The NEOS Nasdaq 100 High Income ETF (QQQI) and Amplify CWP Growth & Income ETF (QDVO) both deliver double-digit distribution rates and share price growth. I focus on covered call strategies for their blend of income and growth, accepting some upside trade-off for consistent yield. QQQI and QDVO differ in return composition, despite similar total returns, making fund selection nuanced for income-focused investors.
The NEOS Nasdaq-100 High Income ETF ( NASDAQ :QQQI ) is one of the highest-yielding options ETFs.
NEOS Nasdaq-100 High Income ETF remains a robust income vehicle, leveraging a novel options overlay to deliver strong yields and partial upside capture. QQQI's current entry point is unattractive due to elevated valuations (blended P/OI ~50x) and extreme concentration in top NASDAQ names. Market volatility and sector rotation away from technology heighten short-term risks and diminish forward-looking performance prospects for QQQI.
| Name | Quantity | Cost | Value | Profit ($) | Gain (%) |
|---|---|---|---|---|---|
| DI David Izzi Brown, LISLE/CUMMINGS Inc. | 3,525 | $180,984.77 | $196,197.97 | $15,213.2 | 8.41% |
| JD Jim Dushek HARBOUR INVESTMENTS Inc. | 3,093 | $159,485.95 | $171,471.59 | $11,985.64 | 7.52% |
| WDW William Dudley Webb Jr. WORLD EQUITY GROUP Inc. | 19,501 | $1.03M | $1.09M | $56,976.44 | 5.54% |
| PP Philip Perry FLAGSTAR ADVISORS Inc. | 7,860 | $390,563.4 | $439,138.2 | $48,574.8 | 12.44% |
Chilton Investment Chilton Investment Co Inc. | 50,215 | $2.5M | $2.78M | $288,485.52 | 11.56% |
| NASDAQ (NMS) Exchange | US Country |
The fund operates as an actively-managed exchange-traded fund (ETF) with a clear investment focus on replicating the performance and strategies linked to the Nasdaq-100® Index. It differentiates itself by not only investing in a selection of stocks that are part of this renowned index but also involves a sophisticated call options strategy. This strategy includes written (sold) call options on the Nasdaq-100® Index itself, showcasing an innovative approach to portfolio management and potential income generation. The fund commits to a significant investment in its core strategy, pledging that at least 80% of its net assets, alongside any borrowings made for investment purposes, are allocated towards securities or derivatives of companies listed on the Nasdaq-100® Index. This investment directive underlines the fund's commitment to closely follow the performance and composition of its benchmark index, ensuring that it remains a viable option for investors seeking exposure to some of the largest and most influential technology and non-financial companies listed in the United States.
The fund maintains a comprehensive portfolio of stocks that are constituents of the Nasdaq-100® Index. This selection aims to mirror the performance of the index, which is predominately comprised of leading companies in the technology sector alongside other non-financial sectors. By investing in this portfolio, investors gain exposure to a wide array of pioneering companies that drive innovation and economic growth.
Alongside traditional stock investments, the fund implements a call options strategy that involves writing (selling) call options on the Nasdaq-100® Index. This approach is designed to generate additional income for the fund through the premiums received from selling the options. It also allows the fund to potentially hedge some of the risks associated with its equity positions, providing an innovative risk management tool while striving to enhance returns for investors.