The NEOS S&P 500 High Income ETF delivers monthly distributions at a 12% annualized yield without significant share price decline.
The NEOS S&P 500 High Income ETF (SPYI) has grown to $6.9 billion in assets, offering a 12% annualized yield through monthly distributions at roughly $53 per share. The fund has maintained uninterrupted payouts since August 2022, avoiding the net asset value erosion seen in similar covered-call strategies like QYLD.
SPYI’s 2023 return of nearly 19% closely tracked the S&P 500’s 20% gain, driven by an options overlay strategy that sells out-of-the-money calls while capping upside risk. However, a sustained drop in the VIX below 15 could reduce distributions below $0.51 per share, a threshold investors are advised to monitor.
The fund’s tax-efficient structure, including return-of-capital treatment for portions of distributions, has attracted income-focused investors seeking S&P 500 exposure with regular payouts.