IWM vs W: Correlation
Measured on weekly returns over the past three years, iShares Russell 2000 ETF (IWM) and Wayfair Inc. (W) carry a correlation of 0.61, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IWM and W?
On 3 years of weekly data the IWM/W correlation comes out at 0.61, strong. The past 12 months show a weaker link (0.44) than the 3-year average (0.61). The 5-year figure is 0.63, and annualized covariance runs at 808.7 %².
By 3-year correlation, W places #111 of the 320 assets tracked against IWM. Over the last 12 months W came out ahead by 12.6 percentage points (+28.4% against +41.0%). One caveat on sizing: W is 3.4 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
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 W: side by side
| IWM (iShares Russell 2000 ETF) | W (Wayfair Inc.) | |
|---|---|---|
| 1-year return | +28.4% | +41.0% |
| 5-year return | +41.5% | -64.0% |
| Volatility (ann.) | 19.8% | 67.1% |
| Beta vs S&P 500 | 1.06 | 2.50 |
| Max drawdown (3Y) | -27.5% | -67.7% |
| Market cap | – | $14.4B |
| P/E (trailing) | – | – |
| Dividend yield | 0.91% | 0.00% |
| 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 | W |
|---|---|---|
| 2022 | -20.5% | -82.7% |
| 2023 | +16.8% | +87.6% |
| 2024 | +11.4% | -28.2% |
| 2025 | +12.7% | +126.6% |
| 2026 | +22.3% | +4.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IWM and W good diversifiers for each other?
Somewhat, no more. With 0.61 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between IWM and W?
The IWM/W correlation stands at 0.61 on a 3-year window (1 year: 0.44, 5 years: 0.63), computed from weekly returns as of 2026-08-27.
Is W a good diversifier for IWM?
Somewhat, no more. With 0.61 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.61 mean?
On the −1 to +1 scale, 0.61 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-w.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/iwm-vs-w/)
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Related comparisons
Hubs: IWM correlations · W correlations
