IWM vs. IEF
IWM (iShares Russell 2000 ETF) and IEF (iShares 7-10 Year Treasury Bond ETF) are both exchange-traded funds - IWM is a Small Cap Blend Equities fund tracking the Russell 2000 Index, while IEF is a Government Bonds fund tracking the ICE U.S. Treasury 7-10 Year Bond Index. Both are passively managed. Over the past 10 years, IWM returned 10.78%/yr vs 0.53%/yr for IEF. At a correlation of -0.25, they often move in opposite directions. IWM charges 0.19%/yr vs 0.15%/yr for IEF.
Performance
IWM vs. IEF - Performance Comparison
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Returns By Period
In the year-to-date period, IWM achieves a 15.62% return, which is significantly higher than IEF's -1.16% return. Over the past 10 years, IWM has outperformed IEF with an annualized return of 10.78%, while IEF has yielded a comparatively lower 0.53% annualized return.
IWM
- 1D
- 0.87%
- 1M
- -0.02%
- YTD
- 15.62%
- 6M
- 13.83%
- 1Y
- 35.52%
- 3Y*
- 16.64%
- 5Y*
- 5.48%
- 10Y*
- 10.78%
IEF
- 1D
- -0.11%
- 1M
- -1.19%
- YTD
- -1.16%
- 6M
- -0.96%
- 1Y
- 3.91%
- 3Y*
- 2.43%
- 5Y*
- -1.34%
- 10Y*
- 0.53%
IWM vs. IEF - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
IWM iShares Russell 2000 ETF | 15.62% | 12.66% | 11.38% | 16.83% | -20.48% | 14.54% | 20.03% | 25.39% | -11.12% | 14.58% |
IEF iShares 7-10 Year Treasury Bond ETF | -1.16% | 8.03% | -0.63% | 3.64% | -15.15% | -3.33% | 10.01% | 8.03% | 0.99% | 2.55% |
Correlation
The correlation between IWM and IEF is 0.25, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.25 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.21 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.09 |
Correlation (10Y) Calculated over the trailing 10-year period | -0.08 |
Correlation (All Time) Calculated using the full available price history since Jul 29, 2002 | -0.25 |
The correlation between IWM and IEF shifts across timeframes, from -0.25 (all time) to 0.25 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
IWM vs. IEF — Risk / Return Rank
IWM
IEF
IWM vs. IEF - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Russell 2000 ETF (IWM) and iShares 7-10 Year Treasury Bond ETF (IEF). 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.
| IWM | IEF | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.99 | ||
| Sortino ratioReturn per unit of downside risk | +1.28 | ||
| Omega ratioGain probability vs. loss probability | 1.30 | 1.14 | +0.16 |
| Calmar ratioReturn relative to maximum drawdown | 3.24 | 0.96 | +2.27 |
| Martin ratioReturn relative to average drawdown | 11.44 | 2.79 | +8.65 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| IWM | IEF | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.83 | 0.84 | +0.99 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.24 | -0.17 | +0.42 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.47 | 0.08 | +0.39 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.36 | 0.50 | -0.13 |
Drawdowns
IWM vs. IEF - Drawdown Comparison
The maximum IWM drawdown since its inception was -59.05%, which is greater than IEF's maximum drawdown of -23.93%. Use the drawdown chart below to compare losses from any high point for IWM and IEF.
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Drawdown Indicators
| IWM | IEF | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -59.05% | -23.93% | -35.12% |
Max Drawdown (1Y)Largest decline over 1 year | -11.03% | -4.07% | -6.96% |
Max Drawdown (3Y)Largest decline over 3 years | -27.50% | -7.74% | -19.76% |
Max Drawdown (5Y)Largest decline over 5 years | -31.91% | -21.40% | -10.51% |
Max Drawdown (10Y)Largest decline over 10 years | -41.13% | -23.93% | -17.20% |
Current DrawdownCurrent decline from peak | -2.71% | -11.80% | +9.09% |
Average DrawdownAverage peak-to-trough decline | -10.76% | -5.35% | -5.41% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.11% | 1.40% | +1.71% |
Volatility
IWM vs. IEF - Volatility Comparison
iShares Russell 2000 ETF (IWM) has a higher volatility of 6.52% compared to iShares 7-10 Year Treasury Bond ETF (IEF) at 1.51%. This indicates that IWM's price experiences larger fluctuations and is considered to be riskier than IEF based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| IWM | IEF | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 6.52% | 1.51% | +5.01% |
Volatility (6M)Calculated over the trailing 6-month period | 14.00% | 3.36% | +10.64% |
Volatility (1Y)Calculated over the trailing 1-year period | 19.53% | 4.69% | +14.84% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 22.58% | 7.71% | +14.87% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 23.07% | 6.63% | +16.44% |
IWM vs. IEF - Expense Ratio Comparison
IWM has a 0.19% expense ratio, which is higher than IEF's 0.15% 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. IEF - Dividend Comparison
IWM's dividend yield for the trailing twelve months is around 0.89%, less than IEF's 3.92% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IEF iShares 7-10 Year Treasury Bond ETF | 3.92% | 3.77% | 3.62% | 2.91% | 1.96% | 0.83% | 1.08% | 2.08% | 2.24% | 1.82% | 1.81% | 1.90% |
IWM iShares Russell 2000 ETF | 0.89% | 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 IEF have a correlation of 0.25, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
IWM has higher volatility (6.52%) compared to IEF (1.51%). In terms of maximum drawdown, IWM dropped -59.05% vs IEF's -23.93%.
On 10-year performance, IWM leads with 10.78% vs 0.53% for IEF. On fees, IEF is cheaper at 0.15% per year. On volatility, IEF has been the lower-risk option at 1.51%. 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 10.78% return vs 0.53%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
IEF is cheaper with a 0.15% expense ratio, compared with 0.19% for IWM.
IEF has the higher dividend yield at 3.92%, compared with 0.89% for IWM.
IWM is categorized as Small Cap Blend Equities, while IEF is Government Bonds. IWM tracks Russell 2000 Index, while IEF tracks ICE U.S. Treasury 7-10 Year Bond Index. Their fees differ too: 0.19% for IWM and 0.15% for IEF.
IWM currently has the higher Sharpe Ratio (1.83 vs 0.84), 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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