IWM vs. MSFT
IWM (iShares Russell 2000 ETF) is Small Cap Blend Equities fund tracking the Russell 2000 Index, while MSFT (Microsoft Corporation) is a stock. Over the past 10 years, IWM returned 11.27%/yr vs 24.39%/yr for MSFT. A 0.53 correlation means they provide meaningful diversification when combined.
Performance
IWM vs. MSFT - Performance Comparison
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Returns By Period
In the year-to-date period, IWM achieves a 19.22% return, which is significantly higher than MSFT's -18.85% return. Over the past 10 years, IWM has underperformed MSFT with an annualized return of 11.27%, while MSFT has yielded a comparatively higher 24.39% annualized return.
IWM
- 1D
- 0.87%
- 1M
- 5.53%
- YTD
- 19.22%
- 6M
- 16.00%
- 1Y
- 41.75%
- 3Y*
- 17.23%
- 5Y*
- 6.07%
- 10Y*
- 11.27%
MSFT
- 1D
- 0.10%
- 1M
- -7.19%
- YTD
- -18.85%
- 6M
- -17.98%
- 1Y
- -17.07%
- 3Y*
- 6.16%
- 5Y*
- 9.56%
- 10Y*
- 24.39%
IWM vs. MSFT - 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% |
MSFT Microsoft Corporation | -18.85% | 15.58% | 12.93% | 58.19% | -28.02% | 52.48% | 42.53% | 57.56% | 20.80% | 40.73% |
Correlation
The correlation between IWM and MSFT is 0.21, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.21 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.32 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.45 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.47 |
Correlation (All Time) Calculated using the full available price history since May 26, 2000 | 0.53 |
Over the past year, the correlation between IWM and MSFT has dropped to 0.21 - well below their long-term average of 0.53, suggesting their price drivers have been diverging.
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Return for Risk
IWM vs. MSFT — Risk / Return Rank
IWM
MSFT
IWM vs. MSFT - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Russell 2000 ETF (IWM) and Microsoft Corporation (MSFT). 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 | MSFT | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +2.70 | ||
| Sortino ratioReturn per unit of downside risk | +3.59 | ||
| Omega ratioGain probability vs. loss probability | 1.33 | 0.89 | +0.44 |
| Calmar ratioReturn relative to maximum drawdown | 3.57 | -0.53 | +4.09 |
| Martin ratioReturn relative to average drawdown | 12.63 | -1.08 | +13.70 |
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Drawdowns
IWM vs. MSFT - Drawdown Comparison
The maximum IWM drawdown since its inception was -59.05%, smaller than the maximum MSFT drawdown of -69.38%. Use the drawdown chart below to compare losses from any high point for IWM and MSFT.
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Drawdown Indicators
| IWM | MSFT | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -59.05% | -69.38% | +10.33% |
Max Drawdown (1Y)Largest decline over 1 year | -11.03% | -33.91% | +22.88% |
Max Drawdown (3Y)Largest decline over 3 years | -27.50% | -33.91% | +6.41% |
Max Drawdown (5Y)Largest decline over 5 years | -31.91% | -37.15% | +5.24% |
Max Drawdown (10Y)Largest decline over 10 years | -41.13% | -37.15% | -3.98% |
Current DrawdownCurrent decline from peak | 0.00% | -27.46% | +27.46% |
Average DrawdownAverage peak-to-trough decline | -10.76% | -21.78% | +11.02% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.12% | 16.48% | -13.36% |
Volatility
IWM vs. MSFT - Volatility Comparison
The current volatility for iShares Russell 2000 ETF (IWM) is 7.16%, while Microsoft Corporation (MSFT) has a volatility of 10.52%. This indicates that IWM experiences smaller price fluctuations and is considered to be less risky than MSFT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| IWM | MSFT | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 7.16% | 10.52% | -3.36% |
Volatility (6M)Calculated over the trailing 6-month period | 14.29% | 22.31% | -8.02% |
Volatility (1Y)Calculated over the trailing 1-year period | 19.73% | 25.42% | -5.69% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 22.61% | 26.66% | -4.05% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 23.08% | 27.06% | -3.98% |
Dividends
IWM vs. MSFT - Dividend Comparison
IWM's dividend yield for the trailing twelve months is around 0.87%, less than MSFT's 0.91% 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% |
MSFT Microsoft Corporation | 0.91% | 0.70% | 0.73% | 0.74% | 1.06% | 0.68% | 0.94% | 1.20% | 1.69% | 1.86% | 2.37% | 2.33% |
Frequently Asked Questions
IWM and MSFT have a correlation of 0.21, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
MSFT has higher volatility (10.52%) compared to IWM (7.16%). In terms of maximum drawdown, IWM dropped -59.05% vs MSFT's -69.38%.
IWM currently has the higher Sharpe Ratio (1.99 vs -0.70), 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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