SPYI

NEOS S&P 500 High Income ETF

SPYIssuer: NEOSInception: August 30, 2022

6.3

Overall Score

Strategy & Profile

Holds S&P 500 stocks and sells SPX call spreads (sells a call, buys a further OTM call). The spread structure preserves more upside than ATM strategies. Major tax advantage: Section 1256 treatment (60% long-term capital gains).

TTM Yield: ~11.7%

Strengths

  • ✓Best tax efficiency in the segment (Section 1256)
  • ✓Captured 98% of SPY upside in 2025
  • ✓Higher yield than JEPI

Weaknesses

  • ✗Higher expense ratio (0.68%)
  • ✗Shorter track record (since August 2022)

Investor Profile

Investor in taxable accounts seeking tax-efficient income

Verdict

The optimal choice for taxable accounts — the Section 1256 tax advantage is underappreciated by the market

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Key Metrics

Expense Ratio

0.680%

Inception Date

August 30, 2022

Benchmark

SPY

Category

Covered Call - Large Cap

Distribution Frequency

Monthly

Maturity Rating

3/5 stars

Scores calculated using CoveredRank methodology. Every formula is published and reproducible.

See full methodology→

Disclaimer: CoveredRank provides independent educational content only. This is not financial advice. Please consult with a qualified financial advisor before making investment decisions. Past performance does not guarantee future results.