QQQI vs. SPYI: Which NEOS ETF Offers Superior Income and Growth for 2026?

As 2026 approaches, investors seeking high-yield exposure to U.S. equities face a critical decision: should they prioritize the Nasdaq 100-focused QQQI (NEOS Nasdaq 100 High Income ETF) or the S&P 500-targeted SPYI (NEOS S&P 500 High Income ETF)? Both exchange-traded funds (ETFs) are engineered to deliver elevated dividend yields through structured products, but their risk profiles and income sustainability differ significantly. This analysis evaluates QQQI and SPYI through the lenses of dividend sustainability and risk-adjusted returns, offering actionable insights for income-focused investors navigating the 2026 market landscape.

Dividend Sustainability: QQQI's Edge in Yield, but at a Cost

QQQI has consistently outperformed SPYI in dividend yield, with a trailing twelve months (TTM) yield of 13.99% as of 2025, compared to SPYI's 11.94%. This 17% premium positions QQQI as a more attractive option for income seekers, particularly in a low-interest-rate environment where alternative yields remain scarce. However, the sustainability of these payouts warrants scrutiny.

The Nasdaq 100's concentration in high-growth technology stocks-QQQI's primary exposure-introduces volatility risks that could strain dividend consistency during market corrections. In contrast, SPYI's broader S&P 500 diversification across sectors and market capitalizations offers a more stable foundation for dividend continuity. While both ETFs leverage structured notes to enhance yields, QQQI's reliance on a narrower index may amplify its vulnerability to sector-specific downturns.

Risk-Adjusted Returns: QQQI's Sharper Edge

When evaluating risk-adjusted performance, QQQI demonstrates a clear advantage. Over the past three months (as of September 3, 2025), QQQI's Sharpe Ratio of 0.96 outperformed SPYI's 0.82, indicating superior returns per unit of total risk. Similarly, QQQI's Sortino Ratio of 1.55 versus SPYI's 1.34 highlights its superior ability to manage downside risk while preserving upside potential.

The Omega Ratio, a comprehensive measure of risk-return efficiency, also favors QQQI at 1.24 compared to SPYI's 1.22. These metrics underscore QQQI's structural edge in balancing aggressive income generation with risk mitigation-a critical consideration for investors aiming to optimize portfolio efficiency in 2026.

Volatility and Drawdowns: The Double-Edged Sword of QQQI

Despite its superior risk-adjusted metrics, QQQI's higher volatility and drawdowns cannot be ignored. The ETF exhibits an annualized volatility of 3.27%, significantly above SPYI's 2.36%. This volatility is compounded by QQQI's larger maximum drawdown of -20.00% compared to SPYI's -16.47% as of 2025. For risk-averse investors or those with shorter time horizons, these figures represent a meaningful constraint.

The high correlation between QQQI and SPYI (0.93) further limits diversification benefits, meaning both ETFs are likely to experience synchronized declines during market stress. This interdependence underscores the importance of hedging strategies or complementary allocations to mitigate systemic risks.

Expense Ratios and YTD Performance: A Tied Race

Both QQQI and SPYI share an identical expense ratio of 0.68%, making them equally competitive from a cost perspective. However, QQQI's year-to-date (YTD) return of 10.15% as of 2025 slightly outperforms SPYI's 9.16%. While this 1% gap is modest, it reflects QQQI's momentum-driven exposure to the Nasdaq 100's outperforming tech sector.

Strategic Implications for 2026

For investors prioritizing high dividend income and willing to tolerate elevated volatility, QQQI's superior yield and risk-adjusted returns make it the more compelling choice. Its structured notes and Nasdaq 100 focus align well with a growth-oriented, high-beta strategy. However, those prioritizing capital preservation and dividend stability may find SPYI's broader diversification and lower drawdowns more aligned with their objectives.

The decision ultimately hinges on risk tolerance and portfolio context. In a well-diversified portfolio, QQQI's aggressive profile can enhance income and returns, while SPYI offers a safer, more conservative alternative. As 2026 unfolds, monitoring macroeconomic signals-such as interest rate trends and sector rotations-will be critical to optimizing exposure to these high-yield NEOS ETFs.