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 10.65%/yr vs 7.64%/yr for IBM. A 0.54 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 19.24% return, which is significantly higher than IBM's -27.15% return. Over the past 10 years, IWM has outperformed IBM with an annualized return of 10.65%, while IBM has yielded a comparatively lower 7.64% annualized return.
IWM
- 1D
- -0.59%
- 1M
- -1.11%
- 6M
- 10.45%
- YTD
- 19.24%
- 1Y
- 32.84%
- 3Y*
- 15.91%
- 5Y*
- 6.97%
- 10Y*
- 10.65%
- ALL TIME*
- 8.76%
IBM
- 1D
- 0.16%
- 1M
- -14.49%
- 6M
- -29.40%
- YTD
- -27.15%
- 1Y
- -23.58%
- 3Y*
- 19.09%
- 5Y*
- 13.91%
- 10Y*
- 7.64%
- ALL TIME*
- 7.00%
IWM vs. IBM - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
IWM iShares Russell 2000 ETF | 19.24% | 12.66% | 11.38% | 16.83% | -20.48% | 14.54% | 20.03% | 25.39% | -11.12% | 14.58% |
IBM International Business Machines Corporation | -27.15% | 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 0.26, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.26 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.36 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.42 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.48 |
Correlation (All Time) Calculated using the full available price history since May 26, 2000 | 0.54 |
Over the past year, the correlation between IWM and IBM has dropped to 0.26 - well below their long-term average of 0.54, 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 | +2.20 | ||
| Sortino ratioReturn per unit of downside risk | +2.82 | ||
| Omega ratioGain probability vs. loss probability | 1.29 | 0.94 | +0.35 |
| Calmar ratioReturn relative to maximum drawdown | 2.99 | -0.66 | +3.65 |
| Martin ratioReturn relative to average drawdown | 10.54 | -1.53 | +12.08 |
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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% | -35.85% | +24.82% |
Max Drawdown (3Y)Largest decline over 3 years | -27.50% | -35.85% | +8.35% |
Max Drawdown (5Y)Largest decline over 5 years | -31.91% | -35.85% | +3.94% |
Max Drawdown (10Y)Largest decline over 10 years | -41.13% | -40.59% | -0.54% |
Current DrawdownCurrent decline from peak | -2.71% | -35.30% | +32.59% |
Average DrawdownAverage peak-to-trough decline | -10.72% | -20.12% | +9.40% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.12% | 15.44% | -12.32% |
Volatility
IWM vs. IBM - Volatility Comparison
The current volatility for iShares Russell 2000 ETF (IWM) is 3.62%, while International Business Machines Corporation (IBM) has a volatility of 32.02%. 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 | 3.62% | 32.02% | -28.40% |
Volatility (6M)Calculated over the trailing 6-month period | 14.17% | 46.34% | -32.17% |
Volatility (1Y)Calculated over the trailing 1-year period | 19.38% | 48.36% | -28.98% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 22.49% | 29.86% | -7.37% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 23.00% | 27.97% | -4.97% |
Dividends
IWM vs. IBM - Dividend Comparison
IWM's dividend yield for the trailing twelve months is around 0.91%, less than IBM's 3.16% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IBM International Business Machines Corporation | 3.16% | 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 | 0.91% | 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 0.26, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
IBM has higher volatility (32.02%) compared to IWM (3.62%). In terms of maximum drawdown, IWM dropped -59.05% vs IBM's -69.40%.
IWM currently has the higher Sharpe Ratio (1.71 vs -0.49), 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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