# ETFs and Stocks That Consistently Outperformed IWM (Russell 2000 Small Caps)

> Source: BetterThanSPY research, https://betterthanspy.com/research/etfs-and-stocks-that-outperform-iwm
> Data as of October 22, 2026. Total returns include reinvested dividends. Past performance does not predict future results; nothing here is investment advice.

IWM (iShares Russell 2000 ETF) screened against the entire market of over 10,000 stocks and ETFs over 8 periods from 1 month to 10 years, with dividends reinvested. To make the list, an investment had to outperform IWM in at least 3 of 5 short-term periods and 2 of 3 long-term periods. "All-weather" means outperforming in every long-term period and all but one short-term period. Returns in the tables are total returns over each period; volatility and Sharpe ratio cover 5 years.

## Key findings

- How hard it was to top IWM: Across a screen of over 10,000 stocks and ETFs, 343 of 957 eligible ETFs (36%) and 482 of 1,502 eligible stocks (32%) outperformed IWM in at least 3 of 5 short-term periods and 2 of 3 long-term periods. The stronger all-weather record was less common: 134 ETFs and 197 stocks outperformed in every long-term period and all but one short-term period.
- Who came out ahead across the three groups:
- Popular alternatives: VOO and SPY outperformed in all 5 short-term and all 3 long-term periods, while QQQ did so in 4 of 5 and 3 of 3. VTI qualified with 3 of 5 short-term and 3 of 3 long-term periods. Among small-cap comparisons, IJR, SCHA, and IWN qualified with 5 of 5 short-term and 2 of 3 long-term periods, while IWF fell short with 1 of 5 short-term periods despite 3 of 3 long-term periods. No same-index funds were excluded.
- Top ETFs: Technology was the leading category among the top ETFs, with 5 entries. FXL, CIBR, SKYY, and HACK each outperformed in all 5 short-term and all 3 long-term periods. The leading group also included international and commodity funds.
- Top stocks: 482 stocks qualified, and the top stocks shown include companies from healthcare, technology, industrials, consumer staples, and energy. NTRA and MEDP from healthcare, FTNT from technology, and BWLP from industrials each outperformed in all 5 short-term and all 3 long-term periods.
- The risk trade-off: Over 5 years, the top ETFs had median volatility similar to IWM, and about half were less volatile. All 15 had higher Sharpe ratios than IWM. The top stocks were much bumpier, with median volatility roughly double or more than IWM, but all 10 had higher Sharpe ratios.

## How popular alternatives compare

| Investment | Status | Periods outperformed | 1M | 3M | 6M | YTD | 1Y | 3Y | 5Y | 10Y | Volatility | Sharpe |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| IWM: iShares Russell 2000 ETF (benchmark) |  |  | −3.7% | −5.6% | +0.6% | +12.0% | +14.8% | +73.3% | +29.4% | +157% | 22.4% | 0.34 |
| [VOO](https://betterthanspy.com/research/voo): Vanguard S&P 500 ETF | Made the list | 5/5 short, 3/3 long, all-weather | −1.2% | +2.5% | +8.0% | +12.7% | +15.7% | +88.8% | +80.8% | +319% | 16.9% | 0.79 |
| [SPY](https://betterthanspy.com/research/spy): State Street SPDR S&P 500 ETF | Made the list | 5/5 short, 3/3 long, all-weather | −1.2% | +2.5% | +8.0% | +12.7% | +15.6% | +88.4% | +80.3% | +316% | 17.2% | 0.78 |
| [QQQ](https://betterthanspy.com/research/qqq): Invesco QQQ Trust, Series 1 | Made the list | 4/5 short, 3/3 long, all-weather | −5.8% | 0.0% | +7.8% | +15.3% | +16.9% | +101% | +94.0% | +531% | 23.0% | 0.69 |
| [VTI](https://betterthanspy.com/research/vti): Vanguard Morningstar Total Stock Market ETF | Made the list | 3/5 short, 3/3 long | −1.4% | +1.9% | +7.3% | +12.4% | +15.3% | +87.3% | +71.5% | +298% | 17.5% | 0.71 |
| [IWF](https://betterthanspy.com/research/iwf): iShares Russell 1000 Growth ETF | Fell short | 1/5 short, 3/3 long | −5.2% | −0.6% | +0.5% | +2.1% | +2.9% | +83.6% | +70.3% | +402% | 21.8% | 0.60 |
| [IJR](https://betterthanspy.com/research/ijr): iShares Core S&P Small-Cap ETF | Made the list | 5/5 short, 2/3 long | −0.8% | −4.5% | +2.9% | +15.2% | +18.1% | +63.5% | +32.2% | +165% | 21.1% | 0.37 |
| SCHA: Schwab U.S. Small-Cap ETF | Made the list | 5/5 short, 2/3 long | −2.9% | −4.9% | +1.9% | +14.3% | +18.5% | +75.2% | +33.9% | +164% | 22.0% | 0.38 |
| IWN: iShares Russell 2000 Value ETF | Made the list | 5/5 short, 2/3 long | −1.6% | −3.6% | +4.2% | +17.9% | +22.0% | +76.6% | +40.3% | +148% | 21.1% | 0.43 |
| [VB](https://betterthanspy.com/research/vb): Vanguard Morningstar Small-Cap ETF | Made the list | 3/5 short, 2/3 long | −1.0% | −2.3% | +2.1% | +11.4% | +15.1% | +68.6% | +35.2% | +179% | 20.6% | 0.40 |
| MDY: State Street SPDR S&P MIDCAP 400 ETF Trust | Fell short | 2/5 short, 2/3 long | −1.0% | −3.6% | +0.6% | +9.4% | +13.5% | +58.8% | +38.5% | +170% | 19.6% | 0.43 |
| AVUV: Avantis U.S. Small Cap Value ETF | Fell short | 5/5 short, 1/3 long | +0.4% | −2.7% | +4.0% | +19.5% | +26.0% | +72.9% | +66.2% | — | 22.1% | 0.57 |
| [VBK](https://betterthanspy.com/research/vbk): Vanguard Morningstar Small-Cap Growth ETF | Fell short | 1/5 short, 1/3 long | −4.4% | −4.7% | −2.2% | +7.4% | +10.3% | +65.8% | +15.4% | +173% | 23.8% | 0.24 |

## ETFs that consistently outperformed IWM

| Investment | Periods outperformed | 1M | 3M | 6M | YTD | 1Y | 3Y | 5Y | 10Y | Volatility | Sharpe | Expense | Assets |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| IWM: iShares Russell 2000 ETF (benchmark) |  | −3.7% | −5.6% | +0.6% | +12.0% | +14.8% | +73.3% | +29.4% | +157% | 22.4% | 0.34 |  |  |
| FXL: First Trust Technology AlphaDEX Fund | 5/5 short, 3/3 long, all-weather | −2.1% | +8.6% | +17.8% | +28.7% | +29.3% | +104% | +66.4% | +514% | 26.2% | 0.52 | 0.60% | $2.7B |
| CIBR: First Trust Nasdaq Cybersecurity ETF | 5/5 short, 3/3 long, all-weather | +0.2% | +15.1% | +49.3% | +45.8% | +35.2% | +134% | +96.7% | +461% | 26.2% | 0.65 | 0.58% | $17B |
| DXJ: WisdomTree Japan Hedged Equity Fund | 5/5 short, 3/3 long, all-weather | −2.3% | +0.4% | +10.4% | +23.0% | +34.3% | +125% | +225% | +415% | 19.1% | 1.34 | 0.48% | $8.1B |
| UGA: United States Gasoline Fund, LP | 5/5 short, 3/3 long, all-weather | −0.6% | +16.0% | +32.8% | +132% | +125% | +117% | +227% | +401% | 35.1% | 0.85 | 1.08% | $167M |
| SKYY: First Trust Cloud Computing ETF | 5/5 short, 3/3 long, all-weather | −1.8% | +23.4% | +34.6% | +28.6% | +22.2% | +124% | +44.2% | +392% | 31.4% | 0.39 | 0.60% | $3.3B |
| TDIV: First Trust NASDAQ Technology Dividend Index Fund | 5/5 short, 3/3 long, all-weather | −1.5% | +4.2% | +6.8% | +17.8% | +16.4% | +118% | +115% | +384% | 21.3% | 0.83 | 0.50% | $4.4B |
| HACK: Amplify Cybersecurity ETF | 5/5 short, 3/3 long, all-weather | +0.6% | +15.7% | +51.5% | +54.8% | +42.0% | +142% | +87.4% | +381% | 25.8% | 0.62 | 0.60% | $3.3B |
| BNO: United States Brent Oil Fund LP | 5/5 short, 3/3 long, all-weather | +19.0% | +34.0% | +36.4% | +144% | +139% | +118% | +205% | +359% | 37.1% | 0.79 | 1.15% | $768M |
| IOO: iShares Global 100 ETF | 5/5 short, 3/3 long, all-weather | −1.9% | +2.9% | +8.2% | +13.3% | +19.6% | +103% | +107% | +357% | 17.2% | 0.94 | 0.40% | $9.2B |
| MGC: Vanguard Morningstar Mega Cap ETF | 5/5 short, 3/3 long, all-weather | −1.9% | +2.8% | +8.4% | +12.6% | +15.7% | +93.4% | +86.0% | +347% | 17.4% | 0.80 | 0.05% | $11B |
| CRAK: VanEck Oil Refiners ETF | 5/5 short, 3/3 long, all-weather | +0.5% | +15.8% | +36.4% | +69.7% | +74.3% | +118% | +143% | +325% | 20.9% | 0.96 | 0.61% | $810M |
| RDVY: First Trust Rising Dividend Achievers ETF | 5/5 short, 3/3 long, all-weather | +0.3% | −0.3% | +6.9% | +14.3% | +20.2% | +89.1% | +71.0% | +321% | 18.8% | 0.67 | 0.47% | $25B |
| [SPYM](https://betterthanspy.com/research/spym): State Street SPDR Portfolio S&P 500 ETF | 5/5 short, 3/3 long, all-weather | −1.2% | +2.5% | +8.0% | +12.8% | +15.7% | +88.8% | +80.9% | +320% | 16.9% | 0.79 | 0.02% | $184B |
| [VOO](https://betterthanspy.com/research/voo): Vanguard S&P 500 ETF | 5/5 short, 3/3 long, all-weather | −1.2% | +2.5% | +8.0% | +12.7% | +15.7% | +88.8% | +80.8% | +319% | 16.9% | 0.79 | 0.03% | $1.7T |
| [IVV](https://betterthanspy.com/research/ivv): iShares Core S&P 500 ETF | 5/5 short, 3/3 long, all-weather | −1.2% | +2.5% | +8.0% | +12.8% | +15.7% | +88.8% | +80.8% | +319% | 17.0% | 0.79 | 0.03% | $880B |

## Stocks that consistently outperformed IWM

| Investment | Periods outperformed | 1M | 3M | 6M | YTD | 1Y | 3Y | 5Y | 10Y | Volatility | Sharpe | Market cap |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| IWM: iShares Russell 2000 ETF (benchmark) |  | −3.7% | −5.6% | +0.6% | +12.0% | +14.8% | +73.3% | +29.4% | +157% | 22.4% | 0.34 |  |
| [NTRA](https://betterthanspy.com/research/ntra): Natera, Inc. | 5/5 short, 3/3 long, all-weather | +2.7% | +51.9% | +93.2% | +75.4% | +113% | +901% | +249% | +3,934% | 57.6% | 0.73 | $58B |
| [FTNT](https://betterthanspy.com/research/ftnt): Fortinet, Inc. | 5/5 short, 3/3 long, all-weather | −0.7% | +11.6% | +98.6% | +122% | +104% | +208% | +158% | +2,668% | 44.8% | 0.65 | $127B |
| BWLP: BW LPG Limited | 5/5 short, 3/3 long, all-weather | +1.2% | +20.7% | +46.1% | +116% | +129% | +232% | +966% | +2,648% | 50.9% | 1.19 | $3.8B |
| MEDP: Medpace Holdings, Inc. | 5/5 short, 3/3 long, all-weather | +3.8% | +23.8% | +28.6% | +14.5% | +19.6% | +187% | +250% | +2,003% | 52.1% | 0.73 | $18B |
| [LLY](https://betterthanspy.com/research/lly): Eli Lilly and Company | 5/5 short, 3/3 long, all-weather | +11.7% | +12.5% | +42.3% | +21.5% | +61.9% | +131% | +461% | +1,870% | 32.8% | 1.22 | $1.2T |
| COKE: Coca-Cola Consolidated, Inc. | 5/5 short, 3/3 long, all-weather | +12.5% | +16.7% | +15.1% | +44.1% | +67.4% | +257% | +468% | +1,564% | 38.0% | 1.11 | $14B |
| [MPC](https://betterthanspy.com/research/mpc): Marathon Petroleum Corporation | 5/5 short, 3/3 long, all-weather | +17.9% | +45.8% | +108% | +181% | +148% | +226% | +660% | +1,314% | 33.4% | 1.39 | $129B |
| CVI: CVR Energy, Inc. | 5/5 short, 3/3 long, all-weather | +12.5% | +68.6% | +88.5% | +134% | +62.6% | +105% | +289% | +1,306% | 52.4% | 0.79 | $5.9B |
| WSM: Williams-Sonoma, Inc. | 5/5 short, 3/3 long, all-weather | +12.4% | +17.7% | +33.1% | +40.7% | +40.7% | +249% | +202% | +1,298% | 44.4% | 0.72 | $31B |
| FRO: Frontline Plc | 5/5 short, 3/3 long, all-weather | +6.9% | +41.8% | +62.0% | +182% | +148% | +222% | +762% | +1,270% | 49.7% | 1.12 | $11B |

## What stands out

The results point to a broad lead across technology ETFs and individual companies in several sectors, rather than one narrow group of winners. Technology made up the largest category among the top ETFs, while the top stocks included healthcare, technology, industrials, consumer staples, and energy. The strongest listed ETFs and stocks kept ahead in both the short and long term, although some popular alternatives, including VTI, qualified without meeting the all-weather rule.

The risk figures show different kinds of trade-offs. The leading ETFs had median volatility similar to IWM, and all had higher Sharpe ratios, a measure of return relative to risk. The stocks showed a rougher ride: their median volatility was roughly double or more than IWM's, even though all 10 had higher Sharpe ratios. Higher risk-adjusted returns do not remove the larger price swings individual stocks can bring.

## More research

- [ETFs and Stocks That Consistently Outperformed SPY (S&P 500)](https://betterthanspy.com/research/etfs-and-stocks-that-outperform-spy)
- [ETFs and Stocks That Consistently Outperformed VOO (S&P 500)](https://betterthanspy.com/research/etfs-and-stocks-that-outperform-voo)
- [ETFs and Stocks That Consistently Outperformed VTI (Total US Stock Market)](https://betterthanspy.com/research/etfs-and-stocks-that-outperform-vti)
- [ETFs and Stocks That Consistently Outperformed QQQ (Nasdaq-100)](https://betterthanspy.com/research/etfs-and-stocks-that-outperform-qqq)
- [ETFs and Stocks That Consistently Outperformed DIA (Dow Jones Industrial Average)](https://betterthanspy.com/research/etfs-and-stocks-that-outperform-dia)
- [ETFs and Stocks That Consistently Outperformed VXUS (International Stocks)](https://betterthanspy.com/research/etfs-and-stocks-that-outperform-vxus)
- [ETFs and Stocks That Consistently Outperformed NVDA (Nvidia)](https://betterthanspy.com/research/etfs-and-stocks-that-outperform-nvda)
- [ETFs and Stocks That Consistently Outperformed AAPL (Apple)](https://betterthanspy.com/research/etfs-and-stocks-that-outperform-aapl)
- [ETFs and Stocks That Consistently Outperformed MSFT (Microsoft)](https://betterthanspy.com/research/etfs-and-stocks-that-outperform-msft)
- [ETFs and Stocks That Consistently Outperformed AMZN (Amazon)](https://betterthanspy.com/research/etfs-and-stocks-that-outperform-amzn)
- [ETFs and Stocks That Consistently Outperformed GOOG (Alphabet)](https://betterthanspy.com/research/etfs-and-stocks-that-outperform-goog)
- [ETFs and Stocks That Consistently Outperformed META (Meta Platforms)](https://betterthanspy.com/research/etfs-and-stocks-that-outperform-meta)

## Explore further

- Full page: https://betterthanspy.com/research/etfs-and-stocks-that-outperform-iwm
- All research pages: https://betterthanspy.com/llms.txt