IWM vs VT: Correlation & Overlap
Measured on weekly returns over the past three years, iShares Russell 2000 ETF (IWM) and Vanguard Total World Stock ETF (VT) carry a correlation of 0.82, a very strong link. By holdings, the two funds overlap 2.5% by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IWM and VT?
Over the past 3 years, IWM and VT moved with a correlation of 0.82, which is very strong, meaning they move nearly in lockstep. The relationship has been stable: the 1-year correlation (0.81) sits close to the 3-year figure. Over 5 years the correlation is 0.86, and the annualized covariance of weekly returns is 226.0 %².
By 3-year correlation, VT places #14 of the 320 assets tracked against IWM. The trailing year gives IWM the advantage: +28.4% versus +22.7%, a 5.7-point spread. Stability stands out here, with the rolling one-year correlation confined to 0.73 through 0.89.
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 VT: side by side
| IWM (iShares Russell 2000 ETF) | VT (Vanguard Total World Stock ETF) | |
|---|---|---|
| 1-year return | +28.4% | +22.7% |
| 5-year return | +41.5% | +67.7% |
| Volatility (ann.) | 19.8% | 13.9% |
| Beta vs S&P 500 | 1.06 | 0.92 |
| Max drawdown (3Y) | -27.5% | -16.5% |
| Dividend yield | 0.91% | 1.59% |
| Expense ratio | 0.19% | 0.06% |
| Assets under management | $80.1B | $97.9B |
| Sector / category | ETF · US Small & Mid Cap | ETF · Global |
IWM, iShares's Small Blend fund, carries $80.1B under management, 1757 holdings, a 0.19% expense ratio, a 0.91% trailing dividend yield. VT is a Global Large-Stock Blend fund from Vanguard: $97.9B under management, 5308 holdings, a 0.06% expense ratio, a 1.59% trailing dividend yield.
Portfolio overlap between IWM and VT
The two portfolios are largely distinct. Weighing the shared positions, 2.5% of the two funds is identical, spread across 573 common holdings. That shared book is a large part of why the returns line up.
| Common holding | Weight in IWM | Weight in VT |
|---|---|---|
| AIR | 0.17% | 0.13% |
| MC | 0.12% | 0.13% |
| NG | 0.10% | 0.07% |
| CNR | 0.16% | 0.07% |
| ORA | 0.20% | 0.04% |
| AI | 0.04% | 0.05% |
| ENR | 0.04% | 0.12% |
| UCB | 0.13% | 0.03% |
| CCO | 0.03% | 0.03% |
| NN | 0.05% | 0.02% |
| ACA | 0.23% | 0.02% |
| MTX | 0.07% | 0.02% |
| VAL | 0.15% | 0.02% |
| TRN | 0.07% | 0.02% |
| FBK | 0.08% | 0.02% |
Largest positions held only by IWM: SYRE (0.22%), VSEC (0.20%), AGX (0.20%), KGS (0.19%), TVTX (0.19%). Only by VT: NVDA (4.20%), AAPL (4.00%), MSFT (3.09%), AMZN (2.36%), GOOGL (1.89%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26. Top 15 common positions shown.
Year-by-year returns
| Year | IWM | VT |
|---|---|---|
| 2022 | -20.5% | -18.0% |
| 2023 | +16.8% | +22.0% |
| 2024 | +11.4% | +16.5% |
| 2025 | +12.7% | +22.4% |
| 2026 | +22.3% | +15.2% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IWM and VT good diversifiers for each other?
Not really. At 0.82, the two trade almost as one position, and owning both buys little extra protection.
FAQ
What is the correlation between IWM and VT?
The IWM/VT correlation stands at 0.82 on a 3-year window (1 year: 0.81, 5 years: 0.86), computed from weekly returns as of 2026-08-27.
Is VT a good diversifier for IWM?
Not really. At 0.82, the two trade almost as one position, and owning both buys little extra protection.
How much do IWM and VT overlap?
2.5% by weight, across 573 common holdings, based on issuer-disclosed portfolios as of 2026-08-26.
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Related comparisons
Hubs: IWM correlations · VT correlations
