NEOS Launches Boosted High Income ETF Suite

Core Insights - NEOS Investments has launched three Boosted High Income ETFs aimed at amplifying market exposure and income generation [1] - The new ETFs are designed to provide approximately 150% notional exposure to their underlying markets, enhancing monthly income and market participation compared to existing funds [1] Fund Details - The three new ETFs include the NEOS Boosted S&P 500 High Income ETF (XSPI), NEOS Boosted Nasdaq-100 High Income ETF (XQQI), and NEOS Boosted Bitcoin High Income ETF (XBCI) [1] - These funds utilize a synthetic options strategy to increase both underlying exposure and income potential, differing from traditional daily-reset leverage mechanisms [1][1] Investment Strategy - For XSPI and XQQI, the funds hold portfolios of stocks tracking their respective indexes while selling call options to generate premium income [1] - XBCI employs a different strategy by holding spot bitcoin ETPs through a controlled foreign corporation subsidiary and using options on bitcoin-related instruments [1] Cost and Tax Considerations - All three funds charge an annual expense ratio of 0.98% and focus on Section 1256 index options, which receive favorable tax treatment [1] - The leveraged nature of these funds means that investors may face magnified losses during market declines [1] Distribution Schedule - NEOS has restructured its distribution payment schedules to offer potential weekly income, with the Boosted High Income ETFs set to distribute during the first week of each month [1]