TMSL vs. IWM

Last updated Jun 26, 2026

TMSL (T. Rowe Price Small-Mid Cap ETF) and IWM (iShares Russell 2000 ETF) are both exchange-traded funds - TMSL is a Mid Cap Blend Equities fund actively managed by T. Rowe Price, while IWM is a Small Cap Blend Equities fund tracking the Russell 2000 Index. TMSL is actively managed, while IWM is passively managed. Over the past 3 years, TMSL returned 21.23%/yr vs 19.66%/yr for IWM. Their correlation of 0.94 suggests significant overlap in exposure. TMSL charges 0.55%/yr vs 0.19%/yr for IWM.

Performance

TMSL vs. IWM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in T. Rowe Price Small-Mid Cap ETF (TMSL) and iShares Russell 2000 ETF (IWM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both investments are quite close, with TMSL having a 21.09% return and IWM slightly higher at 21.93%.

TMSL

• 1D: 1.78%
• 1M: 3.43%
• YTD: 21.09%
• 6M: 18.87%
• 1Y: 35.16%
• 3Y*: 21.23%
• 5Y*: —
• 10Y*: —

IWM

• 1D: 0.75%
• 1M: 3.14%
• YTD: 21.93%
• 6M: 18.77%
• 1Y: 42.48%
• 3Y*: 19.66%
• 5Y*: 6.49%
• 10Y*: 12.10%

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

TMSL vs. IWM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
TMSL T. Rowe Price Small-Mid Cap ETF	21.09%	11.95%	15.81%	11.79%
IWM iShares Russell 2000 ETF	21.93%	12.66%	11.38%	8.87%

Correlation

The correlation between TMSL and IWM is 0.92, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.92
Correlation (3Y) Calculated over the trailing 3-year period	0.94
Correlation (All Time) Calculated using the full available price history since Jun 15, 2023	0.94

The correlation between TMSL and IWM has been stable across timeframes, ranging from 0.92 to 0.94 - a consistent structural relationship.

TMSL vs. IWM - Sectors Allocation Comparison

Sectors	TMSL	IWM
Technology	25.8%	20.1%
Industrials	19.3%	17.3%
Healthcare	13.8%	15.6%
Financial Services	13.6%	15.5%
Consumer Cyclical	9.0%	8.0%
Energy	5.9%	6.0%
Real Estate	4.3%	5.5%
Basic Materials	4.1%	4.5%
Consumer Defensive	1.6%	2.0%
Utilities	1.5%	3.1%
Communication Services	1.0%	1.7%

Return for Risk

TMSL vs. IWM — Risk / Return Rank

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

TMSL

TMSL Risk / Return Rank: 70
TMSL Sharpe Ratio Rank: 68
TMSL Sortino Ratio Rank: 69
TMSL Omega Ratio Rank: 65
TMSL Calmar Ratio Rank: 71
TMSL Martin Ratio Rank: 77

IWM

IWM Risk / Return Rank: 78
IWM Sharpe Ratio Rank: 79
IWM Sortino Ratio Rank: 77
IWM Omega Ratio Rank: 69
IWM Calmar Ratio Rank: 83
IWM Martin Ratio Rank: 81

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.

TMSL vs. IWM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for T. Rowe Price Small-Mid Cap ETF (TMSL) 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.

	TMSL	IWM	Difference
Sharpe ratio: Return per unit of total volatility	1.93	2.17	-0.24
Sortino ratio: Return per unit of downside risk	2.74	2.96	-0.23
Omega ratio: Gain probability vs. loss probability	1.34	1.36	-0.01
Calmar ratio: Return relative to maximum drawdown	3.16	3.87	-0.71
Martin ratio: Return relative to average drawdown	12.82	13.69	-0.87

TMSL vs. IWM - Sharpe Ratio Comparison

The current TMSL Sharpe Ratio is 1.93, which is comparable to the IWM Sharpe Ratio of 2.17. The chart below compares the historical Sharpe Ratios of TMSL 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

TMSL vs. IWM - Drawdown Comparison

The maximum TMSL drawdown since its inception was -24.39%, smaller than the maximum IWM drawdown of -59.05%. Use the drawdown chart below to compare losses from any high point for TMSL and IWM.

Drawdown Indicators

	TMSL	IWM	Difference
Max Drawdown Largest peak-to-trough decline	-24.39%	-59.05%	+34.66%
Max Drawdown (1Y) Largest decline over 1 year	-11.19%	-11.03%	-0.16%
Max Drawdown (3Y) Largest decline over 3 years	-24.39%	-27.50%	+3.11%
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	-0.11%	0.00%	-0.11%
Average Drawdown Average peak-to-trough decline	-3.88%	-10.74%	+6.86%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.75%	3.11%	-0.36%

Volatility

TMSL vs. IWM - Volatility Comparison

T. Rowe Price Small-Mid Cap ETF (TMSL) has a higher volatility of 6.98% compared to iShares Russell 2000 ETF (IWM) at 6.31%. This indicates that TMSL'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

	TMSL	IWM	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.98%	6.31%	+0.67%
Volatility (6M) Calculated over the trailing 6-month period	14.88%	14.28%	+0.60%
Volatility (1Y) Calculated over the trailing 1-year period	18.29%	19.69%	-1.40%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.60%	22.60%	-4.00%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.60%	23.06%	-4.46%

TMSL vs. IWM - Expense Ratio Comparison

TMSL has a 0.55% expense ratio, which is higher than IWM's 0.19% expense ratio.

Dividends

TMSL vs. IWM - Dividend Comparison

TMSL's dividend yield for the trailing twelve months is around 0.47%, less than IWM's 0.89% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IWM iShares Russell 2000 ETF	0.89%	1.04%	1.15%	1.35%	1.48%	0.94%	1.04%	1.26%	1.40%	1.26%	1.38%	1.54%
TMSL T. Rowe Price Small-Mid Cap ETF	0.47%	0.57%	0.44%	0.34%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both TMSL and IWM in my portfolio?

With a correlation of 0.92, TMSL 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.

Which is riskier, TMSL or IWM?

TMSL has higher volatility (6.98%) compared to IWM (6.31%). In terms of maximum drawdown, TMSL dropped -24.39% vs IWM's -59.05%.

Which ETF is better, TMSL or IWM?

On 3-year performance, TMSL leads with 21.23% vs 19.66% for IWM. On fees, IWM is cheaper at 0.19% per year. On volatility, IWM has been the lower-risk option at 6.31%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, TMSL or IWM?

Over the 3-year period, TMSL has performed better with a 21.23% return vs 19.66%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, TMSL or IWM?

IWM is cheaper with a 0.19% expense ratio, compared with 0.55% for TMSL.

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

IWM has the higher dividend yield at 0.89%, compared with 0.47% for TMSL.

What is the main difference between TMSL and IWM?

TMSL is categorized as Mid Cap Blend Equities, while IWM is Small Cap Blend Equities. They also come from different issuers: T. Rowe Price and iShares. Their fees differ too: 0.55% for TMSL and 0.19% for IWM.

Which has better risk-adjusted returns?

IWM currently has the higher Sharpe Ratio (2.17 vs 1.93), 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.