Neos Enhanced Income Cash Alternative ETF (CSHI)
ARCA ARCA Primary Summary
CSHI Chart
How to Maintain Decent Cash Yields as Interest Rates Decline
After a few years of enjoying eye-catching interest rates on CDs, money markets, and high-yield savings accounts, investors who like to stash some cash need to confront the reality that those previously impressive yields will decline as the Fed lowers interest rates. Currently, the average high-yield savings account yields between 4.20% and 4.30%.
CSHI: Alternative Strategy For Exposure To The Short End Of Yield Curve
NEOS Enhanced Income 1-3 Month T-Bill ETF offers exposure to short-term T-Bills with enhanced income from S&P 500 put option strategies. CSHI provides a robust 5.12% forward yield, monthly distributions, high liquidity, and a low 39bps expense ratio, making it suitable for fixed income or an alternative to money market funds. The ETF's unique approach combines T-Bill stability with equity option income, but investors should consider risks from Fed rate changes and market volatility.
Mind the Cracks: Invest for Uncertainty With CSHI
June's CPI print revealed heating inflation in a number of tariff-sensitive sectors. While consumers remain surprisingly resilient, uncertainty lingers as to the path of tariff-driven inflation in the months to come.
Neos Enhanced Income Cash Alternative ETF (CSHI) FAQ
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Neos Enhanced Income Cash Alternative ETF Profile
| ARCA Exchange | US Country |
Overview
The fund is an innovative financial instrument that operates as an actively-managed Exchange-Traded Fund (ETF). It is designed for investors seeking to optimize their investment strategy by capitalizing on the stability of short-term T-Bills and the potential income generated from options trading. By focusing on 1-3 month T-Bills and S&P 500® Index put options, the fund aims to offer a balanced approach to income generation and capital preservation. The dual strategy of investing in low-risk government securities while engaging in options trading allows for an income boost to the fund, which is not solely reliant on the yields from the Underlying Investments.
Products and Services
- Investment in 1-3 Month T-Bills
- ETFs with Exposure to 1-3 Month T-Bills
- Selling and Purchasing S&P 500® Index Put Options
As a primary strategy, the fund invests in 1-3 month Treasury Bills (T-Bills), which are short-term U.S. government debt securities. These T-Bills are known for their stability and low risk, making them an attractive foundational asset for the fund. By holding these securities, the fund aims to preserve capital while ensuring liquidity, which is critical for the active management component of the strategy.
In addition to direct investment in T-Bills, the fund may also invest in other ETFs that have substantial exposure to 1-3 month T-Bills. This allows for diversification within the short-term fixed-income space, spreading risk across various issuers and maturities within the confines of a very short-term investment horizon. It is an efficient way to gain broader exposure to the market for short-duration government securities without needing to individually select T-Bills.
To generate additional income beyond what is received from the underlying T-Bill investments, the fund engages in selling and purchasing put options on the S&P 500® Index. This strategy involves writing put options to collect premiums, which can enhance the overall yield of the fund. Simultaneously, the fund may purchase put options to protect against downside risk, creating a balanced approach to options trading that seeks to generate income while mitigating potential losses.
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