SPYI ETF offers high tax-free yield but with high fees and capped upside in Roth IRAs.

The NEOS S&P 500 High Income ETF (SPYI) promises nearly $60,000 yearly tax-free income on a $500,000 Roth IRA investment, but comes with a 0.68% fee and capped upside due to its options strategy. Compared to the standard S&P 500 ETF (SPY) with much lower fees and higher returns, SPYI’s strategy of selling call options limits growth and may not add value in a Roth account that already offers tax-free gains. Cheaper alternatives like SPY, JEPI, and XYLD provide similar exposure with lower costs or different income strategies. Investors should weigh the high fees and capped gains against the tax-free income appeal before investing in SPYI within a Roth IRA.