Gold pays no income. That is the trade-off every investor accepts when they buy a traditional gold ETF.
Market uncertainty and elevated risks favor defensive positioning over growth-focused indices like the S&P 500 and Nasdaq-100. Because of all of this uncertainty, the overall volatility levels have increased, making option-based strategies more attractive. I see a huge merit in deploying capital into OTM covered calls, which strike the balance between defense and exposure to rich option premium income.
Gold's indomitable run has carried over into 2026 and the stars are aligning for more upside. Attribute some of that bull case to strong gold ETF inflows around the world.
In any given year, hundreds of new ETFs come to market. One fund that stood out in 2025 is the NEOS Gold High Income ETF (IAUI), which debuted last June.
NEOS Gold High Income ETF earns a Buy rating for its strong drawdown mitigation and income generation, especially in flat or volatile gold markets. IAUI's dynamic, actively managed covered call strategy leverages synthetic gold exposure, freeing cash for money markets and treasuries to enhance returns. The current portfolio structure uses partial, laddered call coverage, balancing upside participation with premium income and risk management.
Following a year in which gold notched more than 50 record highs, some investors may be apprehensive about how much bullishness the yellow metal has left in its 2026. Fortunately, the prevailing wisdom among banks and other professional market participants is that gold is in for another impressive showing in 2026.
NEOS Gold High Income ETF (IAUI) offers exposure to gold and U.S. government debt, enhanced by a covered call strategy for high income. IAUI delivered a 15.5% total return since inception, outperforming long bonds but underperforming gold due to capped upside from options. I rate IAUI a buy, favoring its income generation in a rangebound-to-bullish gold environment, with a 6.87% yield and tactical covered calls.
Last year brought another record-setting avalanche of new ETF launches. Some of those rookie ETFs got off to impressive starts while the jury is still out on others.
The odds for a serious correction are not low. In this context, high-yield investing might not sound as the smartest idea, especially for durable or retirement income portfolios. Fortunately, in markets everything is not black or white.
NEOS Gold High Income ETF offers a covered call strategy on gold, targeting high monthly income and potential appreciation. IAUI delivers a 12.53% distribution rate, with approximately 85% of distributions classified as return of capital. The fund stands out due to its straightforward structure and is managed by a team with a strong track record in covered call ETFs.
NEOS Gold High Income ETF offers a 12% annualized yield and monthly distributions by selling covered calls on gold ETPs. IAUI is best suited for periods of gold price consolidation, providing steady income and potential outperformance versus IAU during sideways markets. While IAUI underperforms during strong gold rallies, its drawdowns are milder, and the fund balances income with capital appreciation.
Gold has doubled in price in the past two years.