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Posted by
Two Blokes Jul 10 -
Filed in
Stock
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IWMI offers small-cap exposure with high income via call writing, balancing yield and drawdown management, but expect long-term underperformance versus the index. IWMI's tax efficiency using Section 1256 contracts and ROC distributions makes it preferable for taxable accounts over RYLD, despite similar strategy outcomes. Yield management is key: IWMI targets stable payouts, but NAV erosion is a risk in adverse markets due to capped upside and maintained distributions.
