THRO vs. IWM

Last updated Aug 4, 2026

THRO (iShares U.S. Thematic Rotation Active ETF) and IWM (iShares Russell 2000 ETF) are both exchange-traded funds - THRO is a Tactical Allocation fund actively managed by iShares, while IWM is a Small Cap Blend Equities fund tracking the Russell 2000 Index. THRO is actively managed, while IWM is passively managed. Over the past 3 years, THRO returned 22.13%/yr vs 16.48%/yr for IWM. Their correlation of 0.80 means they have usually moved in the same direction. THRO charges 0.60%/yr vs 0.19%/yr for IWM.

Performance

THRO vs. IWM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares U.S. Thematic Rotation Active ETF (THRO) 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, THRO achieves a 12.26% return, which is significantly lower than IWM's 20.84% return.

THRO

• 1D: 1.43%
• 1M: 1.36%
• 6M: 10.09%
• YTD: 12.26%
• 1Y: 22.01%
• 3Y*: 22.13%
• 5Y*: —
• 10Y*: —
• ALL TIME*: 12.99%

IWM

• 1D: 1.72%
• 1M: -0.46%
• 6M: 13.45%
• YTD: 20.84%
• 1Y: 39.26%
• 3Y*: 16.48%
• 5Y*: 7.64%
• 10Y*: 10.63%
• ALL TIME*: 8.80%

*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	$6.77B	$6.36B	$7.44B
THRO iShares U.S. Thematic Rotation Active ETF	$20.83M	$25.08M	$80.87M

THRO vs. IWM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
THRO iShares U.S. Thematic Rotation Active ETF	12.26%	15.04%	32.03%	24.40%	-17.85%	1.01%
IWM iShares Russell 2000 ETF	20.84%	12.66%	11.38%	16.83%	-20.48%	2.24%

Correlation

The correlation between THRO and IWM is 0.75, 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.	0.75
Correlation (3Y) Balances recent behavior with more history.	0.74
Correlation (All Time) Calculated using the full available price history since Dec 16, 2021	0.80

The correlation between THRO and IWM has been stable across timeframes, ranging from 0.74 to 0.80 - a consistent structural relationship.

THRO vs. IWM - Sectors Allocation Comparison

Sectors	THRO	IWM
Technology	44.2%	13.6%
Industrials	11.0%	13.7%
Financial Services	10.8%	18.3%
Consumer Cyclical	8.9%	9.2%
Communication Services	8.7%	2.0%
Healthcare	6.0%	20.0%
Consumer Defensive	5.7%	2.8%
Energy	3.5%	5.6%
Basic Materials	1.1%	4.5%
Utilities	0.1%	2.9%
Real Estate	-	7.0%

Return for Risk

THRO vs. IWM — Risk / Return Rank

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

THRO

THRO Risk / Return Rank: 61
THRO Sharpe Ratio Rank: 63
THRO Sortino Ratio Rank: 63
THRO Omega Ratio Rank: 59
THRO Calmar Ratio Rank: 55
THRO Martin Ratio Rank: 66

IWM

IWM Risk / Return Rank: 85
IWM Sharpe Ratio Rank: 85
IWM Sortino Ratio Rank: 85
IWM Omega Ratio Rank: 80
IWM Calmar Ratio Rank: 88
IWM Martin Ratio Rank: 86

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.

THRO vs. IWM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares U.S. Thematic Rotation Active ETF (THRO) 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.

	THRO	IWM	Difference
Sharpe ratio: Return per unit of total volatility	1.53	2.04	-0.51
Sortino ratio: Return per unit of downside risk	2.17	2.85	-0.68
Omega ratio: Gain probability vs. loss probability	1.27	1.34	-0.07
Calmar ratio: Return relative to maximum drawdown	2.03	3.58	-1.54
Martin ratio: Return relative to average drawdown	8.29	12.68	-4.39

THRO vs. IWM - Sharpe Ratio Comparison

The current THRO Sharpe Ratio is 1.53, which is comparable to the IWM Sharpe Ratio of 2.04. The chart below compares the historical Sharpe Ratios of THRO 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

THRO vs. IWM - Drawdown Comparison

The maximum THRO drawdown since its inception was -26.54%, smaller than the maximum IWM drawdown of -59.05%. Use the drawdown chart below to compare losses from any high point for THRO and IWM.

Drawdown Indicators

	THRO	IWM	Difference
Max Drawdown Largest peak-to-trough decline	-26.54%	-59.05%	+32.51%
Max Drawdown (1Y) Largest decline over 1 year	-10.87%	-11.03%	+0.16%
Max Drawdown (3Y) Largest decline over 3 years	-19.07%	-27.50%	+8.43%
Max Drawdown (5Y) Largest decline over 5 years	—	-31.91%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-41.13%	—
Current Drawdown Current decline from peak	-1.01%	-1.41%	+0.40%
Average Drawdown Average peak-to-trough decline	-6.54%	-10.71%	+4.17%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.66%	3.11%	-0.45%

Volatility

THRO vs. IWM - Volatility Comparison

iShares U.S. Thematic Rotation Active ETF (THRO) has a higher volatility of 4.62% compared to iShares Russell 2000 ETF (IWM) at 4.21%. This indicates that THRO'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.

Volatility by Period

	THRO	IWM	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.62%	4.21%	+0.41%
Volatility (6M) Calculated over the trailing 6-month period	11.78%	14.13%	-2.35%
Volatility (1Y) Calculated over the trailing 1-year period	14.50%	19.36%	-4.86%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.70%	22.50%	-3.80%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.70%	23.02%	-4.32%

THRO vs. IWM - Expense Ratio Comparison

THRO has a 0.60% expense ratio, which is higher than IWM's 0.19% expense ratio.

Dividends

THRO vs. IWM - Dividend Comparison

THRO's dividend yield for the trailing twelve months is around 0.25%, less than IWM's 0.90% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
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%
THRO iShares U.S. Thematic Rotation Active ETF	0.25%	0.15%	0.73%	0.55%	0.90%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both THRO and IWM in my portfolio?

THRO and IWM have a correlation of 0.75, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, THRO or IWM?

THRO has higher volatility (4.62%) compared to IWM (4.21%). In terms of maximum drawdown, THRO dropped -26.54% vs IWM's -59.05%.

Which ETF is better, THRO or IWM?

On 3-year performance, THRO leads with 22.13% vs 16.48% for IWM. On fees, IWM is cheaper at 0.19% per year. On volatility, IWM has been the lower-risk option at 4.21%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, THRO or IWM?

Over the 3-year period, THRO has performed better with a 22.13% return vs 16.48%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, THRO or IWM?

IWM is cheaper with a 0.19% expense ratio, compared with 0.60% for THRO.

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

IWM has the higher dividend yield at 0.90%, compared with 0.25% for THRO.

What is the main difference between THRO and IWM?

THRO is categorized as Tactical Allocation, while IWM is Small Cap Blend Equities. Their fees differ too: 0.60% for THRO and 0.19% for IWM.

Which has better risk-adjusted returns?

IWM currently has the higher Sharpe Ratio (2.04 vs 1.53), 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.