IEIIEF vs. TIP
Often compared with IWM:
IWM vs. SPYIWM vs. VTWOIWM vs. IJRIWM vs. AVUVIWM vs. IWNIWM vs. VOOIWM vs. IWO

Return for Risk

IEF vs. IWM — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
IEF
IEF Risk / Return Rank: 2323
Overall Rank
IEF Sharpe Ratio Rank: 2424
Sharpe Ratio Rank
IEF Sortino Ratio Rank: 2323
Sortino Ratio Rank
IEF Omega Ratio Rank: 2121
Omega Ratio Rank
IEF Calmar Ratio Rank: 2222
Calmar Ratio Rank
IEF Martin Ratio Rank: 2323
Martin Ratio Rank
IWM
IWM Risk / Return Rank: 6262
Overall Rank
IWM Sharpe Ratio Rank: 5959
Sharpe Ratio Rank
IWM Sortino Ratio Rank: 5959
Sortino Ratio Rank
IWM Omega Ratio Rank: 5353
Omega Ratio Rank
IWM Calmar Ratio Rank: 7070
Calmar Ratio Rank
IWM Martin Ratio Rank: 6767
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.

IEF vs. IWM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares 7-10 Year Treasury Bond ETF (IEF) 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.

IEFIWMDifference
Sharpe ratioReturn per unit of total volatility
0.85
2.05

-1.20

Sortino ratioReturn per unit of downside risk
1.29
2.85

-1.57

Omega ratioGain probability vs. loss probability

1.15

1.34

-0.19

Calmar ratioReturn relative to maximum drawdown

1.00

3.56

-2.56

Martin ratioReturn relative to average drawdown

2.98

12.64

-9.67

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

IEF vs. IWM - Sharpe Ratio Comparison

The current IEF Sharpe Ratio is 0.85, which is lower than the IWM Sharpe Ratio of 2.05. The chart below compares the historical Sharpe Ratios of IEF 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.

Loading charts...

Sharpe Ratios by Period

IEFIWMDifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

0.85

2.05

-1.20

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

-0.15

0.27

-0.42

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

0.10

0.48

-0.38

Sharpe Ratio (All Time)

Calculated using the full available price history

0.50

0.37

+0.13

Drawdowns

IEF vs. IWM - Drawdown Comparison

The maximum IEF drawdown since its inception was -23.93%, smaller than the maximum IWM drawdown of -59.05%. Use the drawdown chart below to compare losses from any high point for IEF and IWM.

Loading charts...

Drawdown Indicators

IEFIWMDifference

Max Drawdown

Largest peak-to-trough decline

-23.93%

-59.05%

+35.12%

Max Drawdown (1Y)

Largest decline over 1 year

-4.07%

-11.03%

+6.96%

Max Drawdown (3Y)

Largest decline over 3 years

-7.74%

-27.50%

+19.76%

Max Drawdown (5Y)

Largest decline over 5 years

-21.40%

-31.91%

+10.51%

Max Drawdown (10Y)

Largest decline over 10 years

-23.93%

-41.13%

+17.20%

Current Drawdown

Current decline from peak

-11.35%

-1.49%

-9.86%

Average Drawdown

Average peak-to-trough decline

-5.34%

-10.77%

+5.43%

Ulcer Index

Depth and duration of drawdowns from previous peaks

1.37%

3.10%

-1.73%

Volatility

IEF vs. IWM - Volatility Comparison

The current volatility for iShares 7-10 Year Treasury Bond ETF (IEF) is 1.54%, while iShares Russell 2000 ETF (IWM) has a volatility of 5.75%. This indicates that IEF experiences smaller price fluctuations and is considered to be less risky than IWM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Loading charts...

Volatility by Period

IEFIWMDifference

Volatility (1M)

Calculated over the trailing 1-month period

1.54%

5.75%

-4.21%

Volatility (6M)

Calculated over the trailing 6-month period

3.34%

13.53%

-10.19%

Volatility (1Y)

Calculated over the trailing 1-year period

4.78%

19.20%

-14.42%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

7.71%

22.52%

-14.81%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

6.62%

23.04%

-16.42%

IEF vs. IWM - Expense Ratio Comparison

IEF has a 0.15% 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

IEF vs. IWM - Dividend Comparison

IEF's dividend yield for the trailing twelve months is around 3.90%, more than IWM's 0.88% yield.

PositionTTM20252024202320222021202020192018201720162015
IEF
iShares 7-10 Year Treasury Bond ETF		3.90%3.77%3.62%2.91%1.96%0.83%1.08%2.08%2.24%1.82%1.81%1.90%
IWM
iShares Russell 2000 ETF		0.88%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

IEF and IWM have a correlation of 0.23, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

IWM has higher volatility (5.75%) compared to IEF (1.54%). In terms of maximum drawdown, IEF dropped -23.93% vs IWM's -59.05%.

On 10-year performance, IWM leads with 10.93% vs 0.63% for IEF. On fees, IEF is cheaper at 0.15% per year. On volatility, IEF has been the lower-risk option at 1.54%. 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 10.93% return vs 0.63%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

IEF is cheaper with a 0.15% expense ratio, compared with 0.19% for IWM.

IEF has the higher dividend yield at 3.90%, compared with 0.88% for IWM.

IEF is categorized as Government Bonds, while IWM is Small Cap Blend Equities. IEF tracks ICE U.S. Treasury 7-10 Year Bond Index, while IWM tracks Russell 2000 Index. Their fees differ too: 0.15% for IEF and 0.19% for IWM.

IWM currently has the higher Sharpe Ratio (2.05 vs 0.85), 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.

Portfolio Optimizer

Find the right allocation for IEF and IWM

Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.

Open Portfolio Optimizer