IWMI vs RYLG

IWMIBNEOS Russell 2000 High Income ETF

RYLGAGlobal X Russell 2000 Covered Call & Growth ETF

In short

IWMI Small-cap income with tax plumbing: Russell 2000 exposure plus an actively managed index-option overlay, paying monthly since its 2024 launch. The fee is 0.68% net of a waiver through May 1, 2027.

RYLG Most small-cap income funds sell calls on the whole book. RYLG writes one-month at-the-money calls on about half of it, leaving the rest uncapped, and it charges the lowest fee in its Russell 2000 options-income group.

Stated mandate

IWMI The Fund seeks high monthly income with tax efficiency and potential equity appreciation by investing in Russell 2000-related equity exposures and using a call-option strategy.

RYLG The Fund seeks results generally corresponding to the Cboe Russell 2000 Half BuyWrite Index. It obtains Russell 2000 equity exposure and sells one-month at-the-money calls covering approximately half of the portfolio value.

Why people hold it

• IWMI The overlay uses index options treated as Section 1256 contracts: gains split 60% long-term, 40% short-term regardless of holding period. NEOS also harvests option losses actively.neosfunds.comx.com
• Actively managed, not a fixed monthly formula. The call writing is adjusted with the aim of keeping some upside participation while income goes out every month.neosfunds.com
• Fee lands near the category median at 0.68% net of a waiver through May 1, 2027, and the fund sits in the upper half of its Russell 2000 income peer group.
• Among the smoother funds in this niche to trade, with trading frictions that screen near the top of the small-cap options-income group.

• RYLG Half-covered by design: one-month at-the-money calls on roughly half the portfolio, so the uncovered half keeps full exposure to a small-cap rally.globalxetfs.com
• At 0.35%, the cheapest ticket in its Russell 2000 options-income cohort, well under the group median and under sibling RYLD at 0.60%.
• Rules-based, not a discretionary options desk: it follows the Cboe Russell 2000 Half BuyWrite Index and pays out monthly.
• Sits in the upper half of its Russell 2000 options-income peer group, one of the stronger builds among funds writing calls on this index.

Worth knowing

• IWMI Selling calls caps how much of a small-cap rally the fund keeps. The trade-off for the income stream is a ceiling on upside in fast-rising markets.neosfunds.com
• Part of a distribution can be return of capital, which trims your cost basis rather than arriving as income earned.
• Cheaper tickets exist on the same index: RYLG at 0.35% and RYLD at 0.60%, neither relying on a waiver.

• RYLG The written half gives up upside above the strike each month. You trade part of a hot small-cap run for premium collected along the way.
• Small fund, thin tape. Spreads can run wider than the category's heavyweights, which matters most on larger orders.
• Underneath sits plain Russell 2000 equity risk. Option premium softens the ride, but there is no buffer or downside floor here.

Full IWMI profile⁠

Full RYLG profile⁠