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IWM vs. HDV
Performance
Return for Risk
Drawdowns
Volatility
Dividends

IWM vs. HDV

Last updated Jun 16, 2026

IWM (iShares Russell 2000 ETF) and HDV (iShares Core High Dividend ETF) are both exchange-traded funds - IWM is a Small Cap Blend Equities fund tracking the Russell 2000 Index, while HDV is a Dividend fund tracking the Morningstar Dividend Yield Focus Index. Both are passively managed. Over the past 10 years, IWM returned 11.40%/yr vs 9.36%/yr for HDV. A 0.64 correlation means they provide meaningful diversification when combined. IWM charges 0.19%/yr vs 0.08%/yr for HDV.

Performance

IWM vs. HDV - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Russell 2000 ETF (IWM) and iShares Core High Dividend ETF (HDV). The values are adjusted to include any dividend payments, if applicable.

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Returns By Period

In the year-to-date period, IWM achieves a 20.19% return, which is significantly higher than HDV's 14.11% return. Over the past 10 years, IWM has outperformed HDV with an annualized return of 11.40%, while HDV has yielded a comparatively lower 9.36% annualized 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%

HDV

1D
-1.03%
1M
1.04%
YTD
14.11%
6M
13.57%
1Y
20.60%
3Y*
14.34%
5Y*
10.83%
10Y*
9.36%
*Multi-year figures are annualized to reflect compound growth (CAGR)

IWM vs. HDV - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
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%
HDV
iShares Core High Dividend ETF		14.11%11.90%14.16%1.72%7.05%19.45%-6.48%20.22%-3.01%13.40%

Correlation

The correlation between IWM and HDV is 0.27, which is low. Their price movements are largely independent, making them effective diversification partners.

Correlation
Correlation (1Y)
Calculated over the trailing 1-year period

0.27

Correlation (3Y)
Calculated over the trailing 3-year period

0.45

Correlation (5Y)
Calculated over the trailing 5-year period

0.55

Correlation (10Y)
Calculated over the trailing 10-year period

0.60

Correlation (All Time)
Calculated using the full available price history since Mar 31, 2011

0.64

Over the past year, the correlation between IWM and HDV has dropped to 0.27 - well below their long-term average of 0.64, suggesting their price drivers have been diverging.

IWM vs. HDV - Sectors Allocation Comparison

Sectors
IWM
HDV

Technology

19.2%
9.7%

Industrials

17.9%
1.3%

Healthcare

16.3%
17.0%

Financial Services

15.4%
10.8%

Consumer Cyclical

7.9%
6.0%

Real Estate

5.9%

-

Energy

5.4%
21.0%

Basic Materials

4.7%
1.1%

Utilities

2.7%
8.9%

Communication Services

2.5%
0.1%

Consumer Defensive

2.2%
24.2%

Technology

IWM
19.2%
HDV
9.7%

Industrials

IWM
17.9%
HDV
1.3%

Healthcare

IWM
16.3%
HDV
17.0%

Financial Services

IWM
15.4%
HDV
10.8%

Consumer Cyclical

IWM
7.9%
HDV
6.0%

Real Estate

IWM
5.9%
HDV

-

Energy

IWM
5.4%
HDV
21.0%

Basic Materials

IWM
4.7%
HDV
1.1%

Utilities

IWM
2.7%
HDV
8.9%

Communication Services

IWM
2.5%
HDV
0.1%

Consumer Defensive

IWM
2.2%
HDV
24.2%

Compare stocks, funds, or ETFs

Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.

iShares Russell 2000 ETF

iShares Core High Dividend ETF

Often compared with IWM:
IWM vs. SPYIWM vs. VTWOIWM vs. IJRIWM vs. AVUVIWM vs. IWNIWM vs. VOOIWM vs. TNA
Often compared with HDV:
HDV vs. SCHDHDV vs. VYMHDV vs. SPYDHDV vs. DGROHDV vs. DVYHDV vs. VIGHDV vs. SPY

Return for Risk

IWM vs. HDV — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
IWM
IWM Risk / Return Rank: 7676
Overall Rank
IWM Sharpe Ratio Rank: 7777
Sharpe Ratio Rank
IWM Sortino Ratio Rank: 7575
Sortino Ratio Rank
IWM Omega Ratio Rank: 6767
Omega Ratio Rank
IWM Calmar Ratio Rank: 8282
Calmar Ratio Rank
IWM Martin Ratio Rank: 7979
Martin Ratio Rank
HDV
HDV Risk / Return Rank: 7474
Overall Rank
HDV Sharpe Ratio Rank: 7474
Sharpe Ratio Rank
HDV Sortino Ratio Rank: 7979
Sortino Ratio Rank
HDV Omega Ratio Rank: 6868
Omega Ratio Rank
HDV Calmar Ratio Rank: 8383
Calmar Ratio Rank
HDV Martin Ratio Rank: 6767
Martin Ratio Rank
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. HDV - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Russell 2000 ETF (IWM) and iShares Core High Dividend ETF (HDV). 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.

IWMHDVDifference
Sharpe ratioReturn per unit of total volatility
2.20
2.12

+0.08

Sortino ratioReturn per unit of downside risk
2.99
3.12

-0.14

Omega ratioGain probability vs. loss probability

1.36

1.36

0.00

Calmar ratioReturn relative to maximum drawdown

3.91

4.00

-0.09

Martin ratioReturn relative to average drawdown

13.84

11.07

+2.76

IWM vs. HDV - Sharpe Ratio Comparison

The current IWM Sharpe Ratio is 2.20, which is comparable to the HDV Sharpe Ratio of 2.12. The chart below compares the historical Sharpe Ratios of IWM and HDV, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

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Drawdowns

IWM vs. HDV - Drawdown Comparison

The maximum IWM drawdown since its inception was -59.05%, which is greater than HDV's maximum drawdown of -37.04%. Use the drawdown chart below to compare losses from any high point for IWM and HDV.

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Drawdown Indicators

IWMHDVDifference

Max Drawdown

Largest peak-to-trough decline

-59.05%

-37.04%

-22.01%

Max Drawdown (1Y)

Largest decline over 1 year

-11.03%

-5.18%

-5.85%

Max Drawdown (3Y)

Largest decline over 3 years

-27.50%

-10.49%

-17.01%

Max Drawdown (5Y)

Largest decline over 5 years

-31.91%

-15.42%

-16.49%

Max Drawdown (10Y)

Largest decline over 10 years

-41.13%

-37.04%

-4.09%

Current Drawdown

Current decline from peak

0.00%

-1.31%

+1.31%

Average Drawdown

Average peak-to-trough decline

-10.75%

-3.08%

-7.67%

Ulcer Index

Depth and duration of drawdowns from previous peaks

3.11%

1.87%

+1.24%

Volatility

IWM vs. HDV - Volatility Comparison

iShares Russell 2000 ETF (IWM) has a higher volatility of 7.17% compared to iShares Core High Dividend ETF (HDV) at 3.28%. This indicates that IWM's price experiences larger fluctuations and is considered to be riskier than HDV based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

IWMHDVDifference

Volatility (1M)

Calculated over the trailing 1-month period

7.17%

3.28%

+3.89%

Volatility (6M)

Calculated over the trailing 6-month period

14.27%

7.53%

+6.74%

Volatility (1Y)

Calculated over the trailing 1-year period

19.67%

9.79%

+9.88%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

22.62%

12.84%

+9.78%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

23.09%

15.74%

+7.35%

IWM vs. HDV - Expense Ratio Comparison

IWM has a 0.19% expense ratio, which is higher than HDV's 0.08% 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. HDV - Dividend Comparison

IWM's dividend yield for the trailing twelve months is around 1.10%, less than HDV's 3.56% yield.

PositionTTM20252024202320222021202020192018201720162015
HDV
iShares Core High Dividend ETF		3.56%3.22%3.67%3.82%3.56%3.47%4.07%3.27%3.67%3.27%3.28%3.92%
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

IWM and HDV have a correlation of 0.27, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

IWM has higher volatility (7.17%) compared to HDV (3.28%). In terms of maximum drawdown, IWM dropped -59.05% vs HDV's -37.04%.

On 10-year performance, IWM leads with 11.40% vs 9.36% for HDV. On fees, HDV is cheaper at 0.08% per year. On volatility, HDV has been the lower-risk option at 3.28%. 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 11.40% return vs 9.36%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

HDV is cheaper with a 0.08% expense ratio, compared with 0.19% for IWM.

HDV has the higher dividend yield at 3.56%, compared with 1.10% for IWM.

IWM is categorized as Small Cap Blend Equities, while HDV is Dividend. IWM tracks Russell 2000 Index, while HDV tracks Morningstar Dividend Yield Focus Index. Their fees differ too: 0.19% for IWM and 0.08% for HDV.

IWM currently has the higher Sharpe Ratio (2.20 vs 2.12), 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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