IHI vs. IWM

Last updated Jun 24, 2026

IHI (iShares U.S. Medical Devices ETF) and IWM (iShares Russell 2000 ETF) are both exchange-traded funds - IHI is a Health & Biotech Equities fund tracking the Dow Jones U.S. Select Medical Equipment Index, while IWM is a Small Cap Blend Equities fund tracking the Russell 2000 Index. Both are passively managed. Over the past 10 years, IHI returned 8.88%/yr vs 11.58%/yr for IWM. A 0.70 correlation means they provide meaningful diversification when combined. IHI charges 0.38%/yr vs 0.19%/yr for IWM.

Performance

IHI vs. IWM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares U.S. Medical Devices ETF (IHI) 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, IHI achieves a -20.78% return, which is significantly lower than IWM's 20.47% return. Over the past 10 years, IHI has underperformed IWM with an annualized return of 8.88%, while IWM has yielded a comparatively higher 11.58% annualized return.

IHI

• 1D: 1.61%
• 1M: -2.72%
• YTD: -20.78%
• 6M: -21.40%
• 1Y: -18.62%
• 3Y*: -3.57%
• 5Y*: -3.41%
• 10Y*: 8.88%

IWM

• 1D: -0.96%
• 1M: 3.82%
• YTD: 20.47%
• 6M: 17.64%
• 1Y: 40.90%
• 3Y*: 19.22%
• 5Y*: 6.27%
• 10Y*: 11.58%

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

IHI vs. IWM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
IHI iShares U.S. Medical Devices ETF	-20.78%	6.88%	8.62%	3.24%	-19.80%	21.03%	24.17%	32.75%	15.45%	30.81%
IWM iShares Russell 2000 ETF	20.47%	12.66%	11.38%	16.83%	-20.48%	14.54%	20.03%	25.39%	-11.12%	14.58%

Correlation

The correlation between IHI and IWM is 0.40, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.40
Correlation (3Y) Calculated over the trailing 3-year period	0.51
Correlation (5Y) Calculated over the trailing 5-year period	0.60
Correlation (10Y) Calculated over the trailing 10-year period	0.61
Correlation (All Time) Calculated using the full available price history since May 5, 2006	0.70

Over the past year, the correlation between IHI and IWM has dropped to 0.40 - well below their long-term average of 0.70, suggesting their price drivers have been diverging.

IHI vs. IWM - Sectors Allocation Comparison

Sectors	IHI	IWM
Healthcare	100.0%	15.6%
Industrials	0.2%	17.3%
Basic Materials	-	4.5%
Communication Services	-	1.7%
Consumer Cyclical	-	8.0%
Consumer Defensive	-	2.0%
Energy	-	6.0%
Financial Services	-	15.5%
Real Estate	-	5.5%
Technology	-	20.1%
Utilities	-	3.1%

Return for Risk

IHI vs. IWM — Risk / Return Rank

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

IHI

IHI Risk / Return Rank: 2
IHI Sharpe Ratio Rank: 1
IHI Sortino Ratio Rank: 2
IHI Omega Ratio Rank: 2
IHI Calmar Ratio Rank: 3
IHI Martin Ratio Rank: 1

IWM

IWM Risk / Return Rank: 67
IWM Sharpe Ratio Rank: 66
IWM Sortino Ratio Rank: 64
IWM Omega Ratio Rank: 57
IWM Calmar Ratio Rank: 75
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.

IHI vs. IWM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares U.S. Medical Devices ETF (IHI) 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.

	IHI	IWM	Difference
Sharpe ratio: Return per unit of total volatility	-1.06	2.08	-3.15
Sortino ratio: Return per unit of downside risk	-1.46	2.86	-4.32
Omega ratio: Gain probability vs. loss probability	0.84	1.34	-0.50
Calmar ratio: Return relative to maximum drawdown	-0.72	3.73	-4.44
Martin ratio: Return relative to average drawdown	-1.63	13.18	-14.81

IHI vs. IWM - Sharpe Ratio Comparison

The current IHI Sharpe Ratio is -1.06, which is lower than the IWM Sharpe Ratio of 2.08. The chart below compares the historical Sharpe Ratios of IHI 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.

Drawdowns

IHI vs. IWM - Drawdown Comparison

The maximum IHI drawdown since its inception was -49.65%, smaller than the maximum IWM drawdown of -59.05%. Use the drawdown chart below to compare losses from any high point for IHI and IWM.

Drawdown Indicators

	IHI	IWM	Difference
Max Drawdown Largest peak-to-trough decline	-49.65%	-59.05%	+9.40%
Max Drawdown (1Y) Largest decline over 1 year	-26.11%	-11.03%	-15.08%
Max Drawdown (3Y) Largest decline over 3 years	-26.64%	-27.50%	+0.86%
Max Drawdown (5Y) Largest decline over 5 years	-33.12%	-31.91%	-1.21%
Max Drawdown (10Y) Largest decline over 10 years	-33.25%	-41.13%	+7.88%
Current Drawdown Current decline from peak	-25.20%	-0.96%	-24.24%
Average Drawdown Average peak-to-trough decline	-8.36%	-10.75%	+2.39%
Ulcer Index Depth and duration of drawdowns from previous peaks	11.44%	3.11%	+8.33%

Volatility

IHI vs. IWM - Volatility Comparison

iShares U.S. Medical Devices ETF (IHI) and iShares Russell 2000 ETF (IWM) have volatilities of 6.75% and 6.56%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IHI	IWM	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.75%	6.56%	+0.19%
Volatility (6M) Calculated over the trailing 6-month period	13.82%	14.31%	-0.49%
Volatility (1Y) Calculated over the trailing 1-year period	17.62%	19.74%	-2.12%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.09%	22.61%	-3.52%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.82%	23.06%	-3.24%

IHI vs. IWM - Expense Ratio Comparison

IHI has a 0.38% expense ratio, which is higher than IWM's 0.19% expense ratio.

Dividends

IHI vs. IWM - Dividend Comparison

IHI's dividend yield for the trailing twelve months is around 0.49%, less than IWM's 0.90% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IHI iShares U.S. Medical Devices ETF	0.49%	0.34%	0.46%	0.53%	0.45%	0.25%	0.25%	0.33%	0.26%	0.37%	0.55%	1.28%
IWM iShares Russell 2000 ETF	0.90%	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 IHI and IWM in my portfolio?

IHI and IWM have a correlation of 0.40, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, IHI or IWM?

IHI has higher volatility (6.75%) compared to IWM (6.56%). In terms of maximum drawdown, IHI dropped -49.65% vs IWM's -59.05%.

Which ETF is better, IHI or IWM?

On 10-year performance, IWM leads with 11.58% vs 8.88% for IHI. On fees, IWM is cheaper at 0.19% per year. On volatility, IWM has been the lower-risk option at 6.56%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IHI or IWM?

Over the 10-year period, IWM has performed better with a 11.58% return vs 8.88%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IHI or IWM?

IWM is cheaper with a 0.19% expense ratio, compared with 0.38% for IHI.

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

IWM has the higher dividend yield at 0.90%, compared with 0.49% for IHI.

What is the main difference between IHI and IWM?

IHI is categorized as Health & Biotech Equities, while IWM is Small Cap Blend Equities. IHI tracks Dow Jones U.S. Select Medical Equipment Index, while IWM tracks Russell 2000 Index. Their fees differ too: 0.38% for IHI and 0.19% for IWM.

Which has better risk-adjusted returns?

IWM currently has the higher Sharpe Ratio (2.08 vs -1.06), 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.