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IWM vs. ^NDX
Performance
Return for Risk
Drawdowns
Volatility

IWM vs. ^NDX

Last updated Jun 9, 2026

IWM (iShares Russell 2000 ETF) is Small Cap Blend Equities fund tracking the Russell 2000 Index, while ^NDX (NASDAQ 100 Index) is an index. Over the past 10 years, IWM returned 10.78%/yr vs 20.76%/yr for ^NDX. A 0.78 correlation means they provide meaningful diversification when combined.

Performance

IWM vs. ^NDX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Russell 2000 ETF (IWM) and NASDAQ 100 Index (^NDX). The values are adjusted to include any dividend payments, if applicable.

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Returns By Period

In the year-to-date period, IWM achieves a 15.62% return, which is significantly lower than ^NDX's 16.49% return. Over the past 10 years, IWM has underperformed ^NDX with an annualized return of 10.78%, while ^NDX has yielded a comparatively higher 20.76% annualized return.

IWM

1D
0.87%
1M
-0.02%
YTD
15.62%
6M
13.83%
1Y
35.52%
3Y*
16.64%
5Y*
5.48%
10Y*
10.78%

^NDX

1D
1.58%
1M
0.61%
YTD
16.49%
6M
14.77%
1Y
35.16%
3Y*
26.51%
5Y*
16.32%
10Y*
20.76%
*Multi-year figures are annualized to reflect compound growth (CAGR)

IWM vs. ^NDX - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
IWM
iShares Russell 2000 ETF		15.62%12.66%11.38%16.83%-20.48%14.54%20.03%25.39%-11.12%14.58%
^NDX
NASDAQ 100 Index		16.49%20.17%24.88%53.81%-32.97%26.63%47.58%37.96%-1.04%31.52%

Correlation

The correlation between IWM and ^NDX is 0.68, 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

0.68

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

0.65

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

0.72

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

0.69

Correlation (All Time)
Calculated using the full available price history since May 30, 2000

0.78

The correlation between IWM and ^NDX shifts across timeframes, from 0.65 (3 years) to 0.78 (all time), reflecting how their relationship changes across market environments.

Compare stocks, funds, or ETFs

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iShares Russell 2000 ETF

NASDAQ 100 Index

Often compared with IWM:
IWM vs. SPYIWM vs. VTWOIWM vs. IJRIWM vs. AVUVIWM vs. IWNIWM vs. VOOIWM vs. IWO
Often compared with ^NDX:
^NDX vs. BRK-B^NDX vs. SPY^NDX vs. ARKK^NDX vs. ^IXIC^NDX vs. TSLA^NDX vs. VOO^NDX vs. NQ=F

Return for Risk

IWM vs. ^NDX — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
IWM
IWM Risk / Return Rank: 6363
Overall Rank
IWM Sharpe Ratio Rank: 6161
Sharpe Ratio Rank
IWM Sortino Ratio Rank: 6060
Sortino Ratio Rank
IWM Omega Ratio Rank: 5454
Omega Ratio Rank
IWM Calmar Ratio Rank: 7171
Calmar Ratio Rank
IWM Martin Ratio Rank: 6868
Martin Ratio Rank
^NDX
^NDX Risk / Return Rank: 7676
Overall Rank
^NDX Sharpe Ratio Rank: 7777
Sharpe Ratio Rank
^NDX Sortino Ratio Rank: 7575
Sortino Ratio Rank
^NDX Omega Ratio Rank: 7979
Omega Ratio Rank
^NDX Calmar Ratio Rank: 7575
Calmar Ratio Rank
^NDX Martin Ratio Rank: 7575
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.

IWM vs. ^NDX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Russell 2000 ETF (IWM) and NASDAQ 100 Index (^NDX). 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.

IWM^NDXDifference
Sharpe ratioReturn per unit of total volatility
1.83
2.10

-0.27

Sortino ratioReturn per unit of downside risk
2.54
2.72

-0.18

Omega ratioGain probability vs. loss probability

1.30

1.37

-0.06

Calmar ratioReturn relative to maximum drawdown

3.24

2.91

+0.32

Martin ratioReturn relative to average drawdown

11.44

11.03

+0.40

Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

IWM vs. ^NDX - Sharpe Ratio Comparison

The current IWM Sharpe Ratio is 1.83, which is comparable to the ^NDX Sharpe Ratio of 2.10. The chart below compares the historical Sharpe Ratios of IWM and ^NDX, 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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Sharpe Ratios by Period

IWM^NDXDifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

1.83

2.10

-0.27

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

0.24

0.72

-0.48

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

0.47

0.92

-0.45

Sharpe Ratio (All Time)

Calculated using the full available price history

0.36

0.57

-0.20

Drawdowns

IWM vs. ^NDX - Drawdown Comparison

The maximum IWM drawdown since its inception was -59.05%, smaller than the maximum ^NDX drawdown of -82.90%. Use the drawdown chart below to compare losses from any high point for IWM and ^NDX.

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Drawdown Indicators

IWM^NDXDifference

Max Drawdown

Largest peak-to-trough decline

-59.05%

-82.90%

+23.85%

Max Drawdown (1Y)

Largest decline over 1 year

-11.03%

-12.12%

+1.09%

Max Drawdown (3Y)

Largest decline over 3 years

-27.50%

-22.93%

-4.57%

Max Drawdown (5Y)

Largest decline over 5 years

-31.91%

-35.56%

+3.65%

Max Drawdown (10Y)

Largest decline over 10 years

-41.13%

-35.56%

-5.57%

Current Drawdown

Current decline from peak

-2.71%

-4.06%

+1.35%

Average Drawdown

Average peak-to-trough decline

-10.76%

-24.62%

+13.86%

Ulcer Index

Depth and duration of drawdowns from previous peaks

3.11%

3.20%

-0.09%

Volatility

IWM vs. ^NDX - Volatility Comparison

iShares Russell 2000 ETF (IWM) and NASDAQ 100 Index (^NDX) have volatilities of 6.52% and 6.84%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

IWM^NDXDifference

Volatility (1M)

Calculated over the trailing 1-month period

6.52%

6.84%

-0.32%

Volatility (6M)

Calculated over the trailing 6-month period

14.00%

13.26%

+0.74%

Volatility (1Y)

Calculated over the trailing 1-year period

19.53%

16.87%

+2.66%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

22.58%

22.70%

-0.12%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

23.07%

22.59%

+0.48%

Frequently Asked Questions

IWM and ^NDX have a correlation of 0.68, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

^NDX has higher volatility (6.84%) compared to IWM (6.52%). In terms of maximum drawdown, IWM dropped -59.05% vs ^NDX's -82.90%.

^NDX currently has the higher Sharpe Ratio (2.10 vs 1.83), 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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