The NEOS Nasdaq-100 High Income ETF (QQQI) offers attractive monthly dividends, distributing $7.63 per share over the past year. However, it underperformed the Nasdaq-100 index by about 6 percentage points year-to-date through July 2026, returning 12.27% versus 18.10% for the index. This underperformance is due to a 0.68% expense ratio and a covered-call strategy that caps upside gains by selling call options on the index. Investors seeking full Nasdaq-100 exposure with lower fees might prefer standard ETFs like Invesco QQQ or QQQM, while those wanting income with options exposure could consider JPMorgan's JEPQ ETF. The key takeaway is that QQQI trades some growth potential for income, so investors should weigh if the dividend income justifies the missed index gains and fees.
