RDTE vs. IWMY

Last updated Jun 3, 2026

RDTE (Roundhill Small Cap 0DTE Covered Call Strategy ETF) and IWMY (Defiance R2000 Enhanced Options & 0DTE Income ETF) are both exchange-traded funds - RDTE is a Derivative Income fund actively managed by Roundhill, while IWMY is a Options Trading fund tracking the Russell 2000 Index. RDTE is actively managed, while IWMY is passively managed. Over the past year, RDTE returned 31.27% vs 25.77% for IWMY. Their correlation of 0.91 suggests significant overlap in exposure. RDTE charges 0.95%/yr vs 0.99%/yr for IWMY.

Performance

RDTE vs. IWMY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Roundhill Small Cap 0DTE Covered Call Strategy ETF (RDTE) and Defiance R2000 Enhanced Options & 0DTE Income ETF (IWMY). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both stocks are quite close, with RDTE having a 13.94% return and IWMY slightly lower at 13.80%.

RDTE

• 1D: 1.11%
• 1M: 2.89%
• YTD: 13.94%
• 6M: 14.87%
• 1Y: 31.27%
• 3Y*: —
• 5Y*: —
• 10Y*: —

IWMY

• 1D: 0.96%
• 1M: 3.92%
• YTD: 13.80%
• 6M: 13.18%
• 1Y: 25.77%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

RDTE vs. IWMY - Yearly Performance Comparison

	2026 (YTD)	2025	2024
RDTE Roundhill Small Cap 0DTE Covered Call Strategy ETF	13.94%	9.46%	8.81%
IWMY Defiance R2000 Enhanced Options & 0DTE Income ETF	13.80%	10.18%	2.33%

Correlation

The correlation between RDTE and IWMY is 0.90, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.90
Correlation (All Time) Calculated using the full available price history since Sep 11, 2024	0.91

The correlation between RDTE and IWMY has been stable across timeframes, ranging from 0.90 to 0.91 - a consistent structural relationship.

Return for Risk

RDTE vs. IWMY — Risk / Return Rank

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

RDTE

RDTE Risk / Return Rank: 58
RDTE Sharpe Ratio Rank: 54
RDTE Sortino Ratio Rank: 52
RDTE Omega Ratio Rank: 50
RDTE Calmar Ratio Rank: 69
RDTE Martin Ratio Rank: 66

IWMY

IWMY Risk / Return Rank: 45
IWMY Sharpe Ratio Rank: 47
IWMY Sortino Ratio Rank: 44
IWMY Omega Ratio Rank: 44
IWMY Calmar Ratio Rank: 45
IWMY Martin Ratio Rank: 45

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.

RDTE vs. IWMY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Roundhill Small Cap 0DTE Covered Call Strategy ETF (RDTE) and Defiance R2000 Enhanced Options & 0DTE Income ETF (IWMY). 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.

	RDTE	IWMY	Difference
Sharpe ratio Return per unit of total volatility	1.88	1.66	+0.23
Sortino ratio Return per unit of downside risk	2.57	2.22	+0.36
Omega ratio Gain probability vs. loss probability	1.32	1.28	+0.03
Calmar ratio Return relative to maximum drawdown	3.49	2.27	+1.22
Martin ratio Return relative to average drawdown	12.17	7.47	+4.70
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

RDTE vs. IWMY - Sharpe Ratio Comparison

The current RDTE Sharpe Ratio is 1.88, which is comparable to the IWMY Sharpe Ratio of 1.66. The chart below compares the historical Sharpe Ratios of RDTE and IWMY, 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

	RDTE	IWMY	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.88	1.66	+0.23
Sharpe Ratio (All Time) Calculated using the full available price history	1.02	0.99	+0.02

Drawdowns

RDTE vs. IWMY - Drawdown Comparison

The maximum RDTE drawdown since its inception was -24.32%, which is greater than IWMY's maximum drawdown of -18.72%. Use the drawdown chart below to compare losses from any high point for RDTE and IWMY.

Drawdown Indicators

	RDTE	IWMY	Difference
Max Drawdown Largest peak-to-trough decline	-24.32%	-18.72%	-5.60%
Max Drawdown (1Y) Largest decline over 1 year	-9.17%	-11.57%	+2.40%
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-4.68%	-2.98%	-1.70%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.63%	3.51%	-0.88%

Volatility

RDTE vs. IWMY - Volatility Comparison

The current volatility for Roundhill Small Cap 0DTE Covered Call Strategy ETF (RDTE) is 4.88%, while Defiance R2000 Enhanced Options & 0DTE Income ETF (IWMY) has a volatility of 5.24%. This indicates that RDTE experiences smaller price fluctuations and is considered to be less risky than IWMY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	RDTE	IWMY	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.88%	5.24%	-0.36%
Volatility (6M) Calculated over the trailing 6-month period	12.34%	12.59%	-0.25%
Volatility (1Y) Calculated over the trailing 1-year period	16.68%	15.63%	+1.05%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.17%	15.74%	+3.43%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.17%	15.74%	+3.43%

RDTE vs. IWMY - Expense Ratio Comparison

RDTE has a 0.95% expense ratio, which is lower than IWMY's 0.99% expense ratio.

Dividends

RDTE vs. IWMY - Dividend Comparison

RDTE's dividend yield for the trailing twelve months is around 44.67%, less than IWMY's 45.33% yield.

Position	TTM	2025	2024	2023
IWMY Defiance R2000 Enhanced Options & 0DTE Income ETF	45.33%	63.33%	107.92%	11.34%
RDTE Roundhill Small Cap 0DTE Covered Call Strategy ETF	44.67%	50.16%	10.70%	0.00%

Frequently Asked Questions

Can I hold both RDTE and IWMY in my portfolio?

RDTE and IWMY have a correlation of 0.90, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, RDTE or IWMY?

IWMY has higher volatility (5.24%) compared to RDTE (4.88%). In terms of maximum drawdown, RDTE dropped -24.32% vs IWMY's -18.72%.

Which ETF is better, RDTE or IWMY?

On 1-year performance, RDTE leads with 31.27% vs 25.77% for IWMY. On fees, RDTE is cheaper at 0.95% per year. On volatility, RDTE has been the lower-risk option at 4.88%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, RDTE or IWMY?

Over the 1-year period, RDTE has performed better with a 31.27% return vs 25.77%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, RDTE or IWMY?

RDTE is cheaper with a 0.95% expense ratio, compared with 0.99% for IWMY.

Which ETF pays a higher dividend yield, RDTE or IWMY?

IWMY has the higher dividend yield at 45.33%, compared with 44.67% for RDTE.

What is the main difference between RDTE and IWMY?

RDTE is categorized as Derivative Income, while IWMY is Options Trading. They also come from different issuers: Roundhill and Defiance. Their fees differ too: 0.95% for RDTE and 0.99% for IWMY.

Which has better risk-adjusted returns?

RDTE currently has the higher Sharpe Ratio (1.88 vs 1.66), 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.