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IWM vs. IYW
Performance
Return for Risk
Drawdowns
Volatility
Dividends

IWM vs. IYW

Last updated Jun 4, 2026

IWM (iShares Russell 2000 ETF) and IYW (iShares U.S. Technology ETF) are both exchange-traded funds - IWM is a Small Cap Blend Equities fund tracking the Russell 2000 Index, while IYW is a Technology Equities fund tracking the Russell 1000 Technology RIC 22.5/45 Capped Index. Both are passively managed. Over the past 10 years, IWM returned 10.93%/yr vs 26.11%/yr for IYW. A 0.75 correlation means they provide meaningful diversification when combined. IWM charges 0.19%/yr vs 0.38%/yr for IYW.

Performance

IWM vs. IYW - Performance Comparison

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

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Returns By Period

In the year-to-date period, IWM achieves a 17.07% return, which is significantly lower than IYW's 29.03% return. Over the past 10 years, IWM has underperformed IYW with an annualized return of 10.93%, while IYW has yielded a comparatively higher 26.11% annualized return.

IWM

1D
-1.37%
1M
3.52%
YTD
17.07%
6M
15.83%
1Y
39.10%
3Y*
17.88%
5Y*
6.11%
10Y*
10.93%

IYW

1D
-0.92%
1M
16.53%
YTD
29.03%
6M
28.22%
1Y
59.52%
3Y*
35.24%
5Y*
22.87%
10Y*
26.11%
*Multi-year figures are annualized to reflect compound growth (CAGR)

IWM vs. IYW - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
IWM
iShares Russell 2000 ETF		17.07%12.66%11.38%16.83%-20.48%14.54%20.03%25.39%-11.12%14.58%
IYW
iShares U.S. Technology ETF		29.03%25.38%30.25%65.44%-34.83%35.44%47.45%46.64%-0.93%36.60%

Correlation

The correlation between IWM and IYW is 0.62, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

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

0.62

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

0.60

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

0.68

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

0.67

Correlation (All Time)
Calculated using the full available price history since May 30, 2000

0.75

The correlation between IWM and IYW shifts across timeframes, from 0.60 (3 years) to 0.75 (all time), reflecting how their relationship changes across market environments.

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 U.S. Technology ETF

Often compared with IWM:
IWM vs. SPYIWM vs. VTWOIWM vs. IJRIWM vs. AVUVIWM vs. IWNIWM vs. VOOIWM vs. IWO
Often compared with IYW:
IYW vs. VGTIYW vs. QQQIYW vs. XLKIYW vs. IGMIYW vs. SMHIYW vs. IWFIYW vs. SOXX

Return for Risk

IWM vs. IYW — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
IWM
IWM Risk / Return Rank: 6262
Overall Rank
IWM Sharpe Ratio Rank: 5959
Sharpe Ratio Rank
IWM Sortino Ratio Rank: 5959
Sortino Ratio Rank
IWM Omega Ratio Rank: 5353
Omega Ratio Rank
IWM Calmar Ratio Rank: 7070
Calmar Ratio Rank
IWM Martin Ratio Rank: 6767
Martin Ratio Rank
IYW
IYW Risk / Return Rank: 7575
Overall Rank
IYW Sharpe Ratio Rank: 8787
Sharpe Ratio Rank
IYW Sortino Ratio Rank: 8181
Sortino Ratio Rank
IYW Omega Ratio Rank: 8080
Omega Ratio Rank
IYW Calmar Ratio Rank: 6666
Calmar Ratio Rank
IYW Martin Ratio Rank: 6060
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. IYW - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Russell 2000 ETF (IWM) and iShares U.S. Technology ETF (IYW). 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.

IWMIYWDifference

Sharpe ratio

Return per unit of total volatility

2.05

2.98

-0.93

Sortino ratio

Return per unit of downside risk

2.85

3.70

-0.84

Omega ratio

Gain probability vs. loss probability

1.34

1.48

-0.15

Calmar ratio

Return relative to maximum drawdown

3.56

3.36

+0.20

Martin ratio

Return relative to average drawdown

12.64

11.00

+1.65

Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

IWM vs. IYW - Sharpe Ratio Comparison

The current IWM Sharpe Ratio is 2.05, which is lower than the IYW Sharpe Ratio of 2.98. The chart below compares the historical Sharpe Ratios of IWM and IYW, 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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Sharpe Ratios by Period

IWMIYWDifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

2.05

2.98

-0.93

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

0.27

0.89

-0.62

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

0.48

1.04

-0.57

Sharpe Ratio (All Time)

Calculated using the full available price history

0.37

0.35

+0.01

Drawdowns

IWM vs. IYW - Drawdown Comparison

The maximum IWM drawdown since its inception was -59.05%, smaller than the maximum IYW drawdown of -81.90%. Use the drawdown chart below to compare losses from any high point for IWM and IYW.

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Drawdown Indicators

IWMIYWDifference

Max Drawdown

Largest peak-to-trough decline

-59.05%

-81.90%

+22.85%

Max Drawdown (1Y)

Largest decline over 1 year

-11.03%

-17.81%

+6.78%

Max Drawdown (3Y)

Largest decline over 3 years

-27.50%

-26.47%

-1.03%

Max Drawdown (5Y)

Largest decline over 5 years

-31.91%

-39.44%

+7.53%

Max Drawdown (10Y)

Largest decline over 10 years

-41.13%

-39.44%

-1.69%

Current Drawdown

Current decline from peak

-1.49%

-0.92%

-0.57%

Average Drawdown

Average peak-to-trough decline

-10.77%

-34.66%

+23.89%

Ulcer Index

Depth and duration of drawdowns from previous peaks

3.10%

5.43%

-2.33%

Volatility

IWM vs. IYW - Volatility Comparison

The current volatility for iShares Russell 2000 ETF (IWM) is 5.75%, while iShares U.S. Technology ETF (IYW) has a volatility of 6.30%. This indicates that IWM experiences smaller price fluctuations and is considered to be less risky than IYW based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

IWMIYWDifference

Volatility (1M)

Calculated over the trailing 1-month period

5.75%

6.30%

-0.55%

Volatility (6M)

Calculated over the trailing 6-month period

13.53%

15.85%

-2.32%

Volatility (1Y)

Calculated over the trailing 1-year period

19.20%

20.09%

-0.89%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

22.52%

25.87%

-3.35%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

23.04%

25.09%

-2.05%

IWM vs. IYW - Expense Ratio Comparison

IWM has a 0.19% expense ratio, which is lower than IYW's 0.38% expense ratio.

Dividends

IWM vs. IYW - Dividend Comparison

IWM's dividend yield for the trailing twelve months is around 0.88%, more than IYW's 0.11% yield.

PositionTTM20252024202320222021202020192018201720162015
IWM
iShares Russell 2000 ETF		0.88%1.04%1.15%1.35%1.48%0.94%1.04%1.26%1.40%1.26%1.38%1.54%
IYW
iShares U.S. Technology ETF		0.11%0.14%0.21%0.34%0.50%0.31%0.56%0.72%0.92%0.82%1.14%1.12%

Frequently Asked Questions

IWM and IYW have a correlation of 0.62, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

IYW has higher volatility (6.30%) compared to IWM (5.75%). In terms of maximum drawdown, IWM dropped -59.05% vs IYW's -81.90%.

On 10-year performance, IYW leads with 26.11% vs 10.93% for IWM. On fees, IWM is cheaper at 0.19% per year. On volatility, IWM has been the lower-risk option at 5.75%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, IYW has performed better with a 26.11% return vs 10.93%. 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 0.38% for IYW.

IWM has the higher dividend yield at 0.88%, compared with 0.11% for IYW.

IWM is categorized as Small Cap Blend Equities, while IYW is Technology Equities. IWM tracks Russell 2000 Index, while IYW tracks Russell 1000 Technology RIC 22.5/45 Capped Index. Their fees differ too: 0.19% for IWM and 0.38% for IYW.

IYW currently has the higher Sharpe Ratio (2.98 vs 2.05), 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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