IWM vs. TLT
IWM (iShares Russell 2000 ETF) and TLT (iShares 20+ Year Treasury Bond ETF) are both exchange-traded funds - IWM is a Small Cap Blend Equities fund tracking the Russell 2000 Index, while TLT is a Government Bonds fund tracking the ICE U.S. Treasury 20+ Year Bond Index. Both are passively managed. Over the past 10 years, IWM returned 10.83%/yr vs -2.25%/yr for TLT. Their -0.24 correlation means they have often moved in opposite directions in the past. IWM charges 0.19%/yr vs 0.15%/yr for TLT.
Performance
IWM vs. TLT - Performance Comparison
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Returns By Period
In the year-to-date period, IWM achieves a 23.08% return, which is significantly higher than TLT's -2.43% return. Over the past 10 years, IWM has outperformed TLT with an annualized return of 10.83%, while TLT has yielded a comparatively lower -2.25% annualized return.
IWM
- 1D
- 1.85%
- 1M
- 1.39%
- 6M
- 15.29%
- YTD
- 23.08%
- 1Y
- 38.74%
- 3Y*
- 17.20%
- 5Y*
- 7.66%
- 10Y*
- 10.83%
- ALL TIME*
- 8.88%
TLT
- 1D
- 0.77%
- 1M
- -2.76%
- 6M
- -2.36%
- YTD
- -2.43%
- 1Y
- -1.64%
- 3Y*
- -0.90%
- 5Y*
- -8.10%
- 10Y*
- -2.25%
- ALL TIME*
- 3.51%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $6.85B | $6.35B | $7.43B | |
| $2.59B | $2.11B | $2.22B |
IWM vs. TLT - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
IWM iShares Russell 2000 ETF | 23.08% | 12.66% | 11.38% | 16.83% | -20.48% | 14.54% | 20.03% | 25.39% | -11.12% | 14.58% |
TLT iShares 20+ Year Treasury Bond ETF | -2.43% | 4.25% | -8.05% | 2.77% | -31.23% | -4.60% | 18.15% | 14.12% | -1.61% | 9.18% |
Correlation
The correlation between IWM and TLT is 0.29, which is low. Their historical price movements had little consistent relationship.
| Correlation | |
|---|---|
Correlation (1Y) Focuses on recent behavior, but can change the most. | 0.29 |
Correlation (3Y) Balances recent behavior with more history. | 0.23 |
Correlation (5Y) Shows whether the relationship held over a longer period. | 0.12 |
Correlation (10Y) Provides a long-term view across more market conditions. | -0.08 |
Correlation (All Time) Calculated using the full available price history since Jul 26, 2002 | -0.24 |
The correlation between IWM and TLT shifts across timeframes, from -0.24 (all time) to 0.29 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
IWM vs. TLT — Risk / Return Rank
IWM
TLT
IWM vs. TLT - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Russell 2000 ETF (IWM) and iShares 20+ Year Treasury Bond ETF (TLT). 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 | TLT | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +2.20 | ||
| Sortino ratioReturn per unit of downside risk | +3.01 | ||
| Omega ratioGain probability vs. loss probability | 1.34 | 0.98 | +0.36 |
| Calmar ratioReturn relative to maximum drawdown | 3.53 | -0.21 | +3.74 |
| Martin ratioReturn relative to average drawdown | 12.51 | -0.45 | +12.96 |
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Drawdowns
IWM vs. TLT - Drawdown Comparison
The maximum IWM drawdown since its inception was -59.05%, which is greater than TLT's maximum drawdown of -48.35%. Use the drawdown chart below to compare losses from any high point for IWM and TLT.
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Drawdown Indicators
| IWM | TLT | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -59.05% | -48.35% | -10.70% |
Max Drawdown (1Y)Largest decline over 1 year | -11.03% | -7.74% | -3.29% |
Max Drawdown (3Y)Largest decline over 3 years | -27.50% | -14.79% | -12.71% |
Max Drawdown (5Y)Largest decline over 5 years | -31.91% | -43.70% | +11.79% |
Max Drawdown (10Y)Largest decline over 10 years | -41.13% | -48.35% | +7.22% |
Current DrawdownCurrent decline from peak | 0.00% | -41.73% | +41.73% |
Average DrawdownAverage peak-to-trough decline | -10.71% | -14.00% | +3.29% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.11% | 3.63% | -0.52% |
Volatility
IWM vs. TLT - Volatility Comparison
iShares Russell 2000 ETF (IWM) has a higher volatility of 4.58% compared to iShares 20+ Year Treasury Bond ETF (TLT) at 2.67%. This indicates that IWM's price experiences larger fluctuations and is considered to be riskier than TLT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| IWM | TLT | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 4.58% | 2.67% | +1.91% |
Volatility (6M)Calculated over the trailing 6-month period | 14.21% | 6.88% | +7.33% |
Volatility (1Y)Calculated over the trailing 1-year period | 19.40% | 9.25% | +10.15% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 22.50% | 15.75% | +6.75% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 23.02% | 14.83% | +8.19% |
IWM vs. TLT - Expense Ratio Comparison
IWM has a 0.19% expense ratio, which is higher than TLT's 0.15% 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. TLT - Dividend Comparison
IWM's dividend yield for the trailing twelve months is around 0.88%, less than TLT's 4.71% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
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% |
TLT iShares 20+ Year Treasury Bond ETF | 4.71% | 4.43% | 4.30% | 3.38% | 2.67% | 1.50% | 1.50% | 2.27% | 2.63% | 2.43% | 2.60% | 2.61% |
Frequently Asked Questions
IWM and TLT have a correlation of 0.29, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
IWM has higher volatility (4.58%) compared to TLT (2.67%). In terms of maximum drawdown, IWM dropped -59.05% vs TLT's -48.35%.
On 10-year performance, IWM leads with 10.83% vs -2.25% for TLT. On fees, TLT is cheaper at 0.15% per year. On volatility, TLT has been the lower-risk option at 2.67%. 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 10.83% return vs -2.25%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
TLT is cheaper with a 0.15% expense ratio, compared with 0.19% for IWM.
TLT has the higher dividend yield at 4.71%, compared with 0.88% for IWM.
IWM is categorized as Small Cap Blend Equities, while TLT is Government Bonds. IWM tracks Russell 2000 Index, while TLT tracks ICE U.S. Treasury 20+ Year Bond Index. Their fees differ too: 0.19% for IWM and 0.15% for TLT.
IWM currently has the higher Sharpe Ratio (2.02 vs -0.18), 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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