Three option-overlay ETFs have gained traction among investors seeking high yields and long-term compound returns. The NEOS S&P 500 High Income ETF (SPYI) boasts an 11.61% dividend yield and manages $7.1 billion in assets, focusing on a tax-efficient strategy using SPX Index options. The fund’s top holdings include major tech companies like NVIDIA and Apple, comprising nearly 20% of its portfolio.
The NEOS Nasdaq-100 High Income ETF (QQQI) offers an even higher yield of 13.71%, distributing an annual dividend of $7.44. Launched in 2024, it has quickly become popular, trading 4.45 million shares daily, with institutions purchasing over $16 million in the past year.
Lastly, the JPMorgan Nasdaq Equity Premium Income ETF (JEPQ) stands as one of the largest in the sector with $33.3 billion in assets and a dividend yield of 10.42%. Unlike the NEOS funds, JEPQ uses active management strategies to navigate market fluctuations while maintaining significant exposure to the tech sector.
