Want Nasdaq Income? QQQI Beckons

Core Insights - The Nasdaq-100 Index (NDX) has a low distribution rate of 0.48%, making it less attractive for income-focused investors [1] - The NEOS Nasdaq 100 High Income ETF (QQQI) has emerged as a strong performer among covered call ETFs, boasting a distribution rate of 14.42% as of August 31 [3][6] - QQQI has outperformed its competitors and the NDX itself, achieving a return of 32.32% since inception, compared to NDX's 34.31% and its competitors' returns of 14.09% and 26.64% [6][7] ETF Performance - QQQI is a $4.6 billion ETF that has gained recognition as one of the best new actively managed ETFs since its launch in January 2024 [2] - The ETF utilizes tax loss harvesting and NDX Index options classified as section 1256 contracts, benefiting from lower tax rates [4] - Unlike many covered call ETFs, QQQI does not significantly cap upside potential while providing high yields, challenging the common perception of covered call strategies [5] Competitive Analysis - QQQI's performance has been notably superior to that of its direct competitors, which typically offer lower returns despite high yields [6] - The ETF's ability to deliver compelling income while maintaining competitive performance metrics positions it favorably in the market [7]