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ETF Comparison

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

A head-to-head comparison of NEOS Russell 2000 High Income ETF and NEOS S&P 500 High Income ETF covering yield, cost, risk, and income potential.

Data updated August 19, 2026

Best for

  • IWMIInvestors who want to maximize current income — roughly 14.39%, generated by selling options premium.
  • SPYIInvestors who are comfortable trading away most upside for a large, steady payout.

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 SPYI over the trailing twelve months, posting a 28.74% total return against 16.82%. Measured from Jun 2024 — when the younger fund began trading — IWMI has compounded at 18.60% a year versus 16.03% for SPYI. SPYI has been the steadier holding, though — annualized volatility of 10.7% against 15.1% 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.
SymbolYTD1YSince Jun 2024Volatility Sharpe Sortino Max drawdown
IWMI16.79%28.74%18.60%15.1%1.382.07-8.4%
SPYI9.34%16.82%16.03%10.7%1.031.46-7.7%

Total return with all distributions reinvested on the ex-dividend date, split-adjusted, as of August 19, 2026. YTD and 1Y are cumulative; longer windows are annualized. “Since Jun 2024” measures every fund from June 25, 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.
MetricIWMISPYI
Full nameNEOS Russell 2000 High Income ETFNEOS S&P 500 High Income ETF
IssuerNEOSNEOS
Last Close$53.15 as of August 19, 2026$54.04 as of August 19, 2026
Distribution yield14.39%12.04%
Distribution Safety Score™ 8490
Expense ratio0.68%0.68%
AUM$1.20B$11.6B
Distribution frequencyMonthlyMonthly
Underlying indexRussell 2000 IndexS&P 500 Index
ObjectiveIWMI 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 harvestingSeeks to generate high monthly income in a tax efficient manner while targeting equity appreciation.
Asset classEquityEquity
Inception date06/24/202408/29/2022
Beta1.05820.7
Last dividend$0.6373$0.5423
Ex-dividend date08/19/202608/19/2026

Bottom lineChoose IWMI if you want to maximize current income — roughly 14.39%, generated by selling options premium. Choose SPYI if you are comfortable trading away most upside for a large, steady payout.

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 SPYI 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

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Income calculator

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

NEOS
ETFs19
Total AUM$32.2B

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 and SPYI.

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Quick verdict

IWMI (NEOS Russell 2000 High Income ETF) and SPYI (NEOS S&P 500 High Income ETF) are both monthly-pay dividend ETFs, but they take different approaches.

IWMI offers the higher yield at 14.39% vs 12.04% for SPYI. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.

They track different benchmarks: IWMI is linked to Russell 2000 Index while SPYI tracks S&P 500 Index, which means their performance drivers differ.

SPYI is the larger fund by assets ($11.6B), which generally means tighter spreads and better liquidity.

Who should choose each?

Choose IWMI

NEOS Russell 2000 High Income ETF

  • Want to maximize current income — IWMI distributes roughly 14.39% from selling options premium, vs 12.04% for SPYI.
  • Are comfortable with an options-income strategy — a large payout in exchange for capped upside.

Choose SPYI

NEOS S&P 500 High Income ETF

  • Are comfortable with an options-income strategy — a large payout in exchange for capped upside.
  • Prefer lower volatility — a beta of 0.7 vs 1.1 for IWMI.

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, IWMI would generate roughly $119.92/month, while SPYI would produce $100.33/month, at current distribution rates. Both pay monthly distributions.

IWMI yield14.39%
SPYI yield12.04%
Monthly diff on $10K$19.58

Cost & efficiency

Over 10 years on $10,000, IWMI would cost approximately $680 in fees vs $680 for SPYI (simplified, not compounded). Both charge the same expense ratio.

IWMI ER0.68%
SPYI ER0.68%

Strategy & risk

IWMI tracks Russell 2000 Index with an options approach, while SPYI tracks S&P 500 Index with an options approach. Beta is 1.0582 for IWMI and 0.7 for SPYI, making SPYI the less volatile of the two by this measure.

IWMI beta1.0582
SPYI beta0.7

Fund details

IWMI is managed by NEOS (launched 06/24/2024) with $1.20B in assets. SPYI is managed by NEOS (launched 08/29/2022) with $11.6B in assets.

IWMI AUM$1.20B
SPYI AUM$11.6B
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Frequently asked questions

What is the current distribution yield for IWMI and SPYI?

IWMI currently distributes 14.39% and SPYI 12.04%, based on fund data updated August 2026. Distribution yield moves with both the payout and the share price, so check the as-of date before relying on either figure.

Is IWMI or SPYI 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 IWMI and SPYI?

IWMI (NEOS Russell 2000 High Income ETF) tracks Russell 2000 Index with an options approach, while SPYI (NEOS S&P 500 High Income ETF) tracks S&P 500 Index with an options approach. They are issued by NEOS and NEOS respectively.

Can I hold both IWMI and SPYI?

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 IWMI or SPYI safer?

By Dividend Vision's Distribution Safety Score — a rules-based 0–100 estimate of how resilient a distribution looks, where higher is safer — SPYI scores 90, IWMI scores 84, so SPYI's payout currently looks the more resilient of the two. SPYI has also shown lower price volatility (beta 0.70 vs 1.06 for IWMI). 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 SPYI?

IWMI and SPYI both charge the same expense ratio of 0.68%, so neither is cheaper on fees — pick based on yield, strategy, or underlying index instead.

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

At current rates, $10,000 in IWMI would generate roughly $119.92 per month ($1,439.00 annually). The same in SPYI would produce about $100.33 per month ($1,204.00 annually).

Which has performed better historically, IWMI or SPYI?

IWMI has outpaced SPYI over the trailing twelve months, posting a 28.74% total return against 16.82%. Measured from Jun 2024 — when the younger fund began trading — IWMI has compounded at 18.60% a year versus 16.03% for SPYI. SPYI has been the steadier holding, though — annualized volatility of 10.7% against 15.1% for IWMI. Figures are total returns: price change plus every distribution reinvested. Past performance does not guarantee future results.

More comparisons to explore

IWMI vs SPYI — at a glance

Generated August 15, 2026.

Figures quoted in this analysis are from its generation date and may lag the live snapshot table above, which always shows the latest data.

Overview

IWMI and SPYI are both monthly-distribution ETFs built around equity index holdings wrapped in call option overlays to generate high income while aiming for tax efficiency. The core difference: IWMI targets small-cap stocks (Russell 2000), while SPYI targets large-cap stocks (S&P 500). Both use section 1256 index options to harvest favorable 60/40 long-term capital gains treatment, but they're betting on different corners of the equity market.

How they differ

IWMI's Russell 2000 exposure is fundamentally more volatile and has higher beta (1.06 vs. 0.70), meaning it swings harder with small-cap moves and amplifies both the upside and downside of its call overlay. SPYI's larger asset base ($11.4B vs. $1.16B) and longer track record (since August 2022 vs. June 2024) give it more institutional scale and a longer history of real-world performance. The most visible trade-off: IWMI yields 13.98% while SPYI yields 11.69%—that 2.3-percentage-point gap reflects the higher income small-cap call strategies can generate, but comes with meaningfully higher equity volatility baked in.

Who each is best for

IWMI: Fits investors comfortable with small-cap volatility who prioritize maximum monthly cash flow and are drawn to the tax-efficiency angle of section 1256 options treatment.

SPYI: Fits income-focused investors who want broad large-cap market exposure and are willing to accept a lower yield in exchange for less equity drawdown risk and a longer operational track record.

Key risks to know

  • NAV erosion at yields above 12%: Both funds distribute more than 12% annually. If small-cap (IWMI) or large-cap (SPYI) underlying returns lag, distributions will increasingly rely on return-of-capital, gradually shrinking NAV and principal.
  • Call-overlay cap risk: By selling calls, both funds cap upside if their underlying indexes rally sharply. IWMI's higher beta amplifies the sting—a strong Russell 2000 rally could leave IWMI trailing a naked RUT position significantly.
  • Small-cap concentration and volatility in IWMI: The Russell 2000 is more sensitive to interest-rate shifts, credit cycles, and economic slowdowns than the S&P 500. IWMI's beta of 1.06 underscores this—it magnifies small-cap turbulence.
  • Options expiration and roll risk: Both funds roll their call positions monthly. If market dislocation or volatility spikes occur around roll dates, execution costs or less favorable strikes could temporarily suppress returns or income.
  • IWMI's short inception date: Launched June 2024, IWMI has less than a full market cycle of data. SPYI's nearly two-year history provides more evidence of how the strategy performs across rate environments and equity drawdowns.

Bottom line

If you're seeking maximum income and can stomach small-cap volatility, IWMI's 13.98% yield and tax-efficient structure appeal; if you'd rather own a steadier large-cap core and accept a lower yield for less equity risk and a longer track record, SPYI's $11.4B fund offers that. Both hinge on the assumption that call-overlay income can sustain these yields without meaningful NAV decay—past performance doesn't 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.

How covered-call funds work How to read a fund's stats The covered-call opportunity cost T-bills vs. money market funds vs. CDs

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