IWM vs. FRDM
IWM (iShares Russell 2000 ETF) and FRDM (Freedom 100 Emerging Markets ETF) are both exchange-traded funds - IWM is a Small Cap Blend Equities fund tracking the Russell 2000 Index, while FRDM is a Emerging Markets Diversified fund tracking the Life + Liberty Freedom 100 Emerging Markets Index. Both are passively managed. Over the past 5 years, IWM returned 6.07%/yr vs 18.68%/yr for FRDM. A 0.63 correlation means they provide meaningful diversification when combined. IWM charges 0.19%/yr vs 0.49%/yr for FRDM.
Performance
IWM vs. FRDM - 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 FRDM's 40.13% return.
IWM
- 1D
- 0.87%
- 1M
- 5.53%
- YTD
- 19.22%
- 6M
- 16.00%
- 1Y
- 41.75%
- 3Y*
- 17.23%
- 5Y*
- 6.07%
- 10Y*
- 11.27%
FRDM
- 1D
- 0.49%
- 1M
- 9.04%
- YTD
- 40.13%
- 6M
- 46.37%
- 1Y
- 87.32%
- 3Y*
- 34.29%
- 5Y*
- 18.68%
- 10Y*
- —
IWM vs. FRDM - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | |
|---|---|---|---|---|---|---|---|---|
IWM iShares Russell 2000 ETF | 19.22% | 12.66% | 11.38% | 16.83% | -20.48% | 14.54% | 20.03% | 9.78% |
FRDM Freedom 100 Emerging Markets ETF | 40.13% | 61.27% | 1.70% | 22.77% | -14.45% | 6.13% | 16.90% | 12.23% |
Correlation
The correlation between IWM and FRDM is 0.66, 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 | 0.66 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.61 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.64 |
Correlation (All Time) Calculated using the full available price history since May 23, 2019 | 0.63 |
The correlation between IWM and FRDM has been stable across timeframes, ranging from 0.61 to 0.66 - a consistent structural relationship.
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Return for Risk
IWM vs. FRDM — Risk / Return Rank
IWM
FRDM
IWM vs. FRDM - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Russell 2000 ETF (IWM) and Freedom 100 Emerging Markets ETF (FRDM). 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 | FRDM | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.16 | ||
| Sortino ratioReturn per unit of downside risk | -0.93 | ||
| Omega ratioGain probability vs. loss probability | 1.33 | 1.54 | -0.22 |
| Calmar ratioReturn relative to maximum drawdown | 3.57 | 5.02 | -1.45 |
| Martin ratioReturn relative to average drawdown | 12.63 | 19.36 | -6.74 |
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Drawdowns
IWM vs. FRDM - Drawdown Comparison
The maximum IWM drawdown since its inception was -59.05%, which is greater than FRDM's maximum drawdown of -40.49%. Use the drawdown chart below to compare losses from any high point for IWM and FRDM.
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Drawdown Indicators
| IWM | FRDM | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -59.05% | -40.49% | -18.56% |
Max Drawdown (1Y)Largest decline over 1 year | -11.03% | -16.87% | +5.84% |
Max Drawdown (3Y)Largest decline over 3 years | -27.50% | -16.87% | -10.63% |
Max Drawdown (5Y)Largest decline over 5 years | -31.91% | -29.25% | -2.66% |
Max Drawdown (10Y)Largest decline over 10 years | -41.13% | — | — |
Current DrawdownCurrent decline from peak | 0.00% | -4.36% | +4.36% |
Average DrawdownAverage peak-to-trough decline | -10.76% | -7.09% | -3.67% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.12% | 4.37% | -1.25% |
Volatility
IWM vs. FRDM - Volatility Comparison
The current volatility for iShares Russell 2000 ETF (IWM) is 7.16%, while Freedom 100 Emerging Markets ETF (FRDM) has a volatility of 14.27%. This indicates that IWM experiences smaller price fluctuations and is considered to be less risky than FRDM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| IWM | FRDM | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 7.16% | 14.27% | -7.11% |
Volatility (6M)Calculated over the trailing 6-month period | 14.29% | 24.39% | -10.10% |
Volatility (1Y)Calculated over the trailing 1-year period | 19.73% | 26.86% | -7.13% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 22.61% | 21.35% | +1.26% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 23.08% | 23.09% | -0.01% |
IWM vs. FRDM - Expense Ratio Comparison
IWM has a 0.19% expense ratio, which is lower than FRDM's 0.49% expense ratio.
Dividends
IWM vs. FRDM - Dividend Comparison
IWM's dividend yield for the trailing twelve months is around 0.87%, less than FRDM's 1.56% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
FRDM Freedom 100 Emerging Markets ETF | 1.56% | 2.26% | 2.53% | 2.66% | 2.72% | 2.17% | 1.11% | 1.07% | 0.00% | 0.00% | 0.00% | 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 FRDM have a correlation of 0.66, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
FRDM has higher volatility (14.27%) compared to IWM (7.16%). In terms of maximum drawdown, IWM dropped -59.05% vs FRDM's -40.49%.
On 5-year performance, FRDM leads with 18.68% vs 6.07% for IWM. On fees, IWM is cheaper at 0.19% per year. On volatility, IWM has been the lower-risk option at 7.16%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 5-year period, FRDM has performed better with a 18.68% return vs 6.07%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
IWM is cheaper with a 0.19% expense ratio, compared with 0.49% for FRDM.
FRDM has the higher dividend yield at 1.56%, compared with 0.87% for IWM.
IWM is categorized as Small Cap Blend Equities, while FRDM is Emerging Markets Diversified. IWM tracks Russell 2000 Index, while FRDM tracks Life + Liberty Freedom 100 Emerging Markets Index. They also come from different issuers: iShares and Freedom Funds. Their fees differ too: 0.19% for IWM and 0.49% for FRDM.
FRDM currently has the higher Sharpe Ratio (3.15 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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