Neos S&P 500 High Income ETF’s 12% yield is largely principal repayment, not income, per latest filings.
Neos S&P 500 High Income ETF (CBOE:SPYI) reported 95% of its year-to-date distributions as return of capital, not earned income, according to its latest 19a-1 notice. The fund’s advertised 12% yield primarily repays investors’ principal rather than generating income.
SPYI uses an options overlay on the S&P 500 to fund monthly payouts, with premiums, dividends, and option gains contributing. The fund holds $10.07 billion in assets and trades near $53.98 as of June 4, 2026, with a 0.68% expense ratio. Year-to-date, SPY underperformed SPYI by 3 percentage points, while JEPI offers a lower return-of-capital alternative.
A retiree with $200,000 in SPYI may expect $24,000 annually at the headline yield, but tax filings will reflect the return-of-capital structure, altering the economic reality of the payouts.