IWM vs LEGH: Correlation
iShares Russell 2000 ETF (IWM) and Legacy Housing Corporation (LEGH) show a moderate relationship: their 3-year correlation of weekly returns is 0.54.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IWM and LEGH?
On 3 years of weekly data the IWM/LEGH correlation comes out at 0.54, moderate. The link has tightened recently: the 1-year correlation (0.69) runs above the 3-year figure (0.54). The 5-year figure is 0.46, and annualized covariance runs at 375.3 %².
Within IWM's tracked universe of 320 assets, LEGH comes in at #179 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months IWM outperformed by 26.8 percentage points (+28.4% for IWM against +1.6% for LEGH). Note the risk asymmetry: LEGH runs 1.8 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
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.
IWM vs LEGH: side by side
| IWM (iShares Russell 2000 ETF) | LEGH (Legacy Housing Corporation) | |
|---|---|---|
| 1-year return | +28.4% | +1.6% |
| 5-year return | +41.5% | +49.1% |
| Volatility (ann.) | 19.8% | 34.8% |
| Beta vs S&P 500 | 1.06 | 0.84 |
| Max drawdown (3Y) | -27.5% | -34.9% |
| Market cap | – | $0.7B |
| P/E (trailing) | – | 13.2 |
| Dividend yield | 0.91% | 0.00% |
| Expense ratio | 0.19% | – |
| Assets under management | $80.1B | – |
| Sector / category | ETF · US Small & Mid Cap | US Listed |
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 | IWM | LEGH |
|---|---|---|
| 2022 | -20.5% | -28.4% |
| 2023 | +16.8% | +33.0% |
| 2024 | +11.4% | -2.1% |
| 2025 | +12.7% | -20.9% |
| 2026 | +22.3% | +45.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IWM and LEGH good diversifiers for each other?
Somewhat, no more. With 0.54 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between IWM and LEGH?
The IWM/LEGH correlation stands at 0.54 on a 3-year window (1 year: 0.69, 5 years: 0.46), computed from weekly returns as of 2026-08-27.
Is LEGH a good diversifier for IWM?
Somewhat, no more. With 0.54 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.54 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
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Related comparisons
Hubs: IWM correlations · LEGH correlations
