NEOS S&P 500 High Income ETF delivers consistent monthly payouts and 18.9% total return over the past year without eroding net asset value.
The NEOS S&P 500 High Income ETF (SPYI) has amassed $10 billion in assets, offering an 11.9% distribution yield and 18.9% total return over the past year. The fund has maintained monthly payouts without missing a payment or experiencing NAV bleed since inception.
SPYI trails the S&P 500 by roughly 4 percentage points annually but provides a higher yield than the 4.50% on 10-year Treasuries. The ETF employs a covered call strategy, selling index call options against S&P 500 exposure to generate premiums distributed monthly. Its 0.68% expense ratio and tax-efficient Section 1256 contracts appeal to income-focused investors.
Investors have flocked to SPYI for S&P 500 exposure with steady cash flow, though questions remain about the sustainability of its high yield relative to future returns.