NUSI Is Now QQQH, A Hedged Approach To The Nasdaq

2025-05-28 23:30:50 ET

Summary

• NEOS Nasdaq-100 Hedged Equity Income ETF or QQQH, formerly NUSI, uses a collar strategy to generate income and provide some downside protection on Nasdaq exposure.
• The fund offers a sustainable 8.5% distribution, but significantly lags the Nasdaq in strong bull markets and only modestly reduces volatility.
• Collar protection is most effective during sudden downturns, but less so in prolonged bear markets, where QQQH tracks the index more closely.
• Given stretched Nasdaq valuations and capped upside, we rate QQQH as 'Hold'—it suits income seekers but not those seeking long-term growth.

Thesis

Sometimes funds change nomenclature to make them more appealing, and the NEOS Nasdaq-100 Hedged Equity Income ETF ( QQQH ) is such an example. The name is a robust play on the well-known QQQ ticker and the letter 'H' from 'hedged'. Investors knew this name before under the ticker 'NUSI', with the legal change happening in late 2024:

QQQH began as the Nationwide Nasdaq-100 Risk-Managed Income ETF (Predecessor Fund), an ETF which operated since December 19, 2019 under the ticker NUSI. As of the close of business on November 8, 2024, the NEOS Nasdaq-100 Hedged Equity Income ETF acquired the Predecessor Fund's assets and liabilities, and assumed its performance, financial and other historical information.

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