IWM vs. IWO
IWM (iShares Russell 2000 ETF) and IWO (iShares Russell 2000 Growth ETF) are both exchange-traded funds - IWM is a Small Cap Blend Equities fund tracking the Russell 2000 Index, while IWO is a Small Cap Growth Equities fund tracking the Russell 2000 Growth Index. Both are passively managed. Over the past 10 years, IWM returned 10.63%/yr vs 10.67%/yr for IWO. Their 0.97 correlation means they have historically moved very closely together. IWM charges 0.19%/yr vs 0.24%/yr for IWO.
Performance
IWM vs. IWO - Performance Comparison
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Returns By Period
In the year-to-date period, IWM achieves a 20.84% return, which is significantly higher than IWO's 17.27% return. Both investments have delivered pretty close results over the past 10 years, with IWM having a 10.63% annualized return and IWO not far ahead at 10.67%.
IWM
- 1D
- 1.72%
- 1M
- -0.46%
- 6M
- 13.45%
- YTD
- 20.84%
- 1Y
- 39.26%
- 3Y*
- 16.48%
- 5Y*
- 7.64%
- 10Y*
- 10.63%
- ALL TIME*
- 8.80%
IWO
- 1D
- 2.04%
- 1M
- -2.21%
- 6M
- 11.59%
- YTD
- 17.27%
- 1Y
- 33.62%
- 3Y*
- 16.12%
- 5Y*
- 5.59%
- 10Y*
- 10.67%
- ALL TIME*
- 6.96%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $6.77B | $6.36B | $7.44B | |
| $174.90M | $159.43M | $166.26M |
IWM vs. IWO - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
IWM iShares Russell 2000 ETF | 20.84% | 12.66% | 11.38% | 16.83% | -20.48% | 14.54% | 20.03% | 25.39% | -11.12% | 14.58% |
IWO iShares Russell 2000 Growth ETF | 17.27% | 12.90% | 15.04% | 18.51% | -26.27% | 2.54% | 34.68% | 28.48% | -9.43% | 22.25% |
Correlation
The correlation between IWM and IWO is 0.97 - they have historically moved very closely together. At this level, their price movements offset little of one another.
| Correlation | |
|---|---|
Correlation (1Y) Focuses on recent behavior, but can change the most. | 0.97 |
Correlation (3Y) Balances recent behavior with more history. | 0.97 |
Correlation (5Y) Shows whether the relationship held over a longer period. | 0.98 |
Correlation (10Y) Provides a long-term view across more market conditions. | 0.97 |
Correlation (All Time) Calculated using the full available price history since Jul 28, 2000 | 0.97 |
The correlation between IWM and IWO has been stable across timeframes, ranging from 0.97 to 0.98 - a consistent structural relationship.
IWM vs. IWO - Sectors Allocation Comparison
Sectors
IWM
IWO
Healthcare
Financial Services
Industrials
Technology
Consumer Cyclical
Real Estate
Energy
Basic Materials
Utilities
Consumer Defensive
Communication Services
Healthcare
IWM
IWO
Financial Services
IWM
IWO
Industrials
IWM
IWO
Technology
IWM
IWO
Consumer Cyclical
IWM
IWO
Real Estate
IWM
IWO
Energy
IWM
IWO
Basic Materials
IWM
IWO
Utilities
IWM
IWO
Consumer Defensive
IWM
IWO
Communication Services
IWM
IWO
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Return for Risk
IWM vs. IWO — Risk / Return Rank
IWM
IWO
IWM vs. IWO - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Russell 2000 ETF (IWM) and iShares Russell 2000 Growth ETF (IWO). 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 | IWO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.53 | ||
| Sortino ratioReturn per unit of downside risk | +0.72 | ||
| Omega ratioGain probability vs. loss probability | 1.34 | 1.25 | +0.09 |
| Calmar ratioReturn relative to maximum drawdown | 3.58 | 2.27 | +1.31 |
| Martin ratioReturn relative to average drawdown | 12.68 | 7.79 | +4.88 |
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Drawdowns
IWM vs. IWO - Drawdown Comparison
The maximum IWM drawdown since its inception was -59.05%, roughly equal to the maximum IWO drawdown of -60.11%. Use the drawdown chart below to compare losses from any high point for IWM and IWO.
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Drawdown Indicators
| IWM | IWO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -59.05% | -60.11% | +1.06% |
Max Drawdown (1Y)Largest decline over 1 year | -11.03% | -14.87% | +3.84% |
Max Drawdown (3Y)Largest decline over 3 years | -27.50% | -28.57% | +1.07% |
Max Drawdown (5Y)Largest decline over 5 years | -31.91% | -40.51% | +8.60% |
Max Drawdown (10Y)Largest decline over 10 years | -41.13% | -42.02% | +0.89% |
Current DrawdownCurrent decline from peak | -1.41% | -3.99% | +2.58% |
Average DrawdownAverage peak-to-trough decline | -10.71% | -16.62% | +5.91% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.11% | 4.32% | -1.21% |
Volatility
IWM vs. IWO - Volatility Comparison
The current volatility for iShares Russell 2000 ETF (IWM) is 4.21%, while iShares Russell 2000 Growth ETF (IWO) has a volatility of 6.16%. This indicates that IWM experiences smaller price fluctuations and is considered to be less risky than IWO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| IWM | IWO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 4.21% | 6.16% | -1.95% |
Volatility (6M)Calculated over the trailing 6-month period | 14.13% | 17.08% | -2.95% |
Volatility (1Y)Calculated over the trailing 1-year period | 19.36% | 22.41% | -3.05% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 22.50% | 24.64% | -2.14% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 23.02% | 24.19% | -1.17% |
IWM vs. IWO - Expense Ratio Comparison
IWM has a 0.19% expense ratio, which is lower than IWO's 0.24% expense ratio. Despite the difference, 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. IWO - Dividend Comparison
IWM's dividend yield for the trailing twelve months is around 0.90%, more than IWO's 0.43% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IWM iShares Russell 2000 ETF | 0.90% | 1.04% | 1.15% | 1.35% | 1.48% | 0.94% | 1.04% | 1.26% | 1.40% | 1.26% | 1.38% | 1.54% |
IWO iShares Russell 2000 Growth ETF | 0.43% | 0.56% | 0.80% | 0.73% | 0.73% | 0.32% | 0.44% | 0.71% | 0.76% | 0.73% | 0.97% | 0.89% |
Frequently Asked Questions
With a correlation of 0.97, IWM and IWO move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.
IWO has higher volatility (6.16%) compared to IWM (4.21%). In terms of maximum drawdown, IWM dropped -59.05% vs IWO's -60.11%.
On 10-year performance, IWO leads with 10.67% vs 10.63% for IWM. On fees, IWM is cheaper at 0.19% per year. On volatility, IWM has been the lower-risk option at 4.21%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, IWO has performed better with a 10.67% return vs 10.63%. 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 0.24% for IWO.
IWM has the higher dividend yield at 0.90%, compared with 0.43% for IWO.
IWM is categorized as Small Cap Blend Equities, while IWO is Small Cap Growth Equities. IWM tracks Russell 2000 Index, while IWO tracks Russell 2000 Growth Index. Their fees differ too: 0.19% for IWM and 0.24% for IWO.
IWM currently has the higher Sharpe Ratio (2.04 vs 1.51), 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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