Summary
SPYI's 12% Payout Creates a Tax Bill That Could Die With You
SPYI's 12% monthly payout has made it one of the fastest-growing ETFs in the country, but the tax math buried in its distribution notices reveals a very specific type of investor who benefits and everyone else who quietly loses ground.
SPYI's 12% Yield Hides the Real Cost: 95% of Last Year's Payout Was Your Own Capital Coming Back
If you own NEOS S&P 500 High Income ETF (CBOE:SPYI) for the roughly 12% monthly payout, look at your last statement and ask a harder question: how much of that check was income, and how much was the fund handing back the money you already gave it?
Two Yields, One SPYI ETF: 12% for the Marketing, 0.47% for the SEC
The NEOS S&P 500 High Income ETF (BATS:SPYI) publishes two yield figures that appear to belong to different funds.
NEOS S&P 500 High Income ETF Investors
| Name | Quantity | Cost | Value | Profit ($) | Gain (%) |
|---|---|---|---|---|---|
| DI David Izzi Brown, LISLE/CUMMINGS Inc. | 32,000 | $1.59M | $1.69M | $101,898.26 | 6.41% |
| BZ Brandon Zatopek Commonwealth Equity Services LLC | 100,642 | $5.34M | $5.45M | $109,723.56 | 2.05% |
| PB Patricia Buchholtz ECLECTIC ASSOCIATES Inc. /ADV | 10,080 | $530,596.8 | $532,828.8 | $2,232 | 0.42% |
| JD Jim Dushek HARBOUR INVESTMENTS Inc. | 18,617 | $931,139.37 | $1.01M | $75,854.16 | 8.15% |
| MA mason adams PVG ASSET MANAGEMENT Corp. | 46,032 | $2.31M | $2.43M | $121,030.31 | 5.23% |
NEOS S&P 500 High Income ETF (SPYI) FAQ
What is the stock price today?
On which exchange is it traded?
What is its stock symbol?
Does it pay dividends? What is the current yield?
What is its market cap?
Has NEOS S&P 500 High Income ETF ever had a stock split?
NEOS S&P 500 High Income ETF Profile
| BATS Exchange | US Country |
Overview
The fund is a distinctive actively-managed Exchange Traded Fund (ETF) that specifically aims to meet its investment objective through a dual strategy focused on equity and options. This fund builds its core by investing in a broad portfolio of stocks precisely mirroring the S&P 500® Index. This composition ensures a solid foundation in well-established companies that constitute the significant part of the U.S. stock market. In parallel, the fund adopts a sophisticated call options strategy to potentially enhance its returns and manage risk. This strategy involves a balance between written (sold) and long (bought) call options on the S&P 500® Index itself, providing a unique approach to equity investment through the strategic use of derivatives. The intent is to capture growth opportunities in the market while seeking to offer some level of protection against downturns through the covered call options, which may be included under certain conditions. This blend of direct stock investments and careful options trading forms the core of the fund's operation, targeting investors who are keen on S&P 500® exposure complemented by the potential income and hedging benefits of options strategies.
Products and Services
- Portfolio of Stocks from the S&P 500® Index
- Call Options Strategy
This product focuses on acquiring shares from a broad spectrum of companies included in the S&P 500® Index. The intent is to replicate the performance of this major U.S. stock market index, which comprises large-cap U.S. equities. By investing in a diversified portfolio that reflects the Index, the fund aims to provide steady growth potential to its investors over time.
The call options strategy employed by the fund is multifaceted, consisting of both written (sold) and long (bought) positions on the S&P 500® Index. This approach is designed to enhance the fund's income through premiums received on written options, while bought call options may offer leveraged exposure to potential index gains. In specific market conditions, the fund may also engage in covered call options, aiming to generate additional income while offering a hedge against potential declines in the underlying stock portfolio. This strategy seeks to balance risk and return by leveraging options in a way that complements the fund's equity holdings.
