IWM vs XYL: Correlation
iShares Russell 2000 ETF (IWM) and Xylem Inc. (XYL) show a strong relationship: their 3-year correlation of weekly returns is 0.61.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IWM and XYL?
Across a 3-year window, the weekly returns of IWM and XYL correlate at 0.61, strong. Lately the two have drifted apart, with the 1-year correlation at 0.42 versus 0.61 over 3 years. Stretching to 5 years gives 0.63, with an annualized covariance of 286.7 %².
By 3-year correlation, XYL places #112 of the 320 assets tracked against IWM. The last year tells two different stories: IWM led by 49.5 percentage points, +28.4% for IWM against -21.1% for XYL. Do not treat this figure as fixed: across three years the rolling one-year correlation ranged all the way from 0.24 to 0.77.
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 XYL: side by side
| IWM (iShares Russell 2000 ETF) | XYL (Xylem Inc.) | |
|---|---|---|
| 1-year return | +28.4% | -21.1% |
| 5-year return | +41.5% | -12.5% |
| Volatility (ann.) | 19.8% | 23.9% |
| Beta vs S&P 500 | 1.06 | 0.96 |
| Max drawdown (3Y) | -27.5% | -30.0% |
| Market cap | – | $26.3B |
| P/E (trailing) | – | 26.8 |
| Dividend yield | 0.91% | 1.47% |
| Expense ratio | 0.19% | – |
| Assets under management | $80.1B | – |
| Sector / category | ETF · US Small & Mid Cap | Industrials |
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 | XYL |
|---|---|---|
| 2022 | -20.5% | -6.6% |
| 2023 | +16.8% | +4.8% |
| 2024 | +11.4% | +2.6% |
| 2025 | +12.7% | +18.8% |
| 2026 | +22.3% | -16.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IWM and XYL 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 XYL?
The IWM/XYL correlation stands at 0.61 on a 3-year window (1 year: 0.42, 5 years: 0.63), computed from weekly returns as of 2026-08-27.
Is XYL 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?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/iwm-vs-xyl.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/iwm-vs-xyl/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: IWM correlations · XYL correlations
