MSFT vs. IWM
MSFT (Microsoft Corporation) is a stock, while IWM (iShares Russell 2000 ETF) is Small Cap Blend Equities fund tracking the Russell 2000 Index. Over the past 10 years, MSFT returned 23.18%/yr vs 10.65%/yr for IWM. A 0.53 correlation means they provide meaningful diversification when combined.
Performance
MSFT vs. IWM - Performance Comparison
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Returns By Period
In the year-to-date period, MSFT achieves a -16.45% return, which is significantly lower than IWM's 19.24% return. Over the past 10 years, MSFT has outperformed IWM with an annualized return of 23.18%, while IWM has yielded a comparatively lower 10.65% annualized return.
MSFT
- 1D
- 2.15%
- 1M
- 6.03%
- 6M
- -12.13%
- YTD
- -16.45%
- 1Y
- -20.50%
- 3Y*
- 6.20%
- 5Y*
- 8.30%
- 10Y*
- 23.18%
- ALL TIME*
- 24.73%
IWM
- 1D
- -0.59%
- 1M
- -1.11%
- 6M
- 10.45%
- YTD
- 19.24%
- 1Y
- 32.84%
- 3Y*
- 15.91%
- 5Y*
- 6.97%
- 10Y*
- 10.65%
- ALL TIME*
- 8.76%
MSFT vs. IWM - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
MSFT Microsoft Corporation | -16.45% | 15.58% | 12.93% | 58.19% | -28.02% | 52.48% | 42.53% | 57.56% | 20.80% | 40.73% |
IWM iShares Russell 2000 ETF | 19.24% | 12.66% | 11.38% | 16.83% | -20.48% | 14.54% | 20.03% | 25.39% | -11.12% | 14.58% |
Correlation
The correlation between MSFT and IWM is 0.16, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.16 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.31 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.45 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.47 |
Correlation (All Time) Calculated using the full available price history since May 26, 2000 | 0.53 |
Over the past year, the correlation between MSFT and IWM has dropped to 0.16 - well below their long-term average of 0.53, suggesting their price drivers have been diverging.
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Return for Risk
MSFT vs. IWM — Risk / Return Rank
MSFT
IWM
MSFT vs. IWM - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Microsoft Corporation (MSFT) 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.
| MSFT | IWM | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -2.46 | ||
| Sortino ratioReturn per unit of downside risk | -3.37 | ||
| Omega ratioGain probability vs. loss probability | 0.88 | 1.29 | -0.40 |
| Calmar ratioReturn relative to maximum drawdown | -0.60 | 2.99 | -3.59 |
| Martin ratioReturn relative to average drawdown | -1.10 | 10.54 | -11.64 |
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Drawdowns
MSFT vs. IWM - Drawdown Comparison
The maximum MSFT drawdown since its inception was -69.38%, which is greater than IWM's maximum drawdown of -59.05%. Use the drawdown chart below to compare losses from any high point for MSFT and IWM.
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Drawdown Indicators
| MSFT | IWM | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -69.38% | -59.05% | -10.33% |
Max Drawdown (1Y)Largest decline over 1 year | -34.50% | -11.03% | -23.47% |
Max Drawdown (3Y)Largest decline over 3 years | -34.50% | -27.50% | -7.00% |
Max Drawdown (5Y)Largest decline over 5 years | -37.15% | -31.91% | -5.24% |
Max Drawdown (10Y)Largest decline over 10 years | -37.15% | -41.13% | +3.98% |
Current DrawdownCurrent decline from peak | -25.32% | -2.71% | -22.61% |
Average DrawdownAverage peak-to-trough decline | -21.80% | -10.72% | -11.08% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 18.74% | 3.12% | +15.62% |
Volatility
MSFT vs. IWM - Volatility Comparison
Microsoft Corporation (MSFT) has a higher volatility of 10.25% compared to iShares Russell 2000 ETF (IWM) at 3.62%. This indicates that MSFT's price experiences larger fluctuations and is considered to be riskier 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
| MSFT | IWM | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 10.25% | 3.62% | +6.63% |
Volatility (6M)Calculated over the trailing 6-month period | 24.51% | 14.17% | +10.34% |
Volatility (1Y)Calculated over the trailing 1-year period | 27.52% | 19.38% | +8.14% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 27.07% | 22.49% | +4.58% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 27.15% | 23.00% | +4.15% |
Dividends
MSFT vs. IWM - Dividend Comparison
MSFT's dividend yield for the trailing twelve months is around 0.88%, less than IWM's 0.91% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IWM iShares Russell 2000 ETF | 0.91% | 1.04% | 1.15% | 1.35% | 1.48% | 0.94% | 1.04% | 1.26% | 1.40% | 1.26% | 1.38% | 1.54% |
MSFT Microsoft Corporation | 0.88% | 0.70% | 0.73% | 0.74% | 1.06% | 0.68% | 0.94% | 1.20% | 1.69% | 1.86% | 2.37% | 2.33% |
Frequently Asked Questions
MSFT and IWM have a correlation of 0.16, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
MSFT has higher volatility (10.25%) compared to IWM (3.62%). In terms of maximum drawdown, MSFT dropped -69.38% vs IWM's -59.05%.
IWM currently has the higher Sharpe Ratio (1.71 vs -0.75), 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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