IWM vs VAC: Correlation
Measured on weekly returns over the past three years, iShares Russell 2000 ETF (IWM) and Marriott Vacations Worldwide Corporation (VAC) carry a correlation of 0.57, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IWM and VAC?
Over the past 3 years, IWM and VAC moved with a correlation of 0.57, which is moderate. The past 12 months show a weaker link (0.46) than the 3-year average (0.57). Over 5 years the correlation is 0.62, and the annualized covariance of weekly returns is 519.0 %².
Within IWM's tracked universe of 320 assets, VAC comes in at #156 by 3-year correlation. Correlation aside, the last 12 months split them widely, with VAC ahead by 20.1 points (+28.4% versus +48.5%). Note the risk asymmetry: VAC runs 2.3 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 VAC: side by side
| IWM (iShares Russell 2000 ETF) | VAC (Marriott Vacations Worldwide Corporation) | |
|---|---|---|
| 1-year return | +28.4% | +48.5% |
| 5-year return | +41.5% | -13.2% |
| Volatility (ann.) | 19.8% | 46.3% |
| Beta vs S&P 500 | 1.06 | 1.45 |
| Max drawdown (3Y) | -27.5% | -55.7% |
| Market cap | – | $3.8B |
| P/E (trailing) | – | – |
| Dividend yield | 0.91% | 2.78% |
| Expense ratio | 0.19% | – |
| Assets under management | $80.1B | – |
| Sector / category | ETF · US Small & Mid Cap | US Listed |
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 | VAC |
|---|---|---|
| 2022 | -20.5% | -18.9% |
| 2023 | +16.8% | -35.2% |
| 2024 | +11.4% | +9.6% |
| 2025 | +12.7% | -32.7% |
| 2026 | +22.3% | +97.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
Keep in mind that IWM holds VAC at a 0.1% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are IWM and VAC good diversifiers for each other?
Somewhat, no more. With 0.57 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between IWM and VAC?
As of 2026-08-27, the correlation of weekly returns between IWM and VAC is 0.57 over 3 years, 0.46 over 1 year and 0.62 over 5 years.
Is VAC a good diversifier for IWM?
Somewhat, no more. With 0.57 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.57 mean?
On the −1 to +1 scale, 0.57 describes how much the two returns move together: +1 is lockstep, 0 is independence, negative values mean opposite directions. It says nothing about which performed better.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/iwm-vs-vac.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/iwm-vs-vac/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: IWM correlations · VAC correlations
