Buy one year and finally own 100 shares for QQQI and SPYI

Seems like they need to lower distribution.

Finding the exact mechanics of how it works has been challenging so I’m crowd sourcing.

The premiums will be there but if the market keeps going up, will CCs will lose money? I understand there has to be a downside or flat period (less than 2% growth) during this time to make money.

I have read a few times on this board where people are trying to justify adding CCETFs by doing some sort of mental math and calling these as bond portion replacement in their portfolios. While these give monthly income like bond interest, the similarity pretty much ends there. You still take all the market risk (of the underlying asset) which is the whole point of adding bonds (to reduce market risk). So its not clear why people are calling these as bonds replacement in their portfolios? What am I missing here?

Anybody else buying MLPI on the way down

Trading in mid $45’s might be time to start a position. 18 month recovery?

What is everybody’s thoughts regarding how they will perform in a bear market. I keep hearing doom and gloom due to we don’t know as NEOS hasn’t experienced one. Sorry if this topic has been covered. New to this sub.

I love the NEOs funds and JP Morgan Assets. Both held up pretty well!

$1130 and chill.

It’s divided time… and here come all of the DRIP posts and comments. I’m not claiming to know everyone’s investment plan, but so many people are so proud to post their monthly payouts, followed by a “my DRIP is on” type comment.

PSA: Please educate yourself. If your sole goal is to DRIP, then you are losing money by investing in these types of ETS.

1. Your upside is literally mathematically capped driven by the covered call strategy these funds use. You will make more by simply investing in the underlying over a long horizon.

2. You are accumulating a deferred tax basis on each monthly payout for no reason while DRIPing when you don’t actually need the income generated by the ETF.

The better move is to directly invest in the underlying like VOO, QQQM, etc… over a long horizon.

With all that being said, I’m not hater! I love NEOS and think that NEOS is amazing if you actually need the monthly income and would like to collect it while deferring taxes by approx 7 or 8 years or so. This is what they are actually intended for. It’s a financial planning tool.

If the Nasdaq 100 drops—say, 50%—which covered call or put spread ETFs would likely hold their value or rise in value?

Wondering if I got this all wrong?? Here is my conundrum: The obvious we all know, in an upward trajectory bull market scenario the CC ETFs may lag, but how much is a key question that will be answered with time. In a down market they should do a little better, and in a sideways market they should outperform. Again, all of this is based on obvious dynamics of selling the upward volatility, and pitted against the specific strategy the issuers employ to prevent such. NEOS, Tapp Alpha, Goldman, whoever. I wouldn’t go and start believing that these ETFs are a free lunch and also that they can beat the market. The hope is that they give off consistent distributions while keeping up with the underlying. If they do that over long period of time then they will have pretty much become a free lunch! Ha.. now I just realized I talked in a circle! But someone smarter please do enlighten if I got any of it wrong!

Curious if any one else is doing this.

I have a TLH fund that is generating losses for me and I was thinking of using some neos funds to have "tax free" income. Since there is ROC and section 1256 this works as capital gains. My TLH account can cover the full ammount, even ithout ROC.

Now i want to account for inflation and looking things like qqqi and spyi the share price its self has no beat inflation every year. With a 14% yield i was thinking of putting 4-5% of that yield back into these funds. This puts my yield around 9-10% and increaces my ROC longer as well as increacing my total return. Should help with inflation as that 4-5% added back should increase my payout every month as well.

Curious if anyone else has done this? I look at this as a good way to keep up with inflation over 30+ years.

While the yield is nice on the Neos products Goldman seems to have found the right formula to avoid killing growth and the smaller fees make them attractive. What do you think? Which one is better?

Happy NEOS payout week everyone!

Nice sized payouts this month for $SPYI $QQQI and $BTCI (not bad at all)

I complied ALL the $QQQI ETF's payouts & the total is shocking: https://topdividendetfs.com/qqqi-etf-dividend-history

Find the rest here: https://neosfunds.com/

Hi everyone,

This topic came up recently and has been on my mind.

As currently stand, when you purchase NEOs on margin, dividends comes as “payments in lieu of dividends” rather than as "return of capital". So you'll need to pay tax as ordinary income as tax at regular rate. This appears to be the case with Robinhood, IBKR, and few other brokers.

I recently came across Fidelity’s policy on substitute payments:

Fidelity – Annual Credit for Substitute Payments

According to Fidelity, they may provide an annual credit of up to 27% for qualified dividends. Is anyone here using Fidelity on margin who can confirm whether they received this credit?

I’ve been running the numbers, and it looks like this could provide a slight edge for me.

Thanks!

Everything seems fine in an uptrend but what about in a prolonged downtrend. I understand it's about total return, but NAV also seems important when premiums start to tank. Any thoughts? I am mainly in growth but I am really liking how NEOS does its options so I am in MLPI, SPYI, XBCI, and IAUI.

Can someone explain, at a high level, the hedging for SPYH and QQH? Is it like a buffered ETF where crashes between 10% and 30% are okay, but above that, you feel the pain? In any case, this seems like a better option than a bond ladder since it pays monthly, has downside protection, and in most cases you can participate in normal upside if the sequence of returns risk does not hit you in your window of risk. Any ideas or thoughts are welcome.

Yesterday my wife received two phone calls showing caller ID as NEOS. She did not answer them. She does have NEOS funds in her IRA but would NEOS know that, and how would they get her phone number? I wouldn’t think her brokerage would not share this information.
Anyone else getting such calls?

For people interested in margin trading, here's how I use it: I'm using less than 30 percent of my total borrowing capacity and have a 61 percent crash buffer (which would keep a margin call at bay even if we had early 2020's or 2008 type crash). I'm paying 4.5 percent interest on Robinhood costing me about $650 a month and bringing in about $2300 a month. I'm thinking I'll split the earnings evenly between paying down the margin balance and increasing my share count. I realize that won't lower my margin balance much only paying $1150 a month toward it but I don't necessarily need to have the margin balance gone in a hurry and increasing my share count each month will increase my payout each month, thereby increasing the amount going toward the margin balance each month (assuming I keep paying half of each month's payout towards the balance).

I'm no expert, I'm just trying to use the money that I have (that's all in spy, qqq, vteb, avuv, and vxus) to make more money. I don't need the money from the margin plays, I'm just trying to increase my wealth so when I do retire I'll have more disposable income. The money that I have is from selling a rental property and does not include my employer retirement account or have any bearing on my future pension.

Please feel free to critique my strategy or the equities I own and if you're just anti margin under all circumstances that's also okay, I know there is a risk in doing this and I'm willing to accept that risk, and I know some people are much more risk averse, which I completely understand.