IWM vs VMI: Correlation
Measured on weekly returns over the past three years, iShares Russell 2000 ETF (IWM) and Valmont Industries, Inc. (VMI) carry a correlation of 0.53, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IWM and VMI?
Over the past 3 years, IWM and VMI moved with a correlation of 0.53, which is moderate. Lately the two have drifted apart, with the 1-year correlation at 0.42 versus 0.53 over 3 years. Over 5 years the correlation is 0.58, and the annualized covariance of weekly returns is 331.7 %².
By 3-year correlation, VMI places #200 of the 320 assets tracked against IWM. Twelve-month performance is nearly a tie, at +28.4% for IWM and +29.2% for VMI. Risk is not evenly split, since VMI carries 1.6 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 VMI: side by side
| IWM (iShares Russell 2000 ETF) | VMI (Valmont Industries, Inc.) | |
|---|---|---|
| 1-year return | +28.4% | +29.2% |
| 5-year return | +41.5% | +102.0% |
| Volatility (ann.) | 19.8% | 31.8% |
| Beta vs S&P 500 | 1.06 | 1.02 |
| Max drawdown (3Y) | -27.5% | -29.8% |
| Market cap | – | $9.3B |
| P/E (trailing) | – | 18.6 |
| Dividend yield | 0.91% | 0.61% |
| Expense ratio | 0.19% | – |
| Assets under management | $80.1B | – |
| Sector / category | ETF · US Small & Mid Cap | US Listed |
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 | VMI |
|---|---|---|
| 2022 | -20.5% | +33.1% |
| 2023 | +16.8% | -28.7% |
| 2024 | +11.4% | +32.5% |
| 2025 | +12.7% | +32.2% |
| 2026 | +22.3% | +19.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IWM and VMI good diversifiers for each other?
To a limited degree. At 0.53 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
FAQ
What is the correlation between IWM and VMI?
As of 2026-08-27, the correlation of weekly returns between IWM and VMI is 0.53 over 3 years, 0.42 over 1 year and 0.58 over 5 years.
Is VMI a good diversifier for IWM?
To a limited degree. At 0.53 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
What does a correlation of 0.53 mean?
On the −1 to +1 scale, 0.53 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-vmi.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/iwm-vs-vmi/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: IWM correlations · VMI correlations
