IWM vs RSP: Correlation & Overlap
iShares Russell 2000 ETF (IWM) and Invesco S&P 500 Equal Weight ETF (RSP) show a very strong relationship: their 3-year correlation of weekly returns is 0.90. By holdings, the two funds overlap 0% by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IWM and RSP?
Over the past 3 years, IWM and RSP moved with a correlation of 0.90, which is very strong, meaning they move nearly in lockstep. Little has changed lately, as the 1-year reading of 0.85 lands near the 3-year figure. Over 5 years the correlation is 0.91, and the annualized covariance of weekly returns is 235.4 %².
Within IWM's tracked universe of 320 assets, RSP comes in at #4 by 3-year correlation. On 12-month performance IWM holds a 9.2-point edge, +28.4% against +19.2%. The rolling one-year correlation stayed in a tight band between 0.85 and 0.94 over the past three years, which points to a structural rather than episodic relationship. Note the risk asymmetry: IWM runs 1.5 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 RSP: side by side
| IWM (iShares Russell 2000 ETF) | RSP (Invesco S&P 500 Equal Weight ETF) | |
|---|---|---|
| 1-year return | +28.4% | +19.2% |
| 5-year return | +41.5% | +53.9% |
| Volatility (ann.) | 19.8% | 13.2% |
| Beta vs S&P 500 | 1.06 | 0.77 |
| Max drawdown (3Y) | -27.5% | -17.8% |
| Dividend yield | 0.91% | 1.49% |
| Expense ratio | 0.19% | 0.20% |
| Assets under management | $80.1B | $97.3B |
| Sector / category | ETF · US Small & Mid Cap | ETF · US Large 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. On the fund side, RSP sits in the Large Blend category at Invesco, with $97.3B under management, 505 holdings, a 0.20% expense ratio, a 1.49% trailing dividend yield.
Portfolio overlap between IWM and RSP
The two portfolios are largely distinct, with 0 holdings in common adding up to 0% of fund weight. Where correlation shows the co-movement, the overlap shows its source.
Largest positions held only by IWM: MOGA (0.35%), UMBF (0.34%), CYTK (0.33%), GKOS (0.33%), EAT (0.33%). Only by RSP: MRNA (0.61%), ZBRA (0.31%), CRL (0.29%), DASH (0.29%), EXPE (0.28%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26.
Year-by-year returns
| Year | IWM | RSP |
|---|---|---|
| 2022 | -20.5% | -11.6% |
| 2023 | +16.8% | +13.7% |
| 2024 | +11.4% | +12.8% |
| 2025 | +12.7% | +11.2% |
| 2026 | +22.3% | +16.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IWM and RSP good diversifiers for each other?
No. With a correlation of 0.90, IWM and RSP move nearly in lockstep, so holding both adds very little diversification.
FAQ
What is the correlation between IWM and RSP?
As of 2026-08-27, the correlation of weekly returns between IWM and RSP is 0.90 over 3 years, 0.85 over 1 year and 0.91 over 5 years.
Is RSP a good diversifier for IWM?
No. With a correlation of 0.90, IWM and RSP move nearly in lockstep, so holding both adds very little diversification.
How much do IWM and RSP overlap?
Per the issuers' own portfolio disclosures (2026-08-26), the overlap is 0% by weight over 0 common positions.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/iwm-vs-rsp.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/iwm-vs-rsp/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: IWM correlations · RSP correlations
