ETF Comparison

ITWO vs IWMI: Which Is the Better Pick in 2026?

A head-to-head comparison of ProShares Russell 2000 High Income ETF and NEOS Russell 2000 High Income ETF covering yield, cost, risk, and income potential.

Data updated September 4, 2026

Best for

ITWOInvestors who want broad equity exposure.
IWMIInvestors who want to maximize current income — roughly 14.65%, generated by selling options premium.

Jump to the side-by-side numbers

Visual comparison

Key metrics

Projected income on $10K

Projections assume the current yield and share price remain constant. Actual results will vary.

Total returns

ITWO has outpaced IWMI over the trailing twelve months, posting a 30.40% total return against 26.85%. Measured from Sep 2024 — when the younger fund began trading — ITWO has compounded at 19.27% a year versus 18.64% for IWMI. Figures are total returns: price change plus every distribution reinvested.

Total return and risk statistics by fund. Each row is one fund; each column is one period or statistic.
Symbol	YTD	1Y	Since Sep 2024	Volatility	Sharpe	Sortino	Max drawdown
ITWO	20.05%	30.40%	19.27%	18.6%	1.18	1.72	-9.8%
IWMI	17.06%	26.85%	18.64%	14.9%	1.28	1.90	-8.4%

Total return with all distributions reinvested on the ex-dividend date (a modeling convention, not the cash-settlement date), split-adjusted, as of September 4, 2026. YTD and 1Y are cumulative; windows of one year or longer are annualized. “Since Sep 2024” measures every fund from September 5, 2024 — the youngest fund's first trading day — so all funds share one comparison window. Volatility is the annualized standard deviation of daily total returns over the past year. Sharpe and Sortino divide the annualized return in excess of the risk-free rate by, respectively, that volatility and the downside deviation (both over the past year) — higher is better. Max drawdown is the largest peak-to-trough total-return decline over the same window — shallower is better.

Side-by-side snapshot

Side-by-side snapshot. Each row is one metric; each column is one fund.
Metric	ITWO	IWMI
Full name	ProShares Russell 2000 High Income ETF	NEOS Russell 2000 High Income ETF
Issuer	ProShares	NEOS
Last Close	$45.61 as of September 4, 2026	$52.19 as of September 4, 2026
Distribution rate	5.70%	14.65%
Distribution Safety Score™	79	84
Safety-Adjusted Yield	4.50%	12.31%
Expense ratio	0.55%	0.68%
AUM	$198M	$1.25B
Distribution frequency	Monthly	Monthly
Underlying index	Russell 2000 Index	Russell 2000 Index
Objective	Covered Call Income	IWMI is built to crank out high monthly income while staying tax-efficient. The fund invests in Russell 2000 stocks and layers on a data-driven call option strategy. That combo gives it steady cash flow and a chance to grab some upside if the Russell 2000 rallies. For tax perks, it uses section 1256 index options (with the sweet 60/40 long-term vs short-term split) and fund managers may also harvest losses to soften the tax bite. Quick summary: * Goal: High monthly income + equity growth potential * Method: Russell 2000 holdings + call option overlay * Upside: Participates when RUT rises * Tax angle: 60/40 capital gains treatment + loss harvesting
Asset class	Equity	Equity
Inception date	01/23/2025	06/24/2024
Beta	1.2758	1.0582
Last dividend	$0.2168	$0.6373
Ex-dividend date	09/01/2026	08/19/2026

Bottom lineChoose ITWO if you want broad equity exposure. Choose IWMI if you want to maximize current income — roughly 14.65%, generated by selling options premium. There's no free lunch: IWMI's payout comes from selling options, which caps upside and can erode the share price over time, while ITWO keeps full price exposure.

How the risk works

Read this before the income numbers below: the strategy mechanics on this page shape what those payouts can cost you.

Capped upside and premium dependence. IWMI generates income by selling options, which trades away part of a strong rally in exchange for premium. Distributions can include return of capital, and a payout the underlying assets cannot sustain shows up as NAV erosion over time — the big yield number is not free.

Learn the mechanics: Return of capital, explained · NAV erosion, explained

Model this comparison:

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Income calculator

See how much monthly income a hypothetical investment would generate in each ETF at current yields.

ProShares

ETFs169

Total AUM$122B

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

ProShares is known for offering leveraged and inverse ETFs that provide amplified exposure to market movements, along with thematic and income-focused strategies. Their fund lineup spans digital assets (including Bitcoin and Ethereum exposure through BITO and EETH), dividend strategies like the Dividend Aristocrats fund (NOBL), covered call income strategies, and leveraged/inverse products that track major indices with 2x or 3x daily multipliers (such as SSO and TQQQ for tech-heavy portfolios). With 23 ETFs across specialized families including leveraged products, money market funds, and sector-specific offerings, ProShares serves investors seeking both traditional income and alternative exposure strategies.

See our curated list of related YouTube videos on ITWO.

See all ProShares ETFs

NEOS

ETFs19

Total AUM$32.9B

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

NEOS is known for developing specialized income-focused ETFs that employ strategies like covered calls, hedging, and enhanced yields across various asset classes. The firm manages 19 funds organized into nine distinct families, including offerings in equity high income, fixed income enhancement, digital assets, and alternative strategies, with popular tickers like SPYI (S&P 500 covered call), QQQI (Nasdaq-100 covered call), and QQQH (Nasdaq-100 hedged equity income). NEOS distinguishes itself in the ETF landscape through its emphasis on income generation and downside protection strategies rather than traditional growth approaches.

See our curated list of related YouTube videos on IWMI.

See all NEOS ETFs

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Quick verdict

ITWO (ProShares Russell 2000 High Income ETF) and IWMI (NEOS Russell 2000 High Income ETF) are both monthly-pay dividend ETFs, but they take different approaches.

IWMI offers the higher yield at 14.65% vs 5.70% for ITWO. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.

ITWO is cheaper with an expense ratio of 0.55% compared to 0.68%.

IWMI is the larger fund by assets ($1.25B), but assets alone do not establish trading costs or liquidity.

Who should choose each?

Choose ITWO

ProShares Russell 2000 High Income ETF

Want broad equity exposure.
Want to keep costs low — a 0.55% expense ratio vs 0.68% for IWMI.

Choose IWMI

NEOS Russell 2000 High Income ETF

Want to maximize current income — IWMI distributes roughly 14.65% from selling options premium, vs 5.70% for ITWO.
Are comfortable with an options-income strategy — a large payout in exchange for capped upside.
Prefer lower volatility — a beta of 1.1 vs 1.3 for ITWO.

Not sure? Use the income calculator and snapshot above to weigh these trade-offs against your own goals.

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Deep dive

Yield & income

On a $10,000 investment, ITWO would generate roughly $47.50/month, while IWMI would produce $122.08/month, at current distribution rates. Both pay monthly distributions.

ITWO yield5.70%

IWMI yield14.65%

Monthly diff on $10K$74.58

Cost & efficiency

Over 10 years on $10,000, ITWO would cost approximately $550 in fees vs $680 for IWMI (simplified, not compounded). The $130.00 difference may be offset by yield or performance.

ITWO ER0.55%

IWMI ER0.68%

Strategy & risk

Both ITWO and IWMI wrap Russell 2000 Index with options-based income overlays (covered call income and options). The practical differences are yield target, fee structure, and issuer track record — not the underlying mechanic. Beta is 1.2758 for ITWO and 1.0582 for IWMI, making IWMI the less volatile of the two by this measure.

ITWO beta1.2758

IWMI beta1.0582

Fund details

ITWO is managed by ProShares (launched 01/23/2025) with $198M in assets. IWMI is managed by NEOS (launched 06/24/2024) with $1.25B in assets.

ITWO AUM$198M

IWMI AUM$1.25B

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Frequently asked questions

What is the current distribution rate for ITWO and IWMI?

ITWO currently distributes 5.70% and IWMI 14.65%, based on fund data updated September 2026. Distribution rate moves with both the payout and the share price, so check the as-of date before relying on either figure.

Is ITWO or IWMI better for dividend income?

It depends on your goals. IWMI currently offers the higher distribution yield, which means more income per dollar invested. However, a lower-yield fund may offer better total return or lower volatility. Consider your time horizon and risk tolerance.

What is the difference between ITWO and IWMI?

Both ITWO (ProShares Russell 2000 High Income ETF) and IWMI (NEOS Russell 2000 High Income ETF) track Russell 2000 Index with options-based income strategies — the labels "covered call income" and "options" describe closely related mechanics (covered calls are a specific type of options strategy). The real differences show up in yield target (5.70% vs 14.65%), expense ratio (0.55% vs 0.68%), and issuer (ProShares vs NEOS).

Can I hold both ITWO and IWMI?

You can, but expect significant overlap. Both funds use options-based income strategies on Russell 2000 Index, so holding them together gives you two wrappers around effectively the same exposure — not true diversification. Weigh issuer, fee, and yield differences rather than treating them as complementary.

Is ITWO or IWMI safer?

By Dividend Vision's Distribution Safety Score — a rules-based 0–100 estimate of how resilient a distribution looks, where higher is safer — IWMI scores 84, ITWO scores 79, so IWMI's payout currently looks the more resilient of the two. IWMI has also shown lower price volatility (beta 1.06 vs 1.28 for ITWO). No score makes an investment risk-free — treat this as a screening signal, not a guarantee, and the leverage, options-income, or crypto caveats flagged on this page apply regardless of score.

Which has lower fees, ITWO or IWMI?

ITWO has an expense ratio of 0.55% while IWMI charges 0.68%. Lower fees mean more of your investment returns stay in your pocket over time.

How much income does $10,000 in ITWO vs IWMI generate?

At current rates, $10,000 in ITWO would generate roughly $47.50 per month ($570.00 annually). The same in IWMI would produce about $122.08 per month ($1,465.00 annually).

Which has performed better historically, ITWO or IWMI?

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ITWO vs IWMI — at a glance

Generated September 5, 2026.

Overview

ITWO and IWMI are both small-cap equity ETFs using covered call overlays on Russell 2000 holdings to generate monthly income. ITWO is newer (launched 01/23/2025) and smaller; IWMI has been running since 06/24/2024 with $1.25B in assets.

How they differ

IWMI's yield is more than 2.5 times higher than ITWO's, reflecting a more aggressive call-selling strategy. That higher income comes with a corresponding risk: at 14.65%, the fund is distributing far more than typical small-cap earnings, which may require return-of-capital treatment and pressure NAV over time. IWMI addresses the tax hit with section 1256 options (taxed as 60% long-term, 40% short-term) and loss harvesting, while ITWO makes no explicit mention of tax optimization. On size and cost, IWMI has $1.25B in AUM versus ITWO's $198M, and charges 0.68% in fees versus 0.55%. Both track the same Russell 2000 index, but ITWO's beta of 1.2758 slightly exceeds IWMI's 1.0582, suggesting ITWO retains marginally more upside capture.

Who each is best for

ITWO: Fits investors who want monthly small-cap income but prioritize moderate distribution levels and simpler option mechanics, accepting that newer funds have less operational history to evaluate.

IWMI: Fits investors comfortable with aggressive monthly distributions, concerned about the tax cost of high yields, and willing to trust a larger fund with a longer track record to execute loss harvesting and section 1256 structuring effectively.

Call-writing cap on upside. Both funds cap participation in Russell 2000 rallies by selling calls; the higher the strike selection, the more upside retained but the lower the premium collected. IWMI's aggressive yield suggests tighter strikes, meaning less room to participate if small caps rally sharply.

Tax-loss harvesting execution risk. IWMI's tax efficiency hinges on active loss-harvesting discipline and section 1256 option trading. Changes in fund management, trading frequency, or market conditions could degrade that advantage, and no guarantee exists that the 60/40 treatment will remain available or be fully captured.

New fund operational risk. ITWO was launched 1 year ago; the fund has minimal track record for stress testing its option mechanics in a significant market downturn or drawdown.

Bottom line

If you want a 5.7% monthly income with less pressure on principal and are comfortable with a newer fund, ITWO offers a lower-risk entry point; if you can tolerate a 14.65% yield and prioritize tax efficiency, IWMI's larger scale and loss-harvesting overlay may justify the higher income target. Neither strategy outpaces the Russell 2000 itself in bull markets, and both rely on disciplined option management to deliver their stated yields without eroding NAV. Past performance doesn't predict future results.

AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.

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The metrics behind this comparison, explained in the Academy.

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