# How iShares Russell 2000 ETF (IWM) compares with the whole market and its popular alternatives

> Source: EasyCompare research, https://easycompare.io/research/iwm
> Data as of October 20, 2026. Total returns include reinvested dividends. Past performance does not predict future results; nothing here is investment advice.

Built by QuantCommons' quantitative engine, this page is about relative opportunity, not data on IWM alone. It places IWM (iShares Russell 2000 ETF) against 19 popular alternatives, its neighboring categories and the entire market of over 10,000 U.S.-listed stocks and ETFs, and surfaces what has done better on consistent outperformance, return for the risk taken, behavior in real market crashes and diversification. The result is a clearer view of where IWM stands in the market, and of the alternatives worth a closer look.

Period covered: IWM's full trading record, from May 2000 through September 2026. The crash tests reach back to 2000 using older funds and the S&P 500. All returns include reinvested dividends. Data as of October 20, 2026.

## Key findings

- **What you're buying:** IWM's 0.19% fee costs about $320 more than SCHA's 0.03% on $10,000 over 20 years, for a fund that tracks the same thing. A correlation of 0.98 with VB (Vanguard Morningstar Small-Cap ETF) over 5 years: effectively the same bet as the larger fund.
- **Right now:** Over the past 3 months, IWM fell 5.4% while the S&P 500 rose 3.9%.
- **Fund or market?:** IWM fell 5.4% over the past 3 months even as the S&P 500 rose 3.9%.
- **Long term:** IWM turned $10,000 into $25,800 over the past decade, against $42,100 in the S&P 500.
- **In a crash:** IWM has tended to fall harder than the S&P 500 in crashes, about 1.3 times the index's decline.
- **Diversification:** Against the S&P 500, IWM has a correlation of 0.84 over 5 years, more closely than 73% of ETFs with at least $100 million in assets. Next to an index fund it is more of the same, not a cushion.
- **Better options**
  - **Popular alternatives:** SPY (State Street SPDR S&P 500 ETF), SMLF (iShares U.S. Small-Cap Equity Factor ETF) and IJH (iShares Core S&P Mid-Cap ETF) earned more than IWM with less volatility over the past 5 years. SPY returned 12.7% a year at 17.1% volatility, against 5.2% a year at 22.4%.
  - **Nearby categories and themes:** VTI (Vanguard Morningstar Total Stock Market ETF, US total market) and MGV (Vanguard Morningstar Mega Cap Value ETF, US large-cap value) earned more than IWM with less volatility over the past 5 years. VTI returned 11.5% a year at 17.5% volatility, against 5.2% a year at 22.4%.
  - **Versus the S&P 500:** Simply owning the S&P 500 would have done better over the past 5 years: 12.7% a year at 17.1% volatility, against 5.2% at 22.4% for IWM.

## How much would $10,000 in IWM have grown?

This chart tracks a hypothetical $10,000 investment in IWM over the past 22 years, with dividends reinvested, alongside the same amount in the S&P 500, investments that ended ahead of IWM over the same span and IWM's popular alternatives, among those that traded for the entire period.

- $10,000 invested in IWM at the end of September 2004 would have grown to $65,295 by September 2026, less than the $102,174 it would have become in SPY, an S&P 500 fund.
- Five of the six other investments on the chart ended ahead of IWM, and VTI finished highest, at $103,071.

## IWM at a glance

This section summarizes the key facts about the fund, its returns over periods from one to ten years and the risk it has carried, with dividends reinvested throughout.

- IWM's deepest decline since it began trading in 2000 was 59.1%, from July 2007 to March 2009. It took 23 months from the low to climb back to its old high.
- Over 25 full calendar years, IWM's best was 2003, when it returned 47.4%, and its worst was 2008, when it lost 34.1%. It lost money in seven of those years.
- IWM is 9.4% below its all-time high.

- Type: ETF, Broad Market (Asset Management)
- Trading since: May 26, 2000
- Assets: $75B
- Expense ratio: 0.19%
- Volatility (5 years): 22.4%; Sharpe ratio: 0.34
- Worst decline ever: −59.1%, from July 9, 2007 to March 9, 2009; back at its high by February 11, 2011

| Period | IWM total return |
| --- | --- |
| 1 month | −3.4% |
| 3 months | −5.4% |
| 6 months | −0.1% |
| year to date | +11.6% |
| 1 year | +12.3% |
| 3 years | +71.3% |
| 5 years | +29.0% |
| 10 years | +158% |

## IWM against the whole market

Where IWM ranks among every stock and fund, and what across the market has done better.

### How does IWM rank among all ETFs?

This section ranks IWM on return, volatility, risk-adjusted return and worst decline against every ETF worth at least $100 million with enough history.

- IWM is among the more volatile ETFs: its price swings rank in the bottom 18% of the 1,560 ETFs with at least $100 million in assets, where the top is the calmest.

| Measure | IWM | Rank |
| --- | --- | --- |
| 1-year return | +12.3% | 1,070 of 2,485 (top 44%) |
| 3-year return | +71.3% | 756 of 1,949 (top 39%) |
| 5-year return | +29.0% | 1,015 of 1,560 (top 66%) |
| 10-year return | +158% | 440 of 958 (top 46%) |
| Volatility, 5 years | 22.4% | 1,276 of 1,560 (top 82%) |
| Sharpe ratio, 5 years | 0.34 | 1,169 of 1,560 (top 75%) |
| Worst decline, past 10 years | −41.1% | 579 of 951 (top 61%) |

### What has beaten IWM on both return and risk?

Each dot is an investment, placed by how much it earned a year over the past 5 years (higher is better) and how much its price swung, its volatility (further left is calmer).

- 49 stocks and 483 ETFs worth at least $500 million sit in the green region: each earned more than IWM over the past 5 years with smaller price swings. That is 15% of the 3,633 screened.
- Among those with at least half IWM's swings, DXJ has the best return for its risk: 26.6% a year at 19.1% volatility, 15% less than IWM's 22.4%, and a Sharpe ratio (return above cash per unit of volatility) of 1.34 against 0.34 for IWM.
- Among IWM's popular alternatives, SPY, SMLF and IJH are in the region. SPY earned 12.7% a year against 5.2% a year for IWM, at 17.1% volatility, 23% less than IWM's 22.4%.

### Is there a better investment than IWM?

The table below lists investments that beat IWM over the past 5 years on at least one of these measures: a higher annual return with lower volatility, a higher annual return at similar volatility, a similar return with lower volatility, a higher Sharpe ratio with a smaller worst decline, a higher total return in most periods from 3 months to 10 years, or smaller losses in recent market crashes, and, for funds, the same exposure at a lower expense ratio.

- Among IWM's popular alternatives, SPY, SMLF and IJH earned more than IWM with less volatility over the past 5 years. SPY returned 12.7% a year at 17.1% volatility, against 5.2% a year at 22.4%.
- A cheaper fund that has kept up over the past decade is SCHA (0.03% a year against 0.19%).
- Looking beyond its popular alternatives, VTI (US total market) and MGV (US large-cap value) earned more than IWM with less volatility over the past 5 years. VTI returned 11.5% a year at 17.5% volatility, against 5.2% a year at 22.4%.

The 15 strongest of 532 investments that beat IWM over the past 5 years, out of 3,633 stocks and funds worth at least $500 million.

| Investment | Group | Annual return (5 years) | Volatility | Sharpe | Worst decline (10 years) | 10Y return | Correlation with IWM | Better on |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| IWM: iShares Russell 2000 ETF (this page) |  | +5.2% | 22.4% | 0.34 | −41.1% | +158% |  |  |
| [JNJ](https://easycompare.io/research/jnj): Johnson & Johnson | Pharmaceuticals | +12.7% | 17.9% | 0.76 | −27.4% | +196% | 0.25 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [LIN](https://easycompare.io/research/lin): Linde plc | Chemicals | +11.5% | 20.9% | 0.63 | −32.6% | +394% | 0.49 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [VIG](https://easycompare.io/research/vig): Vanguard Dividend Appreciation ETF | US Dividend Equity | +10.4% | 14.1% | 0.78 | −31.7% | +258% | 0.84 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [SCHD](https://easycompare.io/research/schd): Schwab U.S. Dividend Equity ETF | US Dividend Equity | +9.7% | 14.3% | 0.72 | −33.4% | +252% | 0.75 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [RSG](https://easycompare.io/research/rsg): Republic Services, Inc. | Environmental Services | +13.9% | 18.5% | 0.80 | −34.0% | +446% | 0.25 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [WM](https://easycompare.io/research/wm): Waste Management, Inc. | Environmental Services | +9.3% | 19.2% | 0.56 | −30.1% | +344% | 0.26 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [VTI](https://easycompare.io/research/vti): Vanguard Morningstar Total Stock Market ETF | US Total Market | +11.5% | 17.5% | 0.71 | −35.0% | +302% | 0.88 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [VOO](https://easycompare.io/research/voo): Vanguard S&P 500 ETF | US Large-Cap Equity | +12.8% | 16.9% | 0.80 | −34.0% | +324% | 0.84 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [XLV](https://easycompare.io/research/xlv): State Street Health Care Select Sector SPDR ETF | Health Care Equity | +8.4% | 15.3% | 0.60 | −28.4% | +202% | 0.54 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| USMV: iShares MSCI USA Min Vol Factor ETF | US Low-Volatility Equity | +7.6% | 12.3% | 0.66 | −33.1% | +176% | 0.70 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| SPHQ: Invesco S&P 500 Quality ETF | US Quality Equity | +12.0% | 16.7% | 0.76 | −31.6% | +300% | 0.80 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| IOO: iShares Global 100 ETF | Global Equity | +15.7% | 17.2% | 0.94 | −31.4% | +361% | 0.73 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [BRK-B](https://easycompare.io/research/brk-b): Berkshire Hathaway Inc. | Insurance | +13.4% | 17.1% | 0.82 | −29.6% | +274% | 0.44 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| NOBL: ProShares - S&P 500 Dividend Aristocrats ETF | US Dividend Equity | +6.5% | 14.5% | 0.51 | −35.4% | +172% | 0.78 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| MGV: Vanguard Morningstar Mega Cap Value ETF | US Large-Cap Value | +12.6% | 13.4% | 0.95 | −35.4% | +244% | 0.82 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |

## IWM against its popular alternatives

The investments people most often weigh against IWM, compared period by period and year by year.

### How do IWM's risk and return compare with its alternatives?

This map plots each investment's annual return over the past 5 years against its volatility, the size of its typical price swings.

- 11 of the 16 popular alternatives, led by SMLF, FYX and IJH, were both more rewarding and calmer than IWM over the past 5 years, earning a higher annual return with lower volatility.
- Over the past 5 years, IWM returned 5.2% a year, less than the S&P 500's 12.7%, with higher volatility (22.4% against 17.1%).

### Has IWM consistently beaten its popular alternatives?

This section compares IWM with the investments people most often weigh against it, checking each one over eight periods from one month to ten years.

- Nine of the 19 popular alternatives, led by SPY, FYX and SMLF, outperformed IWM in at least 3 of 5 short-term and 2 of 3 long-term timeframes.
- SPY, FYX and SMLF outperformed IWM in every long-term period and in all but one short-term period, the most consistent record in the group.
- SPY, DFAS and SMDV earned more for the risk they took than IWM (a higher Sharpe ratio) and fell less in their worst decline of the past 10 years.

| Investment | 1Y return | 3Y return | 5Y return | 10Y return | Periods ahead of IWM | Verdict | Sharpe |
| --- | --- | --- | --- | --- | --- | --- | --- |
| IWM: iShares Russell 2000 ETF (this page) | +12.3% | +71.3% | +29.0% | +158% |  |  | 0.34 |
| [SPY](https://easycompare.io/research/spy): State Street SPDR S&P 500 ETF | +15.8% | +89.3% | +81.7% | +321% | 5/5 short-term, 3/3 long-term | all-weather | 0.79 |
| FYX: First Trust Small Cap Core AlphaDEX Fund | +24.7% | +84.9% | +51.7% | +216% | 5/5 short-term, 3/3 long-term | all-weather | 0.49 |
| SMLF: iShares U.S. Small-Cap Equity Factor ETF | +14.9% | +78.2% | +61.2% | +206% | 5/5 short-term, 3/3 long-term | all-weather | 0.56 |
| FNDA: Schwab Fundamental U.S. Small Company Index ETF | +16.4% | +61.0% | +39.0% | +174% | 5/5 short-term, 2/3 long-term | consistent | 0.42 |
| SCHA: Schwab U.S. Small-Cap ETF | +16.5% | +73.1% | +33.9% | +165% | 5/5 short-term, 2/3 long-term | consistent | 0.38 |
| [IJR](https://easycompare.io/research/ijr): iShares Core S&P Small-Cap ETF | +16.7% | +60.8% | +31.5% | +164% | 5/5 short-term, 2/3 long-term | consistent | 0.37 |
| SPSM: State Street SPDR Portfolio S&P 600 Small Cap ETF | +16.8% | +61.1% | +32.2% | +163% | 5/5 short-term, 2/3 long-term | consistent | 0.37 |
| [VB](https://easycompare.io/research/vb): Vanguard Morningstar Small-Cap ETF | +13.7% | +66.8% | +35.2% | +179% | 4/5 short-term, 2/3 long-term | consistent | 0.40 |
| [IJH](https://easycompare.io/research/ijh): iShares Core S&P Mid-Cap ETF | +13.5% | +59.4% | +41.4% | +178% | 3/5 short-term, 2/3 long-term | consistent | 0.45 |
| IWN: iShares Russell 2000 Value ETF | +19.1% | +73.2% | +38.6% | +147% | 5/5 short-term, 1/3 long-term |  | 0.42 |
| AVSC: Avantis U.S. Small Cap Equity ETF | +22.7% | +73.5% | — | — | 5/5 short-term, 1/3 long-term |  | — |
| CALF: Pacer US Small Cap Cash Cows ETF | +35.3% | +48.8% | +41.6% | — | 5/5 short-term, 1/3 long-term |  | 0.42 |
| DFAS: Dimensional - US Small Cap ETF | +15.5% | +62.0% | +41.2% | — | 5/5 short-term, 1/3 long-term |  | 0.44 |
| IWC: iShares Micro-Cap ETF | +13.8% | +97.3% | +28.0% | +161% | 2/5 short-term, 1/3 long-term |  | 0.33 |
| VTWO: Vanguard Russell 2000 ETF | +12.5% | +72.1% | +30.1% | +161% | 0/5 short-term, 1/3 long-term |  | 0.35 |
| SMDV: ProShares S&P SmallCap 600 Dividend Aristocrats ETF | +12.1% | +46.3% | +29.7% | +97.4% | 3/5 short-term, 0/3 long-term |  | 0.38 |
| OMFS: Invesco Russell 2000 Dynamic Multifactor ETF | +13.7% | +60.3% | +28.1% | — | 3/5 short-term, 0/3 long-term |  | 0.34 |
| SCZ: iShares MSCI EAFE Small-Cap ETF | +12.3% | +72.8% | +27.1% | +114% | 2/5 short-term, 0/3 long-term |  | 0.37 |
| IWO: iShares Russell 2000 Growth ETF | +6.0% | +68.9% | +18.7% | +159% | 0/5 short-term, 0/3 long-term |  | 0.26 |

### How did IWM do year by year?

This table shows each investment's total return in every full calendar year since 2001, along with where IWM ranked among its popular alternatives each year.

- IWM finished ahead of the S&P 500 in 12 of its 25 full calendar years, and behind it in each of the last five.
- Ranked against its popular alternatives each year, IWM finished in the top quarter in four of 25 years and in the bottom quarter in one. In 2025, it ranked 7 of 18.
- Among its popular alternatives, VB came out ahead of IWM most often, in 15 of the 21 years both traded.

| Year | IWM | SPY |
| --- | --- | --- |
| 2025 | +12.7% | +17.7% |
| 2024 | +11.4% | +24.9% |
| 2023 | +16.8% | +26.2% |
| 2022 | −20.5% | −18.2% |
| 2021 | +14.5% | +28.7% |
| 2020 | +20.0% | +18.3% |
| 2019 | +25.4% | +31.2% |
| 2018 | −11.1% | −4.6% |
| 2017 | +14.6% | +21.7% |
| 2016 | +21.6% | +12.0% |

## Risk and diversification

How IWM has fallen, how it held up in crashes beside the S&P 500 and its popular alternatives, and what moves independently of it.

### What were IWM's worst declines?

A drawdown is the decline from a peak to the lowest point before a new high.

- In four of IWM's five worst declines, the S&P 500 held up better over the same dates.
- The slowest recovery came after IWM fell 31.9% from November 2021 to June 2022; it did not regain that peak until November 2024, two years later.

| Decline | Peak | Low | Back at the high | SPY over the same dates | Market event |
| --- | --- | --- | --- | --- | --- |
| −59.1% | July 9, 2007 | March 9, 2009 | February 11, 2011 | −54.0% | 2008 financial crisis |
| −41.1% | August 31, 2018 | March 23, 2020 | November 9, 2020 | −20.5% | late-2018 sell-off |
| −38.7% | July 17, 2000 | October 9, 2002 | October 13, 2003 | −46.7% | dot-com bust |
| −31.9% | November 8, 2021 | June 16, 2022 | November 6, 2024 | −21.3% | 2022 bear market |
| −28.9% | April 29, 2011 | October 3, 2011 | September 13, 2012 | −18.6% | 2011 euro debt crisis |

### How did IWM do in stock market crashes?

This section measures how far IWM, the S&P 500 and each alternative fell from peak to trough during every major market crash since 2000.

- IWM fell further than the S&P 500 in eight of the nine crashes it has traded through. The clearest case was the 2011 euro debt crisis, when IWM fell 27.2% and the S&P 500 fell 17.9%.
- Among its popular alternatives, SMDV held up best, falling less than IWM in all six crashes they both traded through.

| Crash | Dates | IWM fall | SPY fall |
| --- | --- | --- | --- |
| Dot-com bust | March 10, 2000 to October 9, 2002 | not trading | −47.5% |
| Global financial crisis | October 9, 2007 to March 9, 2009 | −58.4% | −55.2% |
| Flash crash | May 6, 2010 to May 7, 2010 | −2.9% | −1.5% |
| Euro debt crisis | July 22, 2011 to October 3, 2011 | −27.2% | −17.9% |
| China devaluation & oil rout | August 10, 2015 to February 11, 2016 | −21.5% | −12.8% |
| Volmageddon | February 2, 2018 to February 9, 2018 | −5.5% | −6.5% |
| Q4 2018 selloff | September 21, 2018 to December 24, 2018 | −25.7% | −19.3% |
| COVID crash | February 19, 2020 to March 23, 2020 | −40.8% | −33.7% |
| 2022 bear market | January 4, 2022 to October 12, 2022 | −26.8% | −24.5% |
| SVB / regional bank stress | March 8, 2023 to March 13, 2023 | −7.1% | −3.4% |

### How closely does IWM move with the S&P 500?

Upside capture measures how much of the S&P 500's gains an investment kept in the months the market rose, and downside capture how much of its losses it took in the months the market fell.

- Nine of the 13 popular alternatives had a higher capture ratio (upside capture divided by downside capture) than IWM's 0.76, led by SMLF, FYX and IJH.
- SCZ took just 107% of the S&P 500's losses, against 129% for IWM, while still keeping 81% of its gains.
- Over the past 10 years, IWM captured 98% of the S&P 500's gains in rising months and 129% of its losses in falling months, with a beta of 1.17. Its share of the market's losses was larger than its share of the gains.

Measured over the past 10 years of monthly returns against SPY.

| Investment | Upside capture | Downside capture | Beta |
| --- | --- | --- | --- |
| IWM: iShares Russell 2000 ETF (this page) | 98.0% | 129% | 1.17 |
| FYX: First Trust Small Cap Core AlphaDEX Fund | 104% | 128% | 1.23 |
| SMLF: iShares U.S. Small-Cap Equity Factor ETF | 98.0% | 118% | 1.11 |
| FNDA: Schwab Fundamental U.S. Small Company Index ETF | 97.0% | 123% | 1.16 |
| SCHA: Schwab U.S. Small-Cap ETF | 97.0% | 124% | 1.18 |
| [IJR](https://easycompare.io/research/ijr): iShares Core S&P Small-Cap ETF | 95.0% | 123% | 1.13 |
| [VB](https://easycompare.io/research/vb): Vanguard Morningstar Small-Cap ETF | 96.0% | 120% | 1.13 |
| [IJH](https://easycompare.io/research/ijh): iShares Core S&P Mid-Cap ETF | 93.0% | 115% | 1.10 |
| IWN: iShares Russell 2000 Value ETF | 95.0% | 126% | 1.14 |
| IWC: iShares Micro-Cap ETF | 97.0% | 124% | 1.17 |
| VTWO: Vanguard Russell 2000 ETF | 98.0% | 128% | 1.17 |
| SMDV: ProShares S&P SmallCap 600 Dividend Aristocrats ETF | 67.0% | 89.0% | 0.78 |
| SCZ: iShares MSCI EAFE Small-Cap ETF | 81.0% | 107% | 0.91 |
| IWO: iShares Russell 2000 Growth ETF | 100% | 132% | 1.21 |

### What diversifies IWM?

Correlation measures how closely two investments move together, on a scale from 1 (in lockstep) through 0 (unrelated) to -1 (in opposite directions).

- Moving a fifth of the money in IWM into DBMF would have cut the portfolio's volatility by 21% over the past 5 years and raised its annual return (+6.2% for IWM alone, +7.5% for the mix).
- Among large ETFs, DXJ, GLD and XLE have moved largely independently of IWM over the past 5 years, with correlations of 0.41 or lower, and each still earned a positive 5-year return.
- Among large stocks, CAH, CLS and MCK have moved largely independently of IWM over the past 5 years, with correlations of 0.47 or lower, and each still earned a positive 5-year return.

| Investment | Correlation with IWM | 5Y return | Volatility | Sharpe | Rose in IWM's 7 down years |
| --- | --- | --- | --- | --- | --- |
| DXJ: WisdomTree Japan Hedged Equity Fund | 0.41 | +225% | 19.1% | 1.34 | 2 of 7 |
| [GLD](https://easycompare.io/research/gld): SPDR Gold Shares | 0.12 | +126% | 18.9% | 0.96 | 3 of 7 |
| [XLE](https://easycompare.io/research/xle): State Street Energy Select Sector SPDR ETF | 0.33 | +177% | 25.5% | 0.93 | 3 of 7 |
| AMLP: Alerian MLP ETF | 0.47 | +111% | 18.9% | 0.89 | 2 of 7 |
| EDIV: State Street SPDR S&P Emerging Markets Dividend ETF | 0.45 | +69.9% | 13.8% | 0.84 | 0 of 7 |
| DBMF: iMGP DBi Managed Futures Strategy ETF | -0.18 | +59.7% | 12.4% | 0.82 | 1 of 7 |
| DBA: Invesco DB Agriculture Fund | 0.15 | +66.4% | 13.8% | 0.81 | 1 of 7 |
| IHE: iShares U.S. Pharmaceuticals ETF | 0.49 | +81.2% | 16.8% | 0.80 | 3 of 7 |

## Common questions

### What was IWM's worst drawdown?

IWM's deepest decline since it began trading in 2000 was 59.1%, from July 2007 to March 2009. It took 23 months from the low to climb back to its old high.

### What were IWM's best and worst years?

Over 25 full calendar years, IWM's best year was 2003, when it returned 47.4%. Its worst was 2008, with a return of -34.1%.

### Is there a better investment than IWM?

Among IWM's popular alternatives, SPY, SMLF and IJH earned more than IWM with less volatility over the past 5 years. SPY returned 12.7% a year at 17.1% volatility, against 5.2% a year at 22.4%. A cheaper fund that has kept up over the past decade is SCHA (0.03% a year against 0.19%).

### Is IWM more volatile than the S&P 500?

Yes. IWM's volatility over the past 5 years was 22.4%, 1.3 times the S&P 500's 17.1%. Volatility measures how widely returns swing around their average: in roughly two years out of three, IWM's return lands within 22.4% of its average, either way. The higher it is, the rougher the ride and the harder it is to hold through a slump.

### What is IWM's Sharpe ratio?

IWM's Sharpe ratio over the past 5 years was 0.34, against 0.79 for the S&P 500, so IWM earned less for each unit of risk than an index fund did. The Sharpe ratio is the return earned above cash for each unit of volatility: two investments with the same return are not equal if one got there with far bigger swings.

### How correlated is IWM with the S&P 500?

Over the past 5 years, IWM's monthly returns had a correlation of 0.84 with the S&P 500. Correlation runs from 1 (moving in lockstep) through 0 (unrelated) to −1 (moving in opposite directions). They move almost in lockstep, so holding both adds little diversification. In the table, the correlation column measures each option against IWM instead: the lower it is, the more that option would diversify a IWM holding.

### What are the best alternatives to IWM?

Of the 19 popular alternatives we compared, nine outperformed IWM in at least 3 of 5 short-term and 2 of 3 long-term timeframes, with dividends reinvested: SPY, FYX and SMLF.

### Did IWM outperform the S&P 500?

IWM finished ahead of the S&P 500 (SPY) in 12 of 25 full calendar years. In 2025, it returned +12.7%, against +17.7% for the index.

### How did IWM do in stock market crashes?

IWM fell less than the S&P 500 (SPY) in one of the nine major crashes it has traded through, and further in eight. The clearest case was the 2011 euro debt crisis, when IWM fell 27.2% and the S&P 500 fell 17.9%.

### What diversifies IWM?

These had a low correlation with IWM over the past 5 years and still earned a positive 5-year return: among large ETFs, DXJ (correlation 0.41), GLD (correlation 0.12) and XLE (correlation 0.33); among large stocks, CAH (correlation 0.31), CLS (correlation 0.47) and MCK (correlation 0.21). A correlation near zero means the two have moved largely independently.

## More research

- [State Street SPDR S&P 500 ETF (SPY) Performance, Alternatives and Market Rank](https://easycompare.io/research/spy)
- [iShares Core S&P Small-Cap ETF (IJR) Performance, Alternatives and Market Rank](https://easycompare.io/research/ijr)
- [Vanguard Morningstar Small-Cap ETF (VB) Performance, Alternatives and Market Rank](https://easycompare.io/research/vb)
- [iShares Core S&P Mid-Cap ETF (IJH) Performance, Alternatives and Market Rank](https://easycompare.io/research/ijh)
- [Schwab U.S. Dividend Equity ETF (SCHD) Performance, Alternatives and Market Rank](https://easycompare.io/research/schd)
- [NVIDIA (NVDA) Performance, Alternatives and Market Rank](https://easycompare.io/research/nvda)
- [Apple (AAPL) Performance, Alternatives and Market Rank](https://easycompare.io/research/aapl)
- [Alphabet (GOOG) Performance, Alternatives and Market Rank](https://easycompare.io/research/goog)
- [Microsoft (MSFT) Performance, Alternatives and Market Rank](https://easycompare.io/research/msft)
- [Amazon.com (AMZN) Performance, Alternatives and Market Rank](https://easycompare.io/research/amzn)
- [Vanguard Morningstar Total Stock Market ETF (VTI) Performance, Alternatives and Market Rank](https://easycompare.io/research/vti)
- [Taiwan Semiconductor Manufacturing (TSM) Performance, Alternatives and Market Rank](https://easycompare.io/research/tsm)

## Explore further

- Full page with charts: https://easycompare.io/research/iwm
- All research pages: https://easycompare.io/llms.txt
- Compare the entire market against IWM live: https://betterthanspy.com/?b=IWM&utm_source=easycompare&utm_medium=research