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SMLF vs. IWM
Performance
Return for Risk
Drawdowns
Volatility
Dividends

SMLF vs. IWM

Last updated Jul 12, 2026
Documentation

SMLF (iShares U.S. Small-Cap Equity Factor ETF) and IWM (iShares Russell 2000 ETF) are both Small Cap Blend Equities funds from iShares - SMLF tracks the STOXX U.S. Small-Cap Equity Factor Index while IWM tracks the Russell 2000 Index. Both are passively managed. Over the past 10 years, SMLF returned 12.25%/yr vs 10.85%/yr for IWM. Their correlation of 0.91 suggests significant overlap in exposure. SMLF charges 0.15%/yr vs 0.19%/yr for IWM.

Performance

SMLF vs. IWM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares U.S. Small-Cap Equity Factor ETF (SMLF) 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, SMLF achieves a 17.50% return, which is significantly lower than IWM's 20.74% return. Over the past 10 years, SMLF has outperformed IWM with an annualized return of 12.25%, while IWM has yielded a comparatively lower 10.85% annualized return.

SMLF

1D
-0.31%
1M
1.01%
6M
11.97%
YTD
17.50%
1Y
27.97%
3Y*
18.44%
5Y*
11.29%
10Y*
12.25%

IWM

1D
-0.42%
1M
1.28%
6M
14.22%
YTD
20.74%
1Y
34.90%
3Y*
17.34%
5Y*
6.83%
10Y*
10.85%
*Multi-year figures are annualized to reflect compound growth (CAGR)

SMLF vs. IWM - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
SMLF
iShares U.S. Small-Cap Equity Factor ETF		17.50%12.30%16.33%19.99%-12.19%26.53%8.38%21.56%-8.42%12.70%
IWM
iShares Russell 2000 ETF		20.74%12.66%11.38%16.83%-20.48%14.54%20.03%25.39%-11.12%14.58%

Correlation

The correlation between SMLF and IWM is 0.96 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

Correlation
Correlation (1Y)
Calculated over the trailing 1-year period

0.96

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

0.97

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

0.97

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

0.96

Correlation (All Time)
Calculated using the full available price history since Apr 30, 2015

0.91

The correlation between SMLF and IWM has been stable across timeframes, ranging from 0.91 to 0.97 - a consistent structural relationship.

SMLF vs. IWM - Sectors Allocation Comparison

Sectors
SMLF
IWM

Industrials

19.5%
13.8%

Technology

19.1%
14.9%

Financial Services

14.3%
18.1%

Healthcare

12.9%
20.1%

Consumer Cyclical

11.4%
8.9%

Real Estate

5.6%
6.3%

Basic Materials

4.5%
4.3%

Energy

4.3%
5.7%

Consumer Defensive

3.3%
2.5%

Communication Services

3.2%
2.0%

Utilities

2.0%
2.9%

Industrials

SMLF
19.5%
IWM
13.8%

Technology

SMLF
19.1%
IWM
14.9%

Financial Services

SMLF
14.3%
IWM
18.1%

Healthcare

SMLF
12.9%
IWM
20.1%

Consumer Cyclical

SMLF
11.4%
IWM
8.9%

Real Estate

SMLF
5.6%
IWM
6.3%

Basic Materials

SMLF
4.5%
IWM
4.3%

Energy

SMLF
4.3%
IWM
5.7%

Consumer Defensive

SMLF
3.3%
IWM
2.5%

Communication Services

SMLF
3.2%
IWM
2.0%

Utilities

SMLF
2.0%
IWM
2.9%

Compare stocks, funds, or ETFs

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

iShares U.S. Small-Cap Equity Factor ETF

iShares Russell 2000 ETF

Often compared with SMLF:
SMLF vs. FSMDSMLF vs. SMLVSMLF vs. SMMVSMLF vs. VBRSMLF vs. GSSCSMLF vs. FZIPXSMLF vs. FSSNX
Often compared with IWM:
IWM vs. SPYIWM vs. VTWOIWM vs. IJRIWM vs. AVUVIWM vs. IWNIWM vs. VOOIWM vs. IWO

Return for Risk

SMLF vs. IWM — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
SMLF
SMLF Risk / Return Rank: 6161
Overall Rank
SMLF Sharpe Ratio Rank: 5555
Sharpe Ratio Rank
SMLF Sortino Ratio Rank: 5555
Sortino Ratio Rank
SMLF Omega Ratio Rank: 5050
Omega Ratio Rank
SMLF Calmar Ratio Rank: 7474
Calmar Ratio Rank
SMLF Martin Ratio Rank: 7171
Martin Ratio Rank
IWM
IWM Risk / Return Rank: 6767
Overall Rank
IWM Sharpe Ratio Rank: 6565
Sharpe Ratio Rank
IWM Sortino Ratio Rank: 6565
Sortino Ratio Rank
IWM Omega Ratio Rank: 5858
Omega Ratio Rank
IWM Calmar Ratio Rank: 7474
Calmar Ratio Rank
IWM Martin Ratio Rank: 7272
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.

SMLF vs. IWM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares U.S. Small-Cap Equity Factor ETF (SMLF) 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.

SMLFIWMDifference
Sharpe ratioReturn per unit of total volatility
1.50
1.70

-0.20

Sortino ratioReturn per unit of downside risk
2.16
2.42

-0.25

Omega ratioGain probability vs. loss probability

1.26

1.28

-0.03

Calmar ratioReturn relative to maximum drawdown

3.04

3.01

+0.03

Martin ratioReturn relative to average drawdown

10.41

10.65

-0.24

SMLF vs. IWM - Sharpe Ratio Comparison

The current SMLF Sharpe Ratio is 1.50, which is comparable to the IWM Sharpe Ratio of 1.70. The chart below compares the historical Sharpe Ratios of SMLF 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

SMLF vs. IWM - Drawdown Comparison

The maximum SMLF drawdown since its inception was -41.89%, smaller than the maximum IWM drawdown of -59.05%. Use the drawdown chart below to compare losses from any high point for SMLF and IWM.

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Drawdown Indicators

SMLFIWMDifference

Max Drawdown

Largest peak-to-trough decline

-41.89%

-59.05%

+17.16%

Max Drawdown (1Y)

Largest decline over 1 year

-8.71%

-11.03%

+2.32%

Max Drawdown (3Y)

Largest decline over 3 years

-26.28%

-27.50%

+1.22%

Max Drawdown (5Y)

Largest decline over 5 years

-26.28%

-31.91%

+5.63%

Max Drawdown (10Y)

Largest decline over 10 years

-41.89%

-41.13%

-0.76%

Current Drawdown

Current decline from peak

-1.78%

-1.48%

-0.30%

Average Drawdown

Average peak-to-trough decline

-6.55%

-10.73%

+4.18%

Ulcer Index

Depth and duration of drawdowns from previous peaks

2.55%

3.12%

-0.57%

Volatility

SMLF vs. IWM - Volatility Comparison

iShares U.S. Small-Cap Equity Factor ETF (SMLF) and iShares Russell 2000 ETF (IWM) have volatilities of 4.92% and 4.86%, 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.

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Volatility by Period

SMLFIWMDifference

Volatility (1M)

Calculated over the trailing 1-month period

4.92%

4.86%

+0.06%

Volatility (6M)

Calculated over the trailing 6-month period

12.84%

14.19%

-1.35%

Volatility (1Y)

Calculated over the trailing 1-year period

17.64%

19.54%

-1.90%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

21.09%

22.56%

-1.47%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

21.75%

23.00%

-1.25%

SMLF vs. IWM - Expense Ratio Comparison

SMLF has a 0.15% expense ratio, which is lower than IWM's 0.19% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

SMLF vs. IWM - Dividend Comparison

SMLF's dividend yield for the trailing twelve months is around 1.01%, 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%
SMLF
iShares U.S. Small-Cap Equity Factor ETF		1.01%1.14%1.33%1.13%1.23%1.07%1.33%1.39%1.17%0.93%0.78%0.79%

Frequently Asked Questions

With a correlation of 0.96, SMLF and IWM move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

SMLF has higher volatility (4.92%) compared to IWM (4.86%). In terms of maximum drawdown, SMLF dropped -41.89% vs IWM's -59.05%.

On 10-year performance, SMLF leads with 12.25% vs 10.85% for IWM. On fees, SMLF is cheaper at 0.15% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, SMLF has performed better with a 12.25% return vs 10.85%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

SMLF is cheaper with a 0.15% expense ratio, compared with 0.19% for IWM.

SMLF has the higher dividend yield at 1.01%, compared with 0.90% for IWM.

SMLF tracks STOXX U.S. Small-Cap Equity Factor Index, while IWM tracks Russell 2000 Index. Their fees differ too: 0.15% for SMLF and 0.19% for IWM.

IWM currently has the higher Sharpe Ratio (1.70 vs 1.50), 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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