SCHD vs. IWMI

Last updated Jun 21, 2026

SCHD (Schwab U.S. Dividend Equity ETF) and IWMI (NEOS Russell 2000 High Income ETF) are both exchange-traded funds - SCHD is a Dividend fund tracking the Dow Jones U.S. Dividend 100 Index, while IWMI is a Derivative Income fund actively managed by Neos. SCHD is passively managed, while IWMI is actively managed. Over the past year, SCHD returned 23.94% vs 37.32% for IWMI. A 0.60 correlation means they provide meaningful diversification when combined. SCHD charges 0.06%/yr vs 0.68%/yr for IWMI.

Performance

SCHD vs. IWMI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Schwab U.S. Dividend Equity ETF (SCHD) and NEOS Russell 2000 High Income ETF (IWMI). 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 SCHD having a 17.13% return and IWMI slightly lower at 16.41%.

SCHD

• 1D: -0.22%
• 1M: -2.95%
• YTD: 17.13%
• 6M: 17.00%
• 1Y: 23.94%
• 3Y*: 13.38%
• 5Y*: 9.07%
• 10Y*: 12.48%

IWMI

• 1D: 1.72%
• 1M: 3.75%
• YTD: 16.41%
• 6M: 14.83%
• 1Y: 37.32%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

SCHD vs. IWMI - Yearly Performance Comparison

	2026 (YTD)	2025	2024
SCHD Schwab U.S. Dividend Equity ETF	17.13%	4.34%	6.49%
IWMI NEOS Russell 2000 High Income ETF	16.41%	14.97%	6.58%

Correlation

The correlation between SCHD and IWMI is 0.53, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.53
Correlation (All Time) Calculated using the full available price history since Jun 25, 2024	0.60

The correlation between SCHD and IWMI has been stable across timeframes, ranging from 0.53 to 0.60 - a consistent structural relationship.

SCHD vs. IWMI - Sectors Allocation Comparison

Sectors	SCHD	IWMI
Technology	19.4%	17.0%
Consumer Defensive	18.5%	2.4%
Healthcare	18.4%	16.5%
Energy	14.6%	6.1%
Financial Services	9.1%	15.7%
Industrials	7.4%	17.7%
Consumer Cyclical	6.7%	8.4%
Communication Services	6.0%	2.4%
Basic Materials	1.2%	4.8%
Utilities	0.0%	2.9%
Real Estate	-	6.1%

Return for Risk

SCHD vs. IWMI — Risk / Return Rank

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

SCHD

SCHD Risk / Return Rank: 77
SCHD Sharpe Ratio Rank: 72
SCHD Sortino Ratio Rank: 81
SCHD Omega Ratio Rank: 70
SCHD Calmar Ratio Rank: 90
SCHD Martin Ratio Rank: 72

IWMI

IWMI Risk / Return Rank: 82
IWMI Sharpe Ratio Rank: 80
IWMI Sortino Ratio Rank: 80
IWMI Omega Ratio Rank: 76
IWMI Calmar Ratio Rank: 85
IWMI Martin Ratio Rank: 88

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.

SCHD vs. IWMI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Schwab U.S. Dividend Equity ETF (SCHD) and NEOS Russell 2000 High Income ETF (IWMI). 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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	SCHD	IWMI	Difference
Sharpe ratio: Return per unit of total volatility	2.20	2.42	-0.22
Sortino ratio: Return per unit of downside risk	3.36	3.33	+0.03
Omega ratio: Gain probability vs. loss probability	1.39	1.42	-0.03
Calmar ratio: Return relative to maximum drawdown	5.27	4.43	+0.85
Martin ratio: Return relative to average drawdown	12.86	18.24	-5.39

SCHD vs. IWMI - Sharpe Ratio Comparison

The current SCHD Sharpe Ratio is 2.20, which is comparable to the IWMI Sharpe Ratio of 2.42. The chart below compares the historical Sharpe Ratios of SCHD and IWMI, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

SCHD vs. IWMI - Drawdown Comparison

The maximum SCHD drawdown since its inception was -33.37%, which is greater than IWMI's maximum drawdown of -23.88%. Use the drawdown chart below to compare losses from any high point for SCHD and IWMI.

Drawdown Indicators

	SCHD	IWMI	Difference
Max Drawdown Largest peak-to-trough decline	-33.37%	-23.88%	-9.49%
Max Drawdown (1Y) Largest decline over 1 year	-4.61%	-8.40%	+3.79%
Max Drawdown (3Y) Largest decline over 3 years	-16.13%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-16.85%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-33.37%	—	—
Current Drawdown Current decline from peak	-2.95%	0.00%	-2.95%
Average Drawdown Average peak-to-trough decline	-3.31%	-4.04%	+0.73%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.89%	2.03%	-0.14%

Volatility

SCHD vs. IWMI - Volatility Comparison

The current volatility for Schwab U.S. Dividend Equity ETF (SCHD) is 3.58%, while NEOS Russell 2000 High Income ETF (IWMI) has a volatility of 5.41%. This indicates that SCHD experiences smaller price fluctuations and is considered to be less risky than IWMI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SCHD	IWMI	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.58%	5.41%	-1.83%
Volatility (6M) Calculated over the trailing 6-month period	7.75%	11.46%	-3.71%
Volatility (1Y) Calculated over the trailing 1-year period	11.07%	15.38%	-4.31%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.38%	17.97%	-3.59%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.73%	17.97%	-1.24%

SCHD vs. IWMI - Expense Ratio Comparison

SCHD has a 0.06% expense ratio, which is lower than IWMI's 0.68% expense ratio.

Dividends

SCHD vs. IWMI - Dividend Comparison

SCHD's dividend yield for the trailing twelve months is around 3.31%, less than IWMI's 14.51% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IWMI NEOS Russell 2000 High Income ETF	14.51%	14.05%	8.78%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
SCHD Schwab U.S. Dividend Equity ETF	3.31%	3.82%	3.64%	3.49%	3.39%	2.78%	3.16%	2.98%	3.06%	2.63%	2.89%	2.97%

Frequently Asked Questions

Can I hold both SCHD and IWMI in my portfolio?

SCHD and IWMI have a correlation of 0.53, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SCHD or IWMI?

IWMI has higher volatility (5.41%) compared to SCHD (3.58%). In terms of maximum drawdown, SCHD dropped -33.37% vs IWMI's -23.88%.

Which ETF is better, SCHD or IWMI?

On 1-year performance, IWMI leads with 37.32% vs 23.94% for SCHD. On fees, SCHD is cheaper at 0.06% per year. On volatility, SCHD has been the lower-risk option at 3.58%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SCHD or IWMI?

Over the 1-year period, IWMI has performed better with a 37.32% return vs 23.94%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SCHD or IWMI?

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

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

IWMI has the higher dividend yield at 14.51%, compared with 3.31% for SCHD.

What is the main difference between SCHD and IWMI?

SCHD is categorized as Dividend, while IWMI is Derivative Income. They also come from different issuers: Charles Schwab and Neos. Their fees differ too: 0.06% for SCHD and 0.68% for IWMI.

Which has better risk-adjusted returns?

IWMI currently has the higher Sharpe Ratio (2.42 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.