VTWO vs. RDTE

Last updated Jun 5, 2026

VTWO (Vanguard Russell 2000 ETF) and RDTE (Roundhill Small Cap 0DTE Covered Call Strategy ETF) are both exchange-traded funds - VTWO is a Small Cap Blend Equities fund tracking the Russell 2000 Index, while RDTE is a Derivative Income fund actively managed by Roundhill. VTWO is passively managed, while RDTE is actively managed. Over the past year, VTWO returned 41.90% vs 29.84% for RDTE. With a 0.95 correlation, they move nearly in lockstep. VTWO charges 0.06%/yr vs 0.95%/yr for RDTE.

Performance

VTWO vs. RDTE - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Russell 2000 ETF (VTWO) and Roundhill Small Cap 0DTE Covered Call Strategy ETF (RDTE). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VTWO achieves a 18.87% return, which is significantly higher than RDTE's 13.89% return.

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%

RDTE

• 1D: 1.07%
• 1M: 2.01%
• YTD: 13.89%
• 6M: 12.63%
• 1Y: 29.84%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

VTWO vs. RDTE - Yearly Performance Comparison

	2026 (YTD)	2025	2024
VTWO Vanguard Russell 2000 ETF	18.87%	12.90%	6.76%
RDTE Roundhill Small Cap 0DTE Covered Call Strategy ETF	13.89%	9.46%	8.81%

Correlation

The correlation between VTWO and RDTE is 0.94, 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	0.94
Correlation (All Time) Calculated using the full available price history since Sep 11, 2024	0.95

The correlation between VTWO and RDTE has been stable across timeframes, ranging from 0.94 to 0.95 - a consistent structural relationship.

VTWO vs. RDTE - Sectors Allocation Comparison

Sectors	VTWO	RDTE
Industrials	17.7%	-
Technology	17.0%	-
Healthcare	16.5%	-
Financial Services	15.7%	6.4%
Consumer Cyclical	8.4%	-
Real Estate	6.1%	-
Energy	6.1%	-
Basic Materials	4.8%	-
Utilities	2.9%	-
Communication Services	2.4%	-
Consumer Defensive	2.4%	-

Return for Risk

VTWO vs. RDTE — 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: 68
VTWO Sortino Ratio Rank: 67
VTWO Omega Ratio Rank: 60
VTWO Calmar Ratio Rank: 77
VTWO Martin Ratio Rank: 74

RDTE

RDTE Risk / Return Rank: 57
RDTE Sharpe Ratio Rank: 53
RDTE Sortino Ratio Rank: 51
RDTE Omega Ratio Rank: 48
RDTE Calmar Ratio Rank: 67
RDTE Martin Ratio Rank: 64

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. RDTE - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Russell 2000 ETF (VTWO) and Roundhill Small Cap 0DTE Covered Call Strategy ETF (RDTE). 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.

	VTWO	RDTE	Difference
Sharpe ratio: Return per unit of total volatility	2.20	1.79	+0.41
Sortino ratio: Return per unit of downside risk	3.03	2.46	+0.56
Omega ratio: Gain probability vs. loss probability	1.36	1.30	+0.06
Calmar ratio: Return relative to maximum drawdown	3.83	3.27	+0.56
Martin ratio: Return relative to average drawdown	13.62	11.37	+2.25
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VTWO vs. RDTE - Sharpe Ratio Comparison

The current VTWO Sharpe Ratio is 2.20, which is comparable to the RDTE Sharpe Ratio of 1.79. The chart below compares the historical Sharpe Ratios of VTWO and RDTE, 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

	VTWO	RDTE	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.20	1.79	+0.41
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	0.53	1.01	-0.49

Drawdowns

VTWO vs. RDTE - Drawdown Comparison

The maximum VTWO drawdown since its inception was -41.19%, which is greater than RDTE's maximum drawdown of -24.32%. Use the drawdown chart below to compare losses from any high point for VTWO and RDTE.

Drawdown Indicators

	VTWO	RDTE	Difference
Max Drawdown Largest peak-to-trough decline	-41.19%	-24.32%	-16.87%
Max Drawdown (1Y) Largest decline over 1 year	-10.99%	-9.17%	-1.82%
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%	-0.05%	+0.05%
Average Drawdown Average peak-to-trough decline	-8.39%	-4.66%	-3.73%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.08%	2.63%	+0.45%

Volatility

VTWO vs. RDTE - Volatility Comparison

Vanguard Russell 2000 ETF (VTWO) has a higher volatility of 5.69% compared to Roundhill Small Cap 0DTE Covered Call Strategy ETF (RDTE) at 4.98%. This indicates that VTWO's price experiences larger fluctuations and is considered to be riskier than RDTE based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VTWO	RDTE	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.69%	4.98%	+0.71%
Volatility (6M) Calculated over the trailing 6-month period	13.57%	12.37%	+1.20%
Volatility (1Y) Calculated over the trailing 1-year period	19.12%	16.73%	+2.39%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	22.49%	19.17%	+3.32%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	23.08%	19.17%	+3.91%

VTWO vs. RDTE - Expense Ratio Comparison

VTWO has a 0.06% expense ratio, which is lower than RDTE's 0.95% expense ratio.

Dividends

VTWO vs. RDTE - Dividend Comparison

VTWO's dividend yield for the trailing twelve months is around 1.07%, less than RDTE's 46.02% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
RDTE Roundhill Small Cap 0DTE Covered Call Strategy ETF	46.02%	50.16%	10.70%	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 VTWO and RDTE in my portfolio?

With a correlation of 0.94, VTWO and RDTE 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 RDTE?

VTWO has higher volatility (5.69%) compared to RDTE (4.98%). In terms of maximum drawdown, VTWO dropped -41.19% vs RDTE's -24.32%.

Which ETF is better, VTWO or RDTE?

On 1-year performance, VTWO leads with 41.90% vs 29.84% for RDTE. On fees, VTWO is cheaper at 0.06% per year. On volatility, RDTE has been the lower-risk option at 4.98%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VTWO or RDTE?

Over the 1-year period, VTWO has performed better with a 41.90% return vs 29.84%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VTWO or RDTE?

VTWO is cheaper with a 0.06% expense ratio, compared with 0.95% for RDTE.

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

RDTE has the higher dividend yield at 46.02%, compared with 1.07% for VTWO.

What is the main difference between VTWO and RDTE?

VTWO is categorized as Small Cap Blend Equities, while RDTE is Derivative Income. They also come from different issuers: Vanguard and Roundhill. Their fees differ too: 0.06% for VTWO and 0.95% for RDTE.

Which has better risk-adjusted returns?

VTWO currently has the higher Sharpe Ratio (2.20 vs 1.79), 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.