{"id":128331,"date":"2026-03-19T12:44:05","date_gmt":"2026-03-19T15:44:05","guid":{"rendered":"https:\/\/tech.einnews.com\/article\/900455707"},"modified":"2026-03-19T12:44:05","modified_gmt":"2026-03-19T15:44:05","slug":"go-beyond-tech-generate-income-under-1-umbrella","status":"publish","type":"post","link":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/2026\/03\/19\/go-beyond-tech-generate-income-under-1-umbrella\/","title":{"rendered":"Go Beyond Tech & Generate Income Under 1 Umbrella"},"content":{"rendered":"

The S&P 500 allocates more than a third of its weight to tech stocks, or more than the weight commanded by the next three sectors combined. Fortunately, many small-cap indexes and the related ETFs are more sector-diverse. Even better news: products like the NEOS Russell 2000 High Income ETF (IWMI)<\/strong><\/a> offer both superior diversification and enhanced income.<\/p>\n

Investors may want to consider IWMI in the near term, provided economic data improves and the conflict in Iran is soon resolved.<\/p>\n

\u201cInvesting in US companies with a small market capitalisation can provide distinct benefits over exposure to large and mid-caps: small caps are often at the forefront of innovation and in early stages of the growth cycle. Traditionally, small-cap companies are also more exposed to the shape of the domestic economy: They typically operate in local markets rather than international ones,\u201d noted BNP Paribas<\/a>.<\/p>\n

IWMI: Income & Balance<\/h2>\n

The actively managed IWMI carries a distribution rate of 14.38%. Alone, that\u2019s impressive and a potential point of attraction for many income-hungry investors. However, investors should not diminish the balance that small-cap exposure offers.<\/p>\n

\u201c<\/strong>U.S. small-cap indices tend to have a more balanced allocation to business sectors. Thus, the exposure to the technology sector, where we have seen a growing concentration of large and mega-cap companies in recent years, is much more limited,\u201d BNP Paribas added.<\/p>\n

Similar to other NEOS covered call ETFs, IWMI can present investors some upside participation, should the tracked index grind higher. In this case, it\u2019s the Russell 2000. This is a point to consider because there are reasons to be bullish on small-cap domestic stocks. According to some experts, weaning macroeconomic headwinds is among such reasons.<\/p>\n

Those issues \u201chave now given way to hopes over the prospects of deregulation, still lower interest rates, and tax cut extensions. This setup should benefit small and medium-sized companies, as should investment incentives, businesses reshoring, more lending by banks, and lower barriers to mergers and acquisitions,\u201d concluded BNP Paribas.<\/p>\n

IWMI turns two years old in June. It carries an annual expense ratio of 0.68%, or $68 on a $10,000 stake.<\/p>\n

For more news, information, and analysis, visit the Tax-Efficient Income Content Hub<\/a><\/strong>.<\/em><\/p>\n

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Earn free CE credits<\/strong> and discover new strategies<\/h2>\n<\/p>\n<\/section>\n

<\/a><\/strong> <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

… a third of its weight to tech<\/span> stocks, or more than the weight … business sectors. Thus, the exposure to the technology<\/span> sector, where we have seen …<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[],"class_list":["post-128331","post","type-post","status-publish","format-standard","hentry","category-news","wpcat-1-id"],"_links":{"self":[{"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/posts\/128331","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/comments?post=128331"}],"version-history":[{"count":0,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/posts\/128331\/revisions"}],"wp:attachment":[{"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/media?parent=128331"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/categories?post=128331"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/tags?post=128331"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}