ETF Comparison

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

A head-to-head comparison of NEOS Russell 2000 High Income ETF and Roundhill RDTE Russell 2000 0DTE Covered Call Strategy covering yield, cost, risk, and income potential.

Data updated September 4, 2026

Best for

IWMIInvestors who are comfortable trading away most upside for a large, steady payout.
RDTEInvestors who want to maximize current income — roughly 25.51%, 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

IWMI has outpaced RDTE over the trailing twelve months, posting a 26.85% total return against 25.22%. Measured from Sep 2024 — when the younger fund began trading — IWMI has compounded at 19.53% a year versus 19.50% for RDTE. 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
IWMI	17.06%	26.85%	19.53%	14.9%	1.28	1.90	-8.4%
RDTE	19.68%	25.22%	19.50%	16.8%	1.06	1.54	-9.2%

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 10, 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	IWMI	RDTE
Full name	NEOS Russell 2000 High Income ETF	Roundhill RDTE Russell 2000 0DTE Covered Call Strategy
Issuer	NEOS	Roundhill Investments
Last Close	$52.19 as of September 4, 2026	$27.93 as of September 4, 2026
Distribution rate	14.65%	25.51%
Distribution Safety Score™	84	65
Safety-Adjusted Yield	12.31%	16.58%
Expense ratio	0.68%	0.97%
AUM	$1.25B	$186M
Distribution frequency	Monthly	Weekly
Underlying index	Russell 2000 Index	Russell 2000
Objective	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.
Asset class	Equity	Equity
Inception date	06/24/2024	09/10/2024
Beta	1.0582	1.1785
Last dividend	$0.6373	$0.137 payable today
Ex-dividend date	08/19/2026	09/03/2026

Bottom lineChoose IWMI if you are comfortable trading away most upside for a large, steady payout. Choose RDTE if you want to maximize current income — roughly 25.51%, generated by selling options premium. There's no free lunch: RDTE's payout comes from selling options, which caps upside and can erode the share price over time, while IWMI 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 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.

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

Model this comparison:

Compare in my portfolio Forecast income Save to watchlist

Income calculator

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

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

Roundhill Investments

ETFs55

Total AUM$37.2B

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.

See all Roundhill Investments ETFs

Want to go deeper?

Add these ETFs to a sample portfolio and forecast your dividend income over 5+ years — free to start, no credit card.

Compare in my portfolio Forecast income Save to watchlist

Quick verdict

IWMI (NEOS Russell 2000 High Income ETF) and RDTE (Roundhill RDTE Russell 2000 0DTE Covered Call Strategy) are both dividend ETFs, but they take different approaches.

RDTE offers the higher yield at 25.51% vs 14.65% 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 ($1.25B), but assets alone do not establish trading costs or liquidity.

Who should choose each?

Choose IWMI

NEOS Russell 2000 High Income ETF

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 RDTE Russell 2000 0DTE Covered Call Strategy

Want to maximize current income — RDTE distributes roughly 25.51% from selling options premium, vs 14.65% 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.

Add to my watchlist See what a free account includes

Deep dive

Yield & income

On a $10,000 investment, IWMI would generate roughly $122.08/month, while RDTE would produce $212.58/month, at current distribution rates.

IWMI yield14.65%

RDTE yield25.51%

Monthly diff on $10K$90.50

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 $1.25B in assets. RDTE is managed by Roundhill Investments (launched 09/10/2024) with $186M in assets.

IWMI AUM$1.25B

RDTE AUM$186M

Ready to act?

Open in Comparator Model in portfolio See pricing

Frequently asked questions

What is the current distribution rate for IWMI and RDTE?

IWMI currently distributes 14.65% and RDTE 25.51%, 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 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 RDTE Russell 2000 0DTE Covered Call Strategy) 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 (14.65% vs 25.51%), 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 65, 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 $122.08 per month ($1,465.00 annually). The same in RDTE would produce about $212.58 per month ($2,551.00 annually).

Which has performed better historically, IWMI or RDTE?

More comparisons to explore

People also compare IWMI with

People also compare RDTE with

Popular comparisons

IWMI vs RDTE — at a glance

Generated September 5, 2026.

The result is a spectrum: IWMI emphasizes tax-efficient upside participation; RDTE prioritizes maximum near-term premium extraction and yield.

How they differ

The single biggest difference is option strategy. IWMI uses conventional index options with a standard expiration cycle, while RDTE exclusively writes 0DTE calls that are repriced and rolled constantly. This makes RDTE's yield much higher—25.51% versus 14.65%—but at the cost of almost no meaningful upside capture; 0DTE calls are reset daily, so RDTE forgoes nearly all equity price appreciation.

IWMI's 0.68% expense ratio is lower than 0.97% for RDTE, a gap driven partly by the operational complexity of daily call rolling. AUM tells another story: IWMI has $1.25B under management versus $186M for RDTE, suggesting different stage maturity (IWMI launched 06/24/2024; RDTE 09/10/2024).

Finally, beta hints at sensitivity to small-cap moves. IWMI's 1.0582 is slightly lower than RDTE's 1.1785, meaning RDTE amplifies small-cap market swings a touch more.

RDTE: Fits investors who prioritize maximum near-term yield extraction from small-cap exposure and are comfortable forfeiting capital appreciation in exchange for weekly income; suited to those comfortable with the volatility profile of 0DTE strategies and who treat these funds as income-focused tactical positions rather than core holdings.

Key risks to know

NAV erosion at extreme distribution yields. RDTE's 25.51% distribution rate far exceeds typical small-cap earnings and dividend yields, raising the likelihood that a meaningful portion of distributions will come from return of capital, eroding NAV over time. IWMI's 14.65% yield, while high, sits closer to the boundary of sustainability through option premium.

0DTE call roll risk (RDTE specific). Rolling calls daily exposes RDTE to intraday gaps, execution costs, and the risk that the fund gets called away on a gap-up day without capturing the move. This is a structural drag that compounds over quarters.

Russell 2000 concentration and liquidity. Both funds carry full small-cap index risk: earnings volatility, sector concentration, and lower trading liquidity in underlying names. A sustained downturn in small-cap sentiment could pressure both portfolios simultaneously.

Tax complexity and distribution treatment. IWMI's advantage hinges on Section 1256 treatment; if the tax code changes, that benefit evaporates. RDTE's weekly payouts invite higher short-term income taxation, and ongoing NAV erosion may trigger embedded capital gains at unfavorable rates.

Bottom line

If you want a shot at small-cap upside alongside consistent monthly income and tax-aware structuring, IWMI's covered-call approach offers that combination. If your sole priority is maximizing weekly cash flow and you're indifferent to capital appreciation, RDTE's 0DTE strategy delivers a higher yield—but at the cost of near-zero upside participation and faster NAV decay risk. 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.

Learn the method

The metrics behind this comparison, explained in the Academy.

Still deciding? Compare them against your own portfolio

See how each ETF fits alongside your real holdings — forecast future income, analyze overlap, and gauge risk. Start a free 7-day Dividend Vision trial and make the call with your full portfolio in view.

Start Free Open in Comparator Browse Screener