IWM vs. AA
IWM (iShares Russell 2000 ETF) is Small Cap Blend Equities fund tracking the Russell 2000 Index, while AA (Alcoa Corporation) is a stock. Over the past 5 years, IWM returned 6.07%/yr vs 14.08%/yr for AA. A 0.53 correlation means they provide meaningful diversification when combined.
Performance
IWM vs. AA - Performance Comparison
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Returns By Period
In the year-to-date period, IWM achieves a 19.22% return, which is significantly lower than AA's 29.83% return.
IWM
- 1D
- 0.87%
- 1M
- 3.64%
- YTD
- 19.22%
- 6M
- 16.00%
- 1Y
- 39.16%
- 3Y*
- 17.23%
- 5Y*
- 6.07%
- 10Y*
- 11.27%
AA
- 1D
- -0.30%
- 1M
- 0.64%
- YTD
- 29.83%
- 6M
- 49.53%
- 1Y
- 140.52%
- 3Y*
- 24.73%
- 5Y*
- 14.08%
- 10Y*
- —
IWM vs. AA - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
IWM iShares Russell 2000 ETF | 19.22% | 12.66% | 11.38% | 16.83% | -20.48% | 14.54% | 20.03% | 25.39% | -11.12% | 14.58% |
AA Alcoa Corporation | 29.83% | 42.46% | 12.43% | -24.33% | -23.12% | 159.05% | 7.16% | -19.07% | -50.66% | 91.84% |
Correlation
The correlation between IWM and AA is 0.47, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.47 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.51 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.53 |
Correlation (All Time) Calculated using the full available price history since Nov 1, 2016 | 0.53 |
The correlation between IWM and AA has been stable across timeframes, ranging from 0.47 to 0.53 - a consistent structural relationship.
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Return for Risk
IWM vs. AA — Risk / Return Rank
IWM
AA
IWM vs. AA - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Russell 2000 ETF (IWM) and Alcoa Corporation (AA). 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.
| IWM | AA | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.60 | ||
| Sortino ratioReturn per unit of downside risk | -0.30 | ||
| Omega ratioGain probability vs. loss probability | 1.33 | 1.36 | -0.04 |
| Calmar ratioReturn relative to maximum drawdown | 3.57 | 6.49 | -2.93 |
| Martin ratioReturn relative to average drawdown | 12.63 | 20.55 | -7.92 |
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Drawdowns
IWM vs. AA - Drawdown Comparison
The maximum IWM drawdown since its inception was -59.05%, smaller than the maximum AA drawdown of -90.90%. Use the drawdown chart below to compare losses from any high point for IWM and AA.
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Drawdown Indicators
| IWM | AA | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -59.05% | -90.90% | +31.85% |
Max Drawdown (1Y)Largest decline over 1 year | -11.03% | -21.77% | +10.74% |
Max Drawdown (3Y)Largest decline over 3 years | -27.50% | -52.25% | +24.75% |
Max Drawdown (5Y)Largest decline over 5 years | -31.91% | -75.46% | +43.55% |
Max Drawdown (10Y)Largest decline over 10 years | -41.13% | — | — |
Current DrawdownCurrent decline from peak | 0.00% | -24.27% | +24.27% |
Average DrawdownAverage peak-to-trough decline | -10.76% | -46.12% | +35.36% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.12% | 6.87% | -3.75% |
Volatility
IWM vs. AA - Volatility Comparison
The current volatility for iShares Russell 2000 ETF (IWM) is 7.16%, while Alcoa Corporation (AA) has a volatility of 21.35%. This indicates that IWM experiences smaller price fluctuations and is considered to be less risky than AA based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| IWM | AA | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 7.16% | 21.35% | -14.19% |
Volatility (6M)Calculated over the trailing 6-month period | 14.29% | 41.11% | -26.82% |
Volatility (1Y)Calculated over the trailing 1-year period | 19.73% | 54.44% | -34.71% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 22.61% | 56.26% | -33.65% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 23.08% | 55.66% | -32.58% |
Dividends
IWM vs. AA - Dividend Comparison
IWM's dividend yield for the trailing twelve months is around 0.87%, more than AA's 0.58% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
AA Alcoa Corporation | 0.58% | 0.75% | 1.06% | 1.18% | 0.88% | 0.17% | 0.00% | 0.00% | 0.00% | 0.00% | 0.32% | 0.00% |
IWM iShares Russell 2000 ETF | 0.87% | 1.04% | 1.15% | 1.35% | 1.48% | 0.94% | 1.04% | 1.26% | 1.40% | 1.26% | 1.38% | 1.54% |
Frequently Asked Questions
IWM and AA have a correlation of 0.47, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
AA has higher volatility (21.35%) compared to IWM (7.16%). In terms of maximum drawdown, IWM dropped -59.05% vs AA's -90.90%.
AA currently has the higher Sharpe Ratio (2.60 vs 1.99), 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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