QQQI ETF

Funds that provide high returns from large AI companies are appealing options for income investors looking to diversify their portfolios. QQQI and QYLD are two examples of these funds. We will compare them directly and discuss how suitable they are for an income-focused portfolio.

Tech investors who want to broaden their investments and achieve a good monthly income should think about the NEOS Nasdaq 100 High Income ETF (QQQI). Since its launch at the end of January, the fund has provided total returns exceeding 20% so far this year.

The NEOS NASDAQ-100(R) High Income ETF employs a data-based call option strategy to increase returns, providing a distribution rate of 14.35%. QQQI merges passive exposure to the NASDAQ-100 with options trading, allowing for monthly income while limiting gains during market upswings. This ETF has done better than comparable funds thanks to its adaptable call option approach and credit call spreads.

The NEOS Nasdaq-100 High Income ETF (QQQI) provides a high dividend yield of 14% and pays out distributions every month. It holds the actual stocks, which lowers risk and gives significant exposure to technology. The distributions come from the premiums earned through its options strategy, which also allows for potential capital growth.

QQQI uses a flexible options strategy and sometimes call spreads, which helps it do better than other NASDAQ 100 buy-write funds, achieving a return of 15.16% while maintaining total returns. It also offers tax benefits, such as 60/40 treatment for long and short-term capital gains and return of capital distributions, which can lower investors' tax liabilities. However, it's important to note that the bigger distributions are balanced out by a smaller increase in market value.

Market volatility continues to be a significant risk in the second half of the year. Investors interested in taking advantage of Nasdaq fluctuations for income should think about the NEOS Nasdaq 100 High Income ETF (QQQI), as it has performed better than similar options.

The QQQI ETF is becoming more popular with income investors, having added $300.58 million in assets under management in just under four months. It uses a call option overlay strategy to create income and is expected to provide about 14% in distributed income during its first year. However, there are risks to consider, such as its focus on the Nasdaq 100, the possible effects of a tech market correction, and the opportunity costs when compared to the S&P 500 or Nasdaq.

The NEOS Nasdaq 100 High Income ETF (QQQI) completed six months of trading at the end of last month. Since it started, the fund has provided tax-efficient income and significant potential for growth.

The new NEOS Russell 2000 High Income ETF (IWMI) has completed its first full month of trading. In July, it achieved a distribution yield of 14.03%, which makes it an appealing option for those interested in small-cap investments and income.