The beauty of passive income grows with time, especially in the current economic climate.
NEOS NASDAQ-100 High Income ETF (QQQI) and NEOS S&P 500 High Income ETF (SPYI) are both rated “Buy” for their high income and tax efficiency. QQQI offers higher yield and growth potential due to its focus on the volatile technology sector, but carries greater risk compared to SPYI. SPYI provides more stability and diversification, making it suitable for conservative investors seeking steady income and capital protection.
The NEOS NASDAQ-100 High Income ETF (QQQI) stands out as my top choice for high-income ETFs, consistently delivering yields above 10%. QQQI's unique call spread strategy allows for strong monthly income and partial upside participation, outperforming many peers in both yield and total return. With a 14.03% distribution yield and 0.34% appreciation in 2025, QQQI offers an attractive alternative to bonds in a declining rate environment.
| NASDAQ (NMS) Exchange | US Country |
The fund operates as an actively-managed exchange-traded fund (ETF) with a clear investment focus on replicating the performance and strategies linked to the Nasdaq-100® Index. It differentiates itself by not only investing in a selection of stocks that are part of this renowned index but also involves a sophisticated call options strategy. This strategy includes written (sold) call options on the Nasdaq-100® Index itself, showcasing an innovative approach to portfolio management and potential income generation. The fund commits to a significant investment in its core strategy, pledging that at least 80% of its net assets, alongside any borrowings made for investment purposes, are allocated towards securities or derivatives of companies listed on the Nasdaq-100® Index. This investment directive underlines the fund's commitment to closely follow the performance and composition of its benchmark index, ensuring that it remains a viable option for investors seeking exposure to some of the largest and most influential technology and non-financial companies listed in the United States.
The fund maintains a comprehensive portfolio of stocks that are constituents of the Nasdaq-100® Index. This selection aims to mirror the performance of the index, which is predominately comprised of leading companies in the technology sector alongside other non-financial sectors. By investing in this portfolio, investors gain exposure to a wide array of pioneering companies that drive innovation and economic growth.
Alongside traditional stock investments, the fund implements a call options strategy that involves writing (selling) call options on the Nasdaq-100® Index. This approach is designed to generate additional income for the fund through the premiums received from selling the options. It also allows the fund to potentially hedge some of the risks associated with its equity positions, providing an innovative risk management tool while striving to enhance returns for investors.