At a glance
IWMW charges 0.39% a year, below the 0.86% average of the 7 funds most like it (the cheapest of 8). It has $57.6M in assets, the 8th largest of that group; it paid 20.11% of its price in distributions over the past 12 months, monthly. Over the past year it returned +9.1% with distributions reinvested (S&P 500: +11.5%), the weakest of those 8 funds.
The short version
iShares Russell 2000 BuyWrite ETF (IWMW) is a covered-call fund from BlackRock. It holds the iShares Russell 2000 ETF, which owns about 1,921 small US companies, and sells one-month call options on the Russell 2000 Index to earn income. It pays monthly, with a trailing yield of 20.11% as of October 27, 2026. In exchange, it gives up gains above the option strike price and still takes the full loss when small stocks fall.
Price history
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IWMW +9.1% 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 | |
|---|---|---|---|---|---|---|
| IWMW official prospectus, to Dec 31, 2025 | — | +7.69% | — | — | — | +7.71% |
| Russell3000Index index, same period | — | +17.15% | — | — | — | +18.14% |
| Cboe FTSE Russell IWM2OTM Buy Write Index index, same period | — | +7.81% | — | — | — | +7.70% |
| IWMW price data to Oct 27, 2026 | +11.6% | +9.1% | — | — | — | +9.7% |
- Over the year to Oct 27, 2026, IWMW returned +9.1%, 8th of 8 among similar funds.
- Its worst full calendar year was 2025 (+7.7%); its best was 2025 (+7.7%).
- The deepest fall in its price history was 21.9% (Dec 4, 2024 to Apr 8, 2025), recovered by Sep 18, 2025.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +11.6% | — |
| 2025 | +7.7% | +7.69% |
| 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) | $5.5700 | |
| 2025 | $8.1400 |
What's inside
As of Jul 31, 2026, the fund held 1 securities; the ten largest made up 100.15% of assets.
| Fund held | Weight | |
|---|---|---|
| iShares Russell 2000 ETF | 100.15% |
By country
United States 100.15%By asset type
Stocks 100.15%What changed recently
- Over the three months to Jul 31, 2026, investors added a net $5.6M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +3.30%, +4.34%, +0.13%.
How it works
BlackRock's IWMW tracks the Cboe FTSE Russell IWM 2% OTM BuyWrite Index. It holds the iShares Russell 2000 ETF, which owns about 1,921 small US companies weighted by market value. Against that holding, it sells one-month call options on the Russell 2000 Index. This is a “covered call,” or buy-write, strategy. The option buyer gets any index gains above a set level, called the strike price, and pays the fund a cash premium for that right. As of July 31, 2026, the iShares Russell 2000 ETF made up about 100% of net assets.
On the roll date, which is the business day before the options expire, the strategy buys back the old calls and sells new ones. Strikes are set near 102% of the Russell 2000's prior close. If that option would pay less than five basis points (five-hundredths of a percent) of the index value, the index uses a strike near 100% instead. The options are European-style, so they can be exercised only at expiration.
The fund gives up gains above the strike each month, but it takes the full decline when small-company stocks fall. It aims to pay monthly distributions from premiums and dividends, capped at about 2% of net asset value each time. The prospectus expects payouts to exceed earnings, so part may be a return of capital, meaning investors' own money handed back.
What it really costs
- IWMW charges 0.39% a year, versus an average of 0.86% for the similar funds below (1st of 8, cheapest first).
- Of that, 0.2% is the management fee; the rest covers other fund expenses.
- Using the prospectus's standard example, $10,000 invested would cost about $40 in the first year and $493 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| IWMW | $40 | $125 | $219 | $493 |
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
Its main purpose is to turn small-company stock exposure into large monthly payments, and it gives up much of the growth to do so.
IWMW could add monthly income from small US stocks. Its trailing 12-month yield was 20.11% as of October 27, 2026. Part of that may be return of capital, and option income is usually taxed as ordinary income. The fund launched in March 2024, so it has no record in the 2008, 2020 or 2022 downturns. Its deepest drop was 21.9%, from December 4, 2024, to April 8, 2025, and it took about 5.4 months to recover. Anyone selling shares for income in a slump like that would sell at lower prices, and the calls limit the rebound. Its only full calendar year, 2025, returned 7.69%, versus 17.15% for the Russell 3000 Index. The expense ratio is 0.39%, or $40 on $10,000 in year one under the SEC example. 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
- Investors who want monthly payouts from small US stocks and accept giving up gains above a strike set about 2% above the index each month.
- Holders of the iShares Russell 2000 ETF who would trade some upside for option income, at a 0.39% annual expense ratio.
- Investors using tax-advantaged accounts, where the ordinary-income tax treatment of option premiums may matter less.
Look elsewhere if
- Investors seeking downside protection: the fund takes small-cap losses in full and fell 21.9% from December 2024 to April 2025.
- Growth-focused investors: in 2025 it returned 7.69%, versus 17.15% for the Russell 3000 Index, as capped upside held it back.
- Those who want a long record or a large fund: it launched in March 2024 and had about $57.6 million in net assets as of July 31, 2026.
Close alternatives
Matched by other buffer (defined-outcome) funds, largest first.
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| IWMW this fund | 0.39% | $57.6M | +9.1% | — |
| 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 IWMW pay monthly dividends?
Yes. IWMW pays monthly distributions made up of option premiums and dividends from the iShares Russell 2000 ETF, up to roughly 2% of net asset value each month. Over the 12 months to October 27, 2026, it paid $7.53 per share, a trailing yield of 20.11%. These payments are not all dividends. The prospectus says the fund is likely to pay out more than its earnings, so part of each payment may be a return of capital.
What's the difference between IWMW and IWM?
IWMW holds IWM, the iShares Russell 2000 ETF, and sells one-month call options on the Russell 2000 Index on top of it. That adds option income but caps gains at a strike about 2% above the index each month. Both funds take the full loss when small stocks fall. IWMW's 0.39% expense ratio includes its holding in IWM. IWM on its own keeps all of the upside but pays far less income.
Is IWMW's 20% yield sustainable?
There's no guarantee. The 20.11% trailing yield as of October 27, 2026, comes largely from option premiums, which rise and fall with market volatility. The prospectus says the fund is likely to pay out more than its earnings, so some payments may be return of capital. It also warns that the fund may have to reduce distributions if income falls short. A high yield does not mean a high total return: the fund returned 7.69% in 2025.
Is IWMW a buffer ETF?
No. Buffer funds such as FT Vest Laddered Buffer ETF (BUFR) use options to absorb part of a market loss. IWMW offers no downside protection. It sells calls for income and takes small-cap losses in full, falling 21.9% from December 2024 to April 2025. Among the buffer funds it is sometimes grouped with, IWMW's 0.39% expense ratio is lower than BUFR's 0.95% and the group's 0.86% average, but the strategies differ.
How has IWMW performed since launch?
Modestly. According to the prospectus, IWMW returned 7.69% in 2025 and 7.71% a year from its March 2024 launch through December 31, 2025. Its index returned 7.81% and 7.70% over the same periods. The Russell 3000 Index returned 17.15% and 18.14%. Based on price data, the fund returned 9.1% over the year to October 27, 2026. Its strongest quarter gained 9.16% and its weakest lost 5.48%, both in 2025.