Neos Enhanced Income Cash Alternative ETF (CSHI)
ARCA ARCA Primary 
An Investor's Guide to Understanding Yield
A broad array of strategies now exist for income investors looking to expand or diversify their portfolio. Understanding the different types of yield and what they measure may allow for better alignment with desired investment outcomes.
CSHI: Helped By The Equity Rally (Rating Upgrade)
The Neos Enhanced Income Cash Alternative ETF has delivered a 5.45% total return in 2024, aided by the equity market rally. CSHI employs an options overlay strategy with S&P 500 put spreads, posing a risk if the index drops more than -6% as its current composition highlights. Despite an active management and a 46 bps yield over T-Bills, the ETF's risk in a black swan event makes it a 'Hold'.
Balance Your Duration Risk With CSHI
Fed interest rate cuts continued this month, causing many investors to look to opportunities in longer duration bond strategies. However, Fed Chair Jerome Powell also reinforced the regulatory agency's cautious approach to rate cuts, particularly looking ahead.
CSHI: T-Bill And Options Income ETF, Solid 5.9% Yield And Performance
CSHI invests in T-bills and S&P 500 option spreads to generate premiums and income. It's strategy results in a 5.9% yield, slightly higher than that of t-bills. Risks are marginally higher too, although there have been no real drawdowns since inception. CSHI is a solid cash ETF, but with cuts looming, investors might consider transitioning away from these in the coming months.
CSHI: Great Place To Park 'Longer' Term Cash
The NEOS Enhanced Income 1-3 Month T-Bill ETF is ideal for longer-term cash positions, offering higher returns with minimal risk. CSHI's strategy involves holding U.S. 1-3 month treasury bills and selling conservative SPX put spreads, yielding 1-1.5% above treasury rates. CSHI is suitable for cash held indefinitely for future opportunities, but may not be ideal for immediate liquidity needs or during rate cuts.
How to Keep Cash Attractive Even as Rates Fall
One of the most mentioned statistics in financial markets this year is that there's over $6 trillion in cash sitting in money market accounts. That figure steadily increased over the course of 2024.
The Tax Implications of Your Short-Term Investments
As tax season draws nearer, advisors and investors increasingly look to their portfolio to optimize taxation. Given the surge of flows into short-term investments in the last year and a half, understanding the tax implications of these various assets may allow for better portfolio optimization and opportunity.
Why CSHI Outshines BOXX And Traditional Cash Investments
CSHI has outperformed T-bills and HYSAs by over 1.3% higher returns through integrating a strategic put spread options strategy. While CSHI's yield is taxed as ordinary income rates, its effective return still outperforms BOXX and HYSAs after taxes. CSHI provides consistent monthly income distributions and better liquidity over BOXX, making it a more attractive short-term cash management solution despite potential rate cuts affecting future yields.
Cash Alternatives ETF CSHI Crosses $500 Million
In a year of volatility and risk, cash alternatives continue to prove a notable choice by investors. The NEOS Enhanced Income 1-3 Month T-Bill ETF (CSHI) recently crossed $500 million in AUM this week with distribution yields above 5.5%.
Stay Flexible in the Current Market With This Active Income ETF
With the capital markets hanging on the U.S. Federal Reserve's every move, staying flexible in the current environment is necessary. That said, consider an active fund option in the NEOS Enhanced Income 1-3 Month T-Bill ETF (CSHI).
