IWM vs MWA: Correlation
How closely do iShares Russell 2000 ETF (IWM) and MUELLER WATER PRODUCTS (MWA) trade together? Their weekly returns over three years give a correlation of 0.59, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IWM and MWA?
On 3 years of weekly data the IWM/MWA correlation comes out at 0.59, moderate. Recent behaviour matches the longer record: 0.53 over 1 year against 0.59 over 3. The 5-year figure is 0.62, and annualized covariance runs at 366.8 %².
Among the 320 assets we track against IWM, MWA ranks #134 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months IWM outperformed by 36.8 percentage points (+28.4% for IWM against -8.4% for MWA). One caveat on sizing: MWA is 1.6 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
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 MWA: side by side
| IWM (iShares Russell 2000 ETF) | MWA (MUELLER WATER PRODUCTS) | |
|---|---|---|
| 1-year return | +28.4% | -8.4% |
| 5-year return | +41.5% | +59.7% |
| Volatility (ann.) | 19.8% | 31.5% |
| Beta vs S&P 500 | 1.06 | 0.96 |
| Max drawdown (3Y) | -27.5% | -19.2% |
| Market cap | – | $3.9B |
| P/E (trailing) | – | 17.4 |
| Dividend yield | 0.91% | 1.10% |
| Expense ratio | 0.19% | – |
| Assets under management | $80.1B | – |
| Sector / category | ETF · US Small & Mid Cap | US Listed |
IWM is a Small Blend fund from iShares: $80.1B under management, 1757 holdings, a 0.19% expense ratio, a 0.91% trailing dividend yield.
Year-by-year returns
| Year | IWM | MWA |
|---|---|---|
| 2022 | -20.5% | -23.8% |
| 2023 | +16.8% | +36.3% |
| 2024 | +11.4% | +58.4% |
| 2025 | +12.7% | +7.0% |
| 2026 | +22.3% | +4.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
MWA represents 0.12% of IWM's portfolio, so part of any move in IWM is MWA itself, and the correlation between them is partly mechanical.
Are IWM and MWA good diversifiers for each other?
To a limited degree. At 0.59 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 IWM and MWA?
The IWM/MWA correlation stands at 0.59 on a 3-year window (1 year: 0.53, 5 years: 0.62), computed from weekly returns as of 2026-08-27.
Is MWA a good diversifier for IWM?
To a limited degree. At 0.59 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 0.59 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.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/iwm-vs-mwa.json
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Related comparisons
Hubs: IWM correlations · MWA correlations
