NEOS Equity High Income ETFs: Next Evolution Options Strategies

Why Seek Monthly Income From Options-Based ETFs?

Options-based ETFs may provide a differentiated approach to seeking high levels of current income, with lower correlation to traditional income-oriented investments, offering a potential complement or alternative to existing portfolio allocations.

How Do the NEOS Equity High Income ETFs Work?

Core Equity Exposure

• S&P 500 Index (Large Caps)
• Nasdaq-100 Index (Tech Focused)
• Russell 2000 Index (Small Caps)
• MSCI EAFE Index (International Equities)

Data-Driven Call Option Overlay

• Seeks high monthly income
• Offers multiple layers of tax efficiency
• Aims to provide upside potential in rising markets

NEOS Equity High Income ETFs:

• NEOS S&P 500® High Income ETF (SPYI) 
• NEOS Nasdaq-100® High Income ETF (QQQI) 
• NEOS Russell 2000® High Income ETF (IWMI) 
• NEOS MSCI EAFE High Income ETF (NIHI)

Why We Believe Our Approach Stands Apart From the Competition

Using our data-driven, active, options-based approach, our team is committed to pursuing optimal outcomes throughout every aspect of product construction and management. Not all options-based ETFs are created equal.

Common pitfalls of options-based income ETFs:

• Potentially capped upside in bull markets
• Certain option contracts may have a higher tax burden
• Income may fluctuate with volatility

How the NEOS Equity High Income ETFs aim to offer better outcomes:

• Seeks greater upside participation in rising markets
• Aims to deliver multiple layers of tax efficiency
• Seeks consistent, high monthly income

About NEOS Investments

Headquartered in Westport, CT, with 30+ professionals firmwide and decades of combined investment experience, NEOS was founded by a team of options-based ETF pioneers who previously created and managed some of the largest options-based ETFs currently in the market. NEOS is a global asset manager that utilizes quantitative approaches that seek to deliver investment solutions known for high monthly income potential and tax efficiency across core portfolio exposures and asset classes.

^Disclosures

^{Investors should carefully consider the investment objectives, risks, charges and expenses of Exchange Traded Funds (ETFs) before investing. To obtain an ETF’s prospectus containing this and other important information, please call (866) 498-5677 or view/download a prospectus at https://neosfunds.com. Please read the prospectus carefully before you invest.}

^{An investment in NEOS ETFs involves risk, including possible loss of principal. The equity securities purchased by the Funds may involve large price swings and potential for loss. There is no guarantee the NEOS ETFs will make monthly distributions and the amounts may fluctuate from month to month. Distributions made by NEOS ETFs have been classified as a return of capital and may be comprised of option premiums, dividends, capital gains, and interest payments.}

^{To view both current and historical monthly estimates of ETF distribution composition, investors may view the 19a-1 notices available on each corresponding Fund’s webpage. Distributions classified as return of capital will reduce an investor’s cost basis in Fund shares owned, which may result in higher taxes paid in the future when the Fund shares are sold, even if the shares are sold at a loss compared to the original investment.}

^{The use of derivative instruments involves risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional investments. These risks include (i) the risk that the counterparty to a derivative transaction may not fulfill its contractual obligations; (ii) risk of mispricing or improper valuation; and (iii) the risk that changes in the value of the derivative may not correlate perfectly with the underlying asset, rate or index. Derivative prices are highly volatile and may fluctuate substantially during a short period of time. The use of leverage by the Fund, such as borrowing money to purchase securities or the use of options, will cause the Fund to incur additional expenses and magnify the Fund’s gains or losses. The earnings and prospects of small and medium sized companies are more volatile than larger companies and may experience higher failure rates than larger companies. Small and medium sized companies normally have a lower trading volume than larger companies, which may tend to make their market price fall more disproportionately than larger companies in response to selling pressures and may have limited markets, product lines, or financial resources and lack management experience. The funds are new with a limited operating history.}

^{Investments in smaller companies typically exhibit higher volatility. Investors in NEOS ETFs should be willing to accept a high degree of volatility in the price of the fund’s shares and the possibility of significant losses.}

^{S&P 500® Index: An index composed of selected stocks from five hundred (500) issuers, all of which are listed on national stock exchanges and spans over approximately 24 separate industry groups.}

^{Nasdaq-100 Index (NDX®): Defines today’s modern-day industrials—comprised of 100 of the largest and most innovative non-financial companies listed on the Nasdaq Stock Market based on market capitalization.}

^{Russell 2000 Index: Measures the performance of the small-cap segment of the US equity universe. The Russell 2000 Index is a subset of the Russell 3000® Index representing approximately 7% of the total market capitalization of that index, as of the most recent reconstitution. It includes approximately 2,000 of the smallest securities based on a combination of their market cap and current index membership.}

^{MSCI EAFE Investable Market Index: An equity index which captures large, mid and small cap representation across Developed Markets countries around the world, excluding the US and Canada. With 2,714 constituents, the index is comprehensive, covering approximately 99% of the free float-adjusted market capitalization in each country.}

^{Option: Options are financial derivatives that give buyers the right, but not the obligation, to buy or sell an underlying asset at an agreed-upon price and date.}

^{The information contained herein does not constitute investment advice or a recommendation of any products, strategies, or services. Investors should consult with a financial professional regarding their individual circumstances before making investment decisions. NEOS Funds or its affiliates, nor Foreside Fund Services, LLC, or its affiliates accept any responsibility for loss arising from the use of the information contained herein. NEOS ETFs are distributed by Foreside Fund Services, LLC.}

^{Award-Related Disclosures:}

^{QQQI was awarded “Best New Active ETF” at the 2025 ETF.com Awards. There were ~25 submissions for “Best New Active ETF”. The criteria for inclusion were that the ETF needed to be launched in 2025 within the actively managed category. Judges looked at a number of factors including performance, flows, uniqueness, and overall value-add to the ETF space.}

^{NEOS Investments was awarded “Best Options Strategies ETF Issuer ($1bn-$10bn)” at the 2025 ETF Express U.S. Awards. Trackinsight has provided the pre-selection data for ETF issuer shortlists since 2020. To determine candidates, all ETFs that have been listed for the past 12 months are included. For each award category, an issuer’s ETFs within that category are combined to calculate total AUM. Issuers with less than USD 100 million in average assets over the review period are excluded. Shortlists are formed based on the percentage change in AUM over the prior 12 months, and in some categories, issuers are further grouped by asset-size tiers. The resulting shortlist goes into an industry voting survey, with each company limited to 10 internal votes. After review, votes are tallied to determine the winners.}

^{The Wealthmanagement.com Industry Awards are independently granted in recognition of business initiatives that enhance financial advisor success and help advisors create better outcomes for their clients. The program begins with an open nomination process for all categories which extends from February to May. Firms submit business initiatives either introduced or enhanced during the previous 18 months. Submissions are reviewed in June by a panel of independent judges with required industry expertise, looking at the submission’s innovation, scope and impact. From the pool of submissions, judges select finalists for each category. Each judge on the committee then ranks those finalists, with the weighted aggregate ranking determining the winner.} 

^{Winners are announced in September. No financial compensation is paid for consideration in the award process. Judges’ decisions are made independent of any firm’s business relationships with Informa Plc. Judges recuse themselves from the process from selecting finalists or winners for any category where the conflict exists.}

^{IAUI was awarded “Best New Options Income ETF” at the 2026 ETF.com Awards. The awards follow a four-phase selection process: 1) Quantitative Screening— Automated filters establish the eligible universe. 2) Qualitative Evaluation — Editorial team scores candidates on four criteria. 3) Shortlist Selection — Top five finalists identified per category. 4) Community Voting — ETF.com readers select winners from finalists. For the full methodology please click here.}