NEOS S&P 500 High Income ETF (SPYI)
BATS BATS Primary 
SPYI: Save On Taxes With A Double-Digit Yield
The NEOS S&P 500 High Income ETF is a covered call fund with a unique twist: tax efficient Section 1256 contracts. These contracts allow a portion of short-term returns to be taxed as long-term capital gains. The strategy is well optimized for covered call funds, which trade frequently. The fund's covered call strategy increases income compared to just holding the S&P 500, and also serves as a partial hedge.
11%-Yielding One-Stop-Shop For Retiring On Dividends, With A Catch: SPYI
Neos S&P 500(R) High Income ETF offers a high monthly yield (~12% annualized) and diversified S&P 500 exposure, appealing for passive retirement income. However, this yield and diversification come with a catch. I detail the strengths and weaknesses of SPYI and share a potentially better approach to retiring on passive income from dividends.
An S&P 500 ETF With Income & Upside
The S&P 500 is a lot of things. In ETF form, that index represents an efficient, often cost-effective avenue for investors looking to tap into a trusted gauge of the largest U.S.-based companies.
SPYI Remains Attractive In A Yield Starved Environment
The Neos S&P 500 High Income ETF (SPYI) stands out for its high yield and partial market upside participation, making it attractive for income investors. SPYI's unique two-leg option strategy enables double-digit annualized yields while still capturing some equity appreciation, unlike many traditional covered-call ETFs. In 2025, SPYI has delivered a double-digit yield on cost and a total return nearly matching its closest peer, outperforming other popular covered-call ETFs in yield.
10-14% Yield from SPYI and QQQI: Worth the Trade-Offs or Too Good to Be True?
There has been plenty of interest in the specialty (or premium) income ETF scene lately.
SPYI's Rough Edges And A Golden Fix
I maintain my Buy rating on SPYI for its drawdown protection and income, but highlight its yield sustainability limitations in flat or bearish markets. Combining SPYI with GLDI (gold-based option income ETF) in a 50:50 split smooths drawdowns and enhances risk management, though not perfectly. The combined portfolio maintains overall yield but introduces more payout volatility; I accept this tradeoff for better capital stability.
SPYI: Recent Performance Shows Why This ETF Is Becoming The Gold Standard
SPYI's innovative covered-call strategy consistently outperforms peers by capturing more S&P 500 upside while maintaining similar downside risk. The fund's approach—selling out-of-the-money calls and selectively buying calls—delivers solid income and total returns, even during volatile markets. SPYI maintained stable monthly distributions through recent market sell-offs, proving its resilience and commitment to consistent payouts.
SPYI: Sacrificing Long-Term Gains For Short-Term Income Defeats The Purpose
SPYI's extra yield comes at the cost of holding both equity risk and limited price appreciation, making it unattractive for long-term investors seeking material total returns. A 50/50 mix of S&P 500 equities and high-yielding corporate bonds has historically matched SPYI's total return, while taking on less capital risk. SPYI's structure exposes investors to significant drawdowns in bear markets, while management fees and option expenses/limitations further erode returns.
SPYI Offers Yield A-Plenty
SPYI has a far higher yield than that of the S&P 500 index, which it is built on. If everything goes well, then investors will collect a lot of income with SPYI. The fund also provides a small amount of downside protection.
SPYI a 2025 Top S&P 500 Covered Call ETF
In the enhanced volatility of 2025 markets, the NEOS S&P 500 High Income ETF (SPYI) maintains notable outperformance within its covered call ETF peer group. The strategy's high distribution rates and enhanced tax-efficiency continues to draw advisor and investor attention and flows.
SPYI VS. GPIX: Declaring The New King Of S&P 500 Income ETFs (Rating Upgrade)
I revisit SPYI and GPIX ETFs after a rapid bear cycle to assess their performance and differences. Both funds experienced the market downturn and subsequent recovery, providing a real-world test of their strategies. I compare their returns over various parts of the cycle to show the strengths and weaknesses of these funds and their unique strategies.
SPYI: Time To Be A Bit More Defensive
The market appears overbought amid macro uncertainties, making option income ETFs attractive tools for investors seeking stability. Neos S&P 500 High Income ETF stands out as my top pick for current conditions, rated a buy for those targeting moderate gains through 2025. A larger underlying portfolio, like SPYI's 500 holdings, offers better volatility management during economic slowdowns than narrower funds.
