Core Insights - There is a significant shift in how investors are accessing income through ETFs, moving beyond traditional fixed income assets to include derivatives for yield enhancement and total return [1][2] - Derivative income ETFs, which utilize options-based strategies, are rapidly growing, with $54 billion in net new assets in 2025 and a total of $130 billion in assets under management [1] - Major asset managers like JP Morgan, BlackRock, and Goldman Sachs are optimistic about the future of derivative income ETFs, highlighting their potential to generate income in uncertain markets [1][2] Trends in Option Income - In 2025, derivative income ETFs attracted $54 billion in net new assets, making it the most popular category among actively managed ETFs [1] - JP Morgan's JEPI and JEPQ are leading examples, with a combined $77 billion in assets [1] - BlackRock emphasizes covered call strategies as a solution for income generation, indicating a shift away from traditional cash yields [1] Market Outlooks - BlackRock and Goldman Sachs both foresee continued growth in derivative income ETFs, which are designed to provide income from equity portfolios using options contracts [1][2] - Goldman Sachs notes that these funds are appealing to investors seeking regular distributions not tied to interest rates, with examples like GPIX offering an 8% trailing distribution rate [1][2] Product Innovation - The demand for derivative income ETFs is driving robust product innovation, with firms like Amplify launching new strategies, including the HAKY ETF focused on cybersecurity [1][2] - Amplify's DIVO and QDVO funds have seen significant asset growth, with a 70% increase in 2025, showcasing the firm's innovative approach to income generation [1][2] - NEOS has also entered the market with new "boosted" income ETFs, expanding the options-based income ETF category [2]

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]