NEOS Offers High-Yield and Tax-Advantaged Income Funds

ETFs QQQI and SPYI provide monthly payouts up to 14.6% using options strategies

Apr. 4, 2026 at 10:04pm

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NEOS Investments, a New Jersey-based investment firm, offers a suite of high-income ETFs that provide monthly payouts with favorable tax treatment. The firm's flagship funds, QQQI and SPYI, utilize options strategies to generate yields up to 14.6% for investors seeking consistent, tax-efficient income.

Why it matters

In a low-yield environment, NEOS's innovative approach to generating high monthly income through tax-advantaged means is appealing to investors looking to maximize their returns while minimizing tax liabilities. The firm's focus on sectors poised for growth also makes these funds attractive options for those seeking both income and capital appreciation potential.

The details

NEOS's high-yield ETFs, QQQI and SPYI, employ options-based strategies to capture income from the Nasdaq-100 and S&P 500 indexes, respectively. By utilizing Section 1256 contracts, the funds are able to provide monthly distributions with favorable tax treatment, as 60% of the income is taxed at the lower long-term capital gains rate. This sets NEOS's offerings apart from traditional high-yield funds that may be subject to higher ordinary income tax rates.

  • NEOS Investments launched the QQQI and SPYI ETFs in 2025 to provide investors with high-yield, tax-efficient income streams.
  • The firm has been updating its fund lineup in recent months to capture emerging growth sectors and market trends.

The players

NEOS Investments

A New Jersey-based investment management firm that offers a suite of high-yield, tax-advantaged income ETFs.

David A. Johnson

The founder and principal of Endurance Capital Management, who has over 30 years of experience in investing and holds advanced degrees in finance and business administration.

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What they’re saying

“NEOS high-income ETFs QQQI and SPYI pay monthly, tax-efficient yields up to 14.6% using Section 1256 options.”

— David A. Johnson, Founder and Principal, Endurance Capital Management

What’s next

NEOS plans to continue expanding its lineup of high-yield, tax-advantaged income funds to meet growing investor demand for consistent, reliable monthly payouts.

The takeaway

NEOS's innovative use of options strategies to generate high-yield, tax-efficient income streams sets its ETFs apart in a crowded field of high-income funds. As investors seek ways to maximize their returns while minimizing tax liabilities, NEOS's unique approach could make its funds an attractive option for those seeking both income and growth potential.