IXG vs. IWM

Last updated Jun 4, 2026

IXG (iShares Global Financials ETF) and IWM (iShares Russell 2000 ETF) are both exchange-traded funds - IXG is a Financials Equities fund tracking the S&P Global Financials Sector Index, while IWM is a Small Cap Blend Equities fund tracking the Russell 2000 Index. Both are passively managed. Over the past 10 years, IXG returned 11.83%/yr vs 10.93%/yr for IWM. A 0.74 correlation means they provide meaningful diversification when combined. IXG charges 0.46%/yr vs 0.19%/yr for IWM.

Performance

IXG vs. IWM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Global Financials ETF (IXG) and iShares Russell 2000 ETF (IWM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, IXG achieves a -0.23% return, which is significantly lower than IWM's 17.07% return. Over the past 10 years, IXG has outperformed IWM with an annualized return of 11.83%, while IWM has yielded a comparatively lower 10.93% annualized return.

IXG

• 1D: -1.08%
• 1M: 0.73%
• YTD: -0.23%
• 6M: 3.74%
• 1Y: 12.70%
• 3Y*: 22.63%
• 5Y*: 10.96%
• 10Y*: 11.83%

IWM

• 1D: -1.37%
• 1M: 3.52%
• YTD: 17.07%
• 6M: 15.83%
• 1Y: 39.10%
• 3Y*: 17.88%
• 5Y*: 6.11%
• 10Y*: 10.93%

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

IXG vs. IWM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
IXG iShares Global Financials ETF	-0.23%	28.54%	25.69%	14.97%	-8.97%	25.07%	-2.99%	24.60%	-16.33%	23.78%
IWM iShares Russell 2000 ETF	17.07%	12.66%	11.38%	16.83%	-20.48%	14.54%	20.03%	25.39%	-11.12%	14.58%

Correlation

The correlation between IXG and IWM 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	0.73
Correlation (5Y) Calculated over the trailing 5-year period	0.77
Correlation (10Y) Calculated over the trailing 10-year period	0.76
Correlation (All Time) Calculated using the full available price history since Nov 27, 2001	0.74

The correlation between IXG and IWM has been stable across timeframes, ranging from 0.69 to 0.77 - a consistent structural relationship.

IXG vs. IWM - Sectors Allocation Comparison

Sectors	IXG	IWM
Financial Services	97.8%	15.8%
Technology	1.1%	19.5%
Industrials	0.2%	17.1%
Energy	0.1%	6.0%
Healthcare	0.1%	15.8%
Consumer Cyclical	0.1%	7.8%
Basic Materials	-	4.5%
Communication Services	-	2.0%
Consumer Defensive	-	2.1%
Real Estate	-	5.7%
Utilities	-	3.0%

Return for Risk

IXG vs. IWM — Risk / Return Rank

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

IXG

IXG Risk / Return Rank: 25
IXG Sharpe Ratio Rank: 26
IXG Sortino Ratio Rank: 26
IXG Omega Ratio Rank: 24
IXG Calmar Ratio Rank: 24
IXG Martin Ratio Rank: 28

IWM

IWM Risk / Return Rank: 62
IWM Sharpe Ratio Rank: 59
IWM Sortino Ratio Rank: 59
IWM Omega Ratio Rank: 53
IWM Calmar Ratio Rank: 70
IWM Martin Ratio Rank: 67

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.

IXG vs. IWM - Risk-Adjusted Trends Comparison

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

	IXG	IWM	Difference
Sharpe ratio: Return per unit of total volatility	0.93	2.05	-1.12
Sortino ratio: Return per unit of downside risk	1.40	2.85	-1.45
Omega ratio: Gain probability vs. loss probability	1.16	1.34	-0.17
Calmar ratio: Return relative to maximum drawdown	1.13	3.56	-2.44
Martin ratio: Return relative to average drawdown	3.97	12.64	-8.68
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

IXG vs. IWM - Sharpe Ratio Comparison

The current IXG Sharpe Ratio is 0.93, which is lower than the IWM Sharpe Ratio of 2.05. The chart below compares the historical Sharpe Ratios of IXG and IWM, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	IXG	IWM	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.93	2.05	-1.12
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.64	0.27	+0.36
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.59	0.48	+0.11
Sharpe Ratio (All Time) Calculated using the full available price history	0.24	0.37	-0.13

Drawdowns

IXG vs. IWM - Drawdown Comparison

The maximum IXG drawdown since its inception was -78.42%, which is greater than IWM's maximum drawdown of -59.05%. Use the drawdown chart below to compare losses from any high point for IXG and IWM.

Drawdown Indicators

	IXG	IWM	Difference
Max Drawdown Largest peak-to-trough decline	-78.42%	-59.05%	-19.37%
Max Drawdown (1Y) Largest decline over 1 year	-11.33%	-11.03%	-0.30%
Max Drawdown (3Y) Largest decline over 3 years	-13.54%	-27.50%	+13.96%
Max Drawdown (5Y) Largest decline over 5 years	-27.20%	-31.91%	+4.71%
Max Drawdown (10Y) Largest decline over 10 years	-43.47%	-41.13%	-2.34%
Current Drawdown Current decline from peak	-2.88%	-1.49%	-1.39%
Average Drawdown Average peak-to-trough decline	-19.75%	-10.77%	-8.98%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.21%	3.10%	+0.11%

Volatility

IXG vs. IWM - Volatility Comparison

The current volatility for iShares Global Financials ETF (IXG) is 3.70%, while iShares Russell 2000 ETF (IWM) has a volatility of 5.75%. This indicates that IXG experiences smaller price fluctuations and is considered to be less risky than IWM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IXG	IWM	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.70%	5.75%	-2.05%
Volatility (6M) Calculated over the trailing 6-month period	10.90%	13.53%	-2.63%
Volatility (1Y) Calculated over the trailing 1-year period	13.67%	19.20%	-5.53%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.34%	22.52%	-5.18%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.12%	23.04%	-2.92%

IXG vs. IWM - Expense Ratio Comparison

IXG has a 0.46% expense ratio, which is higher than IWM's 0.19% expense ratio.

Dividends

IXG vs. IWM - Dividend Comparison

IXG's dividend yield for the trailing twelve months is around 2.05%, more than IWM's 0.88% 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%
IXG iShares Global Financials ETF	2.05%	2.04%	2.64%	2.62%	3.71%	1.69%	2.13%	2.87%	3.14%	2.12%	2.21%	2.79%

Frequently Asked Questions

Can I hold both IXG and IWM in my portfolio?

IXG and IWM 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.

Which is riskier, IXG or IWM?

IWM has higher volatility (5.75%) compared to IXG (3.70%). In terms of maximum drawdown, IXG dropped -78.42% vs IWM's -59.05%.

Which ETF is better, IXG or IWM?

On 10-year performance, IXG leads with 11.83% vs 10.93% for IWM. On fees, IWM is cheaper at 0.19% per year. On volatility, IXG has been the lower-risk option at 3.70%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IXG or IWM?

Over the 10-year period, IXG has performed better with a 11.83% return vs 10.93%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IXG or IWM?

IWM is cheaper with a 0.19% expense ratio, compared with 0.46% for IXG.

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

IXG has the higher dividend yield at 2.05%, compared with 0.88% for IWM.

What is the main difference between IXG and IWM?

IXG is categorized as Financials Equities, while IWM is Small Cap Blend Equities. IXG tracks S&P Global Financials Sector Index, while IWM tracks Russell 2000 Index. Their fees differ too: 0.46% for IXG and 0.19% for IWM.

Which has better risk-adjusted returns?

IWM currently has the higher Sharpe Ratio (2.05 vs 0.93), 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.