For investors seeking momentum, NEOS Russell 2000 High Income ETF (IWMI Quick QuoteIWMI - Free Report) is probably on the radar. The fund just hit a 52-week high and is up 21.68% from its 52-week low price of $44.52/share.

But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea of where it might be headed:

IWMI in Focus

The fund employs an active strategy that seeks to replicate the Russell 2000 Index while generating high monthly returns in a tax-efficient manner with the potential for equity appreciation. The product charges 68 bps in annual fees and has a dividend yield of 13.37% (see: all the Small Cap Blend ETFs here).

Why the Move?

Persistent macroeconomic uncertainty and elevated market volatility continue to keep investors on edge, strengthening the case for rotating into income-generating assets. With concerns over AI-driven inflation also gaining traction, income-focused funds appear increasingly attractive.

Additionally, the fund seeks to replicate the performance of the Russell 2000 Index, providing exposure to U.S. small-cap stocks. With small caps showing renewed momentum recently, the fund presents an attractive investment opportunity.

More Gains Ahead?

IWMI might continue its strong performance in the near term, with a positive weighted alpha of 17.71 (as per Barchart.com), which gives cues of a further rally.