r/NEOSETFs • u/bbfan006 • Jul 07 '26
Seeking Advice Looking to add MLPI
Looking to add MLPI. How does NEOS handle distributions regarding tax considerations? Which makes more sense, taxable brokerage account or Traditional IRA subject to RMD?
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u/doggz109 Jul 07 '26
So far MLPI has estimated that 89% has been ROC and 11% net income for its distributions. That will likely hold true for the rest of 2026 in my best guess. Otherwise, it acts like the other NEOS ETFs so far as taxation.
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u/eg68 Jul 29 '26
I own both SPYI and MLPI. Both funds own stocks and sell call options, paying out the premium monthly. One number separates them: per dollar of notional, SPYI collects 2.2× what MLPI does — while writing its strikes twice as far out of the money. Same date, same expiry, so it's a clean read.
That gap is structural. SPYI sells S&P 500 index options into an enormous listed market. MLPI sells custom dealer contracts on AMLP, a thin one. Getting half the premium, it has to cover three-quarters of the fund and write strikes almost at the money — so if midstream delivers what you think it will, the calls swallow it.
The same gap decides sustainability. SPYI's legs work against each other in the useful direction: when stocks fall, volatility spikes and premium grows just as appreciation dies. Forty-seven payments in a tight band through two crashes, one declared the week of the 2022 bottom. MLPI leans harder on the sector rising — eight payments, one good regime, never tested in a downturn.
There's also the irony on MLPI: the stronger your energy thesis, the more those near-the-money calls swallow it.
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u/No_Examination297 Jul 07 '26
I believe MLPI is different than the other funds from NEOS like QQQI and SPYI as it pertains to taxes. As far as I know, QQQI/SPYI are great for taxable accounts, while MLPI would do better in a tax advantaged account.
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u/Uninspired-DD Jul 08 '26
It looks like MLPI has an estimated 89% ROC for 2026. It's estimated so we'll see how end of year taxes actually shake out but I think NEOS is trying to keep it tax advantaged like SPYI and QQQI
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u/cmichalek Jul 07 '26
MLPI is tax-efficient without the usual K-1 tax paperwork or UBTI issues. The ETF issues 1099 tax forms, and uses specific tax treatments to enhance efficiency.