IWM vs STLD: Correlation
Measured on weekly returns over the past three years, iShares Russell 2000 ETF (IWM) and Steel Dynamics (STLD) carry a correlation of 0.59, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IWM and STLD?
Over the past 3 years, IWM and STLD moved with a correlation of 0.59, which is moderate. Lately the two have drifted apart, with the 1-year correlation at 0.44 versus 0.59 over 3 years. Over 5 years the correlation is 0.60, and the annualized covariance of weekly returns is 405.0 %².
By 3-year correlation, STLD places #137 of the 320 assets tracked against IWM. The last year tells two different stories: STLD led by 51.4 percentage points, +28.4% for IWM against +79.8% for STLD. On a rolling one-year basis the correlation drifted between 0.44 and 0.75, a moderate band. Note the risk asymmetry: STLD runs 1.7 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 STLD: side by side
| IWM (iShares Russell 2000 ETF) | STLD (Steel Dynamics) | |
|---|---|---|
| 1-year return | +28.4% | +79.8% |
| 5-year return | +41.5% | +262.0% |
| Volatility (ann.) | 19.8% | 34.5% |
| Beta vs S&P 500 | 1.06 | 1.13 |
| Max drawdown (3Y) | -27.5% | -28.7% |
| Market cap | – | $33.8B |
| P/E (trailing) | – | 21.4 |
| Dividend yield | 0.91% | 0.87% |
| Expense ratio | 0.19% | – |
| Assets under management | $80.1B | – |
| Sector / category | ETF · US Small & Mid Cap | Materials |
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 | STLD |
|---|---|---|
| 2022 | -20.5% | +60.1% |
| 2023 | +16.8% | +22.8% |
| 2024 | +11.4% | -2.0% |
| 2025 | +12.7% | +50.7% |
| 2026 | +22.3% | +39.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IWM and STLD good diversifiers for each other?
Only partially. A correlation of 0.59 means IWM and STLD 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 STLD?
Using weekly returns as of 2026-08-27: 0.59 over 3 years, with 0.44 over the last year and 0.60 over 5 years.
Is STLD a good diversifier for IWM?
Only partially. A correlation of 0.59 means IWM and STLD share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
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-stld.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/iwm-vs-stld/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: IWM correlations · STLD correlations
