IWM vs USMV: Correlation & Overlap
How closely do iShares Russell 2000 ETF (IWM) and iShares MSCI USA Min Vol Factor ETF (USMV) trade together? Their weekly returns over three years give a correlation of 0.69, which is strong. The two funds also share 0% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IWM and USMV?
On 3 years of weekly data the IWM/USMV correlation comes out at 0.69, strong. The link has loosened recently: the 1-year correlation (0.48) runs below the 3-year figure (0.69). The 5-year figure is 0.72, and annualized covariance runs at 135.1 %².
Among the 320 assets we track against IWM, USMV ranks #49 by 3-year correlation. The last year tells two different stories: IWM led by 18.3 percentage points, +28.4% for IWM against +10.1% for USMV. On a rolling one-year basis the correlation drifted between 0.50 and 0.85, a moderate band. Risk is not evenly split, since IWM carries 2.0 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 USMV: side by side
| IWM (iShares Russell 2000 ETF) | USMV (iShares MSCI USA Min Vol Factor ETF) | |
|---|---|---|
| 1-year return | +28.4% | +10.1% |
| 5-year return | +41.5% | +42.3% |
| Volatility (ann.) | 19.8% | 9.9% |
| Beta vs S&P 500 | 1.06 | 0.51 |
| Max drawdown (3Y) | -27.5% | -9.4% |
| Dividend yield | 0.91% | 1.48% |
| Expense ratio | 0.19% | 0.15% |
| Assets under management | $80.1B | $23.6B |
| Sector / category | ETF · US Small & Mid Cap | ETF · US Style |
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. USMV, iShares's Large Blend fund, carries $23.6B under management, 164 holdings, a 0.15% expense ratio, a 1.48% trailing dividend yield.
Portfolio overlap between IWM and USMV
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 USMV: MSFT (1.68%), NEM (1.65%), VRTX (1.63%), JNJ (1.58%), WELL (1.57%).
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 | USMV |
|---|---|---|
| 2022 | -20.5% | -9.4% |
| 2023 | +16.8% | +10.3% |
| 2024 | +11.4% | +15.7% |
| 2025 | +12.7% | +7.6% |
| 2026 | +22.3% | +9.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IWM and USMV good diversifiers for each other?
Somewhat, no more. With 0.69 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between IWM and USMV?
As of 2026-08-27, the correlation of weekly returns between IWM and USMV is 0.69 over 3 years, 0.48 over 1 year and 0.72 over 5 years.
Is USMV a good diversifier for IWM?
Somewhat, no more. With 0.69 correlation, most large moves hit both names, and the diversification benefit stays modest.
How much do IWM and USMV overlap?
0% by weight, across 0 common holdings, based on issuer-disclosed portfolios as of 2026-08-26.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/iwm-vs-usmv.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/iwm-vs-usmv/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: IWM correlations · USMV correlations
