IWM vs. ADP
IWM (iShares Russell 2000 ETF) is Small Cap Blend Equities fund tracking the Russell 2000 Index, while ADP (Automatic Data Processing, Inc.) is a stock. Over the past 10 years, IWM returned 10.78%/yr vs 12.50%/yr for ADP. A 0.54 correlation means they provide meaningful diversification when combined.
Performance
IWM vs. ADP - Performance Comparison
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Returns By Period
In the year-to-date period, IWM achieves a 15.62% return, which is significantly higher than ADP's -10.21% return. Over the past 10 years, IWM has underperformed ADP with an annualized return of 10.78%, while ADP has yielded a comparatively higher 12.50% 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%
ADP
- 1D
- -1.24%
- 1M
- 7.55%
- YTD
- -10.21%
- 6M
- -10.14%
- 1Y
- -28.14%
- 3Y*
- 4.26%
- 5Y*
- 5.16%
- 10Y*
- 12.50%
IWM vs. ADP - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
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% |
ADP Automatic Data Processing, Inc. | -10.21% | -10.18% | 28.41% | -0.25% | -1.29% | 42.60% | 5.86% | 32.71% | 14.25% | 16.54% |
Correlation
The correlation between IWM and ADP is 0.16, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.16 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.30 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.45 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.49 |
Correlation (All Time) Calculated using the full available price history since May 30, 2000 | 0.54 |
Over the past year, the correlation between IWM and ADP has dropped to 0.16 - well below their long-term average of 0.54, suggesting their price drivers have been diverging.
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Return for Risk
IWM vs. ADP — Risk / Return Rank
IWM
ADP
IWM vs. ADP - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Russell 2000 ETF (IWM) and Automatic Data Processing, Inc. (ADP). 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 | ADP | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +2.99 | ||
| Sortino ratioReturn per unit of downside risk | +4.22 | ||
| Omega ratioGain probability vs. loss probability | 1.30 | 0.80 | +0.50 |
| Calmar ratioReturn relative to maximum drawdown | 3.24 | -0.72 | +3.96 |
| Martin ratioReturn relative to average drawdown | 11.44 | -1.33 | +12.76 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| IWM | ADP | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.83 | -1.16 | +2.99 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.24 | 0.24 | +0.01 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.47 | 0.51 | -0.04 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.36 | 0.54 | -0.18 |
Drawdowns
IWM vs. ADP - Drawdown Comparison
The maximum IWM drawdown since its inception was -59.05%, roughly equal to the maximum ADP drawdown of -59.51%. Use the drawdown chart below to compare losses from any high point for IWM and ADP.
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Drawdown Indicators
| IWM | ADP | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -59.05% | -59.51% | +0.46% |
Max Drawdown (1Y)Largest decline over 1 year | -11.03% | -39.25% | +28.22% |
Max Drawdown (3Y)Largest decline over 3 years | -27.50% | -40.78% | +13.28% |
Max Drawdown (5Y)Largest decline over 5 years | -31.91% | -40.78% | +8.87% |
Max Drawdown (10Y)Largest decline over 10 years | -41.13% | -40.78% | -0.35% |
Current DrawdownCurrent decline from peak | -2.71% | -28.14% | +25.43% |
Average DrawdownAverage peak-to-trough decline | -10.76% | -12.59% | +1.83% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.11% | 22.88% | -19.77% |
Volatility
IWM vs. ADP - Volatility Comparison
The current volatility for iShares Russell 2000 ETF (IWM) is 6.52%, while Automatic Data Processing, Inc. (ADP) has a volatility of 9.30%. This indicates that IWM experiences smaller price fluctuations and is considered to be less risky than ADP based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| IWM | ADP | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 6.52% | 9.30% | -2.78% |
Volatility (6M)Calculated over the trailing 6-month period | 14.00% | 20.42% | -6.42% |
Volatility (1Y)Calculated over the trailing 1-year period | 19.53% | 24.35% | -4.82% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 22.58% | 22.05% | +0.53% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 23.07% | 24.48% | -1.41% |
Dividends
IWM vs. ADP - Dividend Comparison
IWM's dividend yield for the trailing twelve months is around 0.89%, less than ADP's 2.83% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
ADP Automatic Data Processing, Inc. | 2.83% | 2.46% | 1.96% | 2.21% | 1.83% | 1.55% | 2.08% | 1.92% | 2.14% | 2.00% | 2.10% | 2.36% |
IWM iShares Russell 2000 ETF | 0.89% | 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 ADP have a correlation of 0.16, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
ADP has higher volatility (9.30%) compared to IWM (6.52%). In terms of maximum drawdown, IWM dropped -59.05% vs ADP's -59.51%.
IWM currently has the higher Sharpe Ratio (1.83 vs -1.16), 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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