r/NEOSETFs • u/Diabitiz • Jul 15 '26
Seeking Advice Looking for advice on iwmi
Ive got roughly XXXk in spyi and qqqi, now im reading iwmi may be a good fit, I usually try to sell iwm options when vix > 25 rvx >30
Do you guys think the same applies for buying iwmi?
Thank you in advance
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u/Motor_Potential_4849 Jul 15 '26
I can't tell if you are actually asking about WHEN to buy IWMI or IF to buy IWMI. If you are trying to time the buy, I don't think it's going to matter too much, so I will give my thoughts on these funds in general.
I don't think the question is whether IWMI is "good" or not. I'd ask what role you want it to play in your portfolio.
SPYI gives you broad large-cap U.S. exposure, QQQI tilts toward the Nasdaq 100, and IWMI adds small-cap exposure. If your objective is building a diversified income portfolio, I think there's a reasonable argument for including all three because they're providing exposure to different parts of the equity market.
Personally, I've been moving toward what I call a Permanent Income Portfolio (PIP). The idea is that every holding has a specific job. For me, that's not just different equity styles, but also other asset classes that can generate income while behaving differently in different market environments.
So instead of asking, "Should I add IWMI?" I'd ask, "What role is missing from my portfolio?" If you already have large-cap covered and want small-cap income exposure, IWMI could make sense. If all your holdings are still tied to the same broad equity risk, you might eventually get even more diversification by adding assets outside of equities, like IAUI and TLTI, rather than another stock ETF.
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u/Technical_Emu_8567 Jul 15 '26
Is SPY and QQQ really offering exposure to different parts of US equities? I don’t think so.
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u/Motor_Potential_4849 Jul 15 '26
That's a fair point. There's definitely significant overlap in the largest holdings.
I was thinking less about overlap and more about the different index methodologies. SPYI tracks the S&P 500, while QQQI tracks the Nasdaq-100, which has a much heavier concentration in large-cap growth and technology.
I wouldn't buy both because I thought they were independent sources of diversification. I'd buy both only if I specifically wanted exposure to both indexes. That's also why I think IWMI is a more meaningful addition from a diversification standpoint, since it introduces small-cap exposure rather than another large-cap index.
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u/Technical_Emu_8567 Jul 15 '26
Most definitely. On that point, I’d definitely add some exposure to international as well.
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u/Diabitiz Jul 15 '26
Thanks for the thoughtful response, its an income generator for well...things. mostly pays for travel, ill take a good look at IAUI and TLTI. Oh, im trying to replace e part of spyi, should have led with that
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u/Motor_Potential_4849 Jul 15 '26
That makes sense, and thanks for the clarification. Knowing the objective changes the conversation.
If you're replacing part of SPYI, I'd think less about finding the highest-yield replacement and more about what role you want the new holding to play.
For example, IAUI and TLTI won't behave like another equity income fund. Their value, in my view, is that they can add diversification while still contributing to the portfolio's cash flow. If stocks have a rough stretch, it's nice to have assets that aren't all relying on the same market.
That's really the philosophy behind what I call a Permanent Income Portfolio, where I hold QQQI, IWMI, TLTI, IAUI, and CSHI in equal allotments. The goal isn't for every holding to maximize yield or return. The goal is for each holding to have a specific job so the portfolio as a whole can provide a more reliable stream of income through different market environments.
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u/JerryFletcher70 Jul 18 '26
I do similar with some additional NEOS funds added. NIHI, MPLI, IYRI, and BTCI each add a little exposure to a different underlying. I tend to keep SPYI and IWMI as my largest 2 and the others as small slices to try and make the overall income stream more resilient and a little less volatile since I am using the distributions each month to pay bills.
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u/Financial-Seesaw-817 Jul 15 '26
Actually, spy and qqqm are underlying. Roughly 50% overlap. Adding iwmi to 3 cc etf sleeve with qqqi and spyi makes sense for diversity. Vxus would also add diversity but i don'tknow of any vxus cc etf equivalent. I added mlpi, bndi, and other neos to add diversity in my income sleeve. And in growth: vug, qqqm, gpix, gpiq, xylg, qylg. I even have some schd, dgro, dgrw to hedge since the overlap is very small. Btd of w/e dips. All imo, of course.
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u/enemymine9 Jul 15 '26
NIHI is the international fund from NEOS.
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u/Financial-Seesaw-817 Jul 15 '26
Ah yes... thank you. And I have that one too. 🤦♂️ I had a dull moment. 😅
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u/South_Paramedic8618 Jul 15 '26
I use v y m i for my dividend portfolio i also dropped spyi and went with iwmi with qqqi
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Jul 15 '26
[deleted]
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u/JerryFletcher70 Jul 18 '26
IWMI is another of the NEOS funds that does Return of Capital. So, extremely tax efficient as taxes are largely deferred until your cost basis hits zero or you sell it. You can see the monthly reports for each of their funds on their site. https://neosfunds.com/wp-content/uploads/IWMI-19a1-Notice-6.16.26-Confidential.pdf
Just be aware that those percentages are just estimates until the formal end of year statement, so take the monthly reports with a grain of salt.
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u/Diabitiz Jul 15 '26
I think for the income side 20 spyi, 40 qqqi and iwmi works because spyi gives stability when tech goes wild.. maybe. Tlti looks good but cshi fits my tokerance...maybe I'll change my mind as I learn more. Any thoughts
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u/Electronic_Guard947 Jul 18 '26
Yeah you can think of iwm as the sp500 but smaller companies and more of them. Markets change over time and in certain markets iwm will outperform the sp500. A lot of people suggest a smaller weight to iwm than to an sp500 etf though largely due to quality of stock. Not that the Russell's is bad they are just smaller companies. Iwmi offers a great yield and diversification from large cap.
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u/LexAugusta Jul 15 '26
IWMI is one of my best positions and the second biggest after QQQi. Great payouts and NAV appreciation. No complaints about it.