IEO vs. IWM

Last updated Jun 4, 2026

IEO (iShares U.S. Oil & Gas Exploration & Production ETF) and IWM (iShares Russell 2000 ETF) are both exchange-traded funds - IEO is a Energy Equities fund tracking the Dow Jones U.S. Select Oil Exploration & Production Index, while IWM is a Small Cap Blend Equities fund tracking the Russell 2000 Index. Both are passively managed. Over the past 10 years, IEO returned 10.42%/yr vs 10.93%/yr for IWM. A 0.59 correlation means they provide meaningful diversification when combined. IEO charges 0.42%/yr vs 0.19%/yr for IWM.

Performance

IEO vs. IWM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares U.S. Oil & Gas Exploration & Production ETF (IEO) 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, IEO achieves a 34.59% return, which is significantly higher than IWM's 17.07% return. Both investments have delivered pretty close results over the past 10 years, with IEO having a 10.42% annualized return and IWM not far ahead at 10.93%.

IEO

• 1D: 1.66%
• 1M: -3.23%
• YTD: 34.59%
• 6M: 26.42%
• 1Y: 40.11%
• 3Y*: 16.01%
• 5Y*: 18.96%
• 10Y*: 10.42%

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)

IEO vs. IWM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
IEO iShares U.S. Oil & Gas Exploration & Production ETF	34.59%	2.15%	-1.45%	3.57%	57.82%	75.57%	-32.77%	9.63%	-19.44%	0.33%
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 IEO and IWM is 0.04, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.04
Correlation (3Y) Calculated over the trailing 3-year period	0.32
Correlation (5Y) Calculated over the trailing 5-year period	0.43
Correlation (10Y) Calculated over the trailing 10-year period	0.52
Correlation (All Time) Calculated using the full available price history since May 8, 2006	0.59

Over the past year, the correlation between IEO and IWM has dropped to 0.04 - well below their long-term average of 0.59, suggesting their price drivers have been diverging.

IEO vs. IWM - Sectors Allocation Comparison

Sectors	IEO	IWM
Energy	99.3%	6.0%
Basic Materials	0.7%	4.5%
Communication Services	-	2.0%
Consumer Cyclical	-	7.8%
Consumer Defensive	-	2.1%
Financial Services	-	15.8%
Healthcare	-	15.8%
Industrials	-	17.1%
Real Estate	-	5.7%
Technology	-	19.5%
Utilities	-	3.0%

Return for Risk

IEO vs. IWM — Risk / Return Rank

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

IEO

IEO Risk / Return Rank: 45
IEO Sharpe Ratio Rank: 45
IEO Sortino Ratio Rank: 41
IEO Omega Ratio Rank: 40
IEO Calmar Ratio Rank: 56
IEO Martin Ratio Rank: 45

IWM

IWM Risk / Return Rank: 62
IWM Sharpe Ratio Rank: 59
IWM Sortino Ratio Rank: 59
IWM Omega Ratio Rank: 53
IWM Calmar Ratio Rank: 70
IWM Martin Ratio Rank: 67

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.

IEO vs. IWM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares U.S. Oil & Gas Exploration & Production ETF (IEO) 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.

	IEO	IWM	Difference
Sharpe ratio: Return per unit of total volatility	1.61	2.05	-0.45
Sortino ratio: Return per unit of downside risk	2.12	2.85	-0.74
Omega ratio: Gain probability vs. loss probability	1.26	1.34	-0.08
Calmar ratio: Return relative to maximum drawdown	2.82	3.56	-0.74
Martin ratio: Return relative to average drawdown	7.63	12.64	-5.02
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

IEO vs. IWM - Sharpe Ratio Comparison

The current IEO Sharpe Ratio is 1.61, which is comparable to the IWM Sharpe Ratio of 2.05. The chart below compares the historical Sharpe Ratios of IEO 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

	IEO	IWM	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.61	2.05	-0.45
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.62	0.27	+0.35
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.30	0.48	-0.18
Sharpe Ratio (All Time) Calculated using the full available price history	0.17	0.37	-0.20

Drawdowns

IEO vs. IWM - Drawdown Comparison

The maximum IEO drawdown since its inception was -79.17%, which is greater than IWM's maximum drawdown of -59.05%. Use the drawdown chart below to compare losses from any high point for IEO and IWM.

Drawdown Indicators

	IEO	IWM	Difference
Max Drawdown Largest peak-to-trough decline	-79.17%	-59.05%	-20.12%
Max Drawdown (1Y) Largest decline over 1 year	-14.30%	-11.03%	-3.27%
Max Drawdown (3Y) Largest decline over 3 years	-31.46%	-27.50%	-3.96%
Max Drawdown (5Y) Largest decline over 5 years	-31.46%	-31.91%	+0.45%
Max Drawdown (10Y) Largest decline over 10 years	-75.00%	-41.13%	-33.87%
Current Drawdown Current decline from peak	-7.30%	-1.49%	-5.81%
Average Drawdown Average peak-to-trough decline	-26.27%	-10.77%	-15.50%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.28%	3.10%	+2.18%

Volatility

IEO vs. IWM - Volatility Comparison

iShares U.S. Oil & Gas Exploration & Production ETF (IEO) has a higher volatility of 9.32% compared to iShares Russell 2000 ETF (IWM) at 5.75%. This indicates that IEO'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

	IEO	IWM	Difference
Volatility (1M) Calculated over the trailing 1-month period	9.32%	5.75%	+3.57%
Volatility (6M) Calculated over the trailing 6-month period	19.86%	13.53%	+6.33%
Volatility (1Y) Calculated over the trailing 1-year period	25.15%	19.20%	+5.95%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	30.54%	22.52%	+8.02%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	35.00%	23.04%	+11.96%

IEO vs. IWM - Expense Ratio Comparison

IEO has a 0.42% expense ratio, which is higher than IWM's 0.19% expense ratio.

Dividends

IEO vs. IWM - Dividend Comparison

IEO's dividend yield for the trailing twelve months is around 1.97%, more than IWM's 0.88% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IEO iShares U.S. Oil & Gas Exploration & Production ETF	1.97%	2.61%	2.63%	3.00%	3.77%	2.62%	3.17%	1.85%	1.67%	0.94%	0.98%	2.03%
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

Can I hold both IEO and IWM in my portfolio?

IEO and IWM have a correlation of 0.04, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, IEO or IWM?

IEO has higher volatility (9.32%) compared to IWM (5.75%). In terms of maximum drawdown, IEO dropped -79.17% vs IWM's -59.05%.

Which ETF is better, IEO or IWM?

On 10-year performance, IWM leads with 10.93% vs 10.42% for IEO. On fees, IWM is cheaper at 0.19% per year. On volatility, IWM has been the lower-risk option at 5.75%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IEO or IWM?

Over the 10-year period, IWM has performed better with a 10.93% return vs 10.42%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IEO or IWM?

IWM is cheaper with a 0.19% expense ratio, compared with 0.42% for IEO.

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

IEO has the higher dividend yield at 1.97%, compared with 0.88% for IWM.

What is the main difference between IEO and IWM?

IEO is categorized as Energy Equities, while IWM is Small Cap Blend Equities. IEO tracks Dow Jones U.S. Select Oil Exploration & Production Index, while IWM tracks Russell 2000 Index. Their fees differ too: 0.42% for IEO and 0.19% for IWM.

Which has better risk-adjusted returns?

IWM currently has the higher Sharpe Ratio (2.05 vs 1.61), 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.