IWM vs VTI: Correlation & Overlap
Measured on weekly returns over the past three years, iShares Russell 2000 ETF (IWM) and Vanguard Total Stock Market ETF (VTI) carry a correlation of 0.82, a very strong link. By holdings, the two funds overlap 4.0% by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IWM and VTI?
Over the past 3 years, IWM and VTI 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 (0.79) sits close to the 3-year figure. Over 5 years the correlation is 0.87, and the annualized covariance of weekly returns is 238.4 %².
Within IWM's tracked universe of 320 assets, VTI comes in at #15 by 3-year correlation. The trailing year gives IWM the advantage: +28.4% versus +20.7%, a 7.7-point spread. The link looks structural: the rolling one-year correlation barely moved, holding between 0.70 and 0.92.
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 VTI: side by side
| IWM (iShares Russell 2000 ETF) | VTI (Vanguard Total Stock Market ETF) | |
|---|---|---|
| 1-year return | +28.4% | +20.7% |
| 5-year return | +41.5% | +74.8% |
| Volatility (ann.) | 19.8% | 14.6% |
| Beta vs S&P 500 | 1.06 | 1.01 |
| Max drawdown (3Y) | -27.5% | -19.3% |
| Dividend yield | 0.91% | 1.06% |
| Expense ratio | 0.19% | 0.03% |
| Assets under management | $80.1B | $2,290.0B |
| Sector / category | ETF · US Small & Mid Cap | ETF · US Large Cap |
IWM, iShares's Small Blend fund, carries $80.1B under management, 1757 holdings, a 0.19% expense ratio, a 0.91% trailing dividend yield. VTI, Vanguard's Large Blend fund, carries $2,290.0B under management, 3140 holdings, a 0.03% expense ratio, a 1.06% trailing dividend yield.
Portfolio overlap between IWM and VTI
The two portfolios are largely distinct. Weighing the shared positions, 4.0% of the two funds is identical, spread across 1644 common holdings. That shared book is a large part of why the returns line up.
| Common holding | Weight in IWM | Weight in VTI |
|---|---|---|
| MOGA | 0.35% | 0.02% |
| HUT | 0.28% | 0.02% |
| CYTK | 0.33% | 0.01% |
| UMBF | 0.34% | 0.01% |
| VSAT | 0.28% | 0.01% |
| CTRE | 0.28% | 0.01% |
| BTSG | 0.31% | 0.01% |
| KRYS | 0.29% | 0.01% |
| GKOS | 0.33% | 0.01% |
| ONB | 0.29% | 0.01% |
| EAT | 0.33% | 0.01% |
| PTGX | 0.29% | 0.01% |
| CRNX | 0.28% | 0.01% |
| CIFR | 0.17% | 0.01% |
| JXN | 0.26% | 0.01% |
Largest positions held only by IWM: SSRM (0.27%), XENE (0.20%), DFTX (0.18%), CRSP (0.17%), GLNG (0.16%). Only by VTI: NVDA (6.42%), AAPL (6.31%), MSFT (4.80%), AMZN (3.66%), GOOGL (2.91%).
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 | VTI |
|---|---|---|
| 2022 | -20.5% | -19.5% |
| 2023 | +16.8% | +26.0% |
| 2024 | +11.4% | +23.8% |
| 2025 | +12.7% | +17.1% |
| 2026 | +22.3% | +14.2% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IWM and VTI good diversifiers for each other?
No: a correlation of 0.82 means IWM and VTI tend to fall together, which is precisely when diversification is supposed to help.
FAQ
What is the correlation between IWM and VTI?
As of 2026-08-27, the correlation of weekly returns between IWM and VTI is 0.82 over 3 years, 0.79 over 1 year and 0.87 over 5 years.
Is VTI a good diversifier for IWM?
No: a correlation of 0.82 means IWM and VTI tend to fall together, which is precisely when diversification is supposed to help.
How much do IWM and VTI overlap?
4.0% by weight, across 1644 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-vti.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/iwm-vs-vti/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: IWM correlations · VTI correlations
