IWM vs TKO: Correlation
How closely do iShares Russell 2000 ETF (IWM) and TKO Group Holdings (TKO) trade together? Their weekly returns over three years give a correlation of 0.39, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IWM and TKO?
Across a 3-year window, the weekly returns of IWM and TKO correlate at 0.39, moderate. Recent behaviour matches the longer record: 0.37 over 1 year against 0.39 over 3. Stretching to 5 years gives 0.37, with an annualized covariance of 247.5 %².
Within IWM's tracked universe of 320 assets, TKO comes in at #301 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months IWM outperformed by 27.6 percentage points (+28.4% for IWM against +0.8% for TKO). Across three years, the rolling one-year figure varied moderately, from 0.14 to 0.59. One caveat on sizing: TKO 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 TKO: side by side
| IWM (iShares Russell 2000 ETF) | TKO (TKO Group Holdings) | |
|---|---|---|
| 1-year return | +28.4% | +0.8% |
| 5-year return | +41.5% | +281.8% |
| Volatility (ann.) | 19.8% | 32.1% |
| Beta vs S&P 500 | 1.06 | 0.70 |
| Max drawdown (3Y) | -27.5% | -34.8% |
| Market cap | – | $34.9B |
| P/E (trailing) | – | 65.8 |
| Dividend yield | 0.91% | 1.66% |
| Expense ratio | 0.19% | – |
| Assets under management | $80.1B | – |
| Sector / category | ETF · US Small & Mid Cap | Communication Services |
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 | TKO |
|---|---|---|
| 2022 | -20.5% | +39.9% |
| 2023 | +16.8% | +23.9% |
| 2024 | +11.4% | +74.2% |
| 2025 | +12.7% | +48.9% |
| 2026 | +22.3% | -11.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IWM and TKO good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.39 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between IWM and TKO?
As of 2026-08-27, the correlation of weekly returns between IWM and TKO is 0.39 over 3 years, 0.37 over 1 year and 0.37 over 5 years.
Is TKO a good diversifier for IWM?
Yes, to a useful degree: a correlation of 0.39 leaves real independence between the two, which historically damped combined volatility.
What does a correlation of 0.39 mean?
A reading of 0.39 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-tko.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/iwm-vs-tko/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: IWM correlations · TKO correlations
