Seeking High Monthly Income and Tax Efficiency

By: Garrett Paolella   |   February 2, 2023

Seeking High Monthly Income and Tax Efficiency

With inflationary pressures across the globe stoking market volatility and agitating investor sentiment, the quest for meaningful returns on investments becomes an ongoing challenge. Where is yield to be captured while also allowing investors maintain purchasing power?

NEOS aims to maximize your income while minimizing tax consequences through the core exposure most investors have come to know and trust.


Potential Benefits of our Next Evolution Options Strategies (NEOS):

  1. Seeks high monthly income
  2. Aim to capitalize on tax efficient product structures and fund management
  3. Function as an income enhancing complement to core portfolio allocations
  4. Meet investor demands across both fixed income and equity allocations
  5. Utilize data-driven research that seeks to enhance investor outcomes


Overcoming Challenges to Income Generation in a Post-Pandemic Inflationary Environment

As the frequency of once-in-a-generation events seemingly increases, traditional income-oriented investments may no longer provide the income potential investors need. The capital you invest requires strategies that consider the challenges of our current market while aiming to evolve with our marketplace.

Our Next Evolution of Options Strategies are designed to help navigate the challenges of modern markets, providing income generation and tax-efficiency layered on top of the core portfolio exposures across equities, fixed income, and cash.

ETFs that seek income as the outcome

When seeking income is the desired outcome, more investors may be turning to options trading to supplement their portfolio yield. The liquidity and growing accessibility of options markets provide more opportunities to supplement return and protect purchasing power, while the scope and complexity of options investments benefit from an experienced manager.


NEOS solutions seek to offer higher income with greater tax efficiency.

Multi-dimensional products | NEOS options-based solutions are designed to generate monthly income AND provide compelling total returns in tax efficient offerings.

Actively-managed approach | a data-driven approach utilizing systematic, rules-based active management aims to enhance investor outcomes throughout different market cycles.

Core portfolio building blocks | NEOS ETFs offer core portfolio exposure with data-driven options strategies seeking monthly income, packaged into accessible ETFs. The result is high income potential for equities and enhanced income potential for fixed income and cash alternatives.

Income generation overlay | income is added through options premiums by writing call spreads on equity products or put spreads on fixed income and cash alternative products. This alternative approach to traditional income focused investments may help offset inflation risk in portfolios and combat personal cost.


Core investment exposure + data-driven options strategy = higher income potential in a tax-efficient manner


Comparison of NEOS ETFs

Characteristics of Next Evolution of Options Strategies and potential benefits to investors.

  • Core equity ETF that seeks to provide a high monthly income stream
  • Majority of income potential is generated from the sale of SPX Index call options subject to favorable 60/40 tax rates
  • Fund managers aim to take advantage of tax loss harvesting opportunities within the portfolio
  • Opportunity for upside participation when market conditions warrant


NEOS Enhanced Income Aggregate Bond ETF (BNDI)

NEOS Enhance Income Cash Alternative ETF (CSHI)

  • Core fixed income and cash alternative ETFs that seek to provide enhanced monthly income (above investing in the same underlying exposure)
  • Enhanced income potential is generated from the sale of S&P 500 index put options
  • Seeks to maintain a similar risk profile to the underlying index investment
  • Fund managers aim to take advantage of tax loss harvesting opportunities within the portfolio
  • May limit credit, duration, and inflation risks present in many fixed income investments


NEOS is a specialized asset manager that aims to enhance investor outcomes that brings together a seasoned team with a proven track record of launching innovative investment products.

Garrett Paolella

Co-Founder, Managing Partner

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