JEPQ - QQQI Or JEPQ Which Income Fund Is Better?

2024-07-09 23:49:45 ET

Summary

• The Neos Nasdaq-100 High Income ETF is a BuyWrite active ETF that utilizes a proprietary 'data-driven' call option strategy on the Nasdaq-100 Index.
• QQQI pays an attractive 14.5% annualized distribution yield, while delivering a strong 12.5% total return since inception.
• QQQI's flexibility is a valuable 'real option', especially after sharp market declines, when selling call options can truncate fund returns.

We are increasingly seeing investment managers launch short-volatility structured products that combine investments in equity indices like the Nasdaq 100 Index with a derivatives overlay to generate option income. In March, Bloomberg estimated that over $60 billion was invested in these strategies (Figure 1)....

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