IWC vs. AFSM

Last updated Jun 24, 2026

IWC (iShares Micro-Cap ETF) and AFSM (First Trust Active Factor Small Cap ETF) are both Small Cap Blend Equities funds. IWC is passively managed, while AFSM is actively managed. Over the past 5 years, IWC returned 5.48%/yr vs 9.11%/yr for AFSM. Their correlation of 0.90 suggests significant overlap in exposure. IWC charges 0.60%/yr vs 0.77%/yr for AFSM.

Performance

IWC vs. AFSM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Micro-Cap ETF (IWC) and First Trust Active Factor Small Cap ETF (AFSM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, IWC achieves a 22.38% return, which is significantly higher than AFSM's 20.52% return.

IWC

• 1D: -0.79%
• 1M: 3.18%
• YTD: 22.38%
• 6M: 19.49%
• 1Y: 56.41%
• 3Y*: 22.77%
• 5Y*: 5.48%
• 10Y*: 11.98%

AFSM

• 1D: -0.58%
• 1M: 4.71%
• YTD: 20.52%
• 6M: 17.89%
• 1Y: 35.47%
• 3Y*: 19.05%
• 5Y*: 9.11%
• 10Y*: —

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

IWC vs. AFSM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
IWC iShares Micro-Cap ETF	22.38%	22.45%	13.63%	8.99%	-21.93%	18.67%	20.88%	6.65%
AFSM First Trust Active Factor Small Cap ETF	20.52%	9.99%	10.55%	22.23%	-17.50%	26.03%	8.44%	2.39%

Correlation

The correlation between IWC and AFSM is 0.87, 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	0.87
Correlation (3Y) Calculated over the trailing 3-year period	0.90
Correlation (5Y) Calculated over the trailing 5-year period	0.91
Correlation (All Time) Calculated using the full available price history since Dec 4, 2019	0.90

The correlation between IWC and AFSM has been stable across timeframes, ranging from 0.87 to 0.91 - a consistent structural relationship.

IWC vs. AFSM - Sectors Allocation Comparison

Sectors	IWC	AFSM
Healthcare	26.8%	16.7%
Technology	21.7%	22.1%
Financial Services	17.6%	13.4%
Industrials	13.3%	17.1%
Consumer Cyclical	5.2%	8.0%
Basic Materials	4.1%	4.3%
Energy	4.0%	6.3%
Real Estate	3.3%	3.4%
Communication Services	1.9%	3.8%
Consumer Defensive	1.6%	4.4%
Utilities	0.5%	0.5%

Return for Risk

IWC vs. AFSM — Risk / Return Rank

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

IWC

IWC Risk / Return Rank: 75
IWC Sharpe Ratio Rank: 77
IWC Sortino Ratio Rank: 71
IWC Omega Ratio Rank: 63
IWC Calmar Ratio Rank: 86
IWC Martin Ratio Rank: 80

AFSM

AFSM Risk / Return Rank: 67
AFSM Sharpe Ratio Rank: 64
AFSM Sortino Ratio Rank: 65
AFSM Omega Ratio Rank: 58
AFSM Calmar Ratio Rank: 77
AFSM Martin Ratio Rank: 71

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.

IWC vs. AFSM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Micro-Cap ETF (IWC) and First Trust Active Factor Small Cap ETF (AFSM). 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.

	IWC	AFSM	Difference
Sharpe ratio: Return per unit of total volatility	2.33	1.94	+0.38
Sortino ratio: Return per unit of downside risk	3.01	2.76	+0.25
Omega ratio: Gain probability vs. loss probability	1.36	1.33	+0.03
Calmar ratio: Return relative to maximum drawdown	4.56	3.73	+0.83
Martin ratio: Return relative to average drawdown	14.85	12.26	+2.59

IWC vs. AFSM - Sharpe Ratio Comparison

The current IWC Sharpe Ratio is 2.33, which is comparable to the AFSM Sharpe Ratio of 1.94. The chart below compares the historical Sharpe Ratios of IWC and AFSM, 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

IWC vs. AFSM - Drawdown Comparison

The maximum IWC drawdown since its inception was -64.61%, which is greater than AFSM's maximum drawdown of -43.54%. Use the drawdown chart below to compare losses from any high point for IWC and AFSM.

Drawdown Indicators

	IWC	AFSM	Difference
Max Drawdown Largest peak-to-trough decline	-64.61%	-43.54%	-21.07%
Max Drawdown (1Y) Largest decline over 1 year	-12.43%	-9.56%	-2.87%
Max Drawdown (3Y) Largest decline over 3 years	-29.46%	-25.07%	-4.39%
Max Drawdown (5Y) Largest decline over 5 years	-40.61%	-28.27%	-12.34%
Max Drawdown (10Y) Largest decline over 10 years	-47.21%	—	—
Current Drawdown Current decline from peak	-0.79%	-0.58%	-0.21%
Average Drawdown Average peak-to-trough decline	-15.24%	-9.41%	-5.83%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.81%	2.90%	+0.91%

Volatility

IWC vs. AFSM - Volatility Comparison

iShares Micro-Cap ETF (IWC) has a higher volatility of 8.51% compared to First Trust Active Factor Small Cap ETF (AFSM) at 5.98%. This indicates that IWC's price experiences larger fluctuations and is considered to be riskier than AFSM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IWC	AFSM	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.51%	5.98%	+2.53%
Volatility (6M) Calculated over the trailing 6-month period	18.17%	13.86%	+4.31%
Volatility (1Y) Calculated over the trailing 1-year period	24.36%	18.37%	+5.99%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	24.58%	20.89%	+3.69%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	24.50%	25.37%	-0.87%

IWC vs. AFSM - Expense Ratio Comparison

IWC has a 0.60% expense ratio, which is lower than AFSM's 0.77% expense ratio.

Dividends

IWC vs. AFSM - Dividend Comparison

IWC's dividend yield for the trailing twelve months is around 0.98%, more than AFSM's 0.45% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
AFSM First Trust Active Factor Small Cap ETF	0.45%	0.58%	0.58%	0.92%	1.28%	0.35%	0.53%	0.32%	0.00%	0.00%	0.00%	0.00%
IWC iShares Micro-Cap ETF	0.98%	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 IWC and AFSM in my portfolio?

IWC and AFSM have a correlation of 0.87, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, IWC or AFSM?

IWC has higher volatility (8.51%) compared to AFSM (5.98%). In terms of maximum drawdown, IWC dropped -64.61% vs AFSM's -43.54%.

Which ETF is better, IWC or AFSM?

On 5-year performance, AFSM leads with 9.11% vs 5.48% for IWC. On fees, IWC is cheaper at 0.60% per year. On volatility, AFSM has been the lower-risk option at 5.98%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IWC or AFSM?

Over the 5-year period, AFSM has performed better with a 9.11% return vs 5.48%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IWC or AFSM?

IWC is cheaper with a 0.60% expense ratio, compared with 0.77% for AFSM.

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

IWC has the higher dividend yield at 0.98%, compared with 0.45% for AFSM.

What is the main difference between IWC and AFSM?

They also come from different issuers: iShares and First Trust. Their fees differ too: 0.60% for IWC and 0.77% for AFSM.

Which has better risk-adjusted returns?

IWC currently has the higher Sharpe Ratio (2.33 vs 1.94), 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.