NEOS Gold High Income ETF (IAUI) has delivered a 15.5% total return since its launch in early 2024, outperforming long-duration U.S. Treasury bonds by nearly 400 basis points over the same period. While unlevered gold exposures rallied more sharply last year, IAUI’s capped upside from its covered call overlay restrained participation in gold’s 64.37% price surge through 2025, keeping gains closer to a balanced risk profile for income-seeking investors.

IAUI writes monthly covered calls on roughly 80% of its gold and Treasury holdings, generating option premiums that have boosted the fund’s yield. This tactical approach has produced a current SEC yield of 6.87%, providing investors with a regular income stream that compares favorably to traditional gold funds and many fixed-income alternatives in a low-rate environment.

The ETF holds a mix of allocated gold bullion and short- to intermediate-term U.S. government debt, with recent portfolio weights of approximately 60% gold and 40% Treasuries. This blend seeks to balance gold’s inflation-hedging qualities with the lower volatility and liquidity of government securities, aiming to reduce drawdowns during periods of metal price weakness while capturing upside from precious metal rallies.

Analyst Andrew Hecht rates IAUI a Buy, arguing that falling interest rates coupled with rangebound or mildly bullish gold prices could create an ideal backdrop for covered-call income strategies. Hecht projects gold to trade between $1,900 and $2,100 per ounce next year, suggesting that call premiums will remain elevated and that IAUI’s option income could offset any stagnation in metal prices.