IWD vs. SCZ

Last updated Jun 4, 2026

IWD (iShares Russell 1000 Value ETF) and SCZ (iShares MSCI EAFE Small-Cap ETF) are both exchange-traded funds - IWD is a Large Cap Value Equities fund tracking the Russell 1000 Value Index, while SCZ is a Foreign Small & Mid Cap Equities fund tracking the MSCI EAFE Small Cap Index. Both are passively managed. Over the past 10 years, IWD returned 11.23%/yr vs 8.03%/yr for SCZ. A 0.75 correlation means they provide meaningful diversification when combined. IWD charges 0.18%/yr vs 0.40%/yr for SCZ.

Performance

IWD vs. SCZ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Russell 1000 Value ETF (IWD) and iShares MSCI EAFE Small-Cap ETF (SCZ). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, IWD achieves a 14.20% return, which is significantly higher than SCZ's 9.56% return. Over the past 10 years, IWD has outperformed SCZ with an annualized return of 11.23%, while SCZ has yielded a comparatively lower 8.03% annualized return.

IWD

• 1D: -0.01%
• 1M: 4.22%
• YTD: 14.20%
• 6M: 14.76%
• 1Y: 28.16%
• 3Y*: 18.40%
• 5Y*: 10.17%
• 10Y*: 11.23%

SCZ

• 1D: -0.72%
• 1M: 2.75%
• YTD: 9.56%
• 6M: 12.13%
• 1Y: 24.04%
• 3Y*: 16.13%
• 5Y*: 5.02%
• 10Y*: 8.03%

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

IWD vs. SCZ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
IWD iShares Russell 1000 Value ETF	14.20%	15.68%	14.17%	11.34%	-7.75%	24.95%	2.73%	26.12%	-8.45%	13.45%
SCZ iShares MSCI EAFE Small-Cap ETF	9.56%	32.08%	1.52%	12.98%	-21.27%	10.12%	11.71%	24.68%	-17.64%	32.72%

Correlation

The correlation between IWD and SCZ is 0.70, 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	0.70
Correlation (3Y) Calculated over the trailing 3-year period	0.68
Correlation (5Y) Calculated over the trailing 5-year period	0.73
Correlation (10Y) Calculated over the trailing 10-year period	0.73
Correlation (All Time) Calculated using the full available price history since Dec 13, 2007	0.75

The correlation between IWD and SCZ has been stable across timeframes, ranging from 0.68 to 0.75 - a consistent structural relationship.

IWD vs. SCZ - Sectors Allocation Comparison

Sectors	IWD	SCZ
Financial Services	18.5%	12.5%
Technology	17.9%	9.1%
Industrials	12.7%	24.6%
Healthcare	10.5%	5.5%
Communication Services	8.2%	4.1%
Consumer Cyclical	7.0%	11.8%
Consumer Defensive	6.7%	5.0%
Energy	6.5%	3.7%
Utilities	4.1%	2.8%
Real Estate	3.9%	10.3%
Basic Materials	3.7%	10.7%

Return for Risk

IWD vs. SCZ — Risk / Return Rank

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

IWD

IWD Risk / Return Rank: 80
IWD Sharpe Ratio Rank: 79
IWD Sortino Ratio Rank: 82
IWD Omega Ratio Rank: 78
IWD Calmar Ratio Rank: 79
IWD Martin Ratio Rank: 84

SCZ

SCZ Risk / Return Rank: 47
SCZ Sharpe Ratio Rank: 47
SCZ Sortino Ratio Rank: 48
SCZ Omega Ratio Rank: 48
SCZ Calmar Ratio Rank: 42
SCZ Martin Ratio Rank: 48

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. SCZ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Russell 1000 Value ETF (IWD) and iShares MSCI EAFE Small-Cap ETF (SCZ). 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.

	IWD	SCZ	Difference
Sharpe ratio Return per unit of total volatility	2.63	1.67	+0.96
Sortino ratio Return per unit of downside risk	3.71	2.39	+1.32
Omega ratio Gain probability vs. loss probability	1.47	1.31	+0.17
Calmar ratio Return relative to maximum drawdown	4.17	2.11	+2.06
Martin ratio Return relative to average drawdown	17.46	8.08	+9.38
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

IWD vs. SCZ - Sharpe Ratio Comparison

The current IWD Sharpe Ratio is 2.63, which is higher than the SCZ Sharpe Ratio of 1.67. The chart below compares the historical Sharpe Ratios of IWD and SCZ, 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

	IWD	SCZ	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.63	1.67	+0.96
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.69	0.30	+0.39
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.65	0.46	+0.19
Sharpe Ratio (All Time) Calculated using the full available price history	0.43	0.27	+0.16

Drawdowns

IWD vs. SCZ - Drawdown Comparison

The maximum IWD drawdown since its inception was -60.10%, roughly equal to the maximum SCZ drawdown of -61.86%. Use the drawdown chart below to compare losses from any high point for IWD and SCZ.

Drawdown Indicators

	IWD	SCZ	Difference
Max Drawdown Largest peak-to-trough decline	-60.10%	-61.86%	+1.76%
Max Drawdown (1Y) Largest decline over 1 year	-6.79%	-11.43%	+4.64%
Max Drawdown (3Y) Largest decline over 3 years	-15.71%	-15.06%	-0.65%
Max Drawdown (5Y) Largest decline over 5 years	-19.04%	-36.87%	+17.83%
Max Drawdown (10Y) Largest decline over 10 years	-38.51%	-41.07%	+2.56%
Current Drawdown Current decline from peak	-0.01%	-1.79%	+1.78%
Average Drawdown Average peak-to-trough decline	-8.65%	-13.06%	+4.41%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.62%	2.98%	-1.36%

Volatility

IWD vs. SCZ - Volatility Comparison

The current volatility for iShares Russell 1000 Value ETF (IWD) is 2.90%, while iShares MSCI EAFE Small-Cap ETF (SCZ) has a volatility of 4.57%. This indicates that IWD experiences smaller price fluctuations and is considered to be less risky than SCZ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IWD	SCZ	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.90%	4.57%	-1.67%
Volatility (6M) Calculated over the trailing 6-month period	8.06%	11.95%	-3.89%
Volatility (1Y) Calculated over the trailing 1-year period	10.77%	14.47%	-3.70%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.81%	16.74%	-1.93%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.29%	17.43%	-0.14%

IWD vs. SCZ - Expense Ratio Comparison

IWD has a 0.18% expense ratio, which is lower than SCZ's 0.40% expense ratio.

Dividends

IWD vs. SCZ - Dividend Comparison

IWD's dividend yield for the trailing twelve months is around 1.50%, less than SCZ's 3.01% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IWD iShares Russell 1000 Value ETF	1.50%	1.69%	1.87%	2.02%	2.15%	1.62%	2.05%	2.45%	2.71%	2.09%	2.25%	2.47%
SCZ iShares MSCI EAFE Small-Cap ETF	3.01%	3.30%	3.50%	2.96%	1.99%	2.96%	1.52%	3.52%	2.79%	2.38%	2.82%	2.06%

Frequently Asked Questions

Can I hold both IWD and SCZ in my portfolio?

IWD and SCZ have a correlation of 0.70, 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 SCZ?

SCZ has higher volatility (4.57%) compared to IWD (2.90%). In terms of maximum drawdown, IWD dropped -60.10% vs SCZ's -61.86%.

Which ETF is better, IWD or SCZ?

On 10-year performance, IWD leads with 11.23% vs 8.03% for SCZ. On fees, IWD is cheaper at 0.18% per year. On volatility, IWD has been the lower-risk option at 2.90%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IWD or SCZ?

Over the 10-year period, IWD has performed better with a 11.23% return vs 8.03%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IWD or SCZ?

IWD is cheaper with a 0.18% expense ratio, compared with 0.40% for SCZ.

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

SCZ has the higher dividend yield at 3.01%, compared with 1.50% for IWD.

What is the main difference between IWD and SCZ?

IWD is categorized as Large Cap Value Equities, while SCZ is Foreign Small & Mid Cap Equities. IWD tracks Russell 1000 Value Index, while SCZ tracks MSCI EAFE Small Cap Index. Their fees differ too: 0.18% for IWD and 0.40% for SCZ.

Which has better risk-adjusted returns?

IWD currently has the higher Sharpe Ratio (2.63 vs 1.67), 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.