NEOS Russell 2000 High Income ETF may outperform amid rising rates and flat market conditions.

The NEOS Russell 2000 High Income ETF faces challenges from rising interest rates due to high floating-rate debt and weak profitability among small-cap companies, with over 40% showing negative earnings. Despite these headwinds, the ETF could outperform the Russell 2000 Index (IWM) in a flat market environment. The Federal Reserve is expected to continue rate hikes, increasing risks for IWM, but a strong economy suggests the market may consolidate rather than enter a bear phase. IWMI is rated a hold with a potential buy near $45.64, offering an attractive annualized yield of about 13.9% without significant net asset value decline.

The iShares Russell 2000 ETF (IWM) trades at USD 283.09 on Pluang as of Nov 11, 2026 20:51 WIB, showing a positive 1-day change of 0.90%. The ETF's market cap stands at $77.77 billion, reflecting its significant presence in the small-cap segment. Pluang users currently favor buying IWM with a 65% buy order activity, indicating steady interest despite the challenging economic backdrop.