NEOs ETFs: The brand new Earnings machine

Introduction: The Rise of Earnings-Focused Alternative ETFs

In a yield-starved market, income-seeking merchants have gravitated in the direction of option-based ETFs—funds that blend underlying exposures (equities, crypto, and so forth.) with spinoff overlays (sometimes writing or selling coated title selections) to ship month-to-month or widespread distributions. NEOs ETF (NEOS Investments’ suite) , YieldMax ETFs are two competing extreme yield etfs on this evolving nook of the earnings ETF panorama.

Whereas the earnings potential is alluring, the mechanics, hazard tradeoffs, and tax penalties differ significantly. On this text, we:

• Study NEOs ETF strategies with YieldMax ETFs,

• Break down three flagship NEOs ETFs (SPYI, QQQI, BTCI),

• Research their effectivity, yield, hazard, and ideally suited use circumstances

NEOs ETF vs YieldMax ETFs: Strategic Variations

What Are YieldMax ETFs?

YieldMax ETFs are constructed spherical synthetic or derivative-based exposures to high-volatility property (e.g., Tesla, MicroStrategy, Coinbase) and generate earnings by systematically writing title selections. As InvestmentU notes, “YieldMax ETFs don’t private the underlying shares straight. In its place, they use derivatives to simulate prolonged publicity … then generate earnings by systematically selling title selections.” Funding U

These funds sometimes tout terribly extreme yields—nonetheless these embrace elevated hazard of NAV erosion, notably when the underlying asset worth shifts adversely. *InvestmentU’s “YieldMax ETFs and Alternate choices” article illustrates how spectacular returns come on the value of focus and volatility. Funding U

What Are NEOs ETFs?

In distinction, the NEOs ETF family from NEOS Investments tends to pair broader benchmarks or crypto exposures (like S&P 500, Nasdaq-100, Bitcoin) with chance strategies to reap premium and provide month-to-month earnings. As a result of broader base, the volatility and idiosyncratic focus hazard is perhaps lower (relative to single-stock exposures) — though the spinoff overlay nonetheless offers complexity.

Head-to-Head: YieldMax vs NEOs ETF

One warning sometimes flagged by commerce voices (and echoed in ETF commentary) is that yields vastly exceeding what the underlying markets can typically assist may be unsustainable — in impression, the fund is perhaps returning capital merely to meet distribution ensures.

Although every strategies present earnings, yield-chasing with out consideration to hazard and sustainability can backfire.

SPYI: NEOs S&P 500 Extreme Earnings ETF

What Is SPYI?

SPYI is NEOS’s flagship “extreme earnings” ETF constructed on the S&P 500 index + an chance overlay (principally coated calls) to generate month-to-month earnings.

Effectivity & Yield

• Since its launch (August 2022), SPYI’s NAV-based annualized return has hovered spherical ~14.08% (as of August 2025).

• Market worth returns are comparable, indicating modest premium/low price inversion outcomes.

• Its distribution yield is participating compared with typical equity earnings funds, though an enormous share of distributions may be categorised as Return of Capital (ROC), which erodes worth basis.

Strengths & Risks

• Strengths: Broad U.S. equity publicity with earnings overlay; a lot much less focus hazard than space of curiosity or single-stock earnings strategies; established adequate to level out some monitor report.

• Risks:
   1. Capped upside in sturdy bull markets (chance writing sacrifices some options).
   2. ROC-heavy distributions complicate tax planning and reduce worth basis over time.
   3. In excessive drawdowns, chance premiums may not present full security.
   4. Liquidity and bid-ask spreads would possibly add execution hazard.

Be taught Subsequent: 5 Month-to-month Dividend ETFs for Earnings Portfolios

QQQI: NEOs Nasdaq-100 Extreme Earnings ETF

What Is QQQI?

QQQI presents publicity to the Nasdaq-100 index plus chance overlays, concentrating on better yield and earnings by leveraging the tech/progress tilt of Nasdaq.

Effectivity & Yield

• Launched further recently (January 2024), its shorter monitor report reveals stronger nominal returns versus SPYI in a number of comparability intervals.

• For instance, in mid-2025, QQQI’s YTD effectivity outpaced SPYI in a number of metrics, though on the value of better volatility and drawdowns.

• Volatility metrics current QQQI typically has better customary deviation and deeper most drawdowns than SPYI (e.g. ~−20% vs ~−16%) in seen intervals.

Strengths & Risks

• Strengths: Bigger earnings potential (on account of volatility of underlying); further upside seize in positive tech rallies (no matter chance drag).

• Risks: Further concentrated sector hazard (tech-heavy publicity); chance overlay would possibly clip aggressive upside options; newer historic previous means a lot much less stress-tested; related ROC / tax factors as SPYI.

BTCI: NEOs Bitcoin Extreme Earnings ETF

What Is BTCI?

BTCI is NEOS’s enterprise into crypto: it provides publicity to Bitcoin (by means of ETPs / crypto proxies) and overlays chance strategies on that publicity to generate month-to-month earnings.

Effectivity & Yield

• Launched in October 2024.

• As of August 2025:
   - Its distribution price (based on the newest payout) has approached ~28%.
   - Cumulative returns since inception have been sturdy (≈ +49.5% in NAV phrases in that span).
   - Its market worth has sometimes traded near NAV, with small premiums/reductions (~0.10%).

• However, an enormous portion of distributions are estimated to be Return of Capital (ROC ~ 95%), significantly affecting tax basis.

Strengths & Risks

• Strengths: Publicity to crypto upside combined with earnings overlay, which few totally different merchandise straight present.

• Risks:
   1. Bitcoin’s inherent volatility is dramatic—chance overlay would possibly buffer nonetheless gained’t take away big swings.
   2. Alternative overlay on crypto is further superior (a lot much less mature derivatives markets, liquidity, correlation mismatches).
   3. ROC heavy distributions erode basis, complicating tax and long-term return.
   4. Restricted historic monitor report, notably by the use of crypto downturns.

Strategies to Suppose About Match: Use Cases & Allocation Method

Diversification & Correlation

• SPYI and QQQI generally tend to maneuver collectively (extreme correlation), so using every offers restricted hedging revenue.

• BTCI can present diversification from equities, nonetheless on the value of significantly better volatility.

Yield vs Growth Tradeoff

• For income-focused merchants, all three are attention-grabbing earnings autos—nonetheless the earnings comes with trade-offs: capped upside, ROC erosion, and higher hazard.

• In sturdy bull markets, typical equity ETFs would possibly outperform on account of a lot much less drag from chance overlays.

Tactical Use Cases

• Earnings sleeve: In a total-return core portfolio, NEOs ETFs would possibly fill the “earnings producing” slot barely than the core equity slot.

• Differ-bound / sideways markets: Alternative-laden strategies are prone to shine when underlying property are neither raging upwards nor crashing.

• Tax-efficient allocations: Given heavy ROC distributions, NEOs ETFs may be increased held in tax-deferred accounts (e.g. IRAs) barely than taxable accounts.

YieldMax vs NEOs: When One Might Edge Out the Totally different

• Must you’re comfortable taking concentrated bets and need most yield, YieldMax may very well be alluring—nonetheless the hazard of capital erosion is precise 

• For merchants preferring significantly broader publicity with a lot much less single-stock hazard, NEOs ETFs present a further balanced publicity to option-based earnings.

Conclusion

NEOs ETF and YieldMax ETFs characterize two style variants of the rising selections earnings ETF space. The NEOs suite (SPYI, QQQI, BTCI, and so forth) tends to favor broader benchmarks over single-stock focus, which may present a further tempered hazard profile whereas nonetheless delivering extreme distribution yields. YieldMax ETFs, towards this, aggressively lean into yield by means of concentrated exposures and chance overlays—nonetheless moreover they carry a better hazard of capital erosion and volatility hazard.

If I had been advising you, I’d take care of SPYI, QQQI, and BTCI as devices contained in the “earnings / numerous” sleeve of a diversified portfolio, not as replacements for core equity or fixed-income holdings. And I’d lean in the direction of holding them in tax-advantaged accounts to attenuate the drag from ROC distributions.