Positive
Seeking Alpha
4 months ago
BNDI: The Higher Income Appears To Be Return Of Capital
Neos Enhanced Income Aggregate Bond ETF boosts bond yields by writing options on long bond ETF positions, aiming for higher income. BNDI's headline yield appears attractive, but much of the distribution is return of capital, not true earnings, complicating performance assessment. The actual annualized return, after accounting for capital loss, is about 4.42%, only modestly above the underlying bond funds' yields.