What five years of weekly data say
- IWM returned +6.3% a year and SPY +12.9% a year over the past five years, dividends reinvested.
- SPY was the calmer ride: 16% annual volatility, against 21%.
- Move together (correlation 0.83). Most weeks they go the same way. Owning both spreads company risk, not market risk.
- SPY costs less to hold: 0.09% a year against 0.19%, or $9.55 less per $10,000 each year.
The numbers side by side
| Metric | IWIWM | SPSPY |
|---|---|---|
| Price | $284.10 | $761.69 |
| Fund size | $80.46B | $811.94B |
| 1-year return | +18.1% (ahead) | +15.7% |
| 3-year return, a year | +18.7% | +22.3% (ahead) |
| 5-year return, a year | +6.3% | +12.8% (ahead) |
| Volatility, a year | 21% | 16% (ahead) |
| Worst drawdown | −31% | −24% (ahead) |
| Worst week | −9.6%Mar 2025 | −9.1% (ahead)Mar 2025 |
| Beta | 1.24 | 1.00 |
| Dividend yield | 0.90% | 0.98% |
| Expense ratio | 0.19% | 0.09% (ahead) |
Do IWM and SPY move together?
Correlation compares IWM’s and SPY’s weekly returns from Sep 2021 to Sep 2026. Two holdings near +1 fall on the same weeks, so owning both doesn’t cushion anything. Your portfolio has more than two lines, and Portfolio Terminal runs this check across every pair you hold.
How far each one fell
IWM
−31%
From its Nov 2021 high to Jun 2022. Back at that high by Nov 2024.
SPY
−24%
From its Dec 2021 high to Sep 2022. Back at that high by Dec 2023.
Worst peak-to-trough fall on weekly closes · dividends reinvested
How much of it is the same money
IWM vs SPY: what people ask
Is IWM better than SPY?
Over the past five years, SPY delivered the higher return: +12.9% a year against +6.3% for IWM, dividends reinvested. Its worst fall was also shallower (−24% against −31%). Which is better depends on the job it does in your portfolio, and past returns don’t predict future ones.
What is the difference between IWM and SPY?
IWM is iShares Russell 2000 ETF, a fund with $80.46B in assets. SPY is SPDR S&P 500 ETF Trust, a fund with $811.94B in assets. IWM charges 0.19% a year and SPY 0.09%.
Should I own both IWM and SPY?
Their weekly returns had a correlation of 0.83 over the past five years. Most weeks they go the same way. Owning both spreads company risk, not market risk. Whether that suits you depends on everything else you hold, which is the check Portfolio Terminal runs across a whole portfolio.
Which is riskier, IWM or SPY?
IWM swung more: 21% annual volatility against 16% for SPY. At their worst, IWM fell 31% and SPY 24% from a previous high. Against the broad market, their betas are 1.24 and 1.00.
Which pays a higher dividend, IWM or SPY?
SPY currently yields 0.98%, against 0.90% for IWM. Yields move with price, so a higher yield can also mean a falling price.
Which is cheaper to hold, IWM or SPY?
SPY charges 0.09% a year and IWM 0.19%. On $10,000, that is $9.55 a year in favor of SPY.
Returns use weekly closes adjusted for dividends and splits, from Sep 2021 to Sep 2026. Quotes, fees and holdings come from public market data and refresh hourly. This page describes what happened; it is not investment advice, and past performance doesn’t predict future returns.