Core Insights - The NEOS Gold High Income ETF (IAUI) launched in June 2025, capitalizing on rising gold prices and investor interest in high income outside traditional bonds and dividend stocks [1][2] - IAUI has achieved nearly $276 million in assets under management as it enters 2026, indicating a strong initial performance [2] - The outlook for gold in 2026 is influenced by geoeconomic uncertainty, with potential for moderate gains if economic growth slows and interest rates fall [4] Performance and Market Dynamics - Gold was one of the best-performing assets in 2025, and while repeating that performance in 2026 may be challenging, there is potential for upside [3] - IAUI has demonstrated a capacity for upside capture, returning over 14% since its inception, distinguishing it from other options-based ETFs that may not perform as well over time [4] - Factors such as central bank demand and gold recycling trends are expected to influence the gold market, reinforcing its role as a portfolio diversifier amid market volatility [5]

Core Insights - Bitcoin has fallen nearly 30% from its 2025 peak, underperforming compared to tech stocks and T-bills, and is likely to end the year in the red [1][5] - Gold, long-term bonds, and the Nasdaq have outperformed Bitcoin, which was once considered a digital gold alternative [2] - Bitcoin's performance has lagged behind benchmarks like the MSCI Emerging Markets Index and the US Utilities Index, which have shown significant gains this year [3] Performance Analysis - Bitcoin briefly dipped below $90,000, the average entry price for ETF inflows, indicating that many ETF investors were temporarily underwater [4] - The year was expected to be a breakout for crypto due to a pro-crypto administration and new ETF regulations, but instead, it has mirrored past cycles of euphoria followed by crashes [5][6] - Bitcoin has not effectively offset losses in diversified portfolios or acted independently during market volatility, disappointing professional investors [7] Market Sentiment - The October crash, which wiped out approximately $19 billion in leveraged positions, has left lasting psychological impacts on the market, affecting liquidity and risk appetite [8]