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This tax-efficient ETF yields 12% with most monthly payouts potentially avoiding current taxes.

Market News
10 Sep 2026
24/7 Wall Street
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Bullish
This tax-efficient ETF yields 12% with most monthly payouts potentially avoiding current taxes.

The NEOS S&P 500 High Income ETF (SPYI) offers a 12.04% distribution rate, largely composed of return of capital (ROC), which defers taxes until shares are sold. This ETF combines S&P 500 exposure with a call spread strategy to generate monthly income while preserving some market upside. Its latest tax notice estimates about 97% of distributions as ROC, meaning most payouts may not be immediately taxable, providing a tax-deferral benefit for investors holding the fund long-term. While it yields strong monthly income, total returns have lagged a plain S&P 500 index, reflecting the trade-off of options-income strategies.

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