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KBE vs. IWM
Performance
Return for Risk
Drawdowns
Volatility
Dividends

KBE vs. IWM

Last updated Jun 24, 2026

KBE (SPDR S&P Bank ETF) and IWM (iShares Russell 2000 ETF) are both exchange-traded funds - KBE is a Financials Equities fund tracking the S&P Banks Select Industry Index, while IWM is a Small Cap Blend Equities fund tracking the Russell 2000 Index. Both are passively managed. Over the past 10 years, KBE returned 11.09%/yr vs 11.58%/yr for IWM. A 0.75 correlation means they provide meaningful diversification when combined. KBE charges 0.35%/yr vs 0.19%/yr for IWM.

Performance

KBE vs. IWM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in SPDR S&P Bank ETF (KBE) and iShares Russell 2000 ETF (IWM). The values are adjusted to include any dividend payments, if applicable.

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Returns By Period

In the year-to-date period, KBE achieves a 11.37% return, which is significantly lower than IWM's 20.47% return. Both investments have delivered pretty close results over the past 10 years, with KBE having a 11.09% annualized return and IWM not far ahead at 11.58%.

KBE

1D
1.33%
1M
5.76%
YTD
11.37%
6M
8.58%
1Y
26.10%
3Y*
27.71%
5Y*
8.00%
10Y*
11.09%

IWM

1D
-0.96%
1M
3.82%
YTD
20.47%
6M
17.64%
1Y
40.90%
3Y*
19.22%
5Y*
6.27%
10Y*
11.58%
*Multi-year figures are annualized to reflect compound growth (CAGR)

KBE vs. IWM - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
KBE
SPDR S&P Bank ETF		11.37%12.36%23.78%5.30%-14.83%33.46%-8.75%29.78%-19.65%10.49%
IWM
iShares Russell 2000 ETF		20.47%12.66%11.38%16.83%-20.48%14.54%20.03%25.39%-11.12%14.58%

Correlation

The correlation between KBE and IWM is 0.68, 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

0.68

Correlation (3Y)
Calculated over the trailing 3-year period

0.76

Correlation (5Y)
Calculated over the trailing 5-year period

0.79

Correlation (10Y)
Calculated over the trailing 10-year period

0.77

Correlation (All Time)
Calculated using the full available price history since Nov 15, 2005

0.75

The correlation between KBE and IWM shifts across timeframes, from 0.68 (1 year) to 0.79 (5 years), reflecting how their relationship changes across market environments.

KBE vs. IWM - Sectors Allocation Comparison

Sectors
KBE
IWM

Financial Services

100.0%
15.5%

Basic Materials

-

4.5%

Communication Services

-

1.7%

Consumer Cyclical

-

8.0%

Consumer Defensive

-

2.0%

Energy

-

6.0%

Healthcare

-

15.6%

Industrials

-

17.3%

Real Estate

-

5.5%

Technology

-

20.1%

Utilities

-

3.1%

Financial Services

KBE
100.0%
IWM
15.5%

Basic Materials

KBE

-

IWM
4.5%

Communication Services

KBE

-

IWM
1.7%

Consumer Cyclical

KBE

-

IWM
8.0%

Consumer Defensive

KBE

-

IWM
2.0%

Energy

KBE

-

IWM
6.0%

Healthcare

KBE

-

IWM
15.6%

Industrials

KBE

-

IWM
17.3%

Real Estate

KBE

-

IWM
5.5%

Technology

KBE

-

IWM
20.1%

Utilities

KBE

-

IWM
3.1%

Compare stocks, funds, or ETFs

Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.

SPDR S&P Bank ETF

iShares Russell 2000 ETF

Often compared with KBE:
KBE vs. XLFKBE vs. KREKBE vs. KBWBKBE vs. IYFKBE vs. KBWPKBE vs. FNCLKBE vs. CM
Often compared with IWM:
IWM vs. SPYIWM vs. VTWOIWM vs. IJRIWM vs. AVUVIWM vs. IWNIWM vs. VOOIWM vs. TNA

Return for Risk

KBE vs. IWM — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
KBE
KBE Risk / Return Rank: 3535
Overall Rank
KBE Sharpe Ratio Rank: 3636
Sharpe Ratio Rank
KBE Sortino Ratio Rank: 3434
Sortino Ratio Rank
KBE Omega Ratio Rank: 3636
Omega Ratio Rank
KBE Calmar Ratio Rank: 3737
Calmar Ratio Rank
KBE Martin Ratio Rank: 3333
Martin Ratio Rank
IWM
IWM Risk / Return Rank: 6767
Overall Rank
IWM Sharpe Ratio Rank: 6666
Sharpe Ratio Rank
IWM Sortino Ratio Rank: 6464
Sortino Ratio Rank
IWM Omega Ratio Rank: 5757
Omega Ratio Rank
IWM Calmar Ratio Rank: 7575
Calmar Ratio Rank
IWM Martin Ratio Rank: 7373
Martin Ratio Rank
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.

KBE vs. IWM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for SPDR S&P Bank ETF (KBE) 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.

KBEIWMDifference
Sharpe ratioReturn per unit of total volatility
1.22
2.08

-0.87

Sortino ratioReturn per unit of downside risk
1.74
2.86

-1.12

Omega ratioGain probability vs. loss probability

1.23

1.34

-0.11

Calmar ratioReturn relative to maximum drawdown

1.79

3.73

-1.93

Martin ratioReturn relative to average drawdown

4.71

13.18

-8.47

KBE vs. IWM - Sharpe Ratio Comparison

The current KBE Sharpe Ratio is 1.22, which is lower than the IWM Sharpe Ratio of 2.08. The chart below compares the historical Sharpe Ratios of KBE 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.

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Drawdowns

KBE vs. IWM - Drawdown Comparison

The maximum KBE drawdown since its inception was -83.15%, which is greater than IWM's maximum drawdown of -59.05%. Use the drawdown chart below to compare losses from any high point for KBE and IWM.

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Drawdown Indicators

KBEIWMDifference

Max Drawdown

Largest peak-to-trough decline

-83.15%

-59.05%

-24.10%

Max Drawdown (1Y)

Largest decline over 1 year

-14.63%

-11.03%

-3.60%

Max Drawdown (3Y)

Largest decline over 3 years

-25.97%

-27.50%

+1.53%

Max Drawdown (5Y)

Largest decline over 5 years

-45.25%

-31.91%

-13.34%

Max Drawdown (10Y)

Largest decline over 10 years

-53.14%

-41.13%

-12.01%

Current Drawdown

Current decline from peak

0.00%

-0.96%

+0.96%

Average Drawdown

Average peak-to-trough decline

-27.47%

-10.75%

-16.72%

Ulcer Index

Depth and duration of drawdowns from previous peaks

5.56%

3.11%

+2.45%

Volatility

KBE vs. IWM - Volatility Comparison

The current volatility for SPDR S&P Bank ETF (KBE) is 5.85%, while iShares Russell 2000 ETF (IWM) has a volatility of 6.56%. This indicates that KBE 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.

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Volatility by Period

KBEIWMDifference

Volatility (1M)

Calculated over the trailing 1-month period

5.85%

6.56%

-0.71%

Volatility (6M)

Calculated over the trailing 6-month period

15.12%

14.31%

+0.81%

Volatility (1Y)

Calculated over the trailing 1-year period

21.63%

19.74%

+1.89%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

27.25%

22.61%

+4.64%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

29.77%

23.06%

+6.71%

KBE vs. IWM - Expense Ratio Comparison

KBE has a 0.35% expense ratio, which is higher than IWM's 0.19% expense ratio.

Dividends

KBE vs. IWM - Dividend Comparison

KBE's dividend yield for the trailing twelve months is around 2.19%, more than IWM's 0.90% yield.

PositionTTM20252024202320222021202020192018201720162015
IWM
iShares Russell 2000 ETF		0.90%1.04%1.15%1.35%1.48%0.94%1.04%1.26%1.40%1.26%1.38%1.54%
KBE
SPDR S&P Bank ETF		2.19%2.51%2.35%2.78%2.99%2.16%2.44%2.33%2.18%1.36%1.39%1.70%

Frequently Asked Questions

KBE and IWM have a correlation of 0.68, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

IWM has higher volatility (6.56%) compared to KBE (5.85%). In terms of maximum drawdown, KBE dropped -83.15% vs IWM's -59.05%.

On 10-year performance, IWM leads with 11.58% vs 11.09% for KBE. On fees, IWM is cheaper at 0.19% per year. On volatility, KBE has been the lower-risk option at 5.85%. 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 11.58% return vs 11.09%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

IWM is cheaper with a 0.19% expense ratio, compared with 0.35% for KBE.

KBE has the higher dividend yield at 2.19%, compared with 0.90% for IWM.

KBE is categorized as Financials Equities, while IWM is Small Cap Blend Equities. KBE tracks S&P Banks Select Industry Index, while IWM tracks Russell 2000 Index. They also come from different issuers: State Street and iShares. Their fees differ too: 0.35% for KBE and 0.19% for IWM.

IWM currently has the higher Sharpe Ratio (2.08 vs 1.22), 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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