I reiterate my strong buy rating on QQQI due to its consistent income, strong total returns, and flexible options strategy. QQQI's active management and dynamic covered call approach have enabled it to outperform traditional covered call ETFs, especially during volatile and rallying markets. The fund offers a high yield (13.85%) and tax advantages, while maintaining steady payouts even in challenging environments.
QQQI offers monthly income via options on Nasdaq 100 constituents, but its returns lag behind QQQ, which tracks the same index without options. Top holdings like NVDA, MSFT, and AAPL are strong, but QQQI's options strategy fails to deliver superior performance or justify higher fees. QQQI marginally outperforms QQQ during market downturns, but overall, QQQ provides better long-term returns with lower complexity and cost.
QQQI piqued my interest as rising NASDAQ valuations make covered-call funds attractive. But I see better alternatives such as QYLD and JEPQ. Compared to these funds, QQQI has higher fees and lower liquidity.
QQQI stands out among high-yield ETFs by delivering both strong income and capital appreciation, outperforming peers like JEPQ and QYLD in recent volatile markets. The fund's unique call spread strategy allows for recurring double-digit yields while maintaining upside potential, unlike traditional covered call ETFs that cap gains. NEOS NASDAQ-100 High Income ETF's portfolio is heavily weighted toward high-growth big-tech names, positioning it to benefit from expected earnings growth and a continued bull market.
Advisors and investors wanting to enhance existing tech exposures or harness volatility in the category for income should consider the award-winning NEOS Nasdaq 100 High Income ETF (QQQI). The fund remains competitive and a strong performer within its category since inception.
QQQI is a relatively new covered call ETF that has been gaining in popularity this year. QQQI currently has limited active exposure vs QQQ. Its performance is lagging the QQQ but without providing much downside protection either. After-tax, QQQI would fare even worse vs QQQ. QQQI's option writing decisions relies on an opaque, rules-based model. We don't know anything about how well it does in a full market cycle due to a limited performance history.
It's tempting to go all-in with a massive allocation into the ultra-high-yield QQQI ETF.
The QQQI ETF is structured around NASDAQ-100 stocks, providing exposure to leading tech and growth companies. The ETF writes covered calls to increase the yield on its portfolio. The fund is extremely tax efficient because 60% of its income is taxed as long-term capital gains.
On this month's NEOS Investments' Monthly Income Podcast, ETF industry veteran Tom Lydon dug into the award-winning NEOS Nasdaq 100 High Income ETF (QQQI) with NEOS co-founders and managing partners Troy Cates and Garrett Paolella.
NEOS NASDAQ-100(R) High Income ETF's strong historical performance, consistent payouts, and smart construction make the ETF an attractive income pick. While volatility is typically a big negative for covered call funds, QQQI has performed well in recent months, giving us confidence for the future. We're re-iterating our 'Buy' rating on QQQI.
QQQI offers a compelling 15% dividend yield through a covered call strategy on NASDAQ-100 stocks, making it attractive for income-focused investors. The ETF stands out by outperforming peers like JEPQ, QYLD, and QDTY in both total return and yield since its inception. Unlike many high-yield covered call ETFs, QQQI combines strong income with price appreciation potential, avoiding the usual downward price bias.
QQQI has several alternatives tracking the NDX while generating returns through Call Spreads. QQQI does well in tracking upsides while outperforming in adverse market cycles. The ETF can be used to ride NDX at lower volatility while generating decent income and retaining exposure to long term NDX growth.