NEOS Nasdaq-100 Hedged Equity Income ETF

The Neos Nasdaq 100 High Income ETF is an exchange-traded fund designed to generate high monthly income and offer a degree of equity market participation. Primarily, it invests in large-cap growth and value stocks that are constituents of the Nasdaq-100 Index, spanning sectors such as technology, consumer discretionary, communication services, and more. The fund distinguishes itself by employing an options overlay strategy—selling call options on the Nasdaq-100—which is intended to provide a consistent income stream that is generally less correlated to interest rates compared to traditional fixed income sources. This approach also enables a measure of downside protection and leverages the tax advantages associated with index options, specifically Section 1256 contracts, known for their favorable treatment of capital gains. Launched by NEOS Investment Management, the fund may appeal to investors seeking monthly, tax-efficient income alongside potential for limited equity appreciation. Its structure and purpose position it as an alternative or complement to existing income-focused or core equity allocations, particularly for those interested in harnessing income opportunities from the Nasdaq-100 while mitigating some equity market risk.