Advisors and investors are seeking dependable, above-average income outside of the fixed income universe. That makes covered call and options-based ETFs increasingly fertile territory for income seekers. However, selectivity and structure are paramount.
Those factors are among the reasons why NEOS Investments is one of the leaders in the options income ETF arena. Buoyed by flagship products such as the NEOS Enhanced Income Aggregate Bond ETF (BNDI) and the NEOS S&P 500 High Income ETF (SPYI), NEOS commands well-deserved recognition for its lineup of income-focused ETFs.
The issuer was recently recognized by ETF Express as the “Best Option Strategies ETF Issuer” in the $1 billion to $10 billion in assets under management category. Thanks to the success of SPYI and the NEOS Nasdaq 100 High Income ETF (QQQI), which have nearly $12 billion in AUM combined, NEOS has outgrown that category. Its roughly $15 billion in assets testifies to quality structures meeting soaring investor demand.
NEOS on the Rise
NEOS’s ascent up the ETF issuer ladder is impressive. For instance, consider the issuer’s youth. There’s also the fact that it doesn’t focus on pure beta products, as many of the largest ETF sponsors do.
“Although founded in 2022, the NEOS team is comprised of pioneers and veterans in the options-based segment of the ETF market. The firm has quickly established itself as a leader in the space, combining their deep derivatives expertise with a commitment to creating innovative and sustainable investment solutions, while prioritizing ongoing investor education and support,” according to a statement highlighting the ETF Express award.
Today, NEOS offers 13 ETFs, including the aforementioned BNDI, QQQI and SPYI. Its other ETFs include options-based offerings addressing popular asset classes such as bitcoin, gold and domestic small-cap equities, among others.
NEOS has a little something for income investors of all stripes. The tax-efficient income delivered by its ETFs arrives monthly. Another source of allure: It largely isn’t correlated to goings on in the bond market.
“Beyond delivering best-in-class options-based ETFs, our mission has always been to help educate investors on options strategies and the potential benefits they can offer,” said Troy Cates, co-founder and managing partner, in the statement. “The growth across our product lineup reflects the strong demand for income-focused solutions delivered through accessible and transparent ETFs.”
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