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IWM vs. IWO
Performance
Return for Risk
Drawdowns
Volatility
Dividends

IWM vs. IWO

Last updated Jun 24, 2026

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 11.58%/yr vs 12.01%/yr for IWO. With a 0.97 correlation, they move nearly in lockstep. IWM charges 0.19%/yr vs 0.24%/yr for IWO.

Performance

IWM vs. IWO - Performance Comparison

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

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Returns By Period

The year-to-date returns for both stocks are quite close, with IWM having a 20.47% return and IWO slightly lower at 20.20%. Both investments have delivered pretty close results over the past 10 years, with IWM having a 11.58% annualized return and IWO not far ahead at 12.01%.

IWM

1D
-0.96%
1M
3.82%
YTD
20.47%
6M
17.64%
1Y
40.90%
3Y*
19.22%
5Y*
6.27%
10Y*
11.58%

IWO

1D
-1.57%
1M
4.24%
YTD
20.20%
6M
16.81%
1Y
39.68%
3Y*
19.15%
5Y*
5.15%
10Y*
12.01%
*Multi-year figures are annualized to reflect compound growth (CAGR)

IWM vs. IWO - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
IWM
iShares Russell 2000 ETF		20.47%12.66%11.38%16.83%-20.48%14.54%20.03%25.39%-11.12%14.58%
IWO
iShares Russell 2000 Growth ETF		20.20%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 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

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

0.97

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

0.98

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

0.98

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

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

Technology

20.1%
25.9%

Industrials

17.3%
23.0%

Healthcare

15.6%
21.9%

Financial Services

15.5%
7.8%

Consumer Cyclical

8.0%
7.0%

Energy

6.0%
3.1%

Real Estate

5.5%
2.0%

Basic Materials

4.5%
4.0%

Utilities

3.1%
0.6%

Consumer Defensive

2.0%
2.3%

Communication Services

1.7%
2.2%

Technology

IWM
20.1%
IWO
25.9%

Industrials

IWM
17.3%
IWO
23.0%

Healthcare

IWM
15.6%
IWO
21.9%

Financial Services

IWM
15.5%
IWO
7.8%

Consumer Cyclical

IWM
8.0%
IWO
7.0%

Energy

IWM
6.0%
IWO
3.1%

Real Estate

IWM
5.5%
IWO
2.0%

Basic Materials

IWM
4.5%
IWO
4.0%

Utilities

IWM
3.1%
IWO
0.6%

Consumer Defensive

IWM
2.0%
IWO
2.3%

Communication Services

IWM
1.7%
IWO
2.2%

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 Russell 2000 Growth ETF

Often compared with IWM:
IWM vs. SPYIWM vs. VTWOIWM vs. IJRIWM vs. AVUVIWM vs. IWNIWM vs. VOOIWM vs. TNA
Often compared with IWO:
IWO vs. QQQIWO vs. IWNIWO vs. VTCLXIWO vs. VTWOIWO vs. SLYGIWO vs. IJRIWO vs. SCHA

Return for Risk

IWM vs. IWO — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
IWM
IWM Risk / Return Rank: 6767
Overall Rank
IWM Sharpe Ratio Rank: 6666
Sharpe Ratio Rank
IWM Sortino Ratio Rank: 6464
Sortino Ratio Rank
IWM Omega Ratio Rank: 5757
Omega Ratio Rank
IWM Calmar Ratio Rank: 7575
Calmar Ratio Rank
IWM Martin Ratio Rank: 7373
Martin Ratio Rank
IWO
IWO Risk / Return Rank: 5454
Overall Rank
IWO Sharpe Ratio Rank: 5555
Sharpe Ratio Rank
IWO Sortino Ratio Rank: 5353
Sortino Ratio Rank
IWO Omega Ratio Rank: 4848
Omega Ratio Rank
IWO Calmar Ratio Rank: 5757
Calmar Ratio Rank
IWO Martin Ratio Rank: 5656
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. 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.

IWMIWODifference
Sharpe ratioReturn per unit of total volatility
2.08
1.80

+0.29

Sortino ratioReturn per unit of downside risk
2.86
2.45

+0.41

Omega ratioGain probability vs. loss probability

1.34

1.29

+0.05

Calmar ratioReturn relative to maximum drawdown

3.73

2.68

+1.05

Martin ratioReturn relative to average drawdown

13.18

9.57

+3.61

IWM vs. IWO - Sharpe Ratio Comparison

The current IWM Sharpe Ratio is 2.08, which is comparable to the IWO Sharpe Ratio of 1.80. The chart below compares the historical Sharpe Ratios of IWM and IWO, 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. 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

IWMIWODifference

Max Drawdown

Largest 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 Drawdown

Current decline from peak

-0.96%

-1.57%

+0.61%

Average Drawdown

Average peak-to-trough decline

-10.75%

-16.68%

+5.93%

Ulcer Index

Depth and duration of drawdowns from previous peaks

3.11%

4.16%

-1.05%

Volatility

IWM vs. IWO - Volatility Comparison

The current volatility for iShares Russell 2000 ETF (IWM) is 6.56%, while iShares Russell 2000 Growth ETF (IWO) has a volatility of 7.84%. 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

IWMIWODifference

Volatility (1M)

Calculated over the trailing 1-month period

6.56%

7.84%

-1.28%

Volatility (6M)

Calculated over the trailing 6-month period

14.31%

16.69%

-2.38%

Volatility (1Y)

Calculated over the trailing 1-year period

19.74%

22.20%

-2.46%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

22.61%

24.65%

-2.04%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

23.06%

24.18%

-1.12%

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 0.42% yield.

PositionTTM20252024202320222021202020192018201720162015
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		0.42%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 (7.84%) compared to IWM (6.56%). In terms of maximum drawdown, IWM dropped -59.05% vs IWO's -60.11%.

On 10-year performance, IWO leads with 12.01% vs 11.58% for IWM. On fees, IWM is cheaper at 0.19% per year. On volatility, IWM has been the lower-risk option at 6.56%. 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 12.01% return vs 11.58%. 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 0.42% 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 (2.08 vs 1.80), 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.

Portfolio Optimizer

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