Recent data indicate approximately $8 trillion sits in money market accounts and funds. That sum staggers, when considering how well equities have performed this year.
On this episode of the “ETF of the Week” podcast, VettaFi's head of research, Todd Rosenbluth, discussed the NEOS Enhanced Income 1-3 Month T-Bill ETF (CSHI) with Chuck Jaffe of Money Life. The pair discussed several topics related to the ETF, in order to give investors a deeper understanding of it.
VettaFi's Head of Research Todd Rosenbluth discussed the NEOS Enhanced Income 1-3 Month T-Bill ETF (CSHI) on this week's “ETF of the Week” podcast with Chuck Jaffe of “Money Life.” For more news, information, and analysis, visit the Tax Efficient Income Content Hub.
| Name | Quantity | Cost | Value | Profit ($) | Gain (%) |
|---|---|---|---|---|---|
| DM Dipen Mehta Invst LLC | 5,607 | $279,116.46 | $278,639.86 | -$476.6 | -0.17% |
| TSR Ted S. Rich RiverTree Advisors LLC | 31,883 | $1.59M | $1.58M | -$1,115.91 | -0.07% |
| SK Samira Kadam Cherry Creek Investment Advisors Inc. | 22,056 | $1.1M | $1.1M | -$1,448.29 | -0.13% |
| CAL CoreCap Advisors LLC CoreCap Advisors LLC | 25,920 | $1.29M | $1.29M | -$234.82 | -0.02% |
| NS Nicholas Shaheen FSA Advisors Inc. | 106,020 | $5.27M | $5.27M | -$1,891.96 | -0.04% |
| ARCA Exchange | US Country |
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.
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.