IWM vs. IYZ
IWM (iShares Russell 2000 ETF) and IYZ (iShares U.S. Telecommunications ETF) are both exchange-traded funds - IWM is a Small Cap Blend Equities fund tracking the Russell 2000 Index, while IYZ is a Communications Equities fund tracking the Dow Jones U.S. Select Telecommunications Index. Both are passively managed. Over the past 10 years, IWM returned 11.27%/yr vs 5.94%/yr for IYZ. A 0.69 correlation means they provide meaningful diversification when combined. IWM charges 0.19%/yr vs 0.42%/yr for IYZ.
Performance
IWM vs. IYZ - Performance Comparison
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Returns By Period
In the year-to-date period, IWM achieves a 19.22% return, which is significantly lower than IYZ's 29.57% return. Over the past 10 years, IWM has outperformed IYZ with an annualized return of 11.27%, while IYZ has yielded a comparatively lower 5.94% annualized return.
IWM
- 1D
- 0.87%
- 1M
- 3.64%
- YTD
- 19.22%
- 6M
- 16.00%
- 1Y
- 39.16%
- 3Y*
- 17.23%
- 5Y*
- 6.07%
- 10Y*
- 11.27%
IYZ
- 1D
- 1.27%
- 1M
- 4.54%
- YTD
- 29.57%
- 6M
- 32.60%
- 1Y
- 56.05%
- 3Y*
- 28.37%
- 5Y*
- 7.57%
- 10Y*
- 5.94%
IWM vs. IYZ - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
IWM iShares Russell 2000 ETF | 19.22% | 12.66% | 11.38% | 16.83% | -20.48% | 14.54% | 20.03% | 25.39% | -11.12% | 14.58% |
IYZ iShares U.S. Telecommunications ETF | 29.57% | 29.28% | 20.53% | 3.90% | -30.29% | 11.69% | 4.13% | 16.14% | -8.59% | -11.86% |
Correlation
The correlation between IWM and IYZ is 0.60, 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 | 0.60 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.65 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.72 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.71 |
Correlation (All Time) Calculated using the full available price history since May 26, 2000 | 0.69 |
The correlation between IWM and IYZ shifts across timeframes, from 0.60 (1 year) to 0.72 (5 years), reflecting how their relationship changes across market environments.
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Return for Risk
IWM vs. IYZ — Risk / Return Rank
IWM
IYZ
IWM vs. IYZ - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Russell 2000 ETF (IWM) and iShares U.S. Telecommunications ETF (IYZ). 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 | IYZ | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.03 | ||
| Sortino ratioReturn per unit of downside risk | -1.20 | ||
| Omega ratioGain probability vs. loss probability | 1.33 | 1.52 | -0.20 |
| Calmar ratioReturn relative to maximum drawdown | 3.57 | 6.54 | -2.97 |
| Martin ratioReturn relative to average drawdown | 12.63 | 25.99 | -13.37 |
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Drawdowns
IWM vs. IYZ - Drawdown Comparison
The maximum IWM drawdown since its inception was -59.05%, smaller than the maximum IYZ drawdown of -77.11%. Use the drawdown chart below to compare losses from any high point for IWM and IYZ.
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Drawdown Indicators
| IWM | IYZ | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -59.05% | -77.11% | +18.06% |
Max Drawdown (1Y)Largest decline over 1 year | -11.03% | -8.62% | -2.41% |
Max Drawdown (3Y)Largest decline over 3 years | -27.50% | -13.85% | -13.65% |
Max Drawdown (5Y)Largest decline over 5 years | -31.91% | -39.74% | +7.83% |
Max Drawdown (10Y)Largest decline over 10 years | -41.13% | -39.74% | -1.39% |
Current DrawdownCurrent decline from peak | 0.00% | -4.77% | +4.77% |
Average DrawdownAverage peak-to-trough decline | -10.76% | -40.10% | +29.34% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.12% | 2.17% | +0.95% |
Volatility
IWM vs. IYZ - Volatility Comparison
The current volatility for iShares Russell 2000 ETF (IWM) is 7.16%, while iShares U.S. Telecommunications ETF (IYZ) has a volatility of 8.76%. This indicates that IWM experiences smaller price fluctuations and is considered to be less risky than IYZ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| IWM | IYZ | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 7.16% | 8.76% | -1.60% |
Volatility (6M)Calculated over the trailing 6-month period | 14.29% | 15.61% | -1.32% |
Volatility (1Y)Calculated over the trailing 1-year period | 19.73% | 18.65% | +1.08% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 22.61% | 18.88% | +3.73% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 23.08% | 19.30% | +3.78% |
IWM vs. IYZ - Expense Ratio Comparison
IWM has a 0.19% expense ratio, which is lower than IYZ's 0.42% expense ratio.
Dividends
IWM vs. IYZ - Dividend Comparison
IWM's dividend yield for the trailing twelve months is around 0.87%, less than IYZ's 1.53% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IWM iShares Russell 2000 ETF | 0.87% | 1.04% | 1.15% | 1.35% | 1.48% | 0.94% | 1.04% | 1.26% | 1.40% | 1.26% | 1.38% | 1.54% |
IYZ iShares U.S. Telecommunications ETF | 1.53% | 2.04% | 1.94% | 2.27% | 2.55% | 2.51% | 2.60% | 2.36% | 2.15% | 3.54% | 2.27% | 1.98% |
Frequently Asked Questions
IWM and IYZ have a correlation of 0.60, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
IYZ has higher volatility (8.76%) compared to IWM (7.16%). In terms of maximum drawdown, IWM dropped -59.05% vs IYZ's -77.11%.
On 10-year performance, IWM leads with 11.27% vs 5.94% for IYZ. On fees, IWM is cheaper at 0.19% per year. On volatility, IWM has been the lower-risk option at 7.16%. 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 11.27% return vs 5.94%. 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 0.42% for IYZ.
IYZ has the higher dividend yield at 1.53%, compared with 0.87% for IWM.
IWM is categorized as Small Cap Blend Equities, while IYZ is Communications Equities. IWM tracks Russell 2000 Index, while IYZ tracks Dow Jones U.S. Select Telecommunications Index. Their fees differ too: 0.19% for IWM and 0.42% for IYZ.
IYZ currently has the higher Sharpe Ratio (3.02 vs 1.99), 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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