SPEM vs. IWM

Last updated Jun 14, 2026

SPEM (SPDR Portfolio Emerging Markets ETF) and IWM (iShares Russell 2000 ETF) are both exchange-traded funds - SPEM is a Emerging Markets Equities fund tracking the S&P Emerging Markets BMI, while IWM is a Small Cap Blend Equities fund tracking the Russell 2000 Index. Both are passively managed. Over the past 10 years, SPEM returned 9.63%/yr vs 11.27%/yr for IWM. A 0.67 correlation means they provide meaningful diversification when combined. SPEM charges 0.11%/yr vs 0.19%/yr for IWM.

Performance

SPEM vs. IWM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in SPDR Portfolio Emerging Markets ETF (SPEM) 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, SPEM achieves a 11.32% return, which is significantly lower than IWM's 19.22% return. Over the past 10 years, SPEM has underperformed IWM with an annualized return of 9.63%, while IWM has yielded a comparatively higher 11.27% annualized return.

SPEM

• 1D: 0.87%
• 1M: -0.13%
• YTD: 11.32%
• 6M: 13.11%
• 1Y: 27.73%
• 3Y*: 17.37%
• 5Y*: 5.60%
• 10Y*: 9.63%

IWM

• 1D: 0.87%
• 1M: 2.99%
• YTD: 19.22%
• 6M: 16.00%
• 1Y: 41.75%
• 3Y*: 17.23%
• 5Y*: 6.07%
• 10Y*: 11.27%

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

SPEM vs. IWM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SPEM SPDR Portfolio Emerging Markets ETF	11.32%	25.63%	11.40%	10.51%	-17.90%	1.51%	14.55%	19.69%	-13.26%	34.82%
IWM iShares Russell 2000 ETF	19.22%	12.66%	11.38%	16.83%	-20.48%	14.54%	20.03%	25.39%	-11.12%	14.58%

Correlation

The correlation between SPEM and IWM is 0.67, 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	0.67
Correlation (3Y) Calculated over the trailing 3-year period	0.60
Correlation (5Y) Calculated over the trailing 5-year period	0.62
Correlation (10Y) Calculated over the trailing 10-year period	0.61
Correlation (All Time) Calculated using the full available price history since Mar 23, 2007	0.67

The correlation between SPEM and IWM has been stable across timeframes, ranging from 0.60 to 0.67 - a consistent structural relationship.

SPEM vs. IWM - Sectors Allocation Comparison

Sectors	SPEM	IWM
Technology	32.1%	19.2%
Financial Services	19.2%	15.4%
Consumer Cyclical	9.6%	7.9%
Industrials	8.3%	17.9%
Basic Materials	8.0%	4.7%
Communication Services	6.7%	2.5%
Energy	4.2%	5.4%
Healthcare	3.7%	16.3%
Consumer Defensive	3.6%	2.2%
Utilities	2.8%	2.7%
Real Estate	1.8%	5.9%

Return for Risk

SPEM vs. IWM — Risk / Return Rank

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

SPEM

SPEM Risk / Return Rank: 52
SPEM Sharpe Ratio Rank: 52
SPEM Sortino Ratio Rank: 49
SPEM Omega Ratio Rank: 53
SPEM Calmar Ratio Rank: 52
SPEM Martin Ratio Rank: 54

IWM

IWM Risk / Return Rank: 72
IWM Sharpe Ratio Rank: 71
IWM Sortino Ratio Rank: 71
IWM Omega Ratio Rank: 63
IWM Calmar Ratio Rank: 79
IWM Martin Ratio Rank: 76

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.

SPEM vs. IWM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for SPDR Portfolio Emerging Markets ETF (SPEM) 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.

	SPEM	IWM	Difference
Sharpe ratio: Return per unit of total volatility	1.55	1.99	-0.44
Sortino ratio: Return per unit of downside risk	2.16	2.75	-0.59
Omega ratio: Gain probability vs. loss probability	1.29	1.33	-0.04
Calmar ratio: Return relative to maximum drawdown	2.28	3.57	-1.29
Martin ratio: Return relative to average drawdown	8.16	12.63	-4.46

SPEM vs. IWM - Sharpe Ratio Comparison

The current SPEM Sharpe Ratio is 1.55, which is comparable to the IWM Sharpe Ratio of 1.99. The chart below compares the historical Sharpe Ratios of SPEM 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

SPEM vs. IWM - Drawdown Comparison

The maximum SPEM drawdown since its inception was -64.41%, which is greater than IWM's maximum drawdown of -59.05%. Use the drawdown chart below to compare losses from any high point for SPEM and IWM.

Drawdown Indicators

	SPEM	IWM	Difference
Max Drawdown Largest peak-to-trough decline	-64.41%	-59.05%	-5.36%
Max Drawdown (1Y) Largest decline over 1 year	-11.36%	-11.03%	-0.33%
Max Drawdown (3Y) Largest decline over 3 years	-17.62%	-27.50%	+9.88%
Max Drawdown (5Y) Largest decline over 5 years	-31.75%	-31.91%	+0.16%
Max Drawdown (10Y) Largest decline over 10 years	-36.06%	-41.13%	+5.07%
Current Drawdown Current decline from peak	-2.40%	0.00%	-2.40%
Average Drawdown Average peak-to-trough decline	-14.73%	-10.76%	-3.97%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.17%	3.12%	+0.05%

Volatility

SPEM vs. IWM - Volatility Comparison

SPDR Portfolio Emerging Markets ETF (SPEM) and iShares Russell 2000 ETF (IWM) have volatilities of 6.87% and 7.16%, 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

	SPEM	IWM	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.87%	7.16%	-0.29%
Volatility (6M) Calculated over the trailing 6-month period	14.21%	14.29%	-0.08%
Volatility (1Y) Calculated over the trailing 1-year period	16.67%	19.73%	-3.06%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.26%	22.61%	-5.35%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.83%	23.08%	-4.25%

SPEM vs. IWM - Expense Ratio Comparison

SPEM has a 0.11% 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

SPEM vs. IWM - Dividend Comparison

SPEM's dividend yield for the trailing twelve months is around 2.49%, more than IWM's 0.87% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IWM iShares Russell 2000 ETF	0.87%	1.04%	1.15%	1.35%	1.48%	0.94%	1.04%	1.26%	1.40%	1.26%	1.38%	1.54%
SPEM SPDR Portfolio Emerging Markets ETF	2.49%	2.77%	2.78%	2.80%	3.38%	3.14%	1.92%	2.94%	2.34%	1.12%	1.51%	2.40%

Frequently Asked Questions

Can I hold both SPEM and IWM in my portfolio?

SPEM and IWM have a correlation of 0.67, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SPEM or IWM?

IWM has higher volatility (7.16%) compared to SPEM (6.87%). In terms of maximum drawdown, SPEM dropped -64.41% vs IWM's -59.05%.

Which ETF is better, SPEM or IWM?

On 10-year performance, IWM leads with 11.27% vs 9.63% for SPEM. On fees, SPEM is cheaper at 0.11% per year. On volatility, SPEM has been the lower-risk option at 6.87%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SPEM or IWM?

Over the 10-year period, IWM has performed better with a 11.27% return vs 9.63%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SPEM or IWM?

SPEM is cheaper with a 0.11% expense ratio, compared with 0.19% for IWM.

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

SPEM has the higher dividend yield at 2.49%, compared with 0.87% for IWM.

What is the main difference between SPEM and IWM?

SPEM is categorized as Emerging Markets Equities, while IWM is Small Cap Blend Equities. SPEM tracks S&P Emerging Markets BMI, while IWM tracks Russell 2000 Index. They also come from different issuers: State Street and iShares. Their fees differ too: 0.11% for SPEM and 0.19% for IWM.

Which has better risk-adjusted returns?

IWM currently has the higher Sharpe Ratio (1.99 vs 1.55), 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.