NEOS Launches S&P 500 High Income ETF with 150% Exposure, 0.98% Fee
NEOS Investments launched the Boosted S&P 500 High Income ETF with a 0.98% expense ratio and targeted 150% notional exposure via synthetic options overlays. The fund employs covered-call writing and monthly income distributions to enhance yield while maintaining amplified market exposure.
1. Fund Launch and Objectives
NEOS Investments introduced the Boosted S&P 500 High Income ETF to provide investors with amplified market exposure and enhanced income potential. The new fund aims for approximately 150% notional exposure to the S&P 500 while building on NEOS’ existing high-income ETF lineup.
2. Exposure and Strategy
Instead of using daily-reset leverage, the fund employs a synthetic options overlay by selling call options and simultaneously buying calls and selling puts at similar strike levels. This approach maintains leveraged exposure over longer periods and may reduce financing costs compared to conventional leveraged ETFs.
3. Fee and Distribution Details
The ETF carries an annual expense ratio of 0.98% and will distribute income monthly in the first week, leveraging covered-call writing to generate premium income. Monthly distributions are designed to provide a steady income stream while preserving amplified index exposure.