IWMI delivers 13% yield by writing covered calls on the Russell 2000
The NEOS Russell 2000 High Income ETF writes covered calls on the Russell 2000 to generate a 13% yield.
The fund’s strategy involves overlaying covered calls and call spreads on the Vanguard Russell 2000 ETF, which makes up nearly all of its portfolio.
The distribution rate sits in the 13% to 14% range, with return-of-capital distributions deferring taxes in taxable accounts.
The fund launched on June 25, 2024, and has returned 17% year-to-date through mid-July 2026, trailing the IWM’s 20% return