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IWC vs. SPY
Performance
Return for Risk
Drawdowns
Volatility
Dividends

IWC vs. SPY

Last updated Jun 23, 2026

IWC (iShares Micro-Cap ETF) and SPY (State Street SPDR S&P 500 ETF) are both exchange-traded funds - IWC is a Small Cap Blend Equities fund tracking the Russell Microcap Index, while SPY is a S&P 500 fund tracking the S&P 500 Index. Both are passively managed. Over the past 10 years, IWC returned 12.07%/yr vs 15.70%/yr for SPY. A 0.79 correlation means they provide meaningful diversification when combined. IWC charges 0.60%/yr vs 0.09%/yr for SPY.

Performance

IWC vs. SPY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Micro-Cap ETF (IWC) and State Street SPDR S&P 500 ETF (SPY). The values are adjusted to include any dividend payments, if applicable.

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Returns By Period

In the year-to-date period, IWC achieves a 23.36% return, which is significantly higher than SPY's 9.74% return. Over the past 10 years, IWC has underperformed SPY with an annualized return of 12.07%, while SPY has yielded a comparatively higher 15.70% annualized return.

IWC

1D
0.82%
1M
4.00%
YTD
23.36%
6M
19.51%
1Y
59.41%
3Y*
23.10%
5Y*
6.01%
10Y*
12.07%

SPY

1D
-0.31%
1M
0.09%
YTD
9.74%
6M
9.27%
1Y
26.65%
3Y*
21.27%
5Y*
13.51%
10Y*
15.70%
*Multi-year figures are annualized to reflect compound growth (CAGR)

IWC vs. SPY - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
IWC
iShares Micro-Cap ETF		23.36%22.45%13.63%8.99%-21.93%18.67%20.88%22.20%-13.13%12.79%
SPY
State Street SPDR S&P 500 ETF		9.74%17.72%24.89%26.18%-18.18%28.73%18.33%31.22%-4.57%21.71%

Correlation

The correlation between IWC and SPY is 0.75, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

Correlation
Correlation (1Y)
Calculated over the trailing 1-year period

0.75

Correlation (3Y)
Calculated over the trailing 3-year period

0.72

Correlation (5Y)
Calculated over the trailing 5-year period

0.75

Correlation (10Y)
Calculated over the trailing 10-year period

0.73

Correlation (All Time)
Calculated using the full available price history since Aug 16, 2005

0.79

The correlation between IWC and SPY has been stable across timeframes, ranging from 0.72 to 0.79 - a consistent structural relationship.

IWC vs. SPY - Sectors Allocation Comparison

Sectors
IWC
SPY

Healthcare

26.8%
8.3%

Technology

21.7%
39.0%

Financial Services

17.6%
11.1%

Industrials

13.3%
7.8%

Consumer Cyclical

5.2%
9.9%

Basic Materials

4.1%
1.7%

Energy

4.0%
3.1%

Real Estate

3.3%
1.8%

Communication Services

1.9%
10.6%

Consumer Defensive

1.6%
4.5%

Utilities

0.5%
2.1%

Healthcare

IWC
26.8%
SPY
8.3%

Technology

IWC
21.7%
SPY
39.0%

Financial Services

IWC
17.6%
SPY
11.1%

Industrials

IWC
13.3%
SPY
7.8%

Consumer Cyclical

IWC
5.2%
SPY
9.9%

Basic Materials

IWC
4.1%
SPY
1.7%

Energy

IWC
4.0%
SPY
3.1%

Real Estate

IWC
3.3%
SPY
1.8%

Communication Services

IWC
1.9%
SPY
10.6%

Consumer Defensive

IWC
1.6%
SPY
4.5%

Utilities

IWC
0.5%
SPY
2.1%

Compare stocks, funds, or ETFs

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iShares Micro-Cap ETF

State Street SPDR S&P 500 ETF

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Return for Risk

IWC vs. SPY — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
IWC
IWC Risk / Return Rank: 7777
Overall Rank
IWC Sharpe Ratio Rank: 8080
Sharpe Ratio Rank
IWC Sortino Ratio Rank: 7373
Sortino Ratio Rank
IWC Omega Ratio Rank: 6666
Omega Ratio Rank
IWC Calmar Ratio Rank: 8787
Calmar Ratio Rank
IWC Martin Ratio Rank: 8181
Martin Ratio Rank
SPY
SPY Risk / Return Rank: 6868
Overall Rank
SPY Sharpe Ratio Rank: 6969
Sharpe Ratio Rank
SPY Sortino Ratio Rank: 6666
Sortino Ratio Rank
SPY Omega Ratio Rank: 6868
Omega Ratio Rank
SPY Calmar Ratio Rank: 6363
Calmar Ratio Rank
SPY Martin Ratio Rank: 7474
Martin Ratio Rank
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. SPY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Micro-Cap ETF (IWC) and State Street SPDR S&P 500 ETF (SPY). 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.

IWCSPYDifference
Sharpe ratioReturn per unit of total volatility
2.45
2.16

+0.30

Sortino ratioReturn per unit of downside risk
3.14
2.91

+0.22

Omega ratioGain probability vs. loss probability

1.38

1.39

-0.01

Calmar ratioReturn relative to maximum drawdown

4.80

3.01

+1.79

Martin ratioReturn relative to average drawdown

15.64

13.54

+2.10

IWC vs. SPY - Sharpe Ratio Comparison

The current IWC Sharpe Ratio is 2.45, which is comparable to the SPY Sharpe Ratio of 2.16. The chart below compares the historical Sharpe Ratios of IWC and SPY, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

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Drawdowns

IWC vs. SPY - Drawdown Comparison

The maximum IWC drawdown since its inception was -64.61%, which is greater than SPY's maximum drawdown of -55.19%. Use the drawdown chart below to compare losses from any high point for IWC and SPY.

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Drawdown Indicators

IWCSPYDifference

Max Drawdown

Largest peak-to-trough decline

-64.61%

-55.19%

-9.42%

Max Drawdown (1Y)

Largest decline over 1 year

-12.43%

-8.88%

-3.55%

Max Drawdown (3Y)

Largest decline over 3 years

-29.46%

-18.76%

-10.70%

Max Drawdown (5Y)

Largest decline over 5 years

-40.61%

-24.50%

-16.11%

Max Drawdown (10Y)

Largest decline over 10 years

-47.21%

-33.72%

-13.49%

Current Drawdown

Current decline from peak

0.00%

-1.75%

+1.75%

Average Drawdown

Average peak-to-trough decline

-15.25%

-9.04%

-6.21%

Ulcer Index

Depth and duration of drawdowns from previous peaks

3.81%

1.97%

+1.84%

Volatility

IWC vs. SPY - Volatility Comparison

iShares Micro-Cap ETF (IWC) has a higher volatility of 8.66% compared to State Street SPDR S&P 500 ETF (SPY) at 4.64%. This indicates that IWC's price experiences larger fluctuations and is considered to be riskier than SPY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

IWCSPYDifference

Volatility (1M)

Calculated over the trailing 1-month period

8.66%

4.64%

+4.02%

Volatility (6M)

Calculated over the trailing 6-month period

18.16%

9.75%

+8.41%

Volatility (1Y)

Calculated over the trailing 1-year period

24.39%

12.43%

+11.96%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

24.58%

17.14%

+7.44%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

24.52%

17.99%

+6.53%

IWC vs. SPY - Expense Ratio Comparison

IWC has a 0.60% expense ratio, which is higher than SPY's 0.09% expense ratio.

Dividends

IWC vs. SPY - Dividend Comparison

IWC's dividend yield for the trailing twelve months is around 0.98%, less than SPY's 1.01% yield.

PositionTTM20252024202320222021202020192018201720162015
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%
SPY
State Street SPDR S&P 500 ETF		1.01%1.07%1.21%1.40%1.65%1.20%1.52%1.75%2.04%1.80%2.03%2.06%

Frequently Asked Questions

IWC and SPY have a correlation of 0.75, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

IWC has higher volatility (8.66%) compared to SPY (4.64%). In terms of maximum drawdown, IWC dropped -64.61% vs SPY's -55.19%.

On 10-year performance, SPY leads with 15.70% vs 12.07% for IWC. On fees, SPY is cheaper at 0.09% per year. On volatility, SPY has been the lower-risk option at 4.64%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, SPY has performed better with a 15.70% return vs 12.07%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

SPY is cheaper with a 0.09% expense ratio, compared with 0.60% for IWC.

SPY has the higher dividend yield at 1.01%, compared with 0.98% for IWC.

IWC is categorized as Small Cap Blend Equities, while SPY is S&P 500. IWC tracks Russell Microcap Index, while SPY tracks S&P 500 Index. They also come from different issuers: iShares and State Street. Their fees differ too: 0.60% for IWC and 0.09% for SPY.

IWC currently has the higher Sharpe Ratio (2.45 vs 2.16), 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.

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