IWM vs RMT: Correlation
How closely do iShares Russell 2000 ETF (IWM) and Royce Micro-Cap Trust, Inc. (RMT) trade together? Their weekly returns over three years give a correlation of 0.93, which is very strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IWM and RMT?
Over the past 3 years, IWM and RMT moved with a correlation of 0.93, which is very strong, meaning they move nearly in lockstep. The relationship has been stable: the 1-year correlation (0.90) sits close to the 3-year figure. Over 5 years the correlation is 0.94, and the annualized covariance of weekly returns is 377.3 %².
RMT is one of the assets that tracks IWM most closely: it ranks #2 out of the 320 assets we track against IWM. Their recent paths diverged sharply: over the last 12 months RMT outperformed by 20.0 percentage points (+28.4% for IWM against +48.4% for RMT).
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 RMT: side by side
| IWM (iShares Russell 2000 ETF) | RMT (Royce Micro-Cap Trust, Inc.) | |
|---|---|---|
| 1-year return | +28.4% | +48.4% |
| 5-year return | +41.5% | +80.1% |
| Volatility (ann.) | 19.8% | 20.5% |
| Beta vs S&P 500 | 1.06 | 1.09 |
| Max drawdown (3Y) | -27.5% | -26.4% |
| Market cap | – | $0.8B |
| P/E (trailing) | – | 8.5 |
| Dividend yield | 0.91% | 5.57% |
| Expense ratio | 0.19% | – |
| Assets under management | $80.1B | – |
| Sector / category | ETF · US Small & Mid Cap | US Listed |
On the fund side, IWM sits in the Small Blend category at iShares, with $80.1B under management, 1757 holdings, a 0.19% expense ratio, a 0.91% trailing dividend yield.
Year-by-year returns
| Year | IWM | RMT |
|---|---|---|
| 2022 | -20.5% | -16.8% |
| 2023 | +16.8% | +15.8% |
| 2024 | +11.4% | +14.0% |
| 2025 | +12.7% | +16.1% |
| 2026 | +22.3% | +39.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IWM and RMT good diversifiers for each other?
No: a correlation of 0.93 means IWM and RMT tend to fall together, which is precisely when diversification is supposed to help.
FAQ
What is the correlation between IWM and RMT?
As of 2026-08-27, the correlation of weekly returns between IWM and RMT is 0.93 over 3 years, 0.90 over 1 year and 0.94 over 5 years.
Is RMT a good diversifier for IWM?
No: a correlation of 0.93 means IWM and RMT tend to fall together, which is precisely when diversification is supposed to help.
What does a correlation of 0.93 mean?
A reading of 0.93 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/iwm-vs-rmt.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/iwm-vs-rmt/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: IWM correlations · RMT correlations
