NEOS Investments Announces January 2025 ETF Suite Distributions
MWN-AI** Summary
NEOS Investments, an innovative player in the options-based ETF landscape, announced its January 2025 monthly distribution amounts for its array of income-focused ETFs. The firm aims to deliver tax efficiency and monthly income through its investment strategies. For the January 2025 Ex-Div Date, set for January 22, 2024, various ETFs have reported their distribution rates and amounts, emphasizing their unique investment approaches.
The Bitcoin High Income ETF (BTCI) boasts the highest distribution rate at 29.50%, translating to a per-share payout of $1.5718, while the Russell 2000 High Income ETF (IWMI) and Nasdaq-100 High Income ETF (QQQI) follow with rates of 14.67% and 14.02%, respectively. Other notable distributions include the S&P 500 High Income ETF (SPYI) at 12.01% and the Enhanced Income Credit Select ETF (HYBI) at 9.31%. Many of these ETFs emphasize delivering consistent, monthly income through diversified sources.
The distributions will be payable on January 24, 2025, for shareholders of record as of January 22, 2025. NEOS Investments aims to empower investors seeking alternative income solutions, combining decades of market research and expertise. It establishes a compelling proposition for income-seeking investors with varying risk tolerances, highlighting that while distributions have a historic composition of returns, past performance does not guarantee future results.
The firm stresses the importance of investor due diligence, advising potential investors to consider their individual investment objectives and risk appetite, especially given the inherent volatility associated with ETF and options strategies. NEOS Investments continues to engage with the investor community, offering products distributed by Foreside Fund Services.
MWN-AI** Analysis
NEOS Investments recently announced their January 2025 ETF distribution rates, highlighting a suite of options-based ETFs aimed at investors seeking monthly income and tax efficiency. The distribution rates announced for several of their ETFs offer ample opportunity for income-focused investors. Notably, the Bitcoin High Income ETF (BTCI) boasts a remarkable distribution rate of 29.50%, reflecting the high risk and potential volatility associated with crypto-assets.
For investors with a more conservative portfolio strategy, NEOS’s equity-focused ETFs, such as the Russell 2000 High Income ETF (IWMI) and Nasdaq-100 High Income ETF (QQQI), also provide attractive yields of 14.67% and 14.02%, respectively, although they carry less risk compared to the BTCI. The S&P 500 High Income ETF (SPYI) offers a slightly lower, yet still appealing, distribution rate of 12.01%.
For those seeking fixed-income solutions, the Enhanced Income Aggregate Bond ETF (BNDI) and Enhanced Income 1-3 Month T-Bill ETF (CSHI) yield 5.90% and 5.42% respectively, marking them as low-risk alternatives with the potential for stable income.
Investors should also be aware of the distribution composition breakdown, with many of the funds—especially the equities—classified as returns of capital, which could have tax implications. It’s noteworthy that some of the ETFs have no guaranteed distributions, which poses an inherent risk.
Before making investment decisions, potential investors should weigh their risk tolerance against the potential for high yields, particularly in the more volatile ETFs like BTCI. As with any investment, diversification remains key—allocating wisely across NEOS’s range could enhance income potential while managing risk. Consider consulting with a financial advisor to ensure alignment with your individual investment goals.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
NEOS Investments, an asset management firm comprised of leaders and pioneers in the options-based ETF space, announces January monthly distribution amounts for their suite of ETFs that pursue monthly income and tax efficiency across core portfolio exposures.
ETF distribution information as of the January 2025 Ex-Div Date (1/22/2024)
Distribution | Amount / | Amount / | Distribution | 30-Day SEC | |
Bitcoin High Income ETF ( BTCI ) | 29.50% | 2.46% | $1.5718 | Monthly | 2.27% |
Russell 2000 High Income ETF ( IWMI ) | 14.67% | 1.22% | $0.6086 | Monthly | 0.71% |
Nasdaq-100 High Income ETF ( QQQI ) | 14.02% | 1.17% | $0.6241 | Monthly | 0.11% |
S&P 500 High Income ETF ( SPYI ) | 12.01% | 1.00% | $0.5167 | Monthly | 0.68% |
Real Estate High Income ETF ( IYRI ) | -- | 0.99% | $0.5005 | Monthly | -- |
Enhanced Income Credit Select ETF ( HYBI ) | 9.31% | 0.78% | $0.3970 | Monthly | 1.36% |
Nasdaq-100 Hedged Equity Income ETF ( NUSI ) | 8.73% | 0.73% | $0.1931 | Monthly | 0.11% |
Enhanced Income 20+ Year Treasury Bond ETF ( TLTI ) | -- | 0.57% | $0.2668 | Monthly | -- |
Enhanced Income Aggregate Bond ETF ( BNDI ) | 5.90% | 0.49% | $0.2287 | Monthly | 3.17% |
Enhanced Income 1-3 Month T-Bill ETF ( CSHI ) | 5.42% | 0.45% | $0.2247 | Monthly | 4.09% |
The January distribution payable was 1/24/2025 for shareholders of record on or before 1/22/2025.
About NEOS Investments: Founded in 2022, NEOS Investments offers ETFs that aim to deliver the next evolution of options strategies, where seeking income is the outcome. Built on decades of research and experience, NEOS ETFs aim to empower investors with portfolio building blocks that provide monthly income, tax efficiency, and diversification through data-driven options-based ETFs.
The performance data quoted above represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than their original cost and current performance may be lower or higher than the performance quoted above. Standardized performance current to the most recent month-end and quarter-end can be obtained by visiting any of the corresponding ETF funds pages by clicking on their ticker: SPYI | QQQI | IWMI | NUSI | BTCI | HYBI | BNDI | CSHI | TLTI | IYRI or calling 866.498.5677 .
ETF Expense Ratios: BTCI = 0.98% | SPYI, QQQI, IWMI, NUSI, HYBI, IYRI = 0.68% | BNDI, TLTI = 0.58% | CSHI = 0.38%
*The Distribution Rate is the annual yield an investor would receive if the most recently declared distribution, which includes option income, remained the same going forward. The Distribution Rate is calculated by multiplying an ETF’s Distribution per Share by twelve (12), and dividing the resulting amount by the ETF’s most recent NAV. The Distribution Rate represents a single distribution from the ETF and does not represent its total return. Distributions are not guaranteed.
There is no guarantee the NEOS ETFs will make monthly distributions, and the amounts may fluctuate from month to month. Distributions made by the Funds have been classified as a return of capital and may be comprised of option premiums, dividends, capital gains, and interest payments. As of the most recent distributions by the funds, the distribution composition for each fund was estimated to be return of capital in the following amounts. CSHI = 64%, BNDI = 88%, IWMI = 100%, SPYI = 98%, QQQI = 100%, HYBI = 96%, NUSI = 100%, BTCI = 96%, TLTI = 72%, IYRI = 100%. Please see the 19a-1 notices for a more comprehensive breakdown of monthly distributions on each Fund's page.
**30-day SEC Yield is calculation based on a formula mandated by the Securities and Exchange Commission (SEC) that calculates a fund's hypothetical annualized income, as a percentage of its assets. A security's income, for the purposes of this calculation, is based on the current market yield to maturity (in the case of bonds) or projected dividend yield (for stocks) of the fund's holdings over a trailing 30-day period. This hypothetical income will differ (at times, significantly) from the fund's actual experience; as a result, income distributions from the fund may be higher or lower than implied by the SEC yield. It is important to note that 30-Day SEC Yield does not include income received from option selling. The data reflects the most recent month-end (12/31/2024).
Investors should carefully consider the investment objectives, risks, charges and expenses of Exchange Traded Funds (ETFs) before investing. To obtain an ETF's prospectus containing this and other important information, please call (866) 498-5677 or view/download a prospectus by clicking on the corresponding ETF ticker: SPYI | QQQI | IWMI | NUSI | BTCI | HYBI | BNDI | CSHI | TLTI | IYRI . Please read the prospectus carefully before you invest.
An investment in NEOS ETFs involves risk, including possible loss of principal. The equity securities purchased by the Funds may involve large price swings and potential for loss. Investments in smaller companies typically exhibit higher volatility. Investors in the ETFs should be willing to accept a high degree of volatility in the price of fund shares and the possibility of significant losses.
The use of derivative instruments involves risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional investments. These risks include (i) the risk that the counterparty to a derivative transaction may not fulfill its contractual obligations; (ii) risk of mispricing or improper valuation; and (iii) the risk that changes in the value of the derivative may not correlate perfectly with the underlying asset, rate or index. Derivative prices are highly volatile and may fluctuate substantially during a short period of time. The use of leverage by the Fund, such as borrowing money to purchase securities or the use of options, will cause the Fund to incur additional expenses and magnify the Fund’s gains or losses. The earnings and prospects of small and medium-sized companies are more volatile than larger companies and may experience higher failure rates than larger companies. Small and medium sized companies normally have a lower trading volume than larger companies, which may tend to make their market price fall more disproportionately than larger companies in response to selling pressures and may have limited markets, product lines, or financial resources and lack management experience. The funds are new with a limited operating history.
The information on this website does not constitute investment advice or a recommendation of any products, strategies, or services. Investors should consult with a financial professional regarding their individual circumstances before making investment decisions. NEOS Investments or its affiliates, nor Foreside Fund Services, LLC, or its affiliates accept any responsibility for loss arising from the use of the information contained herein.
NEOS ETFs are distributed by Foreside Fund Services, LLC.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250124394053/en/
FAQ**
What factors contribute to the NEOS Enhanced Income Aggregate Bond ETF BNDI achieving a 30-Day SEC Yield of 3.17% despite its relatively low distribution rate compared to higher-yielding ETFs?
How does NEOS Investments manage risk associated with the NEOS Enhanced Income Aggregate Bond ETF BNDI, particularly in a volatile interest rate environment?
Can you explain the implications of the return of capital composition for the NEOS Enhanced Income Aggregate Bond ETF BNDI and its impact on investors’ tax situations?
What historical performance metrics can be shared for the NEOS Enhanced Income Aggregate Bond ETF BNDI to help investors assess its potential for future returns?
4. How do the expenses related to the NEOS Enhanced Income 1-3 Month T-Bill ETF CSHI compare to the overall average for similar ETFs in the market?
**MWN-AI FAQ is based on asking OpenAI questions about Nationwide Risk-Managed Income (NYSE: NUSI).
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