ISMD vs. IWC

Last updated Jun 4, 2026

ISMD (Inspire Small/Mid Cap Impact ETF) and IWC (iShares Micro-Cap ETF) are both Small Cap Blend Equities funds - ISMD tracks the Inspire Small/Mid Cap Impact Equal Weight Index while IWC tracks the Russell Microcap Index. Both are passively managed. Over the past 5 years, ISMD returned 7.62%/yr vs 5.45%/yr for IWC. Their correlation of 0.87 suggests significant overlap in exposure. ISMD charges 0.57%/yr vs 0.60%/yr for IWC.

Performance

ISMD vs. IWC - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Inspire Small/Mid Cap Impact ETF (ISMD) 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, ISMD achieves a 21.54% return, which is significantly higher than IWC's 18.97% return.

ISMD

• 1D: -1.62%
• 1M: 5.36%
• YTD: 21.54%
• 6M: 20.97%
• 1Y: 36.88%
• 3Y*: 16.11%
• 5Y*: 7.62%
• 10Y*: —

IWC

• 1D: -2.09%
• 1M: 2.88%
• YTD: 18.97%
• 6M: 18.63%
• 1Y: 55.24%
• 3Y*: 21.73%
• 5Y*: 5.45%
• 10Y*: 11.35%

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

ISMD vs. IWC - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
ISMD Inspire Small/Mid Cap Impact ETF	21.54%	4.14%	9.53%	16.74%	-13.44%	29.38%	7.45%	24.62%	-12.63%	8.43%
IWC iShares Micro-Cap ETF	18.97%	22.45%	13.63%	8.99%	-21.93%	18.67%	20.88%	22.20%	-13.13%	13.88%

Correlation

The correlation between ISMD and IWC is 0.82, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.82
Correlation (3Y) Calculated over the trailing 3-year period	0.87
Correlation (5Y) Calculated over the trailing 5-year period	0.88
Correlation (All Time) Calculated using the full available price history since Mar 1, 2017	0.87

The correlation between ISMD and IWC has been stable across timeframes, ranging from 0.82 to 0.88 - a consistent structural relationship.

ISMD vs. IWC - Sectors Allocation Comparison

Sectors	ISMD	IWC
Industrials	17.7%	13.3%
Technology	17.3%	18.4%
Financial Services	15.2%	18.1%
Consumer Cyclical	11.2%	5.3%
Healthcare	9.5%	28.1%
Real Estate	8.9%	3.5%
Consumer Defensive	6.1%	1.9%
Basic Materials	5.2%	4.4%
Energy	3.3%	4.7%
Utilities	3.3%	0.6%
Communication Services	2.5%	1.8%

Return for Risk

ISMD vs. IWC — Risk / Return Rank

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

ISMD

ISMD Risk / Return Rank: 63
ISMD Sharpe Ratio Rank: 59
ISMD Sortino Ratio Rank: 60
ISMD Omega Ratio Rank: 55
ISMD Calmar Ratio Rank: 76
ISMD Martin Ratio Rank: 66

IWC

IWC Risk / Return Rank: 71
IWC Sharpe Ratio Rank: 71
IWC Sortino Ratio Rank: 66
IWC Omega Ratio Rank: 59
IWC Calmar Ratio Rank: 83
IWC Martin Ratio Rank: 76

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.

ISMD vs. IWC - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Inspire Small/Mid Cap Impact ETF (ISMD) 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.

	ISMD	IWC	Difference
Sharpe ratio: Return per unit of total volatility	2.01	2.36	-0.35
Sortino ratio: Return per unit of downside risk	2.82	3.10	-0.28
Omega ratio: Gain probability vs. loss probability	1.34	1.37	-0.03
Calmar ratio: Return relative to maximum drawdown	3.84	4.47	-0.62
Martin ratio: Return relative to average drawdown	12.04	14.76	-2.73
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

ISMD vs. IWC - Sharpe Ratio Comparison

The current ISMD Sharpe Ratio is 2.01, which is comparable to the IWC Sharpe Ratio of 2.36. The chart below compares the historical Sharpe Ratios of ISMD 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

	ISMD	IWC	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.01	2.36	-0.35
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.37	0.22	+0.14
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.47	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.40	0.31	+0.08

Drawdowns

ISMD vs. IWC - Drawdown Comparison

The maximum ISMD drawdown since its inception was -44.60%, smaller than the maximum IWC drawdown of -64.61%. Use the drawdown chart below to compare losses from any high point for ISMD and IWC.

Drawdown Indicators

	ISMD	IWC	Difference
Max Drawdown Largest peak-to-trough decline	-44.60%	-64.61%	+20.01%
Max Drawdown (1Y) Largest decline over 1 year	-9.64%	-12.43%	+2.79%
Max Drawdown (3Y) Largest decline over 3 years	-26.64%	-29.46%	+2.82%
Max Drawdown (5Y) Largest decline over 5 years	-26.64%	-40.68%	+14.04%
Max Drawdown (10Y) Largest decline over 10 years	—	-47.21%	—
Current Drawdown Current decline from peak	-1.62%	-2.90%	+1.28%
Average Drawdown Average peak-to-trough decline	-8.17%	-15.28%	+7.11%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.07%	3.75%	-0.68%

Volatility

ISMD vs. IWC - Volatility Comparison

The current volatility for Inspire Small/Mid Cap Impact ETF (ISMD) is 4.95%, while iShares Micro-Cap ETF (IWC) has a volatility of 7.29%. This indicates that ISMD 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

	ISMD	IWC	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.95%	7.29%	-2.34%
Volatility (6M) Calculated over the trailing 6-month period	12.52%	17.26%	-4.74%
Volatility (1Y) Calculated over the trailing 1-year period	18.56%	23.63%	-5.07%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	20.87%	24.42%	-3.55%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	23.74%	24.42%	-0.68%

ISMD vs. IWC - Expense Ratio Comparison

ISMD has a 0.57% expense ratio, which is lower than IWC's 0.60% expense ratio.

Dividends

ISMD vs. IWC - Dividend Comparison

ISMD's dividend yield for the trailing twelve months is around 0.95%, more than IWC's 0.91% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ISMD Inspire Small/Mid Cap Impact ETF	0.95%	1.21%	1.24%	1.17%	1.28%	9.35%	0.99%	0.88%	1.35%	2.02%	0.00%	0.00%
IWC iShares Micro-Cap ETF	0.91%	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 ISMD and IWC in my portfolio?

ISMD and IWC have a correlation of 0.82, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, ISMD or IWC?

IWC has higher volatility (7.29%) compared to ISMD (4.95%). In terms of maximum drawdown, ISMD dropped -44.60% vs IWC's -64.61%.

Which ETF is better, ISMD or IWC?

On 5-year performance, ISMD leads with 7.62% vs 5.45% for IWC. On fees, ISMD is cheaper at 0.57% per year. On volatility, ISMD has been the lower-risk option at 4.95%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, ISMD or IWC?

Over the 5-year period, ISMD has performed better with a 7.62% return vs 5.45%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, ISMD or IWC?

ISMD is cheaper with a 0.57% expense ratio, compared with 0.60% for IWC.

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

ISMD has the higher dividend yield at 0.95%, compared with 0.91% for IWC.

What is the main difference between ISMD and IWC?

ISMD tracks Inspire Small/Mid Cap Impact Equal Weight Index, while IWC tracks Russell Microcap Index. They also come from different issuers: Inspire and iShares. Their fees differ too: 0.57% for ISMD and 0.60% for IWC.

Which has better risk-adjusted returns?

IWC currently has the higher Sharpe Ratio (2.36 vs 2.01), 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.