IWM vs LQD — 23-Year Performance Comparison
US Small-Cap vs Investment-Grade Corp Bonds — backtested 2002–2024
IWM wins$62,114 vs $26,647 on $10,000 over 23 years
IWMUS Small-Cap
Final value$62,114
CAGR+8.3%
Max drawdown-35.3%
Best year+48% (2003)
Years won15 of 23
LQDInvestment-Grade Corp Bonds
Final value$26,647
CAGR+4.4%
Max drawdown-19.4%
Best year+17% (2019)
Years won8 of 23
Growth of $10,000
2002–2024IWMLQD
IWM$62,114
LQD$26,647
50/50 mix$44,434
50/50 blend: $44,434 (+6.7%/yr CAGR)
Splitting equally between IWM and LQD would have landed between the two — slightly lower CAGR than IWM but less volatility. Try a custom split →
Year-by-year: IWM vs LQD
| Year | IWM | LQD | Winner |
|---|---|---|---|
| 2024 | +11.4% | +0.9% | IWM |
| 2023 | +16.8% | +9.4% | IWM |
| 2022 | -20.5% | -17.9% | LQD |
| 2021 | +14.5% | -1.8% | IWM |
| 2020 | +20.0% | +11.0% | IWM |
| 2019 | +25.4% | +17.4% | IWM |
| 2018 | -11.1% | -3.8% | LQD |
| 2017 | +14.6% | +7.1% | IWM |
| 2016 | +21.6% | +6.2% | IWM |
| 2015 | -4.5% | -1.3% | LQD |
| 2014 | +5.0% | +8.2% | LQD |
| 2013 | +38.7% | -2.0% | IWM |
| 2012 | +16.7% | +10.6% | IWM |
| 2011 | -4.4% | +9.7% | LQD |
| 2010 | +26.9% | +9.3% | IWM |
| 2009 | +28.5% | +8.4% | IWM |
| 2008 | -34.2% | +2.4% | LQD |
| 2007 | -1.8% | +3.7% | LQD |
| 2006 | +18.3% | +4.2% | IWM |
| 2005 | +4.5% | +1.2% | IWM |
| 2004 | +18.1% | +5.7% | IWM |
| 2003 | +47.9% | +7.3% | IWM |
| 2002 | -20.4% | +9.9% | LQD |
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