IUSB vs. IWM

Last updated Jun 4, 2026

IUSB (iShares Core Universal USD Bond ETF) and IWM (iShares Russell 2000 ETF) are both exchange-traded funds - IUSB is a Intermediate Core-Plus Bond fund tracking the Bloomberg U.S. Universal Index, while IWM is a Small Cap Blend Equities fund tracking the Russell 2000 Index. Both are passively managed. Over the past 10 years, IUSB returned 1.94%/yr vs 10.93%/yr for IWM. At a 0.06 correlation, their price movements are largely independent. IUSB charges 0.06%/yr vs 0.19%/yr for IWM.

Performance

IUSB vs. IWM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Core Universal USD Bond ETF (IUSB) 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, IUSB achieves a 0.43% return, which is significantly lower than IWM's 17.07% return. Over the past 10 years, IUSB has underperformed IWM with an annualized return of 1.94%, while IWM has yielded a comparatively higher 10.93% annualized return.

IUSB

• 1D: -0.17%
• 1M: 0.31%
• YTD: 0.43%
• 6M: 0.31%
• 1Y: 5.54%
• 3Y*: 4.51%
• 5Y*: 0.44%
• 10Y*: 1.94%

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)

IUSB vs. IWM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
IUSB iShares Core Universal USD Bond ETF	0.43%	7.38%	2.11%	6.23%	-13.04%	-1.33%	7.62%	9.13%	-0.27%	3.82%
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 IUSB and IWM is 0.33, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.33
Correlation (3Y) Calculated over the trailing 3-year period	0.30
Correlation (5Y) Calculated over the trailing 5-year period	0.23
Correlation (10Y) Calculated over the trailing 10-year period	0.09
Correlation (All Time) Calculated using the full available price history since Jun 13, 2014	0.06

Over the past year, IUSB and IWM have become more correlated (0.33) than their long-term average of 0.06, meaning their price movements have been converging.

IUSB vs. IWM - Sectors Allocation Comparison

Sectors	IUSB	IWM
Energy	100.0%	6.0%
Basic Materials	-	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

IUSB vs. IWM — Risk / Return Rank

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

IUSB

IUSB Risk / Return Rank: 43
IUSB Sharpe Ratio Rank: 43
IUSB Sortino Ratio Rank: 45
IUSB Omega Ratio Rank: 41
IUSB Calmar Ratio Rank: 43
IUSB Martin Ratio Rank: 41

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.

IUSB vs. IWM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Core Universal USD Bond ETF (IUSB) 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.

	IUSB	IWM	Difference
Sharpe ratio: Return per unit of total volatility	1.54	2.05	-0.51
Sortino ratio: Return per unit of downside risk	2.30	2.85	-0.55
Omega ratio: Gain probability vs. loss probability	1.27	1.34	-0.06
Calmar ratio: Return relative to maximum drawdown	2.20	3.56	-1.36
Martin ratio: Return relative to average drawdown	6.68	12.64	-5.96
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

IUSB vs. IWM - Sharpe Ratio Comparison

The current IUSB Sharpe Ratio is 1.54, which is comparable to the IWM Sharpe Ratio of 2.05. The chart below compares the historical Sharpe Ratios of IUSB 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

	IUSB	IWM	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.54	2.05	-0.51
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.08	0.27	-0.20
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.39	0.48	-0.09
Sharpe Ratio (All Time) Calculated using the full available price history	0.46	0.37	+0.09

Drawdowns

IUSB vs. IWM - Drawdown Comparison

The maximum IUSB drawdown since its inception was -17.90%, smaller than the maximum IWM drawdown of -59.05%. Use the drawdown chart below to compare losses from any high point for IUSB and IWM.

Drawdown Indicators

	IUSB	IWM	Difference
Max Drawdown Largest peak-to-trough decline	-17.90%	-59.05%	+41.15%
Max Drawdown (1Y) Largest decline over 1 year	-2.53%	-11.03%	+8.50%
Max Drawdown (3Y) Largest decline over 3 years	-5.82%	-27.50%	+21.68%
Max Drawdown (5Y) Largest decline over 5 years	-17.87%	-31.91%	+14.04%
Max Drawdown (10Y) Largest decline over 10 years	-17.90%	-41.13%	+23.23%
Current Drawdown Current decline from peak	-1.33%	-1.49%	+0.16%
Average Drawdown Average peak-to-trough decline	-3.59%	-10.77%	+7.18%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.83%	3.10%	-2.27%

Volatility

IUSB vs. IWM - Volatility Comparison

The current volatility for iShares Core Universal USD Bond ETF (IUSB) is 1.24%, while iShares Russell 2000 ETF (IWM) has a volatility of 5.75%. This indicates that IUSB 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.

Volatility by Period

	IUSB	IWM	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.24%	5.75%	-4.51%
Volatility (6M) Calculated over the trailing 6-month period	2.62%	13.53%	-10.91%
Volatility (1Y) Calculated over the trailing 1-year period	3.62%	19.20%	-15.58%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	5.79%	22.52%	-16.73%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	5.04%	23.04%	-18.00%

IUSB vs. IWM - Expense Ratio Comparison

IUSB has a 0.06% 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

IUSB vs. IWM - Dividend Comparison

IUSB's dividend yield for the trailing twelve months is around 4.23%, more than IWM's 0.88% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IUSB iShares Core Universal USD Bond ETF	4.23%	4.17%	4.04%	3.46%	2.53%	1.74%	2.68%	3.04%	2.98%	2.56%	2.60%	1.95%
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 IUSB and IWM in my portfolio?

IUSB and IWM have a correlation of 0.33, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, IUSB or IWM?

IWM has higher volatility (5.75%) compared to IUSB (1.24%). In terms of maximum drawdown, IUSB dropped -17.90% vs IWM's -59.05%.

Which ETF is better, IUSB or IWM?

On 10-year performance, IWM leads with 10.93% vs 1.94% for IUSB. On fees, IUSB is cheaper at 0.06% per year. On volatility, IUSB has been the lower-risk option at 1.24%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IUSB or IWM?

Over the 10-year period, IWM has performed better with a 10.93% return vs 1.94%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IUSB or IWM?

IUSB is cheaper with a 0.06% expense ratio, compared with 0.19% for IWM.

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

IUSB has the higher dividend yield at 4.23%, compared with 0.88% for IWM.

What is the main difference between IUSB and IWM?

IUSB is categorized as Intermediate Core-Plus Bond, while IWM is Small Cap Blend Equities. IUSB tracks Bloomberg U.S. Universal Index, while IWM tracks Russell 2000 Index. Their fees differ too: 0.06% for IUSB and 0.19% for IWM.

Which has better risk-adjusted returns?

IWM currently has the higher Sharpe Ratio (2.05 vs 1.54), 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.