IWM vs. IBM
IWM (iShares Russell 2000 ETF) is Small Cap Blend Equities fund tracking the Russell 2000 Index, while IBM (International Business Machines Corporation) is a stock. Over the past 10 years, IWM returned 11.27%/yr vs 11.09%/yr for IBM. A 0.55 correlation means they provide meaningful diversification when combined.
Performance
IWM vs. IBM - Performance Comparison
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Returns By Period
In the year-to-date period, IWM achieves a 19.22% return, which is significantly higher than IBM's -6.89% return. Both investments have delivered pretty close results over the past 10 years, with IWM having a 11.27% annualized return and IBM not far behind at 11.09%.
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%
IBM
- 1D
- -0.95%
- 1M
- 24.14%
- YTD
- -6.89%
- 6M
- -10.81%
- 1Y
- 0.72%
- 3Y*
- 29.65%
- 5Y*
- 18.01%
- 10Y*
- 11.09%
IWM vs. IBM - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
IWM iShares Russell 2000 ETF | 19.22% | 12.66% | 11.38% | 16.83% | -20.48% | 14.54% | 20.03% | 25.39% | -11.12% | 14.58% |
IBM International Business Machines Corporation | -6.89% | 38.23% | 39.27% | 21.85% | 10.64% | 16.65% | -1.16% | 23.58% | -22.56% | -3.99% |
Correlation
The correlation between IWM and IBM is 0.32, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.32 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.39 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.44 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.50 |
Correlation (All Time) Calculated using the full available price history since May 26, 2000 | 0.55 |
Over the past year, the correlation between IWM and IBM has dropped to 0.32 - well below their long-term average of 0.55, suggesting their price drivers have been diverging.
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Return for Risk
IWM vs. IBM — Risk / Return Rank
IWM
IBM
IWM vs. IBM - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Russell 2000 ETF (IWM) and International Business Machines Corporation (IBM). 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 | IBM | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +2.01 | ||
| Sortino ratioReturn per unit of downside risk | +2.49 | ||
| Omega ratioGain probability vs. loss probability | 1.33 | 1.04 | +0.29 |
| Calmar ratioReturn relative to maximum drawdown | 3.57 | -0.02 | +3.59 |
| Martin ratioReturn relative to average drawdown | 12.63 | -0.05 | +12.67 |
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Drawdowns
IWM vs. IBM - Drawdown Comparison
The maximum IWM drawdown since its inception was -59.05%, smaller than the maximum IBM drawdown of -69.40%. Use the drawdown chart below to compare losses from any high point for IWM and IBM.
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Drawdown Indicators
| IWM | IBM | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -59.05% | -69.40% | +10.35% |
Max Drawdown (1Y)Largest decline over 1 year | -11.03% | -30.96% | +19.93% |
Max Drawdown (3Y)Largest decline over 3 years | -27.50% | -30.96% | +3.46% |
Max Drawdown (5Y)Largest decline over 5 years | -31.91% | -30.96% | -0.95% |
Max Drawdown (10Y)Largest decline over 10 years | -41.13% | -40.59% | -0.54% |
Current DrawdownCurrent decline from peak | 0.00% | -17.31% | +17.31% |
Average DrawdownAverage peak-to-trough decline | -10.76% | -20.12% | +9.36% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.12% | 14.38% | -11.26% |
Volatility
IWM vs. IBM - Volatility Comparison
The current volatility for iShares Russell 2000 ETF (IWM) is 7.16%, while International Business Machines Corporation (IBM) has a volatility of 21.43%. This indicates that IWM experiences smaller price fluctuations and is considered to be less risky than IBM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| IWM | IBM | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 7.16% | 21.43% | -14.27% |
Volatility (6M)Calculated over the trailing 6-month period | 14.29% | 34.62% | -20.33% |
Volatility (1Y)Calculated over the trailing 1-year period | 19.73% | 39.45% | -19.72% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 22.61% | 27.16% | -4.55% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 23.08% | 26.59% | -3.51% |
Dividends
IWM vs. IBM - Dividend Comparison
IWM's dividend yield for the trailing twelve months is around 0.87%, less than IBM's 2.47% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IBM International Business Machines Corporation | 2.47% | 2.27% | 3.03% | 4.05% | 4.68% | 4.74% | 5.17% | 4.80% | 5.46% | 3.85% | 3.31% | 3.63% |
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 IBM have a correlation of 0.32, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
IBM has higher volatility (21.43%) compared to IWM (7.16%). In terms of maximum drawdown, IWM dropped -59.05% vs IBM's -69.40%.
IWM currently has the higher Sharpe Ratio (1.99 vs -0.02), 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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