The NEOS Nasdaq-100 High Income ETF (QQQI) is an exchange-traded fund (ETF) that combines exposure to the Nasdaq-100 Index with advanced options strategies to generate high monthly income in a tax-efficient manner, with the potential for equity appreciation12 Here are the key points about QQQI:
- Investment Objective: QQQI aims to distribute high monthly income generated from investing in the constituents of the Nasdaq-100 Index and implementing a data-driven call option strategy1. This approach allows the fund to generate income while maintaining exposure to the underlying index.
- Options Strategy: The fund employs a call option strategy that may include both sold and purchased NDX index options. This strategy can provide the opportunity for upside capture in rising equity markets while generating income through options premiums12.
- Tax Efficiency: QQQI utilizes options classified as section 1256 contracts, which are subject to lower 60/40 tax rates. This tax-efficient approach includes active tax-loss harvesting opportunities12.
- Distribution Rate: The distribution rate for QQQI is 13.92% as of April 30, 2025, with a 30-Day SEC yield of 0.23%1. This high income focus sets QQQI apart from traditional index-tracking ETFs.
- Market Performance: QQQI has a market price of $50.28, with a net asset value (NAV) of $50.271. The fund has a cumulative annualized NAV performance of 2.08% over the past year, with a market price performance of 10.16%8.
- Awards and Recognition: QQQI has been awarded "Best New Active ETF" at the 2025 ETF.com Awards, recognizing its innovative strategy and strong performance since inception67.
In summary, QQQI is an ETF that focuses on generating high monthly income through a combination of Nasdaq-100 exposure and advanced options strategies. Its tax-efficient approach and potential for equity appreciation make it an attractive option for income-focused investors seeking a balance between growth and income generation.
6/5/2025 06:25pm
