SPYI
Neos S&P 500(R) High Income ETF·Financial Services
53.38
0.225%(+0.12)
Market ClosedLast Updated: — ET
52W L: $47.7752W H: $53.96
Neos S&P 500(R) High Income ETF·Financial Services
Market Peers
The NEOS S&P 500 High Income ETF offers more attractive valuation and better downside protection than the SPY SPDR S&P 500 ETF Trust in the case of a VIX surge. And I see greater odds for both scenarios under current economic and geopolitical conditions. SPYI's trailing 12-month yield stands at 11.73%, about 13% above its historical average and signaling a noticeable discount.
I have maintained a "Buy" rating on SPYI since I began coverage in December 2024, and it remains one of the best covered call funds in its class. SPYI directly indexes the S&P 500 and overlays actively managed FLEX options, avoiding the drag of synthetic exposure used by many competing income funds. The fund has grown NAV while paying a roughly 12% distribution rate, classified primarily as return of capital, which makes it tax-efficient for taxable accounts.
There are several different paths to retiring on dividends. However, they all have major drawbacks. I share an approach that I have honed over time that seeks to bring out the best of each strategy and minimize its deficiencies.
The largest S&P 500 ETF yields a scant 1.06%. That confirms something some income investors may not want to be reminded of: The dividend yield on the benchmark domestic equity index hovers around multi-decade lows.
I coached my son's Little League baseball team for 10 seasons. There were often months-long gaps between when I would see the kids.
The traditional approach to fixed income is undergoing a sophisticated evolution. While core aggregate benchmarks remain the bedrock of many fixed income portfolios, advisors are increasingly looking to complement these holdings with specialized income alternatives.