Hiroshi Watanabe/DigitalVision via Getty Images Introduction To The NEOS MSCI EAFE High Income ETF The past few years have seen the popularization of options-based strategies, and Neos Investments has been at the center of an interesting trend. Neos is famous in the ETF space for using put spreads to enhance returns for a plethora of asset classes, but they also have a number of robust classic buy...
Hiroshi Watanabe/DigitalVision via Getty Images Introduction To The NEOS MSCI EAFE High Income ETF The past few years have seen the popularization of options-based strategies, and Neos Investments has been at the center of an interesting trend. Neos is famous in the ETF space for using put spreads to enhance returns for a plethora of asset classes, but they also have a number of robust classic buy-write funds (covered call ETFs). The NEOS MSCI EAFE High Income ETF ( NIHI ) is such a fund. The ETF is a very useful tool to extract dividends from a portfolio of international equities. In today's article we are going to go through the larger topic of covered call ETFs, the NIHI fund build and structure, and its application in various macro cycles. What Are Covered Call ETFs? Let us start with some basic concepts around covered call ETFs in general: A covered call ETF is an exchange-traded fund that generates potential income by writing call options on the securities the ETF holds. These actively-managed ETFs give investors the opportunity to benefit from covered call writing without having to participate in the options market directly. Covered call ETFs allow investors to earn income in the form of options contract premiums, in addition to any other dividends, and potentially reduce portfolio volatility. One trade-off is that upside potential may be limited if call options are exercised — typically when the underlying security reaches the strike price — which could result in shares being called away from the fund. So the main purpose of a well-run covered call ETF is to extract dividends from a pool of assets or ETFs when the underlying holdings might not have any. The idea is to use options in order to generate said dividends. Writing calls simply allows the fund to use the options market to do that. Despite many misconceptions, covered call ETFs tend to have similar long-term total returns as the underlying assets, and this is for well-run funds. Poorly run covered ca...
On March 30, the S&P 500 (SNPINDEX:^GSPC) fell 0.39% to 6,343.72 in choppy trading. The Nasdaq Composite (NASDAQINDEX:^IXIC) slid 0.73% to 20,794.64 on tech and chip weakness. The Dow Jones Industrial Average (DJINDICES:^DJI) eked out a 0.11% gain to 45,216.14 as defensives outperformed. Energy giant Exxon Mobil (NYSE:XOM) and consumer staple heavyweight PepsiCo (NASDAQ:PEP) advanced as investors ...
On March 30, the S&P 500 (SNPINDEX:^GSPC) fell 0.39% to 6,343.72 in choppy trading. The Nasdaq Composite (NASDAQINDEX:^IXIC) slid 0.73% to 20,794.64 on tech and chip weakness. The Dow Jones Industrial Average (DJINDICES:^DJI) eked out a 0.11% gain to 45,216.14 as defensives outperformed. Energy giant Exxon Mobil (NYSE:XOM) and consumer staple heavyweight PepsiCo (NASDAQ:PEP) advanced as investors rotated into oil-linked and defensive blue chips. Eli Lilly (NYSE:LLY) gained after it extended its AI drug development partnership with InSilico Medicine. Micron Technology (NASDAQ:MU) and Sandisk (NASDAQ:SNDK) dropped again as the memory chip sell-off deepened. Semiconductor bellwether Taiwan Semiconductor Manufacturing Co. (NYSE:TSM) and megacap tech leaders such as Nvidia (NASDAQ:NVDA) and Intel (NASDAQ:INTC) weighed on the Nasdaq amid renewed artificial intelligence (AI) valuation jitters. Continue reading
onurdongel/iStock via Getty Images The NEOS MLP & Energy Infrastructure High Income ETF ( MLPI ) has recently launched and has generated a wave of positive coverage thus far on Seeking Alpha, with numerous analysts covering the fund and all rating it a buy: Seeking Alpha In fact, several have heralded it as the best ETF for investing in the midstream/energy infrastructure sector. What Is MLPI? MLP...
onurdongel/iStock via Getty Images The NEOS MLP & Energy Infrastructure High Income ETF ( MLPI ) has recently launched and has generated a wave of positive coverage thus far on Seeking Alpha, with numerous analysts covering the fund and all rating it a buy: Seeking Alpha In fact, several have heralded it as the best ETF for investing in the midstream/energy infrastructure sector. What Is MLPI? MLPI is a diversified portfolio of energy infrastructure companies, with the vast majority of the portfolio invested in C corporations like Enbridge ( ENB ), Williams Companies ( WMB ), TC Energy ( TRP ), Kinder Morgan ( KMI ), ONEOK ( OKE ), and other prominent C corporation names, though it does also have some exposure to MLPs like Energy Transfer ( ET ). Seeking Alpha It then overlays a semi-actively managed covered call strategy, similar to what it does in NEOS's other funds, like the NEOS Nasdaq-100 High Income ETF ( QQQI ) and the NEOS S&P 500 High Income ETF ( SPYI ). It uses that strategy to generate covered call premiums to help support outsized monthly distributions and also still preserve some of the upside for the fund. The Bull Case This strategy has worked quite well. As you can see below, since it launched, MLPI has generated very attractive total returns. In fact, many will point to it as a superior fund to the likes of the Alerian MLP ETF ( AMLP ) and the Global X MLP ETF ( MLPA ), because it has generated a higher yield and higher total returns than those funds since it went public (its dividends so far annualized to ~$8, which amounts to a ~14% annualized yield). Data by YCharts Given that, what is there not to like about a fund like this? Is this perhaps the holy grail of the midstream ETFs, with it being able to deliver higher yields and higher total returns than purely passively managed funds do? As a result of its strong performance thus far, I have gotten numerous inquiries from some of my members asking me my thoughts on it. While the fund certainly ha...
Former Senior Advisor to President Obama Puneet Talwar discusses President Trump renewing threats against Iran as US troops arrive in the region. He talks with Katie Greifeld on "The Close." (Source: Bloomberg)
Former Senior Advisor to President Obama Puneet Talwar discusses President Trump renewing threats against Iran as US troops arrive in the region. He talks with Katie Greifeld on "The Close." (Source: Bloomberg)
In this video, Motley Fool contributors Jason Hall and Tyler Crowe make the case for Accelerant Holdings (NYSE: ARX) and Kinsale Capital (NYSE: KNSL) as ideal stocks for smart, savvy investors to buy right now.
In this video, Motley Fool contributors Jason Hall and Tyler Crowe make the case for Accelerant Holdings (NYSE: ARX) and Kinsale Capital (NYSE: KNSL) as ideal stocks for smart, savvy investors to buy right now.
franckreporter/iStock via Getty Images Wall Street’s major market averages closed mostly lower on Monday as investors looked to navigate the holiday-shortened trading week with eyes continuing to focus on the Middle East conflict. The tech-focused Nasdaq Composite ( COMP:IND ) ended lower by 0.7%. At the same time, the benchmark S&P 500 ( SP500 ) handed back -0.3%, and the blue-chip Dow ( DJI ) cl...
franckreporter/iStock via Getty Images Wall Street’s major market averages closed mostly lower on Monday as investors looked to navigate the holiday-shortened trading week with eyes continuing to focus on the Middle East conflict. The tech-focused Nasdaq Composite ( COMP:IND ) ended lower by 0.7%. At the same time, the benchmark S&P 500 ( SP500 ) handed back -0.3%, and the blue-chip Dow ( DJI ) closed higher by +0.1% Here are the 4 stocks to watch after market on Monday: Viridian Therapeutics ( VRDN ) remained under pressure in premarket trade following Monday’s 32% decline after the company released topline results from its Phase 3 REVEAL-1 trial of elegrobart for thyroid eye disease. While the study met its primary endpoint of statistically significant proptosis reduction, investors appeared underwhelmed by the overall efficacy profile, with the four-week dosing cohort showing a 54% proptosis responder rate compared to 18% for placebo. Boston Scientific ( BSX ) traded cautiously in premarket activity after closing down 9% Monday despite the CHAMPION-AF study of its Watchman FLX Left Atrial Appendage Closure device meeting primary and secondary endpoints. The trial showed non-inferiority compared to oral anticoagulants for the primary endpoint of stroke, cardiovascular or unexplained death, or systemic embolism (5.7% vs. 4.8%), though some investors noted that ischemic stroke rates were slightly higher in the Watchman cohort at 3.2% versus 2% for blood thinners. M&T Bank ( MTB ) moved higher in premarket trade after announcing its board authorized a new $5 billion share repurchase program for its common stock. The new authorization replaces and terminates a previous $4 billion buyback program approved in January 2025. The company said the timing, number of shares repurchased, and transaction terms will remain at its discretion and subject to regulatory limits. Air Lease ( AL ) traded near its $65 per share acquisition price in premarket activity after receiving fin...
Shares in Micron Technology, the largest American maker of memory chips, fell 9.9% on Monday, compounding losses after investors digested the memory company’s blowout earnings report earlier this month.
Shares in Micron Technology, the largest American maker of memory chips, fell 9.9% on Monday, compounding losses after investors digested the memory company’s blowout earnings report earlier this month.
Electric vehicle (EV) and energy storage system maker Tesla (NASDAQ:TSLA) closed Monday at $355.28, down 1.81%. The stock slipped as coverage highlighted ongoing EV pricing pressure and skepticism over its AI and robotaxi pivot. Investors are also watching Q1 2026 delivery data a
Electric vehicle (EV) and energy storage system maker Tesla (NASDAQ:TSLA) closed Monday at $355.28, down 1.81%. The stock slipped as coverage highlighted ongoing EV pricing pressure and skepticism over its AI and robotaxi pivot. Investors are also watching Q1 2026 delivery data a
Welcome back to Canada Daily, the newsletter on business, economics and politics from Vancouver to Montreal and beyond. If this was forwarded to you, please sign up here . The clock was ticking on Michael Rousseau’s career a week ago, when he posted a video message about the tragic collision between an Air Canada jet and a fire truck at LaGuardia Airport, which killed the two pilots and injured do...
Welcome back to Canada Daily, the newsletter on business, economics and politics from Vancouver to Montreal and beyond. If this was forwarded to you, please sign up here . The clock was ticking on Michael Rousseau’s career a week ago, when he posted a video message about the tragic collision between an Air Canada jet and a fire truck at LaGuardia Airport, which killed the two pilots and injured dozens of passengers, as well as crew members. The Air Canada CEO’s statement was just three minutes and 44 seconds, fewer than 500 words in total. Nothing was wrong with it except that only two of those words were in French — bonjour and merci . It wasn’t long before Canadians began talking about the insensitivity of this. The LaGuardia flight had originated from Montreal, so it was full of French speakers. One of the deceased pilots was a Quebecer. The prime minister and Quebec’s premier ripped Rousseau . La Caisse, the pension manager that’s an influential voice in the boardrooms of the province, told Bloomberg News : “There is no doubt that the video should have been in both official languages.” And yes, the spokesperson gave us that statement in French and English. So Rousseau’s retirement announcement , which arrived Monday morning, was hardly a shock. The more relevant question is where the airline goes next. Air Canada promoted Rousseau from within; he had been chief financial officer. John Di Bert, who now holds that role, was CFO of Bombardier and knows a thing or two about navigating the internal politics of a high-profile Quebec company. Mark Galardo, the airline’s chief commercial officer, has been on the executive team for almost a decade. He has a wide range of business responsibilities and has negotiated deals with Airbus. Both executives speak French. The board has also started an external search. Whoever is anointed will inherit an airline that’s in decent shape. Air Canada took on emergency government funding during Covid, but it has brought its long-term d...
Boston Scientific (NYSE:BSX) , a maker of medical devices for interventional specialties, closed Monday at $62.92, down 9.03%. The stock moved lower on Monday as investors analyzed new clinical trial information on the company’s Watchman heart implant. Trading volume reached 39.9 million shares, coming in about 163% above its three-month average of 15.2 million shares. Boston Scientific IPO'd in 1...
Boston Scientific (NYSE:BSX) , a maker of medical devices for interventional specialties, closed Monday at $62.92, down 9.03%. The stock moved lower on Monday as investors analyzed new clinical trial information on the company’s Watchman heart implant. Trading volume reached 39.9 million shares, coming in about 163% above its three-month average of 15.2 million shares. Boston Scientific IPO'd in 1992 and has grown 1370% since going public. S&P 500 slipped 0.39% to finish Monday at 6,344, while the Nasdaq Composite declined 0.73% to close at 20,795. Among medical device peers , Medtronic closed at $85.78 (-1.56%) and Stryker ended at $326.05 (-0.42%), reflecting broader pressure across the group. Boston Scientific provided an update on its CHAMPION-AF clinical trial, which tests its Watchman FLX heart implant versus existing oral anticoagulant (NOAC) treatment options. While management announced that the trial met all of its safety and efficacy endpoints, analysts were underwhelmed. Continue reading