NEOS Nasdaq 100 High Income ETF

QQQI

Market cap $6.8B

The SCHD ETF brings decent yield and exposure to a diversified array of dividend growers. In contrast, the QQQI ETF pays frequent dividends and tempts investors with a huge annual yield.

Retiring on passive income from dividends is a great way to reduce sequence of returns risk. Many investors generate this income from a basket of high-yield CEFs and ETFs. However, this strategy comes with a lot of risks and shortcomings.

QQQI and QQQ are both ETFs tracking the NASDAQ-100 index. Both funds offer exposure to leading technology and growth companies listed on NASDAQ. The difference is that QQQI has covered calls built in, which gives it a hedge against the QQQ's high valuation as well as its.

The market seems to question the true fair value of BDC portfolios. There is a fear that the BDCs will start to report elevated non-accruals, which would make their life more difficult (as they have already a lower interest rate problem at hand). For durable and high-yield income investors this has created a truly enticing and timely opportunity, which simply has to be explored given the direction of overall asset yields.

My portfolio goal is sustainable, stress-free income—prioritizing safety over chasing high yields. Even though it might be very tempting, tilting investments towards 10%+ yields is not the smartest thing to do. The historical stock market annual return figure is around 10%, which is very difficult to meet for income investors, who are usually concentrated into fixed income factor (lower return potential).

The beauty of passive income grows with time, especially in the current economic climate.

High-yield CEFs and covered call ETFs lure in investors with juicy yields. However, there are several hidden dangers lurking beneath the surface of many of these funds. There is a better way to generate high-yielding passive income and potential long-term total return outperformance.

WESTPORT, Conn.--(BUSINESS WIRE)--NEOS Investments, an asset management firm comprised of leaders and pioneers in the options-based ETF space, announces November monthly distribution amounts for their suite of ETFs that pursue monthly income and tax efficiency across core portfolio exposures.

NEOS NASDAQ-100 High Income ETF (QQQI) and NEOS S&P 500 High Income ETF (SPYI) are both rated “Buy” for their high income and tax efficiency. QQQI offers higher yield and growth potential due to its focus on the volatile technology sector, but carries greater risk compared to SPYI. SPYI provides more stability and diversification, making it suitable for conservative investors seeking steady income and capital protection.

The NEOS NASDAQ-100 High Income ETF (QQQI) stands out as my top choice for high-income ETFs, consistently delivering yields above 10%. QQQI's unique call spread strategy allows for strong monthly income and partial upside participation, outperforming many peers in both yield and total return. With a 14.03% distribution yield and 0.34% appreciation in 2025, QQQI offers an attractive alternative to bonds in a declining rate environment.