IWM vs MDY: returns, risk and drawdowns compared
iShares Russell 2000 ETF against SPDR S&P MidCap 400 ETF Trust, over the same 20 years (November 2006 to October 2026) with dividends reinvested.
Data updated October 2026
From November 2006 to October 2026, IWM returned 8.0% a year and MDY 9.3% a year on average, so MDY came out ahead by 1.3% a year. IWM was the more volatile of the two (20.3% against 18.2% a year), and the deepest falls from a month-end high were 52.5% for IWM and 49.7% for MDY.
The correlation of monthly returns was 0.96: they moved almost in lockstep. Over 205 rolling 3-year periods, IWM did better in 25% and MDY in 75%.
Side by side
| IWM | MDY | |
|---|---|---|
| Annual return (CAGR) | +8.0% | +9.3% |
| Total return | +365% | +492% |
| Annual volatility | 20.3% | 18.2% |
| Maximum drawdown (month-end) | −52.5% | −49.7% |
| Worst month | −21.5% | −22.3% |
| Best month | +18.2% | +14.8% |
| Positive months | 62% | 62% |
| Best year | 2013: +38.7% | 2009: +37.6% |
| Worst year | 2008: −34.2% | 2008: −36.4% |
| 1-year return | +12.6% | +13.4% |
| 5 years, a year | +5.0% | +6.9% |
| 10 years, a year | +9.7% | +10.4% |
| Trading currency | USD | USD |
First nine rows: the same 240 months for both funds. Trailing returns: to each fund’s last close.
Growth of 10,000: IWM vs MDY
Returns by calendar year
| Year | IWM | MDY |
|---|---|---|
| 2025 | +12.7% | +7.2% |
| 2024 | +11.4% | +13.6% |
| 2023 | +16.8% | +16.1% |
| 2022 | −20.5% | −13.3% |
| 2021 | +14.5% | +24.5% |
| 2020 | +20.0% | +13.5% |
| 2019 | +25.4% | +25.8% |
| 2018 | −11.1% | −11.3% |
| 2017 | +14.6% | +15.9% |
| 2016 | +21.6% | +20.5% |
| 2015 | −4.5% | −2.5% |
| 2014 | +5.0% | +9.4% |
| 2013 | +38.7% | +33.1% |
| 2012 | +16.7% | +17.8% |
| 2011 | −4.4% | −2.1% |
| 2010 | +26.9% | +26.3% |
| 2009 | +28.5% | +37.6% |
| 2008 | −34.2% | −36.4% |
| 2007 | −1.8% | +7.0% |
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.
The comparison uses only the months in which both funds have prices, so the figures cover the same period even when one fund is older.
Questions
Which has returned more, IWM or MDY?
From November 2006 to October 2026, IWM returned +8.0% a year and MDY +9.3% a year, with dividends reinvested. Over rolling 3-year periods IWM did better in 25% of cases. Past returns do not predict future returns.
Which is riskier, IWM or MDY?
Over the same months annual volatility was 20.3% for IWM and 18.2% for MDY; the deepest fall from a month-end high was 52.5% and 49.7%, and the worst single month −21.5% and −22.3%.
How correlated are IWM and MDY?
The correlation of their monthly returns was 0.96: they moved almost in lockstep. Holding both adds little diversification compared with holding one.
More comparisons
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.