IWM vs SOXX: Correlation & Overlap
iShares Russell 2000 ETF (IWM) and iShares Semiconductor ETF (SOXX) show a strong relationship: their 3-year correlation of weekly returns is 0.65. 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 SOXX?
On 3 years of weekly data the IWM/SOXX correlation comes out at 0.65, strong. Little has changed lately, as the 1-year reading of 0.68 lands near the 3-year figure. The 5-year figure is 0.69, and annualized covariance runs at 454.0 %².
Among the 320 assets we track against IWM, SOXX ranks #71 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months SOXX outperformed by 81.6 percentage points (+28.4% for IWM against +110.0% for SOXX). The rolling one-year correlation moved between 0.53 and 0.79 over the past three years, a moderate range. Risk is not evenly split, since SOXX carries 1.8 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.
IWM vs SOXX: side by side
| IWM (iShares Russell 2000 ETF) | SOXX (iShares Semiconductor ETF) | |
|---|---|---|
| 1-year return | +28.4% | +110.0% |
| 5-year return | +41.5% | +247.5% |
| Volatility (ann.) | 19.8% | 35.2% |
| Beta vs S&P 500 | 1.06 | 1.93 |
| Max drawdown (3Y) | -27.5% | -41.4% |
| Dividend yield | 0.91% | 0.29% |
| Expense ratio | 0.19% | 0.33% |
| Assets under management | $80.1B | $44.7B |
| Sector / category | ETF · US Small & Mid Cap | ETF · Thematic |
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, SOXX sits in the Technology category at iShares, with $44.7B under management, 30 holdings, a 0.33% expense ratio, a 0.29% trailing dividend yield.
Portfolio overlap between IWM and SOXX
The two portfolios are largely distinct. Weighing the shared positions, 0% of the two funds is identical, spread across 0 common holdings. That shared book is a large part of why the returns line up.
Largest positions held only by IWM: MOGA (0.35%), UMBF (0.34%), CYTK (0.33%), GKOS (0.33%), EAT (0.33%). Only by SOXX: NVDA (8.87%), MU (8.64%), AMD (8.33%), AVGO (7.11%), MRVL (5.34%).
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 | SOXX |
|---|---|---|
| 2022 | -20.5% | -35.1% |
| 2023 | +16.8% | +67.1% |
| 2024 | +11.4% | +12.9% |
| 2025 | +12.7% | +40.7% |
| 2026 | +22.3% | +74.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IWM and SOXX good diversifiers for each other?
Only partially. A correlation of 0.65 means IWM and SOXX share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between IWM and SOXX?
Using weekly returns as of 2026-08-27: 0.65 over 3 years, with 0.68 over the last year and 0.69 over 5 years.
Is SOXX a good diversifier for IWM?
Only partially. A correlation of 0.65 means IWM and SOXX share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
How much do IWM and SOXX overlap?
The two funds share 0 holdings amounting to 0% of weight, per issuer portfolio files dated 2026-08-26.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/iwm-vs-soxx.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/iwm-vs-soxx/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: IWM correlations · SOXX correlations
