IWD vs. ITB

Last updated Jun 16, 2026

IWD (iShares Russell 1000 Value ETF) and ITB (iShares U.S. Home Construction ETF) are both exchange-traded funds - IWD is a Large Cap Value Equities fund tracking the Russell 1000 Value Index, while ITB is a Building & Construction fund tracking the Dow Jones U.S. Select Home Construction Index. Both are passively managed. Over the past 10 years, IWD returned 11.56%/yr vs 14.32%/yr for ITB. A 0.67 correlation means they provide meaningful diversification when combined. IWD charges 0.18%/yr vs 0.38%/yr for ITB.

Performance

IWD vs. ITB - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Russell 1000 Value ETF (IWD) and iShares U.S. Home Construction ETF (ITB). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, IWD achieves a 16.71% return, which is significantly higher than ITB's 1.18% return. Over the past 10 years, IWD has underperformed ITB with an annualized return of 11.56%, while ITB has yielded a comparatively higher 14.32% annualized return.

IWD

• 1D: 1.00%
• 1M: 5.33%
• YTD: 16.71%
• 6M: 16.30%
• 1Y: 31.10%
• 3Y*: 18.07%
• 5Y*: 11.00%
• 10Y*: 11.56%

ITB

• 1D: 0.31%
• 1M: 12.49%
• YTD: 1.18%
• 6M: -4.59%
• 1Y: 8.99%
• 3Y*: 7.33%
• 5Y*: 8.75%
• 10Y*: 14.32%

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

IWD vs. ITB - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
IWD iShares Russell 1000 Value ETF	16.71%	15.68%	14.17%	11.34%	-7.75%	24.95%	2.73%	26.12%	-8.45%	13.45%
ITB iShares U.S. Home Construction ETF	1.18%	-5.26%	2.06%	68.91%	-26.26%	49.25%	26.42%	48.70%	-30.92%	59.65%

Correlation

The correlation between IWD and ITB is 0.69, 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	0.69
Correlation (3Y) Calculated over the trailing 3-year period	0.69
Correlation (5Y) Calculated over the trailing 5-year period	0.70
Correlation (10Y) Calculated over the trailing 10-year period	0.65
Correlation (All Time) Calculated using the full available price history since May 5, 2006	0.67

The correlation between IWD and ITB has been stable across timeframes, ranging from 0.65 to 0.70 - a consistent structural relationship.

IWD vs. ITB - Sectors Allocation Comparison

Sectors	IWD	ITB
Technology	18.6%	-
Financial Services	18.4%	-
Industrials	12.5%	19.5%
Healthcare	10.6%	-
Communication Services	8.1%	-
Consumer Cyclical	7.1%	71.3%
Consumer Defensive	6.7%	-
Energy	6.3%	-
Utilities	4.0%	-
Real Estate	3.9%	0.5%
Basic Materials	3.7%	8.7%

Return for Risk

IWD vs. ITB — Risk / Return Rank

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

IWD

IWD Risk / Return Rank: 90
IWD Sharpe Ratio Rank: 91
IWD Sortino Ratio Rank: 91
IWD Omega Ratio Rank: 89
IWD Calmar Ratio Rank: 88
IWD Martin Ratio Rank: 91

ITB

ITB Risk / Return Rank: 14
ITB Sharpe Ratio Rank: 14
ITB Sortino Ratio Rank: 16
ITB Omega Ratio Rank: 15
ITB Calmar Ratio Rank: 13
ITB Martin Ratio Rank: 12

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.

IWD vs. ITB - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Russell 1000 Value ETF (IWD) and iShares U.S. Home Construction ETF (ITB). 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.

	IWD	ITB	Difference
Sharpe ratio: Return per unit of total volatility	2.80	0.30	+2.49
Sortino ratio: Return per unit of downside risk	3.89	0.72	+3.17
Omega ratio: Gain probability vs. loss probability	1.50	1.08	+0.43
Calmar ratio: Return relative to maximum drawdown	4.60	0.35	+4.26
Martin ratio: Return relative to average drawdown	19.12	0.67	+18.45

IWD vs. ITB - Sharpe Ratio Comparison

The current IWD Sharpe Ratio is 2.80, which is higher than the ITB Sharpe Ratio of 0.30. The chart below compares the historical Sharpe Ratios of IWD and ITB, 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

IWD vs. ITB - Drawdown Comparison

The maximum IWD drawdown since its inception was -60.10%, smaller than the maximum ITB drawdown of -86.53%. Use the drawdown chart below to compare losses from any high point for IWD and ITB.

Drawdown Indicators

	IWD	ITB	Difference
Max Drawdown Largest peak-to-trough decline	-60.10%	-86.53%	+26.43%
Max Drawdown (1Y) Largest decline over 1 year	-6.79%	-26.04%	+19.25%
Max Drawdown (3Y) Largest decline over 3 years	-15.71%	-33.35%	+17.64%
Max Drawdown (5Y) Largest decline over 5 years	-19.04%	-40.55%	+21.51%
Max Drawdown (10Y) Largest decline over 10 years	-38.51%	-52.10%	+13.59%
Current Drawdown Current decline from peak	0.00%	-23.30%	+23.30%
Average Drawdown Average peak-to-trough decline	-8.64%	-37.08%	+28.44%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.63%	13.49%	-11.86%

Volatility

IWD vs. ITB - Volatility Comparison

The current volatility for iShares Russell 1000 Value ETF (IWD) is 4.04%, while iShares U.S. Home Construction ETF (ITB) has a volatility of 9.26%. This indicates that IWD experiences smaller price fluctuations and is considered to be less risky than ITB based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IWD	ITB	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.04%	9.26%	-5.22%
Volatility (6M) Calculated over the trailing 6-month period	8.55%	20.89%	-12.34%
Volatility (1Y) Calculated over the trailing 1-year period	11.19%	29.80%	-18.61%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.88%	29.29%	-14.41%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.32%	30.06%	-12.74%

IWD vs. ITB - Expense Ratio Comparison

IWD has a 0.18% expense ratio, which is lower than ITB's 0.38% expense ratio.

Dividends

IWD vs. ITB - Dividend Comparison

IWD's dividend yield for the trailing twelve months is around 1.78%, more than ITB's 1.33% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ITB iShares U.S. Home Construction ETF	1.33%	1.67%	0.46%	0.48%	0.86%	0.37%	0.46%	0.50%	0.63%	0.28%	0.43%	0.34%
IWD iShares Russell 1000 Value ETF	1.78%	1.69%	1.87%	2.02%	2.15%	1.62%	2.05%	2.45%	2.71%	2.09%	2.25%	2.47%

Frequently Asked Questions

Can I hold both IWD and ITB in my portfolio?

IWD and ITB have a correlation of 0.69, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, IWD or ITB?

ITB has higher volatility (9.26%) compared to IWD (4.04%). In terms of maximum drawdown, IWD dropped -60.10% vs ITB's -86.53%.

Which ETF is better, IWD or ITB?

On 10-year performance, ITB leads with 14.32% vs 11.56% for IWD. On fees, IWD is cheaper at 0.18% per year. On volatility, IWD has been the lower-risk option at 4.04%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IWD or ITB?

Over the 10-year period, ITB has performed better with a 14.32% return vs 11.56%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IWD or ITB?

IWD is cheaper with a 0.18% expense ratio, compared with 0.38% for ITB.

Which ETF pays a higher dividend yield, IWD or ITB?

IWD has the higher dividend yield at 1.78%, compared with 1.33% for ITB.

What is the main difference between IWD and ITB?

IWD is categorized as Large Cap Value Equities, while ITB is Building & Construction. IWD tracks Russell 1000 Value Index, while ITB tracks Dow Jones U.S. Select Home Construction Index. Their fees differ too: 0.18% for IWD and 0.38% for ITB.

Which has better risk-adjusted returns?

IWD currently has the higher Sharpe Ratio (2.80 vs 0.30), 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.