VTWO vs. IWMI

Last updated Jul 15, 2026

VTWO (Vanguard Russell 2000 ETF) and IWMI (NEOS Russell 2000 High Income ETF) are both exchange-traded funds - VTWO is a Small Cap Blend Equities fund tracking the Russell 2000 Index, while IWMI is a Derivative Income fund actively managed by Neos. VTWO is passively managed, while IWMI is actively managed. Over the past year, VTWO returned 33.66% vs 30.98% for IWMI. With a 0.98 correlation, they move nearly in lockstep. VTWO charges 0.06%/yr vs 0.68%/yr for IWMI.

Performance

VTWO vs. IWMI - Performance Comparison

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

Returns By Period

In the year-to-date period, VTWO achieves a 20.26% return, which is significantly higher than IWMI's 16.75% return.

VTWO

• 1D: 0.40%
• 1M: 0.83%
• 6M: 13.28%
• YTD: 20.26%
• 1Y: 33.66%
• 3Y*: 17.00%
• 5Y*: 7.75%
• 10Y*: 10.96%

IWMI

• 1D: 0.42%
• 1M: 1.43%
• 6M: 12.23%
• YTD: 16.75%
• 1Y: 30.98%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

VTWO vs. IWMI - Yearly Performance Comparison

	2026 (YTD)	2025	2024
VTWO Vanguard Russell 2000 ETF	20.26%	12.90%	10.66%
IWMI NEOS Russell 2000 High Income ETF	16.75%	14.97%	6.58%

Correlation

The correlation between VTWO and IWMI 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 25, 2024	0.98

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

VTWO vs. IWMI - Sectors Allocation Comparison

Sectors	VTWO	IWMI
Technology	19.1%	17.0%
Industrials	17.9%	17.7%
Healthcare	16.3%	16.5%
Financial Services	15.5%	15.7%
Consumer Cyclical	7.9%	8.4%
Real Estate	5.9%	6.1%
Energy	5.3%	6.1%
Basic Materials	4.7%	4.8%
Utilities	2.8%	2.9%
Communication Services	2.5%	2.4%
Consumer Defensive	2.2%	2.4%

Return for Risk

VTWO vs. IWMI — Risk / Return Rank

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

VTWO

VTWO Risk / Return Rank: 69
VTWO Sharpe Ratio Rank: 67
VTWO Sortino Ratio Rank: 68
VTWO Omega Ratio Rank: 59
VTWO Calmar Ratio Rank: 75
VTWO Martin Ratio Rank: 74

IWMI

IWMI Risk / Return Rank: 82
IWMI Sharpe Ratio Rank: 81
IWMI Sortino Ratio Rank: 81
IWMI Omega Ratio Rank: 76
IWMI Calmar Ratio Rank: 85
IWMI Martin Ratio Rank: 89

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.

VTWO vs. IWMI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Russell 2000 ETF (VTWO) 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.

	VTWO	IWMI	Difference
Sharpe ratio: Return per unit of total volatility	1.74	2.03	-0.29
Sortino ratio: Return per unit of downside risk	2.47	2.86	-0.39
Omega ratio: Gain probability vs. loss probability	1.29	1.35	-0.06
Calmar ratio: Return relative to maximum drawdown	3.08	3.70	-0.63
Martin ratio: Return relative to average drawdown	10.90	15.25	-4.35

VTWO vs. IWMI - Sharpe Ratio Comparison

The current VTWO Sharpe Ratio is 1.74, which is comparable to the IWMI Sharpe Ratio of 2.03. The chart below compares the historical Sharpe Ratios of VTWO 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

VTWO vs. IWMI - Drawdown Comparison

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

Drawdown Indicators

	VTWO	IWMI	Difference
Max Drawdown Largest peak-to-trough decline	-41.19%	-23.88%	-17.31%
Max Drawdown (1Y) Largest decline over 1 year	-10.99%	-8.40%	-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	-1.94%	-1.18%	-0.76%
Average Drawdown Average peak-to-trough decline	-8.34%	-3.94%	-4.40%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.10%	2.04%	+1.06%

Volatility

VTWO vs. IWMI - Volatility Comparison

Vanguard Russell 2000 ETF (VTWO) has a higher volatility of 3.91% compared to NEOS Russell 2000 High Income ETF (IWMI) at 3.28%. This indicates that VTWO's price experiences larger fluctuations and is considered to be riskier than IWMI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VTWO	IWMI	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.91%	3.28%	+0.63%
Volatility (6M) Calculated over the trailing 6-month period	14.16%	11.42%	+2.74%
Volatility (1Y) Calculated over the trailing 1-year period	19.46%	15.35%	+4.11%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	22.51%	17.77%	+4.74%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	23.05%	17.77%	+5.28%

VTWO vs. IWMI - Expense Ratio Comparison

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

Dividends

VTWO vs. IWMI - Dividend Comparison

VTWO's dividend yield for the trailing twelve months is around 1.10%, less than IWMI's 13.42% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IWMI NEOS Russell 2000 High Income ETF	13.42%	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	1.10%	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 VTWO and IWMI in my portfolio?

With a correlation of 0.99, VTWO and IWMI 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, VTWO or IWMI?

VTWO has higher volatility (3.91%) compared to IWMI (3.28%). In terms of maximum drawdown, VTWO dropped -41.19% vs IWMI's -23.88%.

Which ETF is better, VTWO or IWMI?

On 1-year performance, VTWO leads with 33.66% vs 30.98% for IWMI. On fees, VTWO is cheaper at 0.06% per year. On volatility, IWMI has been the lower-risk option at 3.28%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VTWO or IWMI?

Over the 1-year period, VTWO has performed better with a 33.66% return vs 30.98%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VTWO or IWMI?

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

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

IWMI has the higher dividend yield at 13.42%, compared with 1.10% for VTWO.

What is the main difference between VTWO and IWMI?

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

Which has better risk-adjusted returns?

IWMI currently has the higher Sharpe Ratio (2.03 vs 1.74), 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.