IWM vs. BND
IWM (iShares Russell 2000 ETF) and BND (Vanguard Total Bond Market ETF) are both exchange-traded funds - IWM is a Small Cap Blend Equities fund tracking the Russell 2000 Index, while BND is a Total Bond Market fund tracking the Bloomberg U.S. Aggregate Float Adjusted Index. Both are passively managed. Over the past 10 years, IWM returned 11.14%/yr vs 1.60%/yr for BND. At a correlation of -0.13, they often move in opposite directions. IWM charges 0.19%/yr vs 0.03%/yr for BND.
Performance
IWM vs. BND - Performance Comparison
Loading charts...
Returns By Period
In the year-to-date period, IWM achieves a 18.19% return, which is significantly higher than BND's 0.64% return. Over the past 10 years, IWM has outperformed BND with an annualized return of 11.14%, while BND has yielded a comparatively lower 1.60% annualized return.
IWM
- 1D
- 2.96%
- 1M
- 2.77%
- YTD
- 18.19%
- 6M
- 13.23%
- 1Y
- 37.41%
- 3Y*
- 17.34%
- 5Y*
- 5.88%
- 10Y*
- 11.14%
BND
- 1D
- 0.58%
- 1M
- 0.58%
- YTD
- 0.64%
- 6M
- 0.72%
- 1Y
- 4.91%
- 3Y*
- 4.06%
- 5Y*
- 0.06%
- 10Y*
- 1.60%
IWM vs. BND - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
IWM iShares Russell 2000 ETF | 18.19% | 12.66% | 11.38% | 16.83% | -20.48% | 14.54% | 20.03% | 25.39% | -11.12% | 14.58% |
BND Vanguard Total Bond Market ETF | 0.64% | 7.08% | 1.38% | 5.65% | -13.11% | -1.86% | 7.71% | 8.84% | -0.12% | 3.57% |
Correlation
The correlation between IWM and BND is 0.34, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.34 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.28 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.19 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.04 |
Correlation (All Time) Calculated using the full available price history since Apr 10, 2007 | -0.13 |
The correlation between IWM and BND shifts across timeframes, from -0.13 (all time) to 0.34 (1 year), reflecting how their relationship changes across market environments.
Compare stocks, funds, or ETFs
Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.
Return for Risk
IWM vs. BND — Risk / Return Rank
IWM
BND
IWM vs. BND - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Russell 2000 ETF (IWM) and Vanguard Total Bond Market ETF (BND). 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 | BND | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.59 | ||
| Sortino ratioReturn per unit of downside risk | +0.67 | ||
| Omega ratioGain probability vs. loss probability | 1.31 | 1.23 | +0.08 |
| Calmar ratioReturn relative to maximum drawdown | 3.41 | 1.84 | +1.56 |
| Martin ratioReturn relative to average drawdown | 12.04 | 5.38 | +6.65 |
Loading charts...
Drawdowns
IWM vs. BND - Drawdown Comparison
The maximum IWM drawdown since its inception was -59.05%, which is greater than BND's maximum drawdown of -18.58%. Use the drawdown chart below to compare losses from any high point for IWM and BND.
Loading charts...
Drawdown Indicators
| IWM | BND | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -59.05% | -18.58% | -40.47% |
Max Drawdown (1Y)Largest decline over 1 year | -11.03% | -2.68% | -8.35% |
Max Drawdown (3Y)Largest decline over 3 years | -27.50% | -5.92% | -21.58% |
Max Drawdown (5Y)Largest decline over 5 years | -31.91% | -17.91% | -14.00% |
Max Drawdown (10Y)Largest decline over 10 years | -41.13% | -18.58% | -22.55% |
Current DrawdownCurrent decline from peak | -0.55% | -2.00% | +1.45% |
Average DrawdownAverage peak-to-trough decline | -10.76% | -3.06% | -7.70% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.12% | 0.91% | +2.21% |
Volatility
IWM vs. BND - Volatility Comparison
iShares Russell 2000 ETF (IWM) has a higher volatility of 7.12% compared to Vanguard Total Bond Market ETF (BND) at 1.27%. This indicates that IWM's price experiences larger fluctuations and is considered to be riskier than BND based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
Loading charts...
Volatility by Period
| IWM | BND | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 7.12% | 1.27% | +5.85% |
Volatility (6M)Calculated over the trailing 6-month period | 14.32% | 2.75% | +11.57% |
Volatility (1Y)Calculated over the trailing 1-year period | 19.72% | 3.75% | +15.97% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 22.61% | 6.03% | +16.58% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 23.08% | 5.53% | +17.55% |
IWM vs. BND - Expense Ratio Comparison
IWM has a 0.19% expense ratio, which is higher than BND's 0.03% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Dividends
IWM vs. BND - Dividend Comparison
IWM's dividend yield for the trailing twelve months is around 0.87%, less than BND's 3.95% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
BND Vanguard Total Bond Market ETF | 3.95% | 3.86% | 3.67% | 3.09% | 2.60% | 2.12% | 2.38% | 2.72% | 2.81% | 2.54% | 2.51% | 2.57% |
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 BND have a correlation of 0.34, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
IWM has higher volatility (7.12%) compared to BND (1.27%). In terms of maximum drawdown, IWM dropped -59.05% vs BND's -18.58%.
On 10-year performance, IWM leads with 11.14% vs 1.60% for BND. On fees, BND is cheaper at 0.03% per year. On volatility, BND has been the lower-risk option at 1.27%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, IWM has performed better with a 11.14% return vs 1.60%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
BND is cheaper with a 0.03% expense ratio, compared with 0.19% for IWM.
BND has the higher dividend yield at 3.95%, compared with 0.87% for IWM.
IWM is categorized as Small Cap Blend Equities, while BND is Total Bond Market. IWM tracks Russell 2000 Index, while BND tracks Bloomberg U.S. Aggregate Float Adjusted Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.19% for IWM and 0.03% for BND.
IWM currently has the higher Sharpe Ratio (1.91 vs 1.32), 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.
Find the right allocation for IWM and BND
Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.
Open Portfolio Optimizer