Newcomer NEOS Debuts 3 ETFs
The funds apply options strategies to equity and fixed income exposures.
NEOS Investments today rolled out a trio of actively managed ETFs that incorporate options strategies and provide monthly income. The funds and their expense ratios are as follows:
- NEOS S&P 500 High Income ETF (SPYI), 0.68%
- NEOS Enhanced Income Aggregate Bond ETF (BNDI), 0.58%
- NEOS Enhanced Income Cash Alternative ETF (CSHI), 0.38%
While SPYI is listed on Cboe Global Markets, BNDI and CSHI list on NYSE Arca.
“Investors need and deserve an enhanced suite of options-based ETFs to help them build more resilient core equity and income portfolios,” said NEOS Co-founder and Managing Partner Garrett Paolella in a press release.
While SPYI offers exposure to the performance of the S&P 500 Index, it also includes an options overlay that implements a call spread. BNDI and CSHI both target fixed income securities while applying put spread strategies. While the former provides exposure to the broad U.S. bond market, the latter mainly holds one- to three-month Treasury bills.
“All three of these products are income solutions, so we're looking to pay monthly dividends for all three ETFs,” said Troy Cates, NEOS co-founder and managing partner, who notes that he has seen an increase in comfort with options strategies among advisors and clients over the last three to four years.
Contact Heather Bell at [email protected]
