NEOS Nasdaq-100 High Income ETF’s 14% yield largely consists of return of capital, deferring taxes but capping upside.
The NEOS Nasdaq-100 High Income ETF (QQQI) distributed $0.6589 per share on May 22, 2026, with 98 percent classified as return of capital rather than income. This structure defers tax liabilities but reduces cost basis for investors.
QQQI underperformed the Nasdaq-100 (QQQ) by 6 percentage points over the past year, as its call-writing strategy limits gains during market rallies. The fund holds mega-cap stocks like NVIDIA, Apple, and Microsoft while selling options to generate premiums.
The approach appeals to taxable-account retirees seeking steady payouts but may not suit investors prioritizing growth or straightforward tax treatment. Alternatives like JPMorgan’s JEPQ offer similar strategies at lower expense ratios.