IWMI vs. VTWO

Last updated Jun 5, 2026

IWMI (NEOS Russell 2000 High Income ETF) and VTWO (Vanguard Russell 2000 ETF) are both exchange-traded funds - IWMI is a Derivative Income fund actively managed by Neos, while VTWO is a Small Cap Blend Equities fund tracking the Russell 2000 Index. IWMI is actively managed, while VTWO is passively managed. Over the past year, IWMI returned 35.91% vs 41.90% for VTWO. With a 0.98 correlation, they move nearly in lockstep. IWMI charges 0.68%/yr vs 0.06%/yr for VTWO.

Performance

IWMI vs. VTWO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in NEOS Russell 2000 High Income ETF (IWMI) and Vanguard Russell 2000 ETF (VTWO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, IWMI achieves a 14.60% return, which is significantly lower than VTWO's 18.87% return.

IWMI

• 1D: 1.10%
• 1M: 3.08%
• YTD: 14.60%
• 6M: 13.67%
• 1Y: 35.91%
• 3Y*: —
• 5Y*: —
• 10Y*: —

VTWO

• 1D: 1.53%
• 1M: 3.33%
• YTD: 18.87%
• 6M: 16.64%
• 1Y: 41.90%
• 3Y*: 19.24%
• 5Y*: 6.60%
• 10Y*: 11.12%

*Multi-year figures are annualized to reflect compound growth (CAGR)

IWMI vs. VTWO - Yearly Performance Comparison

	2026 (YTD)	2025	2024
IWMI NEOS Russell 2000 High Income ETF	14.60%	14.97%	6.61%
VTWO Vanguard Russell 2000 ETF	18.87%	12.90%	11.00%

Correlation

The correlation between IWMI and VTWO is 0.99 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.99
Correlation (All Time) Calculated using the full available price history since Jun 26, 2024	0.98

The correlation between IWMI and VTWO has been stable across timeframes, ranging from 0.98 to 0.99 - a consistent structural relationship.

IWMI vs. VTWO - Sectors Allocation Comparison

Sectors	IWMI	VTWO
Healthcare	17.9%	16.5%
Industrials	16.6%	17.7%
Financial Services	16.0%	15.7%
Technology	15.1%	17.0%
Consumer Cyclical	8.6%	8.4%
Energy	6.5%	6.1%
Real Estate	6.3%	6.1%
Basic Materials	5.0%	4.8%
Utilities	3.1%	2.9%
Consumer Defensive	2.6%	2.4%
Communication Services	2.4%	2.4%

Return for Risk

IWMI vs. VTWO — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

IWMI

IWMI Risk / Return Rank: 78
IWMI Sharpe Ratio Rank: 76
IWMI Sortino Ratio Rank: 76
IWMI Omega Ratio Rank: 71
IWMI Calmar Ratio Rank: 82
IWMI Martin Ratio Rank: 86

VTWO

VTWO Risk / Return Rank: 69
VTWO Sharpe Ratio Rank: 68
VTWO Sortino Ratio Rank: 67
VTWO Omega Ratio Rank: 60
VTWO Calmar Ratio Rank: 77
VTWO Martin Ratio Rank: 74

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

IWMI vs. VTWO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for NEOS Russell 2000 High Income ETF (IWMI) and Vanguard Russell 2000 ETF (VTWO). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	IWMI	VTWO	Difference
Sharpe ratio: Return per unit of total volatility	2.43	2.20	+0.23
Sortino ratio: Return per unit of downside risk	3.37	3.03	+0.34
Omega ratio: Gain probability vs. loss probability	1.42	1.36	+0.06
Calmar ratio: Return relative to maximum drawdown	4.29	3.83	+0.46
Martin ratio: Return relative to average drawdown	17.85	13.62	+4.23
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

IWMI vs. VTWO - Sharpe Ratio Comparison

The current IWMI Sharpe Ratio is 2.43, which is comparable to the VTWO Sharpe Ratio of 2.20. The chart below compares the historical Sharpe Ratios of IWMI and VTWO, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	IWMI	VTWO	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.43	2.20	+0.23
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.29	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.48	—
Sharpe Ratio (All Time) Calculated using the full available price history	1.08	0.53	+0.55

Drawdowns

IWMI vs. VTWO - Drawdown Comparison

The maximum IWMI drawdown since its inception was -23.88%, smaller than the maximum VTWO drawdown of -41.19%. Use the drawdown chart below to compare losses from any high point for IWMI and VTWO.

Drawdown Indicators

	IWMI	VTWO	Difference
Max Drawdown Largest peak-to-trough decline	-23.88%	-41.19%	+17.31%
Max Drawdown (1Y) Largest decline over 1 year	-8.40%	-10.99%	+2.59%
Max Drawdown (3Y) Largest decline over 3 years	—	-27.57%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-31.88%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-41.19%	—
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-4.11%	-8.39%	+4.28%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.02%	3.08%	-1.06%

Volatility

IWMI vs. VTWO - Volatility Comparison

The current volatility for NEOS Russell 2000 High Income ETF (IWMI) is 4.28%, while Vanguard Russell 2000 ETF (VTWO) has a volatility of 5.69%. This indicates that IWMI experiences smaller price fluctuations and is considered to be less risky than VTWO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IWMI	VTWO	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.28%	5.69%	-1.41%
Volatility (6M) Calculated over the trailing 6-month period	10.78%	13.57%	-2.79%
Volatility (1Y) Calculated over the trailing 1-year period	14.85%	19.12%	-4.27%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.89%	22.49%	-4.60%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.89%	23.08%	-5.19%

IWMI vs. VTWO - Expense Ratio Comparison

IWMI has a 0.68% expense ratio, which is higher than VTWO's 0.06% expense ratio.

Dividends

IWMI vs. VTWO - Dividend Comparison

IWMI's dividend yield for the trailing twelve months is around 13.38%, more than VTWO's 1.07% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IWMI NEOS Russell 2000 High Income ETF	13.38%	14.05%	8.78%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
VTWO Vanguard Russell 2000 ETF	1.07%	1.25%	1.21%	1.45%	1.48%	1.13%	0.92%	1.36%	1.41%	1.18%	1.27%	1.23%

Frequently Asked Questions

Can I hold both IWMI and VTWO in my portfolio?

With a correlation of 0.99, IWMI and VTWO move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, IWMI or VTWO?

VTWO has higher volatility (5.69%) compared to IWMI (4.28%). In terms of maximum drawdown, IWMI dropped -23.88% vs VTWO's -41.19%.

Which ETF is better, IWMI or VTWO?

On 1-year performance, VTWO leads with 41.90% vs 35.91% for IWMI. On fees, VTWO is cheaper at 0.06% per year. On volatility, IWMI has been the lower-risk option at 4.28%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IWMI or VTWO?

Over the 1-year period, VTWO has performed better with a 41.90% return vs 35.91%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IWMI or VTWO?

VTWO is cheaper with a 0.06% expense ratio, compared with 0.68% for IWMI.

Which ETF pays a higher dividend yield, IWMI or VTWO?

IWMI has the higher dividend yield at 13.38%, compared with 1.07% for VTWO.

What is the main difference between IWMI and VTWO?

IWMI is categorized as Derivative Income, while VTWO is Small Cap Blend Equities. They also come from different issuers: Neos and Vanguard. Their fees differ too: 0.68% for IWMI and 0.06% for VTWO.

Which has better risk-adjusted returns?

IWMI currently has the higher Sharpe Ratio (2.43 vs 2.20), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.