IWO vs. BKSE

Last updated Aug 5, 2026

IWO (iShares Russell 2000 Growth ETF) and BKSE (BNY Mellon US Small Cap Core Equity ETF) are both Small Cap Growth Equities funds - IWO tracks the Russell 2000 Growth Index while BKSE tracks the Morningstar US Small Cap Index. Both are passively managed. Over the past 5 years, IWO returned 5.77%/yr vs 9.13%/yr for BKSE. Their correlation of 0.93 means they have usually moved in the same direction. IWO charges 0.24%/yr vs 0.04%/yr for BKSE.

Performance

IWO vs. BKSE - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Russell 2000 Growth ETF (IWO) and BNY Mellon US Small Cap Core Equity ETF (BKSE). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, IWO achieves a 20.41% return, which is significantly lower than BKSE's 22.19% return.

IWO

• 1D: 2.68%
• 1M: 0.41%
• 6M: 14.89%
• YTD: 20.41%
• 1Y: 33.81%
• 3Y*: 17.15%
• 5Y*: 5.77%
• 10Y*: 10.96%
• ALL TIME*: 7.07%

BKSE

• 1D: 1.60%
• 1M: 2.69%
• 6M: 15.41%
• YTD: 22.19%
• 1Y: 36.96%
• 3Y*: 17.60%
• 5Y*: 9.13%
• 10Y*: —
• ALL TIME*: 17.03%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
BKSE BNY Mellon US Small Cap Core Equity ETF	$280.06K	$250.83K	$246.35K
IWO iShares Russell 2000 Growth ETF	$179.14M	$160.12M	$166.50M

IWO vs. BKSE - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
IWO iShares Russell 2000 Growth ETF	20.41%	12.90%	15.04%	18.51%	-26.27%	2.54%	75.89%
BKSE BNY Mellon US Small Cap Core Equity ETF	22.19%	13.09%	9.56%	22.37%	-18.44%	16.18%	53.89%

Correlation

The correlation between IWO and BKSE is 0.89, meaning they have usually moved in the same direction, including during past declines.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.89
Correlation (3Y) Balances recent behavior with more history.	0.93
Correlation (5Y) Shows whether the relationship held over a longer period.	0.95
Correlation (All Time) Calculated using the full available price history since Apr 9, 2020	0.93

The correlation between IWO and BKSE has been stable across timeframes, ranging from 0.89 to 0.95 - a consistent structural relationship.

IWO vs. BKSE - Sectors Allocation Comparison

Sectors	IWO	BKSE
Healthcare	28.9%	14.2%
Technology	22.1%	16.0%
Industrials	15.9%	14.9%
Consumer Cyclical	8.2%	13.5%
Financial Services	8.0%	16.4%
Basic Materials	5.0%	4.3%
Energy	4.8%	5.9%
Real Estate	2.4%	7.2%
Consumer Defensive	2.3%	2.6%
Communication Services	1.9%	2.0%
Utilities	0.6%	3.1%

Return for Risk

IWO vs. BKSE — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

IWO

IWO Risk / Return Rank: 55
IWO Sharpe Ratio Rank: 56
IWO Sortino Ratio Rank: 55
IWO Omega Ratio Rank: 49
IWO Calmar Ratio Rank: 57
IWO Martin Ratio Rank: 59

BKSE

BKSE Risk / Return Rank: 84
BKSE Sharpe Ratio Rank: 83
BKSE Sortino Ratio Rank: 85
BKSE Omega Ratio Rank: 78
BKSE Calmar Ratio Rank: 88
BKSE Martin Ratio Rank: 87

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

IWO vs. BKSE - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Russell 2000 Growth ETF (IWO) and BNY Mellon US Small Cap Core Equity ETF (BKSE). 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.

	IWO	BKSE	Difference
Sharpe ratio: Return per unit of total volatility	1.52	2.14	-0.62
Sortino ratio: Return per unit of downside risk	2.15	3.09	-0.95
Omega ratio: Gain probability vs. loss probability	1.25	1.37	-0.11
Calmar ratio: Return relative to maximum drawdown	2.28	3.95	-1.66
Martin ratio: Return relative to average drawdown	7.84	14.18	-6.34

IWO vs. BKSE - Sharpe Ratio Comparison

The current IWO Sharpe Ratio is 1.52, which is comparable to the BKSE Sharpe Ratio of 2.14. The chart below compares the historical Sharpe Ratios of IWO and BKSE, 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

IWO vs. BKSE - Drawdown Comparison

The maximum IWO drawdown since its inception was -60.11%, which is greater than BKSE's maximum drawdown of -29.08%. Use the drawdown chart below to compare losses from any high point for IWO and BKSE.

Drawdown Indicators

	IWO	BKSE	Difference
Max Drawdown Largest peak-to-trough decline	-60.11%	-29.08%	-31.03%
Max Drawdown (1Y) Largest decline over 1 year	-14.87%	-9.40%	-5.47%
Max Drawdown (3Y) Largest decline over 3 years	-28.57%	-26.76%	-1.81%
Max Drawdown (5Y) Largest decline over 5 years	-40.51%	-29.08%	-11.43%
Max Drawdown (10Y) Largest decline over 10 years	-42.02%	—	—
Current Drawdown Current decline from peak	-1.42%	0.00%	-1.42%
Average Drawdown Average peak-to-trough decline	-16.62%	-8.84%	-7.78%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.33%	2.61%	+1.72%

Volatility

IWO vs. BKSE - Volatility Comparison

iShares Russell 2000 Growth ETF (IWO) has a higher volatility of 6.69% compared to BNY Mellon US Small Cap Core Equity ETF (BKSE) at 4.07%. This indicates that IWO's price experiences larger fluctuations and is considered to be riskier than BKSE based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IWO	BKSE	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.69%	4.07%	+2.62%
Volatility (6M) Calculated over the trailing 6-month period	17.25%	12.07%	+5.18%
Volatility (1Y) Calculated over the trailing 1-year period	22.51%	17.42%	+5.09%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	24.67%	21.37%	+3.30%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	24.20%	22.13%	+2.07%

IWO vs. BKSE - Expense Ratio Comparison

IWO has a 0.24% expense ratio, which is higher than BKSE'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

IWO vs. BKSE - Dividend Comparison

IWO's dividend yield for the trailing twelve months is around 0.42%, less than BKSE's 1.17% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
BKSE BNY Mellon US Small Cap Core Equity ETF	1.17%	1.26%	1.55%	1.38%	1.50%	1.17%	0.82%	0.00%	0.00%	0.00%	0.00%	0.00%
IWO iShares Russell 2000 Growth ETF	0.42%	0.56%	0.80%	0.73%	0.73%	0.32%	0.44%	0.71%	0.76%	0.73%	0.97%	0.89%

Frequently Asked Questions

Can I hold both IWO and BKSE in my portfolio?

IWO and BKSE have a correlation of 0.89, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, IWO or BKSE?

IWO has higher volatility (6.69%) compared to BKSE (4.07%). In terms of maximum drawdown, IWO dropped -60.11% vs BKSE's -29.08%.

Which ETF is better, IWO or BKSE?

On 5-year performance, BKSE leads with 9.13% vs 5.77% for IWO. On fees, BKSE is cheaper at 0.04% per year. On volatility, BKSE has been the lower-risk option at 4.07%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IWO or BKSE?

Over the 5-year period, BKSE has performed better with a 9.13% return vs 5.77%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IWO or BKSE?

BKSE is cheaper with a 0.04% expense ratio, compared with 0.24% for IWO.

Which ETF pays a higher dividend yield, IWO or BKSE?

BKSE has the higher dividend yield at 1.17%, compared with 0.42% for IWO.

What is the main difference between IWO and BKSE?

IWO tracks Russell 2000 Growth Index, while BKSE tracks Morningstar US Small Cap Index. They also come from different issuers: iShares and BNY Mellon. Their fees differ too: 0.24% for IWO and 0.04% for BKSE.

Which has better risk-adjusted returns?

BKSE currently has the higher Sharpe Ratio (2.14 vs 1.52), 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.