Market volatility remains an elevated risk in the latter half of the year. Investors looking to harness Nasdaq volatility for income would do well to consider the NEOS Nasdaq 100 High Income ETF (QQQI), given its outperformance among peers.
QQQI ETF is gaining popularity among income investors, adding $300.58 million in AUM in less than 4 months. QQQI utilizes call option overlay strategy to generate income, on track to generate around 14% of distributed income in the first 12 months. Risks include concentration on Nasdaq 100, potential impact of tech correction, and opportunity costs compared to S&P 500 or Nasdaq.
The NEOS Nasdaq 100 High Income ETF (QQQI) hit six-months of trading at the end of last month. The fund offers both tax-efficient income and noteworthy upside capture since inception.
The recently launched NEOS Russell 2000 High Income ETF (IWMI) just crossed its first full month of trading. The fund logged a distribution yield of 14.03% in July, making it an attractive entrant into the small-cap and income space.
Dividend investors now have more options to choose from. Although dividend stocks have become more attractive, there is still merit to considering growth. Since the interest rates are high, going long growth does not necessarily have to come with a huge sacrifice on the yield.
QQQI Or JEPQ, Which Income Fund Is Better?
NEOS NASDAQ-100(R) High Income ETF is an actively managed income-seeking vehicle that relies on Nasdaq 100 based option strategies. The beauty of QQQI is its ability to accommodate high double-digit distribution yields without completely foregoing the price appreciation potential. An additional element, which enhances the attractiveness of QQQI, is the combination of return potential stemming from rising VIX and being exposed to the Nasdaq 100 index.
NEOS Investments launched its newest options-based income ETF today, this time with a focus on small-caps. The Russell 2000 High Income ETF (IWMI) is the fifth entry to the tax-efficient, high income ETF suite offered by the firm.
QQQI is a new covered call ETF that aims to distribute high monthly income aligned with the Nasdaq-100 index. QQQI uses an out-the-money option strategy, allowing for potential upside price movement to be captured. This is a better alternative to at-the-money option strategies. The ETF has a diverse portfolio with a heavy focus on the tech sector, which may benefit from higher levels of volatility.
Market volatility persists heading into the summer months as investors weigh the impact of a slowing economy. Investors looking to increase income in their tech exposures and benefit from volatility continue buying into the NEOS Nasdaq 100 High Income ETF (QQQI) since its launch in late January.
Equity investors must currently contend with soaring valuations, concentration risk, volatility, and more within stocks. As more investors look to alternatives for opportunity, covered call ETFs prove increasingly popular, and for good reason.