NEOS Nasdaq-100 Hedged Equity Income ETF or QQQH, formerly NUSI, uses a collar strategy to generate income and provide some downside protection on Nasdaq exposure. The fund offers a sustainable 8.5% distribution, but significantly lags the Nasdaq in strong bull markets and only modestly reduces volatility. Collar protection is most effective during sudden downturns, but less so in prolonged bear markets, where QQQH tracks the index more closely.
Tech investors seeking tax-efficient income while hedging for drawdowns would do well to consider the NEOS Nasdaq-100 Hedged Equity Income ETF (QQQH). The fund offers a measure of downside protection within the Nasdaq-100 and recently updated its ticker.
The NEOS Nasdaq-100 Hedged Equity Income ETF offers high monthly income with downside protection by using options collars and provides a tax deferral advantage. NUSI's variable monthly distributions rose 26% in 2024. Despite a -24% return in 2022, NUSI rebounded with strong returns in 2023 and 2024, showing resilience and growth potential.
NEOS Investments recently launched the NEOS Nasdaq-100 Hedged Equity Income ETF (NUSI) after making several changes to the underlying strategy. The fund, previously a Nationwide ETF sub-advised by NEOS, now boasts a different risk profile with changes to the options strategy.
NEOS Investments recently launched the NEOS Nasdaq-100 Hedged Equity Income ETF (NUSI) after making several changes to the underlying strategy. The fund, previously a Nationwide ETF sub-advised by NEOS, now boasts a different risk profile with changes to the options strategy.
Another year starts off with a volatile start for equities, and tech indexes in particular. Misses by Tesla and reporting declines in fourth-quarter deliveries weighed heavily on tech stocks on January 2.
NUSI offers monthly income through an option collar strategy on the Nasdaq, balancing income generation with downside protection but capping upside potential. Long-term performance has been underwhelming, but recent months have shown signs of improvement. Given the recent upward trend in the Nasdaq, the strategy's downside protection may be worth considering.
The recently launched NEOS Nasdaq-100 Hedged Equity Income ETF (NUSI) offers fresh opportunities for income and tech investors alike. The strategy seeks tax-efficient monthly income for investors while offering a measure of downside protection within the Nasdaq-100.
NUSI's initial appeal due to high yield and crash protection faltered in 2022, revealing weaknesses in its rigid options collar strategy. Recent strategy adjustments by NEOS Investments have improved NUSI's performance, offering better upside and downside protection through a more flexible, rule-based options system. Despite improved performance, NUSI's yield has dropped to 7%, making it less attractive compared to other NASDAQ 100 covered call funds with higher yields.
Monday's market sell-off caused investors significant pain, though it seems the market has recovered. The sell-off hit all types of investors and strategies given how much tech in particular lost ground.
Although NUSI has been able to offer reduced volatility, the fund has seen lower overall performance compared to peer risk-managed income ETFs. NUSI has relatively high fees along with a dividend yield on the lower end compared to leading competitor ETFs. NUSI's risk management strategy has not been as effective as other income funds, as shown in its significant share price decline in 2022.
Time to switch to "Growth Income" strategy with NUSI ETF for monthly dividend income and capital appreciation potential. NUSI offers low volatility, high yield, and better performance compared to other option income ETFs based on QQQ. "FOMO" for AI growth is still strong, making NUSI a favorable choice for investors looking to capitalize on technology stocks.