IWM vs. ESGD

Last updated Jun 16, 2026

IWM (iShares Russell 2000 ETF) and ESGD (iShares ESG Aware MSCI EAFE ETF) are both exchange-traded funds - IWM is a Small Cap Blend Equities fund tracking the Russell 2000 Index, while ESGD is a Foreign Large Cap Equities fund tracking the MSCI EAFE Extended ESG Focus Index. Both are passively managed. Over the past 5 years, IWM returned 6.41%/yr vs 8.21%/yr for ESGD. A 0.69 correlation means they provide meaningful diversification when combined. IWM charges 0.19%/yr vs 0.20%/yr for ESGD.

Performance

IWM vs. ESGD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Russell 2000 ETF (IWM) and iShares ESG Aware MSCI EAFE ETF (ESGD). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, IWM achieves a 20.19% return, which is significantly higher than ESGD's 9.85% return.

IWM

• 1D: 0.82%
• 1M: 6.39%
• YTD: 20.19%
• 6M: 17.83%
• 1Y: 42.91%
• 3Y*: 17.97%
• 5Y*: 6.41%
• 10Y*: 11.40%

ESGD

• 1D: 0.66%
• 1M: 3.97%
• YTD: 9.85%
• 6M: 10.51%
• 1Y: 21.72%
• 3Y*: 15.36%
• 5Y*: 8.21%
• 10Y*: —

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

IWM vs. ESGD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
IWM iShares Russell 2000 ETF	20.19%	12.66%	11.38%	16.83%	-20.48%	14.54%	20.03%	25.39%	-11.12%	14.58%
ESGD iShares ESG Aware MSCI EAFE ETF	9.85%	29.63%	3.95%	18.53%	-15.17%	11.79%	8.20%	23.12%	-13.33%	25.10%

Correlation

The correlation between IWM and ESGD is 0.72, 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	0.72
Correlation (3Y) Calculated over the trailing 3-year period	0.70
Correlation (5Y) Calculated over the trailing 5-year period	0.73
Correlation (All Time) Calculated using the full available price history since Jun 30, 2016	0.69

The correlation between IWM and ESGD has been stable across timeframes, ranging from 0.69 to 0.73 - a consistent structural relationship.

IWM vs. ESGD - Sectors Allocation Comparison

Sectors	IWM	ESGD
Technology	19.2%	12.6%
Industrials	17.9%	18.2%
Healthcare	16.3%	9.9%
Financial Services	15.4%	25.8%
Consumer Cyclical	7.9%	6.6%
Real Estate	5.9%	1.6%
Energy	5.4%	3.9%
Basic Materials	4.7%	5.5%
Utilities	2.7%	3.7%
Communication Services	2.5%	4.3%
Consumer Defensive	2.2%	7.0%

Return for Risk

IWM vs. ESGD — Risk / Return Rank

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

IWM

IWM Risk / Return Rank: 76
IWM Sharpe Ratio Rank: 77
IWM Sortino Ratio Rank: 75
IWM Omega Ratio Rank: 67
IWM Calmar Ratio Rank: 82
IWM Martin Ratio Rank: 79

ESGD

ESGD Risk / Return Rank: 43
ESGD Sharpe Ratio Rank: 43
ESGD Sortino Ratio Rank: 43
ESGD Omega Ratio Rank: 42
ESGD Calmar Ratio Rank: 41
ESGD Martin Ratio Rank: 46

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. ESGD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Russell 2000 ETF (IWM) and iShares ESG Aware MSCI EAFE ETF (ESGD). 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	ESGD	Difference
Sharpe ratio: Return per unit of total volatility	2.20	1.38	+0.81
Sortino ratio: Return per unit of downside risk	2.99	2.01	+0.98
Omega ratio: Gain probability vs. loss probability	1.36	1.25	+0.11
Calmar ratio: Return relative to maximum drawdown	3.91	1.87	+2.04
Martin ratio: Return relative to average drawdown	13.84	6.97	+6.87

IWM vs. ESGD - Sharpe Ratio Comparison

The current IWM Sharpe Ratio is 2.20, which is higher than the ESGD Sharpe Ratio of 1.38. The chart below compares the historical Sharpe Ratios of IWM and ESGD, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

IWM vs. ESGD - Drawdown Comparison

The maximum IWM drawdown since its inception was -59.05%, which is greater than ESGD's maximum drawdown of -33.70%. Use the drawdown chart below to compare losses from any high point for IWM and ESGD.

Drawdown Indicators

	IWM	ESGD	Difference
Max Drawdown Largest peak-to-trough decline	-59.05%	-33.70%	-25.35%
Max Drawdown (1Y) Largest decline over 1 year	-11.03%	-11.68%	+0.65%
Max Drawdown (3Y) Largest decline over 3 years	-27.50%	-13.86%	-13.64%
Max Drawdown (5Y) Largest decline over 5 years	-31.91%	-30.03%	-1.88%
Max Drawdown (10Y) Largest decline over 10 years	-41.13%	—	—
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-10.75%	-6.17%	-4.58%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.11%	3.13%	-0.02%

Volatility

IWM vs. ESGD - Volatility Comparison

iShares Russell 2000 ETF (IWM) has a higher volatility of 7.17% compared to iShares ESG Aware MSCI EAFE ETF (ESGD) at 5.58%. This indicates that IWM's price experiences larger fluctuations and is considered to be riskier than ESGD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IWM	ESGD	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.17%	5.58%	+1.59%
Volatility (6M) Calculated over the trailing 6-month period	14.27%	13.32%	+0.95%
Volatility (1Y) Calculated over the trailing 1-year period	19.67%	15.82%	+3.85%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	22.62%	16.73%	+5.89%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	23.09%	17.00%	+6.09%

IWM vs. ESGD - Expense Ratio Comparison

IWM has a 0.19% expense ratio, which is lower than ESGD's 0.20% expense ratio. Despite the difference, 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. ESGD - Dividend Comparison

IWM's dividend yield for the trailing twelve months is around 1.10%, less than ESGD's 4.92% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ESGD iShares ESG Aware MSCI EAFE ETF	4.92%	3.60%	3.23%	3.02%	2.59%	2.75%	1.63%	2.57%	2.69%	2.65%	0.09%	0.00%
IWM iShares Russell 2000 ETF	1.10%	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

Can I hold both IWM and ESGD in my portfolio?

IWM and ESGD have a correlation of 0.72, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, IWM or ESGD?

IWM has higher volatility (7.17%) compared to ESGD (5.58%). In terms of maximum drawdown, IWM dropped -59.05% vs ESGD's -33.70%.

Which ETF is better, IWM or ESGD?

On 5-year performance, ESGD leads with 8.21% vs 6.41% for IWM. On fees, IWM is cheaper at 0.19% per year. On volatility, ESGD has been the lower-risk option at 5.58%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IWM or ESGD?

Over the 5-year period, ESGD has performed better with a 8.21% return vs 6.41%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IWM or ESGD?

IWM is cheaper with a 0.19% expense ratio, compared with 0.20% for ESGD.

Which ETF pays a higher dividend yield, IWM or ESGD?

ESGD has the higher dividend yield at 4.92%, compared with 1.10% for IWM.

What is the main difference between IWM and ESGD?

IWM is categorized as Small Cap Blend Equities, while ESGD is Foreign Large Cap Equities. IWM tracks Russell 2000 Index, while ESGD tracks MSCI EAFE Extended ESG Focus Index. Their fees differ too: 0.19% for IWM and 0.20% for ESGD.

Which has better risk-adjusted returns?

IWM currently has the higher Sharpe Ratio (2.20 vs 1.38), 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.