NEOS MLP & Energy Infrastructure High Income ETF reports 14.7% distribution rate, outpacing traditional energy and S&P 500 yields.
The NEOS MLP & Energy Infrastructure High Income ETF (MLPI) has amassed $638 million in assets since its December launch, driven by a 14.7% trailing-12-month distribution rate. The fund leverages a covered call strategy to deliver yields nearly double those of older MLP ETFs like the Alerian MLP ETF (AMLP), which offers 7.7%.
MLPI’s yield also dwarfs the S&P 500’s dividend yield by more than 14 times and triples the payout of the largest basic energy ETF. The fund’s rapid growth reflects broader demand for options-based income ETFs, a segment expanding amid investor appetite for high-yield alternatives.
While covered call ETFs provide elevated income, they carry trade-offs, including potential caps on capital appreciation during market rallies.