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Income ETF IWMI targets small caps as Russell 2000 gains
The NEOS Russell 2000 High Income ETF has a 14.42% distribution rate, and the Russell 2000 is up about 21% year to date despite no Fed rate cuts so far.
ETF Trends highlights the case for the NEOS Russell 2000 High Income ETF, known as IWMI, as investors broaden beyond a period dominated by large and mega-cap growth stocks tied to artificial intelligence.
The article points to small caps as the main momentum driver, citing the Russell 2000 Index’s roughly 21% year-to-date gain. It also notes that IWMI is an options-based, income-generating ETF that may not capture the full upside of the index, while still aiming to participate and provide an income stream.
IWMI is described as a $1 billion fund that turned two years old last month, with a distribution rate of 14.42%, which the piece says far outpaces typical small-cap index ETFs. ETF Trends adds that the small-cap backdrop remains notable even as the Federal Reserve has not lowered rates yet, and suggests this resilience could matter to income-focused investors.
The outlet also frames the broader market setup as a possible “mega-rotation,” with returns moving away from concentrated mega-cap technology exposure and toward wider parts of the market. ETF Trends quotes deVere Group CEO Nigel Green, saying investors appear to be at the start of a major reallocation of capital following concentrated gains and concentration risk in the post-pandemic period.
Latest closeRussell 2000 2,953.80 ▲0.2%