NEOS Gold High Income ETF

IAUI

Market cap $531M

Gold's 2025 monster run looks like a distant memory. The SPDR Gold Shares (NYSEARCA:GLD) is down 5.59% year-to-date through August 4, and holders are paying 0.40% per year to sit on bullion that pays them nothing.

Income remains top of mind for financial advisors. But increasingly, it's not just about generating more yield.

Gold prices slumped mightily since the start of the war in Iran, putting a dent in one of its most intense bull markets in recent memory. However, some experts believe the yellow metal will eventually resume its bullish ways.

NEOS Gold High Income ETF offers a near 12% yield, appealing to income-focused investors seeking diversification and non-correlation to equities. IAUI employs a synthetic covered call strategy on gold ETPs, monetizing gold exposure while holding U.S. treasuries for fixed income. Recent gold price declines have pressured IAUI's NAV and distributions, with NAV down ~8% YTD and distributions falling 16% since January.

No retirement investing strategy is risk-free, making effective diversification extremely important. I detail three investments that I would not want to retire on dividends without. I detail their pros and cons and how they work together to help me sleep well at night.

My short-term view on gold is positive but not aggressively bullish, as I expect a range-bound to moderately bullish market rather than another immediate sharp upside move. At first sight, this macro-environment can be favorable for the NEOS Gold High Income ETF's (IAUI) strategy and may happen, but it is not guaranteed and also can be short-lived. IAUI can compete with pure gold exposure if gold market stays flat or rises moderately, but I do not see enough margin of safety to call it a Buy.

There are several macro trends that I have high conviction in. However, there are also several sectors that are positioned to benefit immensely from these macro trends that the market has recently sold off. I detail why I am bullish on these sectors and some high-yielding funds that are well-positioned to benefit.

It's been a challenging year for gold and the related ETFs. Fading hopes for Fed rate cuts are pressuring the yellow metal and shifting the story to interest rates.

Covered call ETFs offer abnormal income and access to asset classes lacking yield, though downside protection is rarely effective in practice. Alpha generation is not the goal; these funds suit investors prioritizing high income or absolute return over chasing alpha. However, not all covered call ETFs can do this job.

It is a good time to reduce risk. High-yielding securities could be the first in line for elimination. However, some high-yielding picks are just built differently.