It's tempting to go all-in with a massive allocation into the ultra-high-yield QQQI ETF.
The QQQI ETF is structured around NASDAQ-100 stocks, providing exposure to leading tech and growth companies. The ETF writes covered calls to increase the yield on its portfolio. The fund is extremely tax efficient because 60% of its income is taxed as long-term capital gains.
On this month's NEOS Investments' Monthly Income Podcast, ETF industry veteran Tom Lydon dug into the award-winning NEOS Nasdaq 100 High Income ETF (QQQI) with NEOS co-founders and managing partners Troy Cates and Garrett Paolella.
NEOS NASDAQ-100(R) High Income ETF's strong historical performance, consistent payouts, and smart construction make the ETF an attractive income pick. While volatility is typically a big negative for covered call funds, QQQI has performed well in recent months, giving us confidence for the future. We're re-iterating our 'Buy' rating on QQQI.
QQQI offers a compelling 15% dividend yield through a covered call strategy on NASDAQ-100 stocks, making it attractive for income-focused investors. The ETF stands out by outperforming peers like JEPQ, QYLD, and QDTY in both total return and yield since its inception. Unlike many high-yield covered call ETFs, QQQI combines strong income with price appreciation potential, avoiding the usual downward price bias.
QQQI has several alternatives tracking the NDX while generating returns through Call Spreads. QQQI does well in tracking upsides while outperforming in adverse market cycles. The ETF can be used to ride NDX at lower volatility while generating decent income and retaining exposure to long term NDX growth.
QQQI remains a standout for its tax efficiency and ability to keep pace with the Nasdaq 100. The fund successfully navigated the April crash and recovery with grace. The fund's covered call strategy generates a nearly 14% yield, with most distributions as return-of-capital, making it highly suitable for taxable accounts. Active management introduces some risks, especially around dividend variability and option timing, so position sizing is critical for investors.
Crowned the 2025 Best New Active ETF, QQQI has skyrocketed to $1.5B in AUM since January 2024 inception with a 16.5% annualized return, dominating 300+ new ETFs on the market. QQQI has outperformed QYLD and JEPQ in total returns, price returns, and yield while offering better tax efficiency. QQQI has tracked closely to it's underlying QQQ through the 2024 bull run and 2025 correction, showcasing the ability to extract monthly income from the index while participating in the upside appreciation.
Both the NEOS Nasdaq-100 High Income ETF (QQQI) and the JPMorgan Nasdaq Equity Premium Income ETF (JEPQ) provide exposure to high-quality dividend-paying companies.
The popularity and embrace of options-based income strategies by investors picked up in outsized ways in the last few years. NEOS Investments continues to shine in an increasingly competitive space, exemplified by its now award-winning NEOS Nasdaq 100 High Income ETF (QQQI).
NEOS NASDAQ-100 High Income ETF has consistently offered significant income and good overall returns, outperforming the Nasdaq-100 index since its inception in January 2024. The fund's two-part options strategy and tax advantages make it a strong choice for income investors, even during recent market volatility. QQQI's expense ratio is 0.68%, with a trailing yield of 16.23%, and it has $1.21 billion in assets under management.
QQQI offers a high dividend yield of 14.4% but has limited upside due to its covered call strategy, making it suitable for income-focused investors. The ETF's price has declined by 7.7% over the past year, but total return, including distributions, is 6.5%. QQQI's option strategy may not sustain distributions in prolonged market declines, posing a risk of capital erosion.