NEOS Investments (âNEOSâ), a global asset manager led by a highly experienced team that previously built and grew numerous options-based ETFs currently in the market, is today launching its initial suite of next evolution income ETFs:
- NEOS S&P 500 High Income ETF (SPYI);
- NEOS Enhanced Income Aggregate Bond ETF (BNDI); and
- NEOS Enhanced Income Cash Alternative ETF (CSHI).
All three ETFs are actively managed and designed to help investors and advisors navigate the challenges of the current market environment while also aiming to deliver opportunities for monthly income generation and tax efficiency.
NEOS Investmentsâ first equity solution, SPYI, aims to deliver an attractive monthly distribution. The Fundâs management team uses a strategy intended to replicate the S&P 500 Index then implements a data-driven option overlay strategy that utilizes a call spread approach as opposed to the more common covered call strategy that many passive funds utilize to generate high monthly income, tax efficiency, and the potential for upside equity participation in rising markets.
BNDI and CSHI both utilize a put spread approach which involves selling short puts and buying long puts, with the goal of generating option premium on an ongoing basis that can be distributed to shareholders as income without taking on outsized risk to do so.
BNDI is designed as an enhanced approach to the type of exposure offered by the U.S. Aggregate Bond Index, seeks to have less sensitivity to credit and duration risk via its integrated options strategy which aims to provide tax-efficient monthly income greater than what an investor would receive in bond interest alone.
CSHI is an innovative alternative to ultra short-term fixed income and cash positions in a portfolio. The Fund combines exposure to short-term (1-3 month) Treasury Bills with the actively managed put spread approach described above. CSHI seeks to provide an enhanced monthly income stream above what investors would receive from investing in T-Bills alone.
âInvestors need and deserve an enhanced suite of options-based ETFs to help them build more resilient core equity and income portfolios,â said Garrett Paolella, Co-Founder and Managing Partner at NEOS. âAiming to solve todayâs increasingly complex portfolio construction challenges is something my colleagues and I are very excited to be doing with the rollout of these ETFs and we are thrilled to be able to start talking with investors, advisors and institutions about the role our solutions can play in all types of portfolios.â
NEOS was founded by a team of options industry pioneers who collectively bring decades of experience, both individually and as colleagues working together at a number of previous firms on some of the most successful options ETFs rollouts of the past decade+.
To learn more about NEOS Investments and its other product and service offerings, please visit:Â https://neosfunds.com/
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