NEOS Nasdaq-100 Hedged Equity Income ETF (QQQH) is rated a sell, despite delivering its promised monthly premium and downside hedge. QQQH has significantly underperformed both the Nasdaq-100 and its passive collar benchmark, compounding at 9.91% vs. 20.41% and trailing by 3.29% annually over five years. The fund's downside protection proved minimal, saving less than 2% in the worst quarter since 2008, while sacrificing substantial upside.
QQQH Is Not Broken, The Market Path Is
Amid hopes that the conflict in Iran will soon de-escalate, stocks rallied in recent days. This provided some much needed relief for the growth-heavy Nasdaq-100 Index (NDX).
| Name | Quantity | Cost | Value | Profit ($) | Gain (%) |
|---|---|---|---|---|---|
| BZ Brandon Zatopek Commonwealth Equity Services LLC | 26,993 | $1.51M | $1.48M | -$26,162.09 | -1.74% |
| JD Jim Dushek HARBOUR INVESTMENTS Inc. | 3,944 | $199,430.49 | $216,484.19 | $17,053.7 | 8.55% |
| MB Mark Bloom Anchor Capital Management Group Inc. | 14,000 | $683,480 | $749,504 | $66,024 | 9.66% |
| KMT Kirk M. Tokheim Ameritas Advisory Services LLC | 2,566 | $141,694.52 | $142,046.06 | $351.54 | 0.25% |
| CAL CoreCap Advisors LLC CoreCap Advisors LLC | 642 | $32,543.24 | $34,370.11 | $1,826.87 | 5.61% |
| NASDAQ (NMS) Exchange | US Country |
The NEOS Nasdaq-100 Hedged Equity Income ETF is an actively-managed exchange-traded fund based in the USA, designed for investors seeking to capitalize on the performance of some of the largest and most innovative companies listed on the Nasdaq stock market. By primarily investing in securities or derivative instruments linked to the securities of companies included in the Nasdaq-100 reference index, the ETF aims to provide investors with a strategic approach to equity income, while also applying certain hedging strategies to manage risk. This ETF seeks to achieve its investment objective by allocating at least 80% of its net assets into the designated assets, ensuring a focused yet diversified investment strategy.
At the core of NEOS Nasdaq-100 Hedged Equity Income ETF's offerings is its investment in securities or derivative instruments of companies included in the Nasdaq-100 index. This approach taps into the equity of leading technology and innovation-driven companies, aiming to offer growth potential and income through dividends.
The ETF employs hedging strategies to seek to mitigate risk and protect against market volatility. These strategies may involve the use of various derivative instruments to hedge against potential losses, aiming to provide a more stable investment outcome, particularly in uncertain market conditions.