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IWM vs. QQQ
Performance
Return for Risk
Drawdowns
Volatility
Dividends

IWM vs. QQQ

Last updated Jun 24, 2026

IWM (iShares Russell 2000 ETF) and QQQ (Invesco QQQ ETF) are both exchange-traded funds - IWM is a Small Cap Blend Equities fund tracking the Russell 2000 Index, while QQQ is a Nasdaq-100 fund tracking the NASDAQ-100 Index. Both are passively managed. Over the past 10 years, IWM returned 11.58%/yr vs 22.07%/yr for QQQ. A 0.77 correlation means they provide meaningful diversification when combined. IWM charges 0.19%/yr vs 0.18%/yr for QQQ.

Performance

IWM vs. QQQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Russell 2000 ETF (IWM) and Invesco QQQ ETF (QQQ). 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 20.47% return, which is significantly higher than QQQ's 16.45% return. Over the past 10 years, IWM has underperformed QQQ with an annualized return of 11.58%, while QQQ has yielded a comparatively higher 22.07% annualized return.

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%

QQQ

1D
-3.29%
1M
-0.43%
YTD
16.45%
6M
14.99%
1Y
34.88%
3Y*
26.05%
5Y*
16.01%
10Y*
22.07%
*Multi-year figures are annualized to reflect compound growth (CAGR)

IWM vs. QQQ - 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%
QQQ
Invesco QQQ ETF		16.45%20.77%25.58%54.86%-32.58%27.42%48.62%38.96%-0.13%32.66%

Correlation

The correlation between IWM and QQQ is 0.69, 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

0.69

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

0.66

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

0.72

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

0.69

Correlation (All Time)
Calculated using the full available price history since May 26, 2000

0.77

The correlation between IWM and QQQ shifts across timeframes, from 0.66 (3 years) to 0.77 (all time), reflecting how their relationship changes across market environments.

IWM vs. QQQ - Sectors Allocation Comparison

Sectors
IWM
QQQ

Technology

20.1%
58.7%

Industrials

17.3%
2.6%

Healthcare

15.6%
3.7%

Financial Services

15.5%
0.2%

Consumer Cyclical

8.0%
11.4%

Energy

6.0%
0.5%

Real Estate

5.5%
0.1%

Basic Materials

4.5%
1.0%

Utilities

3.1%
1.2%

Consumer Defensive

2.0%
6.4%

Communication Services

1.7%
14.3%

Technology

IWM
20.1%
QQQ
58.7%

Industrials

IWM
17.3%
QQQ
2.6%

Healthcare

IWM
15.6%
QQQ
3.7%

Financial Services

IWM
15.5%
QQQ
0.2%

Consumer Cyclical

IWM
8.0%
QQQ
11.4%

Energy

IWM
6.0%
QQQ
0.5%

Real Estate

IWM
5.5%
QQQ
0.1%

Basic Materials

IWM
4.5%
QQQ
1.0%

Utilities

IWM
3.1%
QQQ
1.2%

Consumer Defensive

IWM
2.0%
QQQ
6.4%

Communication Services

IWM
1.7%
QQQ
14.3%

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

Invesco QQQ ETF

Often compared with IWM:
IWM vs. SPYIWM vs. VTWOIWM vs. IJRIWM vs. AVUVIWM vs. IWNIWM vs. VOOIWM vs. TNA
Often compared with QQQ:
QQQ vs. SPYQQQ vs. VOOQQQ vs. VGTQQQ vs. TQQQQQQ vs. SMHQQQ vs. QQQMQQQ vs. SPMO

Return for Risk

IWM vs. QQQ — 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
QQQ
QQQ Risk / Return Rank: 5959
Overall Rank
QQQ Sharpe Ratio Rank: 6161
Sharpe Ratio Rank
QQQ Sortino Ratio Rank: 5555
Sortino Ratio Rank
QQQ Omega Ratio Rank: 5858
Omega Ratio Rank
QQQ Calmar Ratio Rank: 6161
Calmar Ratio Rank
QQQ Martin Ratio Rank: 6262
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. QQQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Russell 2000 ETF (IWM) and Invesco QQQ ETF (QQQ). 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.

IWMQQQDifference
Sharpe ratioReturn per unit of total volatility
2.08
1.95

+0.13

Sortino ratioReturn per unit of downside risk
2.86
2.57

+0.30

Omega ratioGain probability vs. loss probability

1.34

1.35

0.00

Calmar ratioReturn relative to maximum drawdown

3.73

2.93

+0.80

Martin ratioReturn relative to average drawdown

13.18

10.86

+2.32

IWM vs. QQQ - Sharpe Ratio Comparison

The current IWM Sharpe Ratio is 2.08, which is comparable to the QQQ Sharpe Ratio of 1.95. The chart below compares the historical Sharpe Ratios of IWM and QQQ, 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. QQQ - Drawdown Comparison

The maximum IWM drawdown since its inception was -59.05%, smaller than the maximum QQQ drawdown of -82.97%. Use the drawdown chart below to compare losses from any high point for IWM and QQQ.

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Drawdown Indicators

IWMQQQDifference

Max Drawdown

Largest peak-to-trough decline

-59.05%

-82.97%

+23.92%

Max Drawdown (1Y)

Largest decline over 1 year

-11.03%

-11.96%

+0.93%

Max Drawdown (3Y)

Largest decline over 3 years

-27.50%

-22.77%

-4.73%

Max Drawdown (5Y)

Largest decline over 5 years

-31.91%

-35.12%

+3.21%

Max Drawdown (10Y)

Largest decline over 10 years

-41.13%

-35.12%

-6.01%

Current Drawdown

Current decline from peak

-0.96%

-4.25%

+3.29%

Average Drawdown

Average peak-to-trough decline

-10.75%

-32.73%

+21.98%

Ulcer Index

Depth and duration of drawdowns from previous peaks

3.11%

3.22%

-0.11%

Volatility

IWM vs. QQQ - Volatility Comparison

The current volatility for iShares Russell 2000 ETF (IWM) is 6.56%, while Invesco QQQ ETF (QQQ) has a volatility of 9.17%. This indicates that IWM experiences smaller price fluctuations and is considered to be less risky than QQQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

IWMQQQDifference

Volatility (1M)

Calculated over the trailing 1-month period

6.56%

9.17%

-2.61%

Volatility (6M)

Calculated over the trailing 6-month period

14.31%

14.57%

-0.26%

Volatility (1Y)

Calculated over the trailing 1-year period

19.74%

17.96%

+1.78%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

22.61%

22.69%

-0.08%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

23.06%

22.42%

+0.64%

IWM vs. QQQ - Expense Ratio Comparison

IWM has a 0.19% expense ratio, which is higher than QQQ's 0.18% expense ratio. However, 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. QQQ - Dividend Comparison

IWM's dividend yield for the trailing twelve months is around 0.90%, more than QQQ's 0.43% 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%
QQQ
Invesco QQQ ETF		0.43%0.45%0.56%0.62%0.80%0.43%0.55%0.74%0.91%0.84%1.06%0.99%

Frequently Asked Questions

IWM and QQQ have a correlation of 0.69, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

QQQ has higher volatility (9.17%) compared to IWM (6.56%). In terms of maximum drawdown, IWM dropped -59.05% vs QQQ's -82.97%.

On 10-year performance, QQQ leads with 22.07% vs 11.58% for IWM. On fees, QQQ is cheaper at 0.18% 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, QQQ has performed better with a 22.07% return vs 11.58%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

QQQ is cheaper with a 0.18% expense ratio, compared with 0.19% for IWM.

IWM has the higher dividend yield at 0.90%, compared with 0.43% for QQQ.

IWM is categorized as Small Cap Blend Equities, while QQQ is Nasdaq-100. IWM tracks Russell 2000 Index, while QQQ tracks NASDAQ-100 Index. They also come from different issuers: iShares and Invesco. Their fees differ too: 0.19% for IWM and 0.18% for QQQ.

IWM currently has the higher Sharpe Ratio (2.08 vs 1.95), 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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