ETF Comparison

IWM vs IWMY: Which Is the Better Pick in 2026?

A head-to-head comparison of iShares Russell 2000 ETF and Defiance R2000 Enchanced Options Income ETF covering yield, cost, risk, and income potential.

Data updated July 8, 2026

Bottom lineChoose IWM if you want broad equity exposure. Choose IWMY if you want to maximize current income — roughly 30.42%, generated by selling options premium. There's no free lunch: IWMY's payout comes from selling options, which caps upside and can erode the share price over time, while IWM keeps full price exposure.

iShares

ETFs481

Total AUM$4452B

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

Defiance ETFs

ETFs86

Total AUM$12.4B

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

Defiance ETFs is known for creating thematic and alternative income-focused exchange-traded funds that often incorporate leverage and options strategies. The issuer's lineup of 22 funds spans income generation, leveraged exposure, combined leveraged-income strategies, and thematic investing across sectors like technology, cryptocurrencies, and emerging trends. Notable offerings include covered call and yield-enhancement funds (such as QQQY and JEPY) alongside leveraged plays on popular indices and specialized themes like SPACs and electric vehicles (AIPO, RKNG, JEDI).

See our curated list of related YouTube videos on IWMY.

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Side-by-side snapshot

	IWM	IWMY
Full name	iShares Russell 2000 ETF	Defiance R2000 Enchanced Options Income ETF
Issuer	iShares	Defiance ETFs
Last Close	$296.19 as of July 8, 2026	$19.49 as of July 8, 2026
Distribution yield	0.94%	30.42%
Distribution Safety Score	96	59
Expense ratio	0.19%	0.99%
AUM	$77.5B	$99.8M
Distribution frequency	Quarterly	Weekly
Underlying index	Russell 2000 Index	IWM
Objective	Provide exposure to the fund's underlying index or strategy per issuer materials.	Seeks current income while maintaining exposure to the performance of the Russell 2000 Index. The fund is actively managed and designed to generate weekly cash distributions primarily from options premiums by selling daily credit call spreads on the Russell 2000 Index.
Asset class	Equity	Equity
Inception date	05/22/2000	06/26/2024
Beta	1.29	1.1019
Last dividend	$0.6950	$0.1140
Ex-dividend date	09/15/2026	07/02/2026

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Visual comparison

Key metrics

Projected income on $10K

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

Total returns

IWM has outpaced IWMY over the trailing twelve months, posting a 36.20% total return against 17.78%. Measured from Oct 2023 — when the younger fund began trading — IWMY has compounded at 292.81% a year versus 25.93% for IWM. Figures are total returns: price change plus every distribution reinvested.

Symbol	YTD	1Y	Since Oct 2023	Volatility	Sharpe	Sortino	Max drawdown
IWM	19.55%	36.20%	25.93%	19.5%	1.36	2.06	-11.0%
IWMY	12.74%	17.78%	292.81%	16.3%	0.73	1.02	-11.6%

Total return with all distributions reinvested on the ex-dividend date, split-adjusted, as of July 7, 2026. YTD and 1Y are cumulative; longer windows are annualized. “Since Oct 2023” measures every fund from October 31, 2023 — 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.

Quick verdict

IWM (iShares Russell 2000 ETF) and IWMY (Defiance R2000 Enchanced Options Income ETF) are both dividend ETFs, but they take different approaches.

IWMY offers the higher yield at 30.42% vs 0.94% 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 0.99%.

They track different benchmarks: IWM is linked to Russell 2000 Index while IWMY tracks IWM, which means their performance drivers differ.

IWM is the larger fund by assets ($77.5B), which generally means tighter spreads and better 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 0.99% for IWMY.

Choose IWMY

Defiance R2000 Enchanced Options Income ETF

Want to maximize current income — IWMY distributes roughly 30.42% from selling options premium, vs 0.94% 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 1.3 for IWM.

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

Deep dive

Yield & income

On a $10,000 investment, IWM would generate roughly $7.83/month, while IWMY would produce $253.50/month, at current distribution rates.

IWM yield0.94%

IWMY yield30.42%

Monthly diff on $10K$245.67

Cost & efficiency

Over 10 years on $10,000, IWM would cost approximately $190 in fees vs $990 for IWMY (simplified, not compounded). The $800.00 difference may be offset by yield or performance.

IWM ER0.19%

IWMY ER0.99%

Strategy & risk

IWM tracks Russell 2000 Index with an index approach, while IWMY tracks IWM with an options approach. Beta is 1.29 for IWM and 1.1019 for IWMY, indicating IWMY is less volatile relative to the market.

IWM beta1.29

IWMY beta1.1019

Fund details

IWM is managed by iShares (launched 05/22/2000) with $77.5B in assets. IWMY is managed by Defiance ETFs (launched 06/26/2024) with $99.8M in assets.

IWM AUM$77.5B

IWMY AUM$99.8M

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Frequently asked questions

Is IWM or IWMY better for dividend income?

It depends on your goals. IWMY 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 IWM and IWMY?

IWM (iShares Russell 2000 ETF) tracks Russell 2000 Index with an index approach, while IWMY (Defiance R2000 Enchanced Options Income ETF) tracks IWM with an options approach. They are issued by iShares and Defiance ETFs respectively.

Can I hold both IWM and IWMY?

Yes. Many income investors hold both to diversify across different strategies and underlying indexes. This can reduce concentration risk while maintaining a strong income stream.

Which has lower fees, IWM or IWMY?

IWM has an expense ratio of 0.19% while IWMY charges 0.99%. Lower fees mean more of your investment returns stay in your pocket over time.

How much income does $10,000 in IWM vs IWMY generate?

At current rates, $10,000 in IWM would generate roughly $7.83 per month ($94.00 annually). The same in IWMY would produce about $253.50 per month ($3,042.00 annually).

Which has performed better historically, IWM or IWMY?

More comparisons to explore

Popular comparisons

IWM vs IWMY — at a glance

Generated July 2026 from current fund data.

Overview

IWM is a straightforward Russell 2000 tracker with $77.5B in assets and a 0.19% expense ratio. IWMY is a much newer, actively managed options overlay fund built on top of IWM that sells weekly call spreads to generate income, targeting a 30.24% distribution rate. The crucial distinction: IWMY trades Russell 2000 upside potential for engineered income, while IWM delivers index returns with minimal friction.

How they differ

IWM holds the Russell 2000 index directly and distributes the underlying dividends (0.93% annualized). IWMY uses IWM as its core holding but overlays daily credit call spreads to harvest premium income, aiming to pay out 30.24% annually via weekly distributions. That income differential comes at a cost: IWMY charges 0.99% in expenses versus IWM's 0.19%, and it caps upside appreciation—when Russell 2000 rallies sharply, the short calls limit gains. IWMY is also tiny at $99.8M and brand new (inception June 2024), while IWM has $77.5B and a 24-year track record. Finally, IWMY's beta of 1.1019 is lower than IWM's 1.29, reflecting the dampening effect of the short call overlay on small-cap volatility.

Who each is best for

IWM: Fits investors seeking broad small-cap market exposure with minimal cost drag. Appropriate for buy-and-hold allocations where total return (capital appreciation plus dividends) matters more than current income.

IWMY: Designed for income-focused investors willing to forgo significant upside capture in exchange for regular cash flow. Suits those with a shorter time horizon or strong conviction that small caps will trade sideways to modestly upward.

Key risks to know

NAV erosion from high distribution yield: IWMY's 30.24% annualized payout far exceeds underlying small-cap dividend yields. This structure relies on continuous option premium harvesting and return-of-capital distributions; if realized volatility drops or call spreads stop generating sufficient premium, NAV will erode.

Capped upside from short calls: The daily short call spreads limit gains during small-cap rallies. In a strong bull market, IWMY will significantly lag IWM—a structural drag that compounds over time.

Extreme recency and scale risk: IWMY launched in late June 2024 and holds only $99.8M in assets. No track record exists for a full market cycle, and very small ETF AUM raises closure or forced liquidation risk if the strategy doesn't gain traction.

Options premium risk: Weekly distributions depend on favorable implied volatility and manageable realized volatility. A sustained drop in VIX or a widening of bid-ask spreads in the underlying options market can compress spreads and reduce payouts.

Tracking error from active management: Unlike IWM's passive replication, IWMY is actively managed. Implementation risk, timing lags in call spread execution, and manager discretion introduce tracking drift relative to the stated income target.

Bottom line

IWM offers low-cost Russell 2000 exposure with no upside cap; IWMY prioritizes near-term income by sacrificing appreciation potential and adding operational complexity. If your goal is capital growth or staying neutral to small-cap market moves, IWM's simplicity and scale dominate; if you need regular cash flow and expect rangebound or modest upside, IWMY's income premium may appeal—though the strategy's track record is too brief to assess whether the yield is sustainable. Past performance does not guarantee future results.

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

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