At a glance
IWMI charges 0.68% a year, below the 0.86% average of the 7 funds most like it (the cheapest of 8). It has $1.02B in assets, the 7th largest of that group; it paid 14.79% of its price in distributions over the past 12 months, monthly. Over the past year it returned +14.3% with distributions reinvested (S&P 500: +11.5%), the best of those 8 funds.
The short version
The NEOS Russell 2000 High Income ETF (IWMI) is an actively managed fund that owns small US companies, mainly through the Vanguard Russell 2000 ETF, and sells call options on the Russell 2000 index to earn monthly income. Its trailing 12-month yield was 14.79% as of October 27, 2026. The trade-off is that the options cap its gains in strong rallies, while it still takes most of the index's losses. It charges 0.68% a year.
Price history
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IWMI +14.3% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| IWMI official prospectus, to Dec 31, 2025 | — | +15.23% | — | — | — | +14.31% |
| IWMI price data to Oct 27, 2026 | +13.3% | +14.3% | — | — | — | +15.1% |
- Over the year to Oct 27, 2026, IWMI returned +14.3%, 1st of 8 among similar funds.
- Its worst full calendar year was 2025 (+15.0%); its best was 2025 (+15.0%).
- The deepest fall in its price history was 23.9% (Nov 29, 2024 to Apr 8, 2025), recovered by Sep 4, 2025.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +13.3% | — |
| 2025 | +15.0% | +15.23% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Before this security existed |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Before this security existed |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $6.0700 | |
| 2025 | $6.8400 |
What's inside
As of Jun 30, 2026, the fund held 1 securities; the ten largest made up 100.38% of assets.
| Fund held | Weight | |
|---|---|---|
| Vanguard Russell 2000 ETF | 100.38% |
By country
United States 100.38%By asset type
Stocks 100.38%What changed recently
- Over the three months to Jun 30, 2026, investors added a net $252.8M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +8.88%, +3.80%, +3.63%.
How it works
IWMI is not an index fund, but it generally copies the Russell 2000 Index. That index holds about 2,000 of the smallest companies in the Russell 3000, weights them by market value, and is fully rebuilt once a year. The fund can buy ETFs that track the index, the stocks themselves, or both. At least 80% of its assets must be tied to Russell 2000 stocks. As of June 30, 2026, about 100.4% of its assets sat in a single fund, the Vanguard Russell 2000 ETF (VTWO).
On top of that, the fund sells call options on the Russell 2000 (ticker RUT). A call option is a contract that pays the buyer if the index rises above a set level, called the strike price, before a set date. The fund collects a fee, called a premium, up front. If the index rises past the strike, the fund loses money on the option, which caps its gains. It still takes the full force of declines, softened only by the premium. As of June 30, 2026, it had sold two calls expiring July 17, 2026, with strikes of 2,990 and 3,050. The manager may close options early. It may also buy higher-strike calls to keep some upside while still collecting more premium than it pays.
The RUT options qualify as Section 1256 contracts. Gains and losses on them are taxed as 60% long-term and 40% short-term, however long they were held. The fund may also sell losing positions to offset taxable gains.
What it really costs
- IWMI charges 0.68% a year, versus an average of 0.86% for the similar funds below (1st of 8, cheapest first).
- The fee includes a 0.08% waiver from the adviser, which may end.
- Using the prospectus's standard example, $10,000 invested would cost about $69 in the first year and $935 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| IWMI | $69 | $235 | $415 | $935 |
Structure and tax notes
- Generates much of its income from selling options (directly or through notes). That income is usually taxed as ordinary income rather than as qualified dividends, and the strategy gives up some upside in strong markets.
- Invests in other funds rather than directly in stocks or bonds, so its holdings are those funds.
In a retirement portfolio
The fund is built to pay high monthly income from option premiums and dividends, but its small-cap holdings mean the share price can swing as sharply as stocks.
IWMI launched in June 2024, so it did not exist during the 2008 financial crisis, the 2020 COVID crash or the 2022 bear market. Its only full calendar year, 2025, returned 15.23%. Even so, its deepest drop came within that span: 23.9% from November 29, 2024 to April 8, 2025. It recovered by September 4, 2025, about five months after the low. A retiree who had to sell shares near that low would have locked in a real loss, even while the monthly payments kept coming.
The main attraction is income. The trailing yield was 14.79% as of October 27, 2026, paid monthly. The fund costs 0.68% a year. In the SEC's standard $10,000 example, that comes to $69 after one year and $935 over 10 years. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Retirees seeking monthly income: the yield over the past year was 14.79% as of October 27, 2026, funded by option premiums plus dividends.
- Investors willing to trade small-cap upside for income: it holds Vanguard Russell 2000 ETF (VTWO) and sells Russell 2000 index call options against it.
- Cost-aware taxable investors: 0.68% expense ratio ($69 in year one on $10,000, per the SEC example) and option gains taxed 60% long-term, 40% short-term.
Look elsewhere if
- Growth-focused investors: written calls cap gains in strong small-cap rallies, so it can lag a plain Russell 2000 fund like VTWO when prices surge.
- Anyone needing downside protection: it dropped 23.9% peak-to-trough between November 2024 and April 2025; option premiums only partly cushion losses.
- Investors wanting a long history: launched June 2024, it has about 2.3 years of results and no record through the 2020 or 2022 sell-offs.
Close alternatives
Matched by other buffer (defined-outcome) funds, largest first.
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| IWMI this fund | 0.68% | $1.02B | +14.3% | — |
| BUFR FT Vest Laddered Buffer ETF | 0.95% | $10.49B | +11.6% | +16.8% |
| BUFD FT Vest Laddered Deep Buffer ETF | 0.95% | $2.04B | +9.5% | +13.9% |
| PJAN Innovator U.S. Equity Power Buffer ETF - Ja… | 0.79% | $1.44B | +10.5% | +14.8% |
| PDEC Innovator U.S. Equity Power Buffer ETF - De… | 0.79% | $984.1M | +11.6% | +14.9% |
| FDEC FT Vest US Equity Buffer ETF - December | 0.85% | $1.31B | +12.9% | +18.5% |
| FJAN FT Vest US Equity Buffer ETF - January | 0.85% | $1.47B | +12.3% | +17.4% |
| FFEB FT Vest U.S. Equity Buffer Fund - February | 0.85% | $1.42B | +12.9% | +18.6% |
Questions investors ask
Does IWMI pay monthly dividends?
Yes. IWMI pays out monthly. Over the 12 months to October 27, 2026, it paid $7.24 per share, a trailing yield of 14.79%. The money comes from premiums earned by selling Russell 2000 call options, plus dividends from the stocks it holds through the Vanguard Russell 2000 ETF. Payments can change from month to month. A high payout also doesn't guarantee a high total return, because the fund gives up some gains in strong rallies.
What's the difference between IWMI and VTWO?
IWMI owns VTWO and adds options on top. As of June 30, 2026, about 100.4% of IWMI's assets sat in the Vanguard Russell 2000 ETF, and it had sold call options on the Russell 2000 index. VTWO simply tracks the index. IWMI turns part of the index's potential upside into monthly income, so it may lag VTWO in sharp rallies. IWMI charges 0.68% a year, and VTWO, the fund it holds, has its own expenses.
Is IWMI a buffer ETF?
No. IWMI doesn't try to limit losses over a set period the way buffer ETFs do. It takes most Russell 2000 declines, softened only by the option premiums it collects. Buffer funds such as the FT Vest Laddered Buffer ETF (BUFR, 0.95%) and the Innovator U.S. Equity Power Buffer ETF - January (PJAN, 0.79%) work differently. IWMI's 0.68% expense ratio is below the 0.86% average for that group, but the strategies aren't interchangeable.
Is IWMI good for retirement income?
That depends on how much risk an investor can accept. IWMI's yield was 14.79% as of October 27, 2026, paid monthly. It returned 15.23% in 2025, its only full calendar year. But it holds small-cap stocks, and it fell 23.9% between November 29, 2024 and April 8, 2025, before recovering by September 4, 2025. It launched in June 2024, so it hasn't been through a long bear market. It may suit retirees who use it as one part of a broader income mix.
How is IWMI taxed?
IWMI aims to be tax-efficient. Its Russell 2000 index options count as Section 1256 contracts, so gains and losses on them are treated as 60% long-term and 40% short-term, however long they were held. Contracts still open at year end are valued as if sold on the last business day of the year. The fund may also sell losing positions to offset gains. How each year's payouts are taxed can vary, and the benefit matters mostly in taxable accounts rather than IRAs.