IWMI: Russell 2000 Covered Call Income ETF From NEOS. Interview with Co-Founder Troy Cates.

[@NoxAeternis]

Your channel is the first i come to for many things in this space. Thank you sir!

[@wealthadventures]

Thanks! Glad to hear.

[@SummitMan165]

Very good episode and always nice to have Neos’s managers in interview! Good job!

[@wealthadventures]

Thanks! Always nice to hear from the managers.

[@johnbeeck2540]

I have IWMI in my portfolio as I'm near retirement and like the monthly income. Just sold JEPI for a capital gain and to invest in higher yielding funds like IWMI. Thanks for the cogent analysis!

[@wealthadventures]

Thanks. I'm selling some JEPI myself and re-balancing with some other products.

[@gordonechols9906]

Great timing on this product as have been doing research this week on adding it for diversification. At this point in the game of life income investing is the only game in town I'm allowed to play.....thanks for catering to the Geezer crowd on many of your videos. You're one of the best on KZbin!

[@wealthadventures]

Thanks! Appreciate you following along. This could be good for pure income investing and it could easily be paired with IWM for those that want growth and income. We have options with options!

[@_ZYELYNE_]

Ive had SPYI for over a year and have no regrets - will be adding both QQQi and IWMI to my portfolio this week.

[@Tarsarian]

I got QQQI a few months ago and am happy with the decision.

[@darkskinamerican7826]

I’ve been contemplating QQQI for a few hours now. I’m glad to see other people write good things about it

[@brucef1299]

Long IWMI since July in the Soup Bowl. Long term, I want to run my own IWM options after retirement so this fits really well right now as a placeholder. To be fair, if it performs as well as QQQI and SPYI I may end up keeping IWMI long term and let NEOS do all the work. A smidge off topic, but I would love to see you interview Kevin Simpson and speak about all things DVO. With the recent launch of QDVO, having Kevin speak to DIVO, IDVO, and QDVO and getting his thoughts on how these 3 fit into a growth & income portfolio would be gold.

[@wealthadventures]

I may just reach out. QDVO review is on the horizon as I am a fan of DIVO and IDVO.

[@CraigandMandy1]

I have now have 5% of my portfolio in each one of these three funds.

[@lonewolf82007]

I've got; SPYI, JEPQ, QQQI, & I am starting to add IWMI too...

[@Tarsarian]

Great video, I like how Troy lays in on the line and I purchased the QQQI.

[@koryjones1805]

Holy crap can’t believe you made a video on this the same day I was looking for more information about it🙏🏾

[@wealthadventures]

Ha! Fate.

[@justinvanbibber4603]

I own the other NEOS products, I think this will be my next buy. As you mentioned, to add some diversity to my portfolio. Thanks for the video!

[@robertlaw840]

Added more today to IWMI…great interview!! Thanks….

[@wealthadventures]

Thanks!

[@DividendDork]

Great video! I have a solid position in all 3 of the aforementioned NEOS ETFs, they’ve become the core of my dividend portfolio.

[@wealthadventures]

Nice!

[@normansimonsen1203]

Good job Dave. I have a position in IWMI.

[@sdrs95a]

Excellent interview! 3 great stock ETFs!

[@ClintonSiegel]

Thank you for this highly informative interview!!! Great questions and topics. I am an owner, but it's a lower weighted ingredient in the soup bowl.

[@wealthadventures]

Same here. I like the makeup and managers. I would love to see a lower expense ratio.

[@sactojlm]

Keep them in different buckets. Once in one soup bowl, the flavors overpower one another and you have to guess how much salt to add.

[@wealthadventures]

Ha!

[@fialee8ca132]

It's been a minute since your review and analysis of FEPI ~25% yield... which the company now offers AIPI which yields ~35%. It would be great if you did a follow-up if it's legit or a ponzi scheme. FEPI AUM appears to grow and etf price holds a steady, no reverse splits.

[@wealthadventures]

FEPI has held up well and will continue as long as tech continues to perform. I'm skeptical of anything paying large distributions and certainly would not count on them long term but overall it is a decent construction... IMO.

[@fialee8ca132]

@@wealthadventures I know you have to play nice in your reviews and analysis of funds to keep potential pipelines to these interviews and sales pitches. But it would be great if you did a DIY covered call scenario to see why getting 25%-35% returns are not sustainable long-term... but 10%-15% is realistic long term.

[@wealthadventures]

@@fialee8ca132 I can do that. Days like today can certainly eat up 25% quickly!

[@fialee8ca132]

@@wealthadventures That would be great!!!

[@MrEdsam]

IWMW is also available

[@wealthadventures]

Good point!

[@chipnorris2504]

Please do a review of QDPL

[@johnwhite7927]

I wonder how much AUM is required for this ETF to be profitable for NEOS? I like what they are doing but I'm apprehensive about putting too much into an ETF that may get closed due to being unprofitable to manage. I've heard it's usually around $100 M.

[@wealthadventures]

I think this will be fine. It is growing quickly. If they close it, you get your money back. Just my opinion.

[@sheepcreeksociety7985]

Nice idea if you can give reasonable explanation for 40% or so IWM that have 0 or negative EPS. Just sell calls on the top 5 or 10 holdings in IWM and move on if that’s what your after. Use a 1SD strike at 60 days or less. Be out by 15 DTE. What purpose does IWMI serve?

[@PALANTIR_3030]

Since they use futures options trading and its a 60/40 long/short split. Does that reflect to funds taxes OR DOES THAT TRANSLATE TO HOLDERS TAXES. Will my taxes on this etf be taxes as 60/40 ? Or still all shirt term regular income ?

[@wealthadventures]

You will receive the benefit of the index options 60/40 tax treatment for income that is distributed to you in that form. It may also fall under ROC.

[@PALANTIR_3030]

@wealthadventures great to know thank you. Would they distribute a k1 pr a 1099 or will the brokerage automatically calculate obligations? I appreciate you answering thank you for that 🙏

[@HammadFaisallSiddiqui]

Dave, great video-thank you! I often invest in what you recommend, so I appreciate your insights. Could you do a comparison of SPYI, QQQI, and IWMI in one video? It would be great to cover dividends, long-term holding strategy, tax efficiency, fee structure, and risk. Also, a quick comparison of using these ETFs for income vs. SCHD would be really helpful.

[@wealthadventures]

Great idea! Will add it to the list.

[@aqt12761]

great interview

[@TravelUrsul]

I would like to understand more about how this will get taxed - what percentage as ordinary income

[@wealthadventures]

It really depends on the performance of the options during the year which will drive the Return of Capital % for the year. Last year is was fairly high with the market in an uptrend. I think mine was around 70% once fully settled which greatly reduced my tax bill for SPYI. That is 30% was taxed at the index option rate of 60% long term and 40% short term. Oh, and this is not tax advice!

[@TravelUrsul]

@@wealthadventures Ok that helps. Thanks for sharing your experience 😀

[@martinguldnerAutisticSwanGuru]

If I understand correctly return of capital is a separate tax treatment than section 1256 contract tax treatment?

[@wealthadventures]

I think of it as a return of basis. If you invest $100 and get $10 of ROC, you would have a basis of $90. If you sell for $120, you would pay tax on a $30 gain. Good news is that if you hold for over 1 year, it becomes long term when you sell... A nice benefit during years you have high income. By the way, not tax advice! lol.

[@martinguldnerAutisticSwanGuru]

@@wealthadventures also I learned if a stock or ETF pays out enough return of capital even if you don't sell it it becomes taxable in a taxable brokerage account once return of capital brings it down to $0 .

[@makinbacon3124]

Why didn't you ask him about the complete clusterF that was NUSI?

[@wealthadventures]

NUSI is still around. It has been performing better.

[@bradanderson1024]

Are they thinking about weekly dividends like qdte ?

[@wealthadventures]

I would highly doubt it. You can make it till the end of the month!

[@CygnusBOB]

@@wealthadventures RDTE is coming out very soon. They will present some strong competition in this space.

[@gugustoy6208]

So are this funds income they have potential of growth too ??

[@wealthadventures]

A little but if you want growth I would look other places... or you could combine this with the underlying. For example, 50% IWMI and 50% IWM - Some growth and some income.

[@gugustoy6208]

Do you have a discord so I can add you would be fun having you in our community there is a lot of knowledge people here

[@Sylvan_dB]

Been watching IWMI. I wish all you folks would buy in so the fund would have more assets. I'm waiting to see it get over $100 million as that is a typical minimum to keep a fund alive. I have a small position in each of SPYI and QQQI and looking to add this to the mix, if it is successful.

[@wealthadventures]

It is off to a good start. It will be there soon IMO and I think NEOS will be keeping it around for good.

[@passivedividendsoptions]

Do you know of growth ETFs that implement some sort of options based strategy? Or have you done any videos on actively managed etfs?

[@patrickalexis6230]

I love these interviews with Troy. These Neos funds feel just as safe to me as JEPQ and JEPI. I may add IWMI to go along with my QQQI. Thanks Dave.

[@vichart011]

I wonder if there is a feasible hedge strategy to have while holding these three etfs. In case there is a major sell off.

[@tritosac]

The fund NEOS will be taking over that Troy refers to towards the end of the interview is the Nationwide Nasdaq-100 Risk-Managed Income ETF (NUSI). NEOS has been a sub-advisor on this fund.

[@RAri-rc3to]

I’m confused. Managers of spyi and qqqi managed nusi from 2019 to March of this year according to morningstar. That’s the sole reason I haven’t jumped into Neos.

[@kookiebush]

The only other thing they ever touched they destroyed.

[@SJ-lt8mx]

Why does "Seeking Alpha" list the dividend at 4.77%?

[@wealthadventures]

The main page shows the yield for the trailing twelve months (TTM). Since it has only been around since June it does not have a full year of distributions.

[@ampiciline]

I am doing "cover strangle " =( CSP + CC) on IWM myself . why do i need this ???

[@wealthadventures]

You can always do it yourself!

[@SydblackswanSydblackswan]

If I buy this ETF, does it mean that I own a portion of the wrestle 2000?

[@wealthadventures]

Oh no! Is that how I sound? I'm turning southern.

[@nikkinemerouf3224]

I am considering transitioning from JEPI and JEPQ into the NEOs fund as their distributions seem more stable. Was considering a Russell 2000 etf and I believe their IWMI might fit the bill.

[@johnbeeck2540]

Did just that this past week by selling JEPI and adding to my IWMI position.

[@ronaldreagan6756]

I sold JEPI and JEPQ several months ago and slid the $$$$$$ into SPYI and QQQI and have no regrets. They are paying better and are more solidly in the green while having better tax advantages.

[@wealthadventures]

They have performed well. Certainly worth considering.

[@coocoocachooglin]

I buy all teh tings.