IYG vs. IWM

Last updated Aug 5, 2026

IYG (iShares U.S. Financial Services ETF) and IWM (iShares Russell 2000 ETF) are both exchange-traded funds - IYG is a Financials Equities fund tracking the Dow Jones U.S. Financial Services TR, while IWM is a Small Cap Blend Equities fund tracking the Russell 2000 Index. Both are passively managed. Over the past 10 years, IYG returned 14.64%/yr vs 10.83%/yr for IWM. Their 0.75 correlation means they have sometimes moved together and sometimes differently. IYG charges 0.42%/yr vs 0.19%/yr for IWM.

Performance

IYG vs. IWM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares U.S. Financial Services ETF (IYG) 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, IYG achieves a 6.15% return, which is significantly lower than IWM's 23.08% return. Over the past 10 years, IYG has outperformed IWM with an annualized return of 14.64%, while IWM has yielded a comparatively lower 10.83% annualized return.

IYG

• 1D: 0.96%
• 1M: 4.27%
• 6M: 7.93%
• YTD: 6.15%
• 1Y: 14.31%
• 3Y*: 22.26%
• 5Y*: 10.92%
• 10Y*: 14.64%
• ALL TIME*: 6.76%

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%

*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)
IWM iShares Russell 2000 ETF	$6.85B	$6.35B	$7.43B
IYG iShares U.S. Financial Services ETF	$7.02M	$11.44M	$10.05M

IYG vs. IWM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
IYG iShares U.S. Financial Services ETF	6.15%	19.85%	31.94%	16.07%	-16.76%	30.36%	0.99%	37.62%	-12.56%	24.47%
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%

Correlation

The correlation between IYG and IWM is 0.59, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.59
Correlation (3Y) Balances recent behavior with more history.	0.71
Correlation (5Y) Shows whether the relationship held over a longer period.	0.78
Correlation (10Y) Provides a long-term view across more market conditions.	0.76
Correlation (All Time) Calculated using the full available price history since Jun 21, 2000	0.75

The correlation between IYG and IWM shifts across timeframes, from 0.59 (1 year) to 0.78 (5 years), reflecting how their relationship changes across market environments.

IYG vs. IWM - Sectors Allocation Comparison

Sectors	IYG	IWM
Financial Services	100.0%	18.3%
Technology	0.0%	13.6%
Basic Materials	-	4.5%
Communication Services	-	2.0%
Consumer Cyclical	-	9.2%
Consumer Defensive	-	2.8%
Energy	-	5.6%
Healthcare	-	20.0%
Industrials	-	13.7%
Real Estate	-	7.0%
Utilities	-	2.9%

Return for Risk

IYG vs. IWM — Risk / Return Rank

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

IYG

IYG Risk / Return Rank: 30
IYG Sharpe Ratio Rank: 33
IYG Sortino Ratio Rank: 32
IYG Omega Ratio Rank: 32
IYG Calmar Ratio Rank: 26
IYG Martin Ratio Rank: 26

IWM

IWM Risk / Return Rank: 79
IWM Sharpe Ratio Rank: 79
IWM Sortino Ratio Rank: 79
IWM Omega Ratio Rank: 72
IWM Calmar Ratio Rank: 84
IWM Martin Ratio Rank: 83

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.

IYG vs. IWM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares U.S. Financial Services ETF (IYG) 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.

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.

	IYG	IWM	Difference
Sharpe ratio: Return per unit of total volatility	0.91	2.02	-1.10
Sortino ratio: Return per unit of downside risk	1.31	2.82	-1.51
Omega ratio: Gain probability vs. loss probability	1.17	1.34	-0.17
Calmar ratio: Return relative to maximum drawdown	0.90	3.53	-2.63
Martin ratio: Return relative to average drawdown	2.30	12.51	-10.21

IYG vs. IWM - Sharpe Ratio Comparison

The current IYG Sharpe Ratio is 0.91, which is lower than the IWM Sharpe Ratio of 2.02. The chart below compares the historical Sharpe Ratios of IYG 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.

Drawdowns

IYG vs. IWM - Drawdown Comparison

The maximum IYG drawdown since its inception was -81.84%, which is greater than IWM's maximum drawdown of -59.05%. Use the drawdown chart below to compare losses from any high point for IYG and IWM.

Drawdown Indicators

	IYG	IWM	Difference
Max Drawdown Largest peak-to-trough decline	-81.84%	-59.05%	-22.79%
Max Drawdown (1Y) Largest decline over 1 year	-15.90%	-11.03%	-4.87%
Max Drawdown (3Y) Largest decline over 3 years	-18.54%	-27.50%	+8.96%
Max Drawdown (5Y) Largest decline over 5 years	-29.62%	-31.91%	+2.29%
Max Drawdown (10Y) Largest decline over 10 years	-44.32%	-41.13%	-3.19%
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-20.63%	-10.71%	-9.92%
Ulcer Index Depth and duration of drawdowns from previous peaks	6.25%	3.11%	+3.14%

Volatility

IYG vs. IWM - Volatility Comparison

iShares U.S. Financial Services ETF (IYG) and iShares Russell 2000 ETF (IWM) have volatilities of 4.49% and 4.58%, 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

	IYG	IWM	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.49%	4.58%	-0.09%
Volatility (6M) Calculated over the trailing 6-month period	12.00%	14.21%	-2.21%
Volatility (1Y) Calculated over the trailing 1-year period	15.75%	19.40%	-3.65%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	20.34%	22.50%	-2.16%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	23.38%	23.02%	+0.36%

IYG vs. IWM - Expense Ratio Comparison

IYG has a 0.42% expense ratio, which is higher than IWM's 0.19% expense ratio.

Dividends

IYG vs. IWM - Dividend Comparison

IYG's dividend yield for the trailing twelve months is around 1.01%, 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%
IYG iShares U.S. Financial Services ETF	1.01%	1.00%	1.16%	1.77%	2.07%	1.25%	1.71%	1.59%	1.81%	1.24%	1.28%	1.33%

Frequently Asked Questions

Can I hold both IYG and IWM in my portfolio?

IYG and IWM have a correlation of 0.59, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, IYG or IWM?

IWM has higher volatility (4.58%) compared to IYG (4.49%). In terms of maximum drawdown, IYG dropped -81.84% vs IWM's -59.05%.

Which ETF is better, IYG or IWM?

On 10-year performance, IYG leads with 14.64% vs 10.83% for IWM. On fees, IWM is cheaper at 0.19% 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, IYG or IWM?

Over the 10-year period, IYG has performed better with a 14.64% return vs 10.83%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IYG or IWM?

IWM is cheaper with a 0.19% expense ratio, compared with 0.42% for IYG.

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

IYG has the higher dividend yield at 1.01%, compared with 0.88% for IWM.

What is the main difference between IYG and IWM?

IYG is categorized as Financials Equities, while IWM is Small Cap Blend Equities. IYG tracks Dow Jones U.S. Financial Services TR, while IWM tracks Russell 2000 Index. Their fees differ too: 0.42% for IYG and 0.19% for IWM.

Which has better risk-adjusted returns?

IWM currently has the higher Sharpe Ratio (2.02 vs 0.91), 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.