Introducing NEOS – Our Next Evolution Options Strategies

By: Garrett Paolella   |   September 14, 2022

Introducing NEOS – Our Next Evolution Options Strategies

What does the next evolution in options-based ETFs look like? That was the question we asked ourselves, and the answers we collectively built led us to where we are now, launching the kinds of tools, in an ETF wrapper, that are designed to help investors and advisors meet today’s most pressing portfolio challenges while also preparing for what future markets may bring.

NEOS Investments was founded by a global team of options and ETF industry pioneers who collectively bring decades of experience, both individually and as colleagues working together at several previous firms on numerous ETFs currently in market. Though we are just getting started, we’ve already introduced an initial suite of options income ETFs that combine quantitative analysis with decades of experience trading and investing across multiple markets, aiming to empower the investor with core portfolio building blocks that seek to provide high income, tax efficiency, and diversification through data-driven options-based ETFs.

So, what does the next evolutions in ETFs look like? It approaches fund construction with the idea that seeking income is the outcome, and it looks a lot like the NEOS family of ETFs.


Market Update

As part of our commitment to education, we will regularly be sharing updates on the markets, investment trends, options approaches and more. This year has presented the marketplace with ample volatility driven by a range of factors, including concerns of an economic recession, rampant inflation, questions around the Fed’s next move (and several moves after that), sell-offs, bear markets, and more, all amidst historically low bond yields.

Investors are finding themselves challenged, and understandably so, in navigating their portfolios at such a time. Global markets also continue to be impacted by Russia’s invasion of Ukraine, with increased geopolitical tensions reflected in currencies, oil and gas volatility, and shortages of grains, fertilizers and other core commodities.

It’s never been more imperative to have the right tools in the investing toolbox. The rest of the year may bring additional challenges, particularly around our midterm election. Not all options or yield-enhancing strategies are created equally, and we look forward to educating the marketplace on the value of utilizing options-bases strategies in portfolios and asset allocation.


Our Investment Philosophy

To this point, though there has been a proliferation of options-based ETF strategies brought to market, the vast majority provide only a one-dimensional solution such as income generation or downside protection, and we believe investors want and deserve more. We’ve set out to provide the next evolution of options-based strategies using a multi-dimensional framework through data-driven active management that aims to offer an enhanced suite of options-based tools to help build more resilient core equity and income portfolios.

Our approach, which underpins each strategy, includes four main components:

  • Quantitative Analysis: Large-scale data analysis of historical and current market factors offer unique forward-looking insights.
  • Systematic approach: Investment strategies should be implemented with a systematic, rules-based approach and active risk management.
  • Cost-efficient exposure: Strategies should incorporate cost- efficient exposures and implementation practices to reduce the impact of fees on returns.
  • Transparent Communication: Solutions should be delivered with an emphasis on liquidity, transparency, and communication.

Experience matters when it comes to putting the right options-based strategies to work, and with NEOS investors can seek to benefit from the decades of experience our team brings to each and every solution we package and bring to market. We aim to enhance investor outcomes, deliver yield and solve a range of portfolio construction challenges. It’s at the core of everything we do, and everything we’re planning. We’re thrilled to be bringing the NEOS brand to the marketplace and to be able to start telling the story of what the next evolution of options-based ETFs can do for all types of investors.



Garrett Paolella

Co-Founder, Managing Partner

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