IWM vs VHI: Correlation
iShares Russell 2000 ETF (IWM) and Valhi, Inc. (VHI) show a moderate relationship: their 3-year correlation of weekly returns is 0.48.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IWM and VHI?
On 3 years of weekly data the IWM/VHI correlation comes out at 0.48, moderate. The relationship has been stable: the 1-year correlation (0.45) sits close to the 3-year figure. The 5-year figure is 0.47, and annualized covariance runs at 568.8 %².
Among the 320 assets we track against IWM, VHI ranks #260 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months IWM outperformed by 21.3 percentage points (+28.4% for IWM against +7.1% for VHI). Risk is not evenly split, since VHI carries 3.0 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 VHI: side by side
| IWM (iShares Russell 2000 ETF) | VHI (Valhi, Inc.) | |
|---|---|---|
| 1-year return | +28.4% | +7.1% |
| 5-year return | +41.5% | -14.8% |
| Volatility (ann.) | 19.8% | 59.4% |
| Beta vs S&P 500 | 1.06 | 1.08 |
| Max drawdown (3Y) | -27.5% | -71.3% |
| Market cap | – | $0.5B |
| P/E (trailing) | – | – |
| Dividend yield | 0.91% | 1.74% |
| 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 | VHI |
|---|---|---|
| 2022 | -20.5% | -22.7% |
| 2023 | +16.8% | -29.4% |
| 2024 | +11.4% | +56.5% |
| 2025 | +12.7% | -47.4% |
| 2026 | +22.3% | +49.2% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IWM and VHI good diversifiers for each other?
Reasonably. At 0.48, IWM and VHI keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between IWM and VHI?
As of 2026-08-27, the correlation of weekly returns between IWM and VHI is 0.48 over 3 years, 0.45 over 1 year and 0.47 over 5 years.
Is VHI a good diversifier for IWM?
Reasonably. At 0.48, IWM and VHI keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.48 mean?
A reading of 0.48 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
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Related comparisons
Hubs: IWM correlations · VHI correlations
