IWM vs. SCHA

Last updated Jun 23, 2026

IWM (iShares Russell 2000 ETF) and SCHA (Schwab U.S. Small-Cap ETF) are both Small Cap Blend Equities funds - IWM tracks the Russell 2000 Index while SCHA tracks the Dow Jones U.S. Small-Cap Total Stock Market Index. Both are passively managed. Over the past 10 years, IWM returned 11.68%/yr vs 11.91%/yr for SCHA. With a 0.99 correlation, they move nearly in lockstep. IWM charges 0.19%/yr vs 0.04%/yr for SCHA.

Performance

IWM vs. SCHA - Performance Comparison

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

Returns By Period

In the year-to-date period, IWM achieves a 21.64% return, which is significantly lower than SCHA's 24.67% return. Both investments have delivered pretty close results over the past 10 years, with IWM having a 11.68% annualized return and SCHA not far ahead at 11.91%.

IWM

• 1D: 0.88%
• 1M: 4.83%
• YTD: 21.64%
• 6M: 18.08%
• 1Y: 44.01%
• 3Y*: 19.60%
• 5Y*: 6.77%
• 10Y*: 11.68%

SCHA

• 1D: 0.77%
• 1M: 6.39%
• YTD: 24.67%
• 6M: 21.39%
• 1Y: 45.75%
• 3Y*: 20.54%
• 5Y*: 7.90%
• 10Y*: 11.91%

*Multi-year figures are annualized to reflect compound growth (CAGR)

IWM vs. SCHA - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
IWM iShares Russell 2000 ETF	21.64%	12.66%	11.38%	16.83%	-20.48%	14.54%	20.03%	25.39%	-11.12%	14.58%
SCHA Schwab U.S. Small-Cap ETF	24.67%	11.60%	11.16%	18.46%	-19.81%	16.45%	19.34%	26.50%	-11.79%	14.94%

Correlation

The correlation between IWM and SCHA is 0.98 - 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	0.98
Correlation (3Y) Calculated over the trailing 3-year period	0.99
Correlation (5Y) Calculated over the trailing 5-year period	0.99
Correlation (10Y) Calculated over the trailing 10-year period	0.99
Correlation (All Time) Calculated using the full available price history since Nov 3, 2009	0.99

The correlation between IWM and SCHA has been stable across timeframes, ranging from 0.98 to 0.99 - a consistent structural relationship.

IWM vs. SCHA - Sectors Allocation Comparison

Sectors	IWM	SCHA
Technology	20.1%	24.3%
Industrials	17.3%	15.4%
Healthcare	15.6%	13.8%
Financial Services	15.5%	15.4%
Consumer Cyclical	8.0%	9.2%
Energy	6.0%	4.8%
Real Estate	5.5%	5.8%
Basic Materials	4.5%	4.1%
Utilities	3.1%	2.1%
Consumer Defensive	2.0%	2.5%
Communication Services	1.7%	2.3%

Return for Risk

IWM vs. SCHA — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

IWM

IWM Risk / Return Rank: 72
IWM Sharpe Ratio Rank: 72
IWM Sortino Ratio Rank: 70
IWM Omega Ratio Rank: 63
IWM Calmar Ratio Rank: 80
IWM Martin Ratio Rank: 76

SCHA

SCHA Risk / Return Rank: 81
SCHA Sharpe Ratio Rank: 80
SCHA Sortino Ratio Rank: 80
SCHA Omega Ratio Rank: 72
SCHA Calmar Ratio Rank: 87
SCHA Martin Ratio Rank: 87

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. SCHA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Russell 2000 ETF (IWM) and Schwab U.S. Small-Cap ETF (SCHA). 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	SCHA	Difference
Sharpe ratio: Return per unit of total volatility	2.24	2.46	-0.22
Sortino ratio: Return per unit of downside risk	3.05	3.38	-0.33
Omega ratio: Gain probability vs. loss probability	1.36	1.41	-0.04
Calmar ratio: Return relative to maximum drawdown	4.01	4.84	-0.83
Martin ratio: Return relative to average drawdown	14.19	17.72	-3.54

IWM vs. SCHA - Sharpe Ratio Comparison

The current IWM Sharpe Ratio is 2.24, which is comparable to the SCHA Sharpe Ratio of 2.46. The chart below compares the historical Sharpe Ratios of IWM and SCHA, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

IWM vs. SCHA - Drawdown Comparison

The maximum IWM drawdown since its inception was -59.05%, which is greater than SCHA's maximum drawdown of -42.41%. Use the drawdown chart below to compare losses from any high point for IWM and SCHA.

Drawdown Indicators

	IWM	SCHA	Difference
Max Drawdown Largest peak-to-trough decline	-59.05%	-42.41%	-16.64%
Max Drawdown (1Y) Largest decline over 1 year	-11.03%	-9.50%	-1.53%
Max Drawdown (3Y) Largest decline over 3 years	-27.50%	-27.29%	-0.21%
Max Drawdown (5Y) Largest decline over 5 years	-31.91%	-30.79%	-1.12%
Max Drawdown (10Y) Largest decline over 10 years	-41.13%	-42.41%	+1.28%
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-10.75%	-7.56%	-3.19%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.11%	2.59%	+0.52%

Volatility

IWM vs. SCHA - Volatility Comparison

iShares Russell 2000 ETF (IWM) and Schwab U.S. Small-Cap ETF (SCHA) have volatilities of 6.47% and 6.45%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IWM	SCHA	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.47%	6.45%	+0.02%
Volatility (6M) Calculated over the trailing 6-month period	14.28%	13.80%	+0.48%
Volatility (1Y) Calculated over the trailing 1-year period	19.75%	18.71%	+1.04%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	22.60%	22.03%	+0.57%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	23.09%	22.78%	+0.31%

IWM vs. SCHA - Expense Ratio Comparison

IWM has a 0.19% expense ratio, which is higher than SCHA's 0.04% 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. SCHA - Dividend Comparison

IWM's dividend yield for the trailing twelve months is around 0.89%, less than SCHA's 0.96% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IWM iShares Russell 2000 ETF	0.89%	1.04%	1.15%	1.35%	1.48%	0.94%	1.04%	1.26%	1.40%	1.26%	1.38%	1.54%
SCHA Schwab U.S. Small-Cap ETF	0.96%	1.26%	1.51%	1.42%	1.37%	1.19%	1.05%	1.39%	1.58%	1.24%	1.50%	1.48%

Frequently Asked Questions

Can I hold both IWM and SCHA in my portfolio?

With a correlation of 0.98, IWM and SCHA 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.

Which is riskier, IWM or SCHA?

IWM has higher volatility (6.47%) compared to SCHA (6.45%). In terms of maximum drawdown, IWM dropped -59.05% vs SCHA's -42.41%.

Which ETF is better, IWM or SCHA?

On 10-year performance, SCHA leads with 11.91% vs 11.68% for IWM. On fees, SCHA is cheaper at 0.04% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IWM or SCHA?

Over the 10-year period, SCHA has performed better with a 11.91% return vs 11.68%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IWM or SCHA?

SCHA is cheaper with a 0.04% expense ratio, compared with 0.19% for IWM.

Which ETF pays a higher dividend yield, IWM or SCHA?

SCHA has the higher dividend yield at 0.96%, compared with 0.89% for IWM.

What is the main difference between IWM and SCHA?

IWM tracks Russell 2000 Index, while SCHA tracks Dow Jones U.S. Small-Cap Total Stock Market Index. They also come from different issuers: iShares and Charles Schwab. Their fees differ too: 0.19% for IWM and 0.04% for SCHA.

Which has better risk-adjusted returns?

SCHA currently has the higher Sharpe Ratio (2.46 vs 2.24), 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.