If You Invested in NEOS NASDAQ-100(R) High Income ETF (QQQI)

The NEOS Nasdaq 100 High Income ETF (QQQI) is an exchange-traded fund of the NEOS ETF Trust that focuses on an options-based approach to the Nasdaq-100 Index. According to NEOS Investments, the fund is designed for income-focused investors who are seeking high monthly income, tax efficiency, and the potential for upside participation in rising equity markets within the options-based ETF segment.

QQQI was launched on January 30, 2024. It is associated with NEOS Investments, an asset management firm founded in 2022 and headquartered in Westport, Connecticut. NEOS describes itself as being established by a team with extensive experience in developing and managing options-based ETFs, and it offers a suite of strategies that emphasize income generation, tax efficiency, and diversification through a data-driven process.

The fund’s stated objective is to seek tax-efficient monthly income generation while also allowing investors to pursue strong total returns. QQQI aims to achieve this by using a data-driven call option strategy on the Nasdaq-100 Index. The strategy includes the use of index options that are classified under Section 1256 of the Internal Revenue Code and the active implementation of portfolio tax-loss harvesting, with the goal of improving after-tax outcomes for investors.

Within the broader options-based ETF market, QQQI is positioned as an actively managed strategy that offers more than traditional covered call exposure to the Nasdaq-100. NEOS highlights that the fund’s approach has resonated with income-focused investors who are attentive to both cash flow and tax considerations. The fund’s emphasis on monthly income, combined with its focus on tax treatment of index options and loss harvesting, reflects a specialized approach to using derivatives in an ETF structure.

QQQI received recognition at the 2025 ETF.com Awards, where it was awarded “Best New Active ETF.” This award was described by NEOS as acknowledging the fund’s approach to seeking high monthly income, tax efficiency, and upside potential in a rapidly growing segment of the ETF market. NEOS also notes that the recognition reflects early investor adoption and performance since the fund’s inception, and that the strategy has appealed to investors seeking an alternative to more traditional covered call strategies tied to the Nasdaq-100.

NEOS emphasizes that its ETFs, including QQQI, involve risks associated with the use of derivatives. These include the risk that a counterparty to a derivative transaction may not fulfill its obligations, the risk of mispricing or improper valuation, and the risk that changes in the value of a derivative may not correlate perfectly with the underlying asset, rate, or index. Derivative prices can be highly volatile and may fluctuate substantially over short periods. NEOS also notes that the use of leverage, such as borrowing or the use of options, can magnify gains or losses and increase expenses.

The disclosures associated with QQQI further explain that investments in NEOS ETFs involve the risk of possible loss of principal. They also highlight that small and medium sized companies can be more volatile than larger companies, may have lower trading volumes, and may be more sensitive to selling pressure. These companies may also have more limited markets, product lines, financial resources, or management experience, which can affect their risk and return characteristics within the fund’s portfolio.

NEOS positions its ETF lineup, including QQQI, as providing core portfolio building blocks where seeking income is a central outcome. The firm’s strategies are described as aiming to deliver monthly income, tax efficiency, and diversification through a data-driven approach to options-based investing. Within this context, QQQI represents NEOS’s Nasdaq-100–focused high income strategy, combining an options overlay with an emphasis on tax-aware portfolio management.