IVZ vs IWM: Correlation
Measured on weekly returns over the past three years, Invesco (IVZ) and iShares Russell 2000 ETF (IWM) carry a correlation of 0.68, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IVZ and IWM?
On 3 years of weekly data the IVZ/IWM correlation comes out at 0.68, strong. The past 12 months show a weaker link (0.55) than the 3-year average (0.68). The 5-year figure is 0.69, and annualized covariance runs at 436.4 %².
IWM is one of the assets that tracks IVZ most closely: it ranks #2 out of the 33 assets we track against IVZ. The last year tells two different stories: IVZ led by 27.5 percentage points, +55.9% for IVZ against +28.4% for IWM. Across three years, the rolling one-year figure varied moderately, from 0.48 to 0.80. Risk is not evenly split, since IVZ carries 1.6 times the volatility of the other side.
How is this computed?
Pearson correlation on weekly returns: ρ(A,B) = cov(rA, rB) / (σA · σB), over windows of 52, 156 and 260 weeks. Covariance is annualized (×52) and expressed in %². Full definitions on the methodology page.
IVZ vs IWM: side by side
| IVZ (Invesco) | IWM (iShares Russell 2000 ETF) | |
|---|---|---|
| 1-year return | +55.9% | +28.4% |
| 5-year return | +63.7% | +41.5% |
| Volatility (ann.) | 32.6% | 19.8% |
| Beta vs S&P 500 | 1.29 | 1.06 |
| Max drawdown (3Y) | -36.5% | -27.5% |
| Market cap | $14.7B | – |
| P/E (trailing) | – | – |
| Dividend yield | 2.58% | 0.91% |
| Expense ratio | – | 0.19% |
| Assets under management | – | $80.1B |
| Sector / category | Financials | ETF · US Small & Mid Cap |
IWM, iShares's Small Blend fund, carries $80.1B under management, 1757 holdings, a 0.19% expense ratio, a 0.91% trailing dividend yield.
Year-by-year returns
| Year | IVZ | IWM |
|---|---|---|
| 2022 | -18.7% | -20.5% |
| 2023 | +4.2% | +16.8% |
| 2024 | +3.0% | +11.4% |
| 2025 | +56.9% | +12.7% |
| 2026 | +29.7% | +22.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IVZ and IWM good diversifiers for each other?
To a limited degree. At 0.68 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
FAQ
What is the correlation between IVZ and IWM?
The IVZ/IWM correlation stands at 0.68 on a 3-year window (1 year: 0.55, 5 years: 0.69), computed from weekly returns as of 2026-08-27.
Is IWM a good diversifier for IVZ?
To a limited degree. At 0.68 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
What does a correlation of 0.68 mean?
On the −1 to +1 scale, 0.68 describes how much the two returns move together: +1 is lockstep, 0 is independence, negative values mean opposite directions. It says nothing about which performed better.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/ivz-vs-iwm.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/ivz-vs-iwm/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: IVZ correlations · IWM correlations
