SPYI Continues To Deliver Double Digit Yields With Capital Appreciation

2026-02-28 08:30:00 ET

Covered call ETFs have become increasingly popular over the years, and the NEOS S&P 500 High Income ETF ( SPYI ) has amassed over $8 billion in AUM since August 2022. The JPMorgan Equity Premium Income ETF ( JEPI ) is still the leader in AUM for covered call ETFs with $44.49 billion, but SPYI continues to show the market why its investment strategy is superior. As the risk-free rate of return declines, it’s becoming less lucrative to park capital into risk-free assets. The United States 10-Year Bond Yield ( US10Y ) has fallen to 4%, while the United States 12-Month Bill Yield ( US12M ) has fallen to 3.51%. We have a new Fed Chair starting in May, and Goldman Sachs global head of investment grade credit, Jonny Fine, is calling for 4 rate cuts this year. I happen to agree, especially with more layoffs occurring. The Fed will need to cut to make it more viable for smaller businesses to expand and entrepreneurs to operate. In a yield-starved environment, high-yield funds will look more attractive, and SPYI has established a track record that is hard to ignore....

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