NEOS Russell 2000 High Income ETF

IWMI

Market cap $485M

The NEOS Russell 2000 High Income ETF is upgraded to Buy, offering a 14% yield and strong capital preservation versus higher-yielding peers. The fund's OTM option writing strategy allows some upside but caps growth, making IWMI best suited for income-focused, long-term investors. IWMI outperforms synthetic high-yield peers in total return, avoiding severe price erosion seen in RDTY and RDTE.

The NEOS Russell 2000 High Income ETF offers high monthly income via a covered call strategy on the Russell 2000 index. IWMI currently yields a 14% distribution rate, with approximately 95% of payouts classified as return of capital, offering tax advantages for many investors. The ETF provides diversification away from tech-heavy large caps, with sector exposure favoring finance and healthcare, and benefits from recent small-cap outperformance.

I construct covered call ETF portfolios using a three-bucket approach: safe, moderate, and ultra-high yield for balanced income and risk. Portfolio weightings target 50% in 10–25% yield ETFs, 30% in 25–50% yield, and 20% in 50%+ yield, with regular rebalancing. Proxies like IWMI (safe), BLOX (moderate), and MSTY (ultra-high yield) illustrate how to allocate and manage risk across buckets.

WESTPORT, Conn.--(BUSINESS WIRE)--NEOS Investments, an asset management firm comprised of leaders and pioneers in the options-based ETF space, announces November monthly distribution amounts for their suite of ETFs that pursue monthly income and tax efficiency across core portfolio exposures.

If you're planning to retire or you're already retired, it can be tough to gauge just how much you will need over the course of your retirement.

The NEOS Russell 2000 High Income ETF (IWMI) offers a compelling alternative to large-cap covered call ETFs heavily concentrated in overvalued SPY and QQQ. Historically, small-caps outperform large-caps after Fed rate cuts. We can already see the first signs of this happening. Plus, small-caps are projected for strong earnings growth through at least mid-2026, which makes the case even more attractive.

Small-cap stocks are poised for a decent 2025. Helped by 3% over the past month, one aided by the Federal Reserve lowering interest rates in September, the Russell 2000 Index is higher by 12.67% YTD.

NEOS Investments offer high yielding monthly income ETFs based on options strategies on equity and alternative investments. As a secondary priority, the ETFs seek capital appreciation from the underlying securities held. Four of the funds use Section 1256 Index Option Contracts, which treat distributions as 60% long term and 40% short term capital gains.

WESTPORT, Conn.--(BUSINESS WIRE)--NEOS Investments, an asset management firm comprised of leaders and pioneers in the options-based ETF space, announces September monthly distribution amounts for their suite of ETFs that pursue monthly income and tax efficiency across core portfolio exposures. ETF distribution information as of the September 2025 Ex-Div Date (9/24/2025)   Distribution Rate* Amount / Share (%) Amount / Share ($) Distribution Frequency 30-Day SEC Yield** Bitcoin High Income ETF (.

NEOS Russell 2000 High Income ETF (IWMI) offers a compelling 14% yield, attracting strong AUM growth despite modest price depreciation since launch. IWMI provides the best trade-off between high income and limited capital loss among small-cap covered call ETFs, outperforming peers like IWMW, RDTE, and RYLD. The current macroeconomic environment, with gradual Fed rate cuts and a soft-landing scenario, favors IWMI's income strategy and potential for steady upside.