NEOS Launches 150% Leveraged Nasdaq-100 Income ETF with 0.98% Fee
NEOS launched its Boosted Nasdaq-100 High Income ETF (XQQI) last week, offering 150% notional index exposure through a synthetic options overlay and charging a 0.98% expense ratio. The fund will distribute monthly income payouts in the first week, potentially enhancing yield for Nasdaq-100 investors.
1. NEOS Launches Boosted Nasdaq-100 ETF
NEOS Investments introduced the NEOS Boosted Nasdaq-100 High Income ETF (XQQI), targeting approximately 150% notional exposure to the Nasdaq-100 through an options-based approach.
2. Synthetic Options Overlay Structure
XQQI uses a synthetic leverage strategy by selling call options and buying puts at matching strike levels, generating premium income while maintaining amplified index exposure over extended periods.
3. Expense Ratio and Income Generation
The fund carries a 0.98% annual expense ratio and combines a core Nasdaq-100 equity portfolio with a covered call overlay to produce higher monthly income distributions.
4. Monthly Distribution Schedule
Investors receive income payouts during the first week of each month, aligning with NEOS’ broader shift toward more frequent ETF distributions to boost yield opportunities.