NEOS NASDAQ-100(R) High Income ETF is an actively managed income-seeking vehicle that relies on Nasdaq 100 based option strategies. The beauty of QQQI is its ability to accommodate high double-digit distribution yields without completely foregoing the price appreciation potential. An additional element, which enhances the attractiveness of QQQI, is the combination of return potential stemming from rising VIX and being exposed to the Nasdaq 100 index.
NEOS Investments launched its newest options-based income ETF today, this time with a focus on small-caps. The Russell 2000 High Income ETF (IWMI) is the fifth entry to the tax-efficient, high income ETF suite offered by the firm.
QQQI is a new covered call ETF that aims to distribute high monthly income aligned with the Nasdaq-100 index. QQQI uses an out-the-money option strategy, allowing for potential upside price movement to be captured. This is a better alternative to at-the-money option strategies. The ETF has a diverse portfolio with a heavy focus on the tech sector, which may benefit from higher levels of volatility.
Market volatility persists heading into the summer months as investors weigh the impact of a slowing economy. Investors looking to increase income in their tech exposures and benefit from volatility continue buying into the NEOS Nasdaq 100 High Income ETF (QQQI) since its launch in late January.
Equity investors must currently contend with soaring valuations, concentration risk, volatility, and more within stocks. As more investors look to alternatives for opportunity, covered call ETFs prove increasingly popular, and for good reason.