This ETF Could Be the Way to Play Gold in 2026

Group 1 - The core viewpoint is that despite a year of record highs for gold, the outlook for 2026 remains positive among banks and market participants, suggesting another impressive performance for the yellow metal [1] - The NEOS Gold High Income ETF (IAUI) offers a unique investment approach by providing elevated income through a covered call strategy, which is particularly appealing as gold traditionally does not yield dividends or interest [2][3] - IAUI has demonstrated strong income potential with a distribution rate of 12.53% and a 30-day SEC yield of 1.81% as of December, making it an attractive option for investors seeking exposure to gold during a bull market [3] Group 2 - There is a sustained commitment from advisors and investors towards gold, especially in the form of ETFs, which bodes well for IAUI in 2026 [4] - Global gold ETFs experienced a seventh consecutive month of inflows in December, primarily driven by North American funds, with managed money net longs increasing by US$11 billion (59 tons) for the month [5] - The geopolitical landscape is increasingly uncertain, which typically drives investors towards safe-haven assets like gold, potentially benefiting IAUI [6][7] Group 3 - Macro factors are expected to influence gold's trajectory in 2026, with sustained central bank demand, hedging needs amid policy uncertainty, and diversification requirements in a high stock-bond correlation environment being key drivers [8]