QQQI remains a standout for its tax efficiency and ability to keep pace with the Nasdaq 100. The fund successfully navigated the April crash and recovery with grace. The fund's covered call strategy generates a nearly 14% yield, with most distributions as return-of-capital, making it highly suitable for taxable accounts. Active management introduces some risks, especially around dividend variability and option timing, so position sizing is critical for investors.
Crowned the 2025 Best New Active ETF, QQQI has skyrocketed to $1.5B in AUM since January 2024 inception with a 16.5% annualized return, dominating 300+ new ETFs on the market. QQQI has outperformed QYLD and JEPQ in total returns, price returns, and yield while offering better tax efficiency. QQQI has tracked closely to it's underlying QQQ through the 2024 bull run and 2025 correction, showcasing the ability to extract monthly income from the index while participating in the upside appreciation.
Both the NEOS Nasdaq-100 High Income ETF (QQQI) and the JPMorgan Nasdaq Equity Premium Income ETF (JEPQ) provide exposure to high-quality dividend-paying companies.
The popularity and embrace of options-based income strategies by investors picked up in outsized ways in the last few years. NEOS Investments continues to shine in an increasingly competitive space, exemplified by its now award-winning NEOS Nasdaq 100 High Income ETF (QQQI).
NEOS NASDAQ-100 High Income ETF has consistently offered significant income and good overall returns, outperforming the Nasdaq-100 index since its inception in January 2024. The fund's two-part options strategy and tax advantages make it a strong choice for income investors, even during recent market volatility. QQQI's expense ratio is 0.68%, with a trailing yield of 16.23%, and it has $1.21 billion in assets under management.
QQQI offers a high dividend yield of 14.4% but has limited upside due to its covered call strategy, making it suitable for income-focused investors. The ETF's price has declined by 7.7% over the past year, but total return, including distributions, is 6.5%. QQQI's option strategy may not sustain distributions in prolonged market declines, posing a risk of capital erosion.
The NEOS Nasdaq 100 High Income ETF (QQQI) surpassed $1 billion in AUM last week as investors increasingly look to options-based strategies amidst volatility. The fund offers high income with a notable distribution rate, and layers of tax efficiency for investors.
The NEOS Nasdaq-100 High Income ETF has outperformed the Nasdaq 100 index during recent market corrections, validating its covered call strategy. The fund sports a current distribution rate of 14%, despite variability in payments, and has successfully kept that up over its lifespan. I discuss the strategy behind the fund, and the implications it has for investors.
The recent market pullback presents an opportunity to invest in QQQI, which offers a 14.96% yield and potential for capital appreciation. QQQI's 2-leg covered call strategy allows for income generation and upside potential, outperforming traditional covered call ETFs like QYLD. Despite recent declines, QQQI has consistently delivered stable monthly income and is poised for recovery as the Fed is expected to cut rates.
2025 could bring even greater adoption of options-based strategies as investors look to navigate heightened and ongoing market volatility. Call-writing strategies appear well-positioned this year for their ability to earn higher premiums and income when volatility spikes.
On this episode of the “ETF of the Week” podcast, VettaFi's Head of Research Todd Rosenbluth discussed the NEOS Nasdaq 100 High Income ETF (QQQI) with Chuck Jaffe of Money Life. The pair discussed several topics related to the fund to give investors a deeper understanding of the ETF overall.
NEOS NASDAQ-100(R) High Income ETF's flexible call option strategy was initially attractive, but new 0DTE covered call funds like QDTE offer superior income and total returns. QDTE leverages high implied volatility of 0DTE options to generate higher premium income and acts as a 'long-only' fund overnight, capturing market gains. QDTE has delivered a 35.7% distribution yield and 20.9% total returns since inception, outperforming QQQI and other covered call funds.