IWC vs. FAN

Last updated Aug 2, 2026

IWC (iShares Micro-Cap ETF) and FAN (First Trust Global Wind Energy ETF) are both exchange-traded funds - IWC is a Small Cap Blend Equities fund tracking the Russell Microcap Index, while FAN is a Alternative Energy Equities fund tracking the ISE Clean Edge Global Wind Energy Index. Both are passively managed. Over the past 10 years, IWC returned 11.12%/yr vs 8.65%/yr for FAN. Their 0.60 correlation means they have sometimes moved together and sometimes differently. IWC charges 0.60%/yr vs 0.62%/yr for FAN.

Performance

IWC vs. FAN - Performance Comparison

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

Returns By Period

In the year-to-date period, IWC achieves a 19.50% return, which is significantly higher than FAN's 16.34% return. Over the past 10 years, IWC has outperformed FAN with an annualized return of 11.12%, while FAN has yielded a comparatively lower 8.65% annualized return.

IWC

• 1D: -0.70%
• 1M: -5.03%
• 6M: 12.92%
• YTD: 19.50%
• 1Y: 48.46%
• 3Y*: 19.06%
• 5Y*: 6.69%
• 10Y*: 11.12%
• ALL TIME*: 7.67%

FAN

• 1D: -0.13%
• 1M: -4.47%
• 6M: 5.73%
• YTD: 16.34%
• 1Y: 27.30%
• 3Y*: 13.47%
• 5Y*: 3.65%
• 10Y*: 8.65%
• ALL TIME*: 0.76%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
FAN First Trust Global Wind Energy ETF	$1.50M	$1.70M	$2.53M
IWC iShares Micro-Cap ETF	$9.94M	$13.29M	$20.50M

IWC vs. FAN - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
IWC iShares Micro-Cap ETF	19.50%	22.45%	13.63%	8.99%	-21.93%	18.67%	20.88%	22.20%	-13.13%	12.79%
FAN First Trust Global Wind Energy ETF	16.34%	40.38%	-8.96%	-3.20%	-13.12%	-11.63%	61.16%	31.22%	-11.40%	16.30%

Correlation

The correlation between IWC and FAN is 0.55, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.55
Correlation (3Y) Balances recent behavior with more history.	0.58
Correlation (5Y) Shows whether the relationship held over a longer period.	0.59
Correlation (10Y) Provides a long-term view across more market conditions.	0.55
Correlation (All Time) Calculated using the full available price history since Jun 27, 2008	0.60

The correlation between IWC and FAN has been stable across timeframes, ranging from 0.55 to 0.60 - a consistent structural relationship.

IWC vs. FAN - Sectors Allocation Comparison

Sectors	IWC	FAN
Healthcare	25.8%	-
Financial Services	24.1%	-
Industrials	12.3%	43.3%
Technology	12.3%	-
Consumer Cyclical	7.7%	1.6%
Basic Materials	4.3%	0.2%
Real Estate	4.0%	-
Energy	3.1%	0.9%
Communication Services	3.0%	-
Consumer Defensive	2.4%	-
Utilities	0.7%	53.9%

Return for Risk

IWC vs. FAN — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

IWC

IWC Risk / Return Rank: 81
IWC Sharpe Ratio Rank: 82
IWC Sortino Ratio Rank: 79
IWC Omega Ratio Rank: 73
IWC Calmar Ratio Rank: 89
IWC Martin Ratio Rank: 84

FAN

FAN Risk / Return Rank: 52
FAN Sharpe Ratio Rank: 55
FAN Sortino Ratio Rank: 54
FAN Omega Ratio Rank: 52
FAN Calmar Ratio Rank: 52
FAN Martin Ratio Rank: 50

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

IWC vs. FAN - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Micro-Cap ETF (IWC) and First Trust Global Wind Energy ETF (FAN). 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	FAN	Difference
Sharpe ratio: Return per unit of total volatility	1.89	1.32	+0.56
Sortino ratio: Return per unit of downside risk	2.56	1.88	+0.68
Omega ratio: Gain probability vs. loss probability	1.30	1.23	+0.07
Calmar ratio: Return relative to maximum drawdown	3.67	1.86	+1.81
Martin ratio: Return relative to average drawdown	11.65	5.79	+5.86

IWC vs. FAN - Sharpe Ratio Comparison

The current IWC Sharpe Ratio is 1.89, which is higher than the FAN Sharpe Ratio of 1.32. The chart below compares the historical Sharpe Ratios of IWC and FAN, 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. FAN - Drawdown Comparison

The maximum IWC drawdown since its inception was -64.61%, smaller than the maximum FAN drawdown of -79.94%. Use the drawdown chart below to compare losses from any high point for IWC and FAN.

Drawdown Indicators

	IWC	FAN	Difference
Max Drawdown Largest peak-to-trough decline	-64.61%	-79.94%	+15.33%
Max Drawdown (1Y) Largest decline over 1 year	-12.43%	-14.64%	+2.21%
Max Drawdown (3Y) Largest decline over 3 years	-29.46%	-24.13%	-5.33%
Max Drawdown (5Y) Largest decline over 5 years	-40.61%	-38.45%	-2.16%
Max Drawdown (10Y) Largest decline over 10 years	-47.21%	-46.29%	-0.92%
Current Drawdown Current decline from peak	-6.31%	-12.54%	+6.23%
Average Drawdown Average peak-to-trough decline	-15.18%	-44.87%	+29.69%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.91%	4.69%	-0.78%

Volatility

IWC vs. FAN - Volatility Comparison

The current volatility for iShares Micro-Cap ETF (IWC) is 4.63%, while First Trust Global Wind Energy ETF (FAN) has a volatility of 5.47%. This indicates that IWC experiences smaller price fluctuations and is considered to be less risky than FAN based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IWC	FAN	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.63%	5.47%	-0.84%
Volatility (6M) Calculated over the trailing 6-month period	18.22%	16.12%	+2.10%
Volatility (1Y) Calculated over the trailing 1-year period	24.13%	20.57%	+3.56%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	24.46%	21.38%	+3.08%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	24.48%	20.96%	+3.52%

IWC vs. FAN - Expense Ratio Comparison

IWC has a 0.60% expense ratio, which is lower than FAN's 0.62% expense ratio.

Dividends

IWC vs. FAN - Dividend Comparison

IWC's dividend yield for the trailing twelve months is around 1.01%, more than FAN's 0.99% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FAN First Trust Global Wind Energy ETF	0.99%	1.35%	1.52%	1.71%	1.50%	1.79%	0.84%	2.42%	2.67%	2.59%	6.04%	2.35%
IWC iShares Micro-Cap ETF	1.01%	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 FAN in my portfolio?

IWC and FAN have a correlation of 0.55, 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 FAN?

FAN has higher volatility (5.47%) compared to IWC (4.63%). In terms of maximum drawdown, IWC dropped -64.61% vs FAN's -79.94%.

Which ETF is better, IWC or FAN?

On 10-year performance, IWC leads with 11.12% vs 8.65% for FAN. On fees, IWC is cheaper at 0.60% per year. On volatility, IWC has been the lower-risk option at 4.63%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IWC or FAN?

Over the 10-year period, IWC has performed better with a 11.12% return vs 8.65%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IWC or FAN?

IWC is cheaper with a 0.60% expense ratio, compared with 0.62% for FAN.

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

IWC has the higher dividend yield at 1.01%, compared with 0.99% for FAN.

What is the main difference between IWC and FAN?

IWC is categorized as Small Cap Blend Equities, while FAN is Alternative Energy Equities. IWC tracks Russell Microcap Index, while FAN tracks ISE Clean Edge Global Wind Energy Index. They also come from different issuers: iShares and First Trust. Their fees differ too: 0.60% for IWC and 0.62% for FAN.

Which has better risk-adjusted returns?

IWC currently has the higher Sharpe Ratio (1.89 vs 1.32), 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.