A head-to-head comparison of NEOS Russell 2000 High Income ETF and Roundhill Russell 2000 0DTE Covered Call Strategy ETF covering yield, cost, risk, and income potential.
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.
IWMI has lagged RDTE over the trailing twelve months, posting a 17.26% total return against 17.32%. Measured from Sep 2024 — the start of shared available history — RDTE has compounded at 17.27% a year versus 16.38% 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.
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 Sep 2024” measures every fund from September 10, 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, SEC yield and return of capital
Metric
IWMI
RDTE
Forward distribution rate
14.73%
25.55%
Trailing 12-month yield
14.67%
43.21%
30-day SEC yield
0.52%
—
Return of capital
—
100.00%
Total return (price change plus reinvested distributions) is the Total returns section above. Return of capital is the share of a recent distribution that was not income. A 30-day SEC yield can sit far from the headline distribution rate; both numbers are the fund's own published fields.
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
Seeks weekly income by investing at least 80% of net assets in instruments that provide exposure to the Russell 2000 Index and writing zero-days-to-expiration (0DTE) call options against that exposure.
Bottom lineChoose IWMI if you want index call spreads structured for Section 1256 tax treatment. Choose RDTE if you want a covered-call overwrite written on the holdings themselves. IWMI and RDTE both use option or derivative overlays. Their tradeoff is the underlying exposure, how each option strategy is implemented, and the yield each targets; either overlay can limit upside participation, so neither offers uncapped 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 and RDTE generate 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.
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.
ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.
Roundhill Investments is known for offering innovative, specialized ETFs that often feature weekly dividend distributions and exposure to trending themes and individual mega-cap stocks. Their lineup spans income-focused strategies, leveraged products, thematic investments in areas like cryptocurrency and artificial intelligence, and weekly-pay funds that appeal to investors seeking frequent distributions. The issuer has built a distinctive niche with products targeting both traditional income seekers and those interested in emerging sectors, offering a diverse range of tickers that go well beyond conventional dividend vehicles.
See our curated list of related YouTube videos on RDTE.
IWMI (NEOS Russell 2000 High Income ETF) and RDTE (Roundhill Russell 2000 0DTE Covered Call Strategy ETF) are both dividend ETFs, but they take different approaches.
RDTE offers the higher yield at 25.55% vs 14.73% for IWMI. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.
IWMI is cheaper with an expense ratio of 0.68% compared to 0.97%.
They have different reference exposures: IWMI is linked to Russell 2000 Index while RDTE is linked to Russell 2000, which means their performance drivers differ.
IWMI is the larger fund by assets ($1.29B), but assets alone do not establish trading costs or liquidity.
Who should choose each?
Choose IWMI
NEOS Russell 2000 High Income ETF
Want index call spreads structured for Section 1256 tax treatment.
Are comfortable with an options-income strategy — a large payout in exchange for capped upside.
Want to keep costs low — a 0.68% expense ratio vs 0.97% for RDTE.
Choose RDTE
Roundhill Russell 2000 0DTE Covered Call Strategy ETF
Want a covered-call overwrite on the stocks the fund holds.
Want to maximize current income — RDTE distributes roughly 25.55% from selling options premium, vs 14.73% for IWMI.
Are comfortable with an options-income strategy — a large payout in exchange for capped upside.
Not sure? Use the income calculator and snapshot above to weigh these trade-offs against your own goals.
Still deciding? Track IWMI & RDTE for free
Create a free Dividend Vision account to keep them on a watchlist, get notified when they declare dividends, and see how much income they would add to your portfolio.
On a $10,000 investment, IWMI would generate roughly $122.75 cash per distribution, while RDTE would produce $49.13 cash per distribution, at current distribution rates.
IWMI yield14.73%
RDTE yield25.55%
Cash diff on $10K$73.62
Cost & efficiency
Over 10 years on $10,000, IWMI would cost approximately $680 in fees vs $970 for RDTE (simplified, not compounded). The $290.00 difference may be offset by yield or performance.
IWMI ER0.68%
RDTE ER0.97%
Strategy & risk
Both IWMI and RDTE wrap Russell 2000 Index with options-based income overlays (options and covered call). The practical differences are yield target, fee structure, and issuer track record — not the underlying mechanic. Beta is 1.0582 for IWMI and 1.1785 for RDTE, making IWMI the less volatile of the two by this measure.
IWMI beta1.0582
RDTE beta1.1785
Fund details
IWMI is managed by NEOS (launched 06/24/2024) with $1.29B in assets. RDTE is managed by Roundhill Investments (launched 09/10/2024) with $179M in assets.
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Frequently asked questions
What is the current distribution rate for IWMI and RDTE?
IWMI currently distributes 14.73% and RDTE 25.55%, 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 IWMI or RDTE better for dividend income?
It depends on your goals. RDTE 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 IWMI and RDTE?
Both IWMI (NEOS Russell 2000 High Income ETF) and RDTE (Roundhill Russell 2000 0DTE Covered Call Strategy ETF) track Russell 2000 Index with options-based income strategies — the labels "options" and "covered call" describe closely related mechanics (covered calls are a specific type of options strategy). The real differences show up in yield target (14.73% vs 25.55%), expense ratio (0.68% vs 0.97%), and issuer (NEOS vs Roundhill Investments).
Can I hold both IWMI and RDTE?
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 IWMI or RDTE 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, RDTE scores 77, so IWMI's payout currently looks the more resilient of the two. 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, IWMI or RDTE?
IWMI has an expense ratio of 0.68% while RDTE charges 0.97%. Lower fees mean more of your investment returns stay in your pocket over time.
How much income does $10,000 in IWMI vs RDTE generate?
At current rates, $10,000 in IWMI would generate roughly $122.75 cash per distribution ($1,473.00 annually). The same in RDTE would produce about $49.13 cash per distribution ($2,555.00 annually).
Which has performed better historically, IWMI or RDTE?
IWMI has lagged RDTE over the trailing twelve months, posting a 17.26% total return against 17.32%. Measured from Sep 2024 — the start of shared available history — RDTE has compounded at 17.27% a year versus 16.38% for IWMI. Figures are total returns: price change plus every distribution reinvested. Past performance does not guarantee future results.
Explore related screeners
Lateral filters that include these funds — browse the full peer set on DividendVision.
The biggest difference is option expiration frequency. This shows up sharply in yield: RDTE distributes 25.55% annualized versus 14.73% for IWMI, a spread of 10.82% percentage points. RDTE charges 0.29% more in expenses (0.97% vs. 0.68%), offsetting some of the higher gross payout. Lastly, IWMI has $1.29B in assets, more than four times RDTE's $179M, reflecting IWMI's longer operating history and larger investor base. RDTE's beta of 1.1785 also suggests slightly more movement with the underlying index than IWMI's 1.0582.
RDTE: Designed for income-focused traders comfortable with 0DTE mechanics—selling options that expire within hours or same-day—and weekly cash flows; appeals to those who view market stability as opportunity and accept tighter rebalancing schedules.
Key risks to know
NAV erosion risk: Both funds distribute well above typical small-cap dividend yields, signaling reliance on option premium and potential return of capital. RDTE's 25.55% yield is especially high; distributions exceeding underlying earnings growth may steadily erode net asset value unless Russell 2000 rallies sharply or implied volatility stays elevated.
0DTE volatility and roll risk (RDTE): Writing options that expire same-day requires nightly repricing and rebalancing. If volatility contracts or markets gap at open, RDTE may face forced closures at disadvantageous prices or reinvest proceeds at lower premium rates; this rhythm compounds in choppy markets.
Call cap and upside capture: Both funds cap participation when Russell 2000 rallies beyond the strike. Prolonged bull runs truncate upside.
Beta and leverage intuition: Both funds show beta near or slightly above 1.0, yet live off option premium—not traditional equity alpha. When small-cap volatility compresses or rates shift, implied volatility can fall sharply, shrinking call premium and distribution stability. Past performance does not predict future results.
AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.
Learn the method
The metrics behind this comparison, explained in the Academy.
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