NEOS Investments Adds Tax-Efficient Income ETF NIHI

Core Insights - The ETF industry is experiencing significant growth, particularly in income ETF strategies, with NEOS Investments launching the NEOS MSCI EAFE High Income ETF (NIHI) to meet rising investor demand for current income [1][2]. Group 1: NEOS MSCI EAFE High Income ETF (NIHI) - NIHI is designed to provide high monthly income through an active investment strategy that includes a call options approach [3]. - The fund charges a fee of 68 basis points and invests in underlying ETFs tracking the MSCI EAFE Investable Market Index, aiming to enhance income through call options [3]. - The underlying index is market cap-weighted, including companies with market caps from approximately $50 million to $325 billion, with notable sectors being industrials and financials [4]. Group 2: Market Context and Investor Considerations - NIHI's launch coincides with a period where investors may be focusing on tax considerations as the year ends, potentially seeking ways to add income while reducing tax exposure [2]. - The ETF may appeal to near-retirement investors looking for current income amidst market volatility, as well as younger investors seeking steady income and tax efficiency [5]. - NIHI's active management approach is positioned to maximize the benefits of its call option strategy, making it a competitive option in the income ETF category [5].