The NEOS Nasdaq-100 High Income ETF (QQQI) distributes monthly cash to investors, but IRS filings reveal that nearly all of these payouts are classified as return of capital (ROC), not taxable income. This means investors receive untaxed cash initially, but their cost basis in the fund decreases, potentially leading to higher capital gains tax when they sell shares. The ROC classification results from how options income is treated for tax purposes and does not necessarily indicate poor fund performance. QQQI suits investors seeking monthly income in taxable accounts who plan to hold long-term and track their cost basis carefully, while those in IRAs or expecting to sell soon should consider alternatives.
The NEOS Nasdaq-100 High Income ETF (QQQI) is discussed in the context of its return of capital distributions. Meanwhile, the Invesco NASDAQ 100 ETF (QQQM) trades at USD 308.69 on Pluang as of Oct 04, 2026 05:21 WIB. QQQM's 1-day price change is +1.02%, with a market cap of $110.22 billion, showing active investor interest with 67% buy orders on the platform.
