IWM: iShares Russell 2000 ETF returns, drawdowns and risk
Funds on smaller US companies, historically more volatile than the large caps.
Data updated October 2026
IWM · US exchange · USDCategory: US small and mid cap ETFsData from October 2006
From October 2006 to October 2026 IWM returned 8.0% a year on average with dividends reinvested, in US dollars: $10,000 invested at the start grew to $46,852.
Its deepest fall was 59.0%, from July 2007 to March 2009, and it took about 43 months to get back to the previous high. Annual volatility was 24.5%; at the last close it was 10.8% below its high.
Against SPY (SPDR S&P 500 ETF Trust), over the 240 months both have data, the correlation of monthly returns was 0.89: they usually moved together. Beta was 1.18. In months when SPY rose, IWM moved 108% as much on average; in months when SPY fell, 126% as much.
Key figures
- Annual return (CAGR)
- +8.0%
- 1-year return
- +12.6%
- 5 years, a year
- +5.0%
- 10 years, a year
- +9.7%
- Annual volatility
- 24.5%
- Maximum drawdown
- −59.0%
- Sharpe ratio
- 0.37
- Worst year
- 2008: −34.2%
Trailing returns
| Period | IWM | SPY |
|---|---|---|
| 1 year | +12.6% | +16.6% |
| 3 years, a year | +18.5% | +23.1% |
| 5 years, a year | +5.0% | +12.7% |
| 10 years, a year | +9.7% | +15.4% |
To the last close of October 2026. Periods longer than a year are annualised.
Growth of $10,000: IWM vs SPY
Month-end values from November 2006, the first month both funds have data.
IWM drawdowns
Percentage below the previous high, weekly.
Returns by calendar year
| Year | IWM | SPY |
|---|---|---|
| 2026(partial) | +10.9% | +13.3% |
| 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% |
| 2015 | −4.5% | +1.2% |
| 2014 | +5.0% | +13.5% |
| 2013 | +38.7% | +32.3% |
| 2012 | +16.7% | +16.0% |
| 2011 | −4.4% | +1.9% |
| 2010 | +26.9% | +15.1% |
| 2009 | +28.5% | +26.4% |
| 2008 | −34.2% | −36.8% |
| 2007 | −1.8% | +5.1% |
| 2006(partial) | +3.6% | — |
IWM compared
How the figures are calculated
Total return in the fund’s trading currency, from end-of-day prices with dividends reinvested on the ex-date. The fund’s own ongoing charges are already reflected in its price; trading costs, taxes and currency conversion are not included. Past returns do not predict future returns.
Sharpe ratio uses the return of short-term government bills in the same currency as the risk-free rate. The growth chart uses month-end values; drawdowns and volatility use daily closes.
Questions
What is the average annual return of IWM?
From October 2006 to October 2026 IWM returned 8.0% a year on average (CAGR) with dividends reinvested, in USD. Over the last 5 years: +5.0% a year. Over the last 12 months: +12.6%.
What was the worst drawdown of IWM?
59.0%, from July 2007 to March 2009; it took about 43 months from the previous high to get back to it.
How volatile is IWM?
Annual volatility was 24.5% over the period. Its worst month was −21.5% and 62% of months were positive. Worst calendar year: 2008 (−34.2%).
How closely does IWM follow SPY?
Over 240 months the correlation of monthly returns was 0.89, so they usually moved together, with a beta of 1.18.
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Other US small and mid cap ETFs
- All US small and mid cap ETFsReturns and risk side by side
- IJR — iShares Core S&P Small-Cap ETFCAGR +8.6%
- VB — Vanguard Small-Cap ETFCAGR +12.7%
- IJH — iShares Core S&P Mid-Cap ETFCAGR +8.4%
- MDY — SPDR S&P MidCap 400 ETF TrustCAGR +9.3%
- VO — Vanguard Mid-Cap ETFCAGR +11.5%
- SCHA — Schwab U.S. Small-Cap ETFCAGR +10.8%
Source: MarketStack end-of-day prices, total return with dividends reinvested. Figures are historical and descriptive; they are not forecasts and not investment advice. MEDGE Capital does not recommend buying or selling any instrument. Risk disclaimer.