ETF Comparison

IWM vs IWMI: Own Small Caps, or Sell Some Upside for Income?

A head-to-head of iShares Russell 2000 and NEOS Russell 2000 High Income covering overlay, cost, and why distributions are not free.

Updated October 2, 2026

How these figures are calculated: methodology.

Best for

IWMInvestors who want broad equity exposure.
IWMIInvestors who want to maximize current income — roughly 14.73%, 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

100% reinvested · ex-date convention. Period returns use this fixed assumption, independent of chart settings. YTD and 1Y are cumulative period returns; 3Y, 5Y, and 10Y are annualized. The shared Since-start window is annualized only when it covers at least one year.

IWM has outpaced IWMI over the trailing twelve months, posting a 17.28% total return against 17.26%. Measured from Jun 2024 — the start of shared available history — IWM has compounded at 17.36% a year versus 15.53% 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 cumulative	1Y cumulative	Since Jun 2024	Volatility	Sharpe	Sortino	Max drawdown
IWM	13.93%	17.28%	17.36%	18.6%	0.61	0.89	-11.0%
IWMI	12.33%	17.26%	15.53%	15.0%	0.76	1.11	-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 October 2, 2026. YTD and 1Y are cumulative period returns; 3Y, 5Y, and 10Y are annualized. The shared Since-start window is annualized only when it covers at least one year. “Since Jun 2024” measures every fund from June 25, 2024 — the start of shared available history — 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.

Distribution rate and SEC yield

Metric	IWM	IWMI
Forward distribution rate	1.07%	14.73%
Trailing 12-month yield	0.97%	14.67%
30-day SEC yield	—	0.52%

Total return (price change plus reinvested distributions) is the Total returns section above. A 30-day SEC yield can sit far from the headline distribution rate; both numbers are the fund's own published fields.

Side-by-side snapshot

Side-by-side snapshot. Each row is one metric; each column is one fund.
Metric	IWM	IWMI
Full name	iShares Russell 2000 ETF	NEOS Russell 2000 High Income ETF
Issuer	iShares	NEOS
Last Close	$281.52 as of October 2, 2026	$49.48 as of October 2, 2026
Distribution rate	1.07%	14.73%
Trailing 12-month yield	0.97%	14.67%
30-day SEC yield	—	0.52%
Distribution Safety Score™	94	84
Safety-Adjusted Yield	1.01%	12.37%
Expense ratio	0.19%	0.68%
AUM	$77.2B	$1.29B
Distribution frequency	Quarterly	Monthly
Underlying index	Russell 2000 Index	Russell 2000 Index
Objective	Provide exposure to the fund's underlying index or strategy per issuer materials.	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	05/22/2000	06/24/2024
Beta	1.24	1.0582
Last dividend	$0.75	$0.6075
Ex-dividend date	09/15/2026	09/16/2026

Bottom lineChoose IWM if you want broad equity exposure. Choose IWMI if you want to maximize current income — roughly 14.73%, 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 IWM 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.

iShares

ETFs466

Total AUM$4683B

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

iShares is one of the largest ETF providers globally, known for offering a broad, diversified lineup of exchange-traded funds across multiple asset classes and investment strategies. The company operates 215 funds spanning 15 distinct families, including popular offerings in dividend income, covered call strategies, bonds, equities, ESG-focused investments, and factor-based approaches, with widely-held tickers like AGG (bond), ACWI (global equity), and AOA (allocation). iShares is characterized by its comprehensive fund ecosystem that serves both core portfolio holdings and specialized investment strategies, making it a prominent player for investors seeking both traditional and alternative income-generating ETF solutions.

See our curated list of related YouTube videos on IWM.

See all iShares ETFs

NEOS

ETFs19

Total AUM$34.7B

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

IWM (iShares Russell 2000 ETF) and IWMI (NEOS Russell 2000 High Income ETF) are both dividend ETFs, but they take different approaches.

IWMI offers the higher yield at 14.73% vs 1.07% for IWM. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.

IWM is cheaper with an expense ratio of 0.19% compared to 0.68%.

IWM is the larger fund by assets ($77.2B), but assets alone do not establish trading costs or liquidity.

Who should choose each?

Choose IWM

iShares Russell 2000 ETF

Want broad equity exposure.
Want to keep costs low — a 0.19% expense ratio vs 0.68% for IWMI.

Choose IWMI

NEOS Russell 2000 High Income ETF

Want to maximize current income — IWMI distributes roughly 14.73% from selling options premium, vs 1.07% for IWM.
Are comfortable with an options-income strategy — a large payout in exchange for capped upside.
Prefer lower volatility — a beta of 1.1 vs 1.2 for IWM.

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, IWM would generate roughly $26.75 cash per distribution, while IWMI would produce $122.75 cash per distribution, at current distribution rates.

IWM yield1.07%

IWMI yield14.73%

Cash diff on $10K$96.00

Cost & efficiency

Over 10 years on $10,000, IWM would cost approximately $190 in fees vs $680 for IWMI (simplified, not compounded). The $490.00 difference may be offset by yield or performance.

IWM ER0.19%

IWMI ER0.68%

Strategy & risk

IWM tracks Russell 2000 Index with a small caps approach, while IWMI tracks Russell 2000 Index with an options approach. Beta is 1.24 for IWM and 1.0582 for IWMI, making IWMI the less volatile of the two by this measure.

IWM beta1.24

IWMI beta1.0582

Fund details

IWM is managed by iShares (launched 05/22/2000) with $77.2B in assets. IWMI is managed by NEOS (launched 06/24/2024) with $1.29B in assets.

IWM AUM$77.2B

IWMI AUM$1.29B

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Frequently asked questions

Does IWMI have NAV erosion?

IWMI (NEOS Russell 2000 High Income ETF) sells options on IWM (iShares Russell 2000 ETF) exposure for cash. Option-income funds can lag a strong rally because upside is capped, which shows up in NAV path — not as a scheduled decay clock. IWMI distributes 14.73% against 1.07% and costs 0.68% against 0.19% as of October 2026. Compare total return and NAV trend alongside the yield.

What is the current distribution rate for IWM and IWMI?

IWM currently distributes 1.07% and IWMI 14.73%, based on fund data updated October 2026. Distribution rate moves with both the payout and the share price, so check the as-of date before relying on either figure.

Is IWM 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.

Can I hold both IWM and IWMI?

Yes — nothing prevents holding both. Whether the combination actually diversifies depends on how much the underlying exposures overlap, which isn't fully measurable from the data on this page; review each security's holdings, sector, and strategy before treating them as complementary.

Is IWM 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 — IWM scores 94, IWMI scores 84, so IWM's payout currently looks the more resilient of the two. IWMI has also shown lower price volatility (beta 1.06 vs 1.24 for IWM). 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, IWM or IWMI?

IWM has an expense ratio of 0.19% 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 IWM vs IWMI generate?

At current rates, $10,000 in IWM would generate roughly $26.75 cash per distribution ($107.00 annually). The same in IWMI would produce about $122.75 cash per distribution ($1,473.00 annually).

Which has performed better historically, IWM or IWMI?

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Dividend dates and history

IWM vs IWMI — at a glance

Generated October 3, 2026.

Overview

IWM and IWMI both track the Russell 2000 Index of small-cap U.S. stocks, but they pursue fundamentally different strategies. IWM is a straight index fund offering broad Russell 2000 exposure with quarterly dividends. IWMI, launched in mid-2024, layers a call option overlay on Russell 2000 holdings to generate monthly income targeting a 14.73% distribution rate, while attempting to preserve upside participation and use tax-efficient option structures. That gap shows in distributions immediately—IWM yields 1.07%, while IWMI targets 14.73%, more than 13 percentage points higher.

The expense ratio reflects the added complexity: IWMI costs 0.68%, versus 0.19% for IWM, a difference of 0.49%. IWMI also reports a beta of 1.0582, slightly dampened from IWM's 1.24, though both move broadly in line with small-cap equities. AUM tells a size story—IWM is a $77.2B index workhorse, while IWMI is much newer and smaller at $1.29B. IWMI's inception date of 06/24/2024 means it has limited performance history, while IWM has operated since 05/22/2000.

Who each is best for

IWM: Fits investors seeking straightforward Russell 2000 exposure with minimal fees and tax-efficient quarterly income, or those who want to build a small-cap allocation without layered complexity.

IWMI: Designed for income-focused investors comfortable with the trade-off of capped upside (via call obligations) in exchange for consistent monthly distributions, and those who can benefit from the 60/40 long-term/short-term capital gains treatment of index options.

Key risks to know

Call cap on upside: IWMI's covered call overlay limits gains if the Russell 2000 rallies sharply. The strikes are likely chosen to allow modest upside, but significant index rallies will result in shares being called away, capping total return below IWM's in bull markets.

NAV erosion risk: IWMI's 14.73% yield is historically high relative to Russell 2000 earnings. If the fund's option income strategy delivers lower premiums in choppy or range-bound markets, or if the underlying index declines, distributions may begin to erode net asset value over time.

Track record and liquidity: IWMI launched 06/24/2024, giving it minimal operating history through a full market cycle.

Volatility in option strategy: The call overlay's return depends on realized volatility, option pricing, and the fund manager's strike selection.

Bottom line

IWM offers standard Russell 2000 index exposure with low cost and a modest, stable dividend. IWMI trades upside for high monthly income via covered calls and aims for tax efficiency, but carries concentration risk on those premiums and a very short operating history. Past performance, especially over IWMI's brief life, does not 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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These comparisons follow the Dividend Vision methodology.