"NEOS has had success gathering assets in 2025 by offering advisors options based high income strategies,†said TMX VettaFi Head of Research Todd Rosenbluth, noting the success of their other funds — namely the NEOS S&P 500 High Income ETF (SPYI) and NEOS Nasdaq 100 High Income ETF (QQQI). "It is great to see them continue to expand their lineup for the MLP investment style.†In an easing monetary policy environment, yields start to fall in line with rate cuts. Bond investors might be seeking to supplant th ...

Michail Petrov / Shutterstock.com When it comes to building real retirement income, there are a number of strategies, but far and away the most popular right now is turning dividend income into real income. Unless you win the lottery, you have to be practical about what you can really do to make enough through investment to live comfortably while retired. Quick Read Vanguard Real Estate ETF (VNQ) yields 3.92% and pays $3.53 annually per share. JPMorgan Equity Premium Income ETF (JEPI) offers an 8.20% ...

Core Insights - The article highlights the growing interest in covered call and options-based ETFs as reliable income sources outside the fixed income universe, emphasizing the importance of selectivity and structure in these investments [1] NEOS Investments Overview - NEOS Investments is recognized as a leader in the options income ETF market, driven by flagship products like the NEOS Enhanced Income Aggregate Bond ETF (BNDI) and the NEOS S&P 500 High Income ETF (SPYI) [2] - The firm has been awarded "Best Option Strategies ETF Issuer" in the $1 billion to $10 billion assets under management category by ETF Express, with its products, including SPYI and the NEOS Nasdaq 100 High Income ETF (QQQI), collectively nearing $12 billion in AUM [3] Growth and Strategy - NEOS has shown impressive growth since its founding in 2022, distinguishing itself from larger ETF sponsors by not focusing solely on pure beta products [4] - The team at NEOS consists of experienced professionals in the options-based ETF market, quickly establishing the firm as a leader by combining derivatives expertise with innovative investment solutions [5] Product Offerings - NEOS currently offers 13 ETFs, including BNDI, QQQI, and SPYI, with options-based products covering various asset classes such as bitcoin, gold, and domestic small-cap equities [6] - The ETFs provide tax-efficient income on a monthly basis and are largely uncorrelated with the bond market, appealing to a wide range of income investors [6] Investor Education and Demand - NEOS emphasizes the importance of educating investors on options strategies and their potential benefits, reflecting strong demand for income-focused solutions through accessible and transparent ETFs [7]

Core Insights - The Nasdaq-100 Index (NDX) has a low distribution rate of 0.48%, making it less attractive for income-focused investors [1] - The NEOS Nasdaq 100 High Income ETF (QQQI) has emerged as a strong performer among covered call ETFs, boasting a distribution rate of 14.42% as of August 31 [3][6] - QQQI has outperformed its competitors and the NDX itself, achieving a return of 32.32% since inception, compared to NDX's 34.31% and its competitors' returns of 14.09% and 26.64% [6][7] ETF Performance - QQQI is a $4.6 billion ETF that has gained recognition as one of the best new actively managed ETFs since its launch in January 2024 [2] - The ETF utilizes tax loss harvesting and NDX Index options classified as section 1256 contracts, benefiting from lower tax rates [4] - Unlike many covered call ETFs, QQQI does not significantly cap upside potential while providing high yields, challenging the common perception of covered call strategies [5] Competitive Analysis - QQQI's performance has been notably superior to that of its direct competitors, which typically offer lower returns despite high yields [6] - The ETF's ability to deliver compelling income while maintaining competitive performance metrics positions it favorably in the market [7]

Core Insights - NEOS Investments launched its first trio of options income ETFs on August 30, 2022, which have collectively reached an AUM of $5.7 billion within three years [1] - The firm has accumulated over $10 billion in assets since the launch of its flagship funds, focusing on high income and tax efficiency [2] - NEOS offers core exposure to the S&P 500, short-term Treasury Bills, and the broad bond market through its ETFs, utilizing an option-writing strategy to generate high income [3] Fund Performance - SPYI has attracted over $2.25 billion in net flows in 2023 and has total returns of 45.91% since inception as of July 31, 2025, showcasing effective active management [5] - SPYI's distribution rate stands at 12.05% as of the end of July, outperforming its peers [7] - BNDI and CSHI have also shown better total returns and higher distribution rates than their peers and benchmarks since inception [8] Tax Efficiency - The funds utilize Section 1256 Contracts for options, allowing for favorable tax treatment on capital gains, with 60% taxed as long-term and 40% as short-term [3] - A portion of distributions from all three ETFs qualifies as a return of capital, which can enhance tax efficiency [4] - The managers engage in tax-loss harvesting opportunities throughout the year to optimize tax outcomes [11] Expansion and Innovation - NEOS has expanded its ETF lineup to include high-income offerings in alternatives and hedged equity income ETFs, including the NEOS Nasdaq 100 High Income ETF launched in January 2024, which has accumulated over $3.4 billion in AUM this year [9]