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Introduction
Back on March 20th of this year, I published "QQQI: The Next Big Test Has Begun," where I reviewed the NEOS NASDAQ-100(R) High Income ETF (QQQI), which is a covered
QQQI: It Passed The Test (Upgrade)
Summary
- QQQI remains a standout for its tax efficiency and ability to keep pace with the Nasdaq 100. The fund successfully navigated the April crash and recovery with grace.
- The fund's covered call strategy generates a nearly 14% yield, with most distributions as return-of-capital, making it highly suitable for taxable accounts.
- Active management introduces some risks, especially around dividend variability and option timing, so position sizing is critical for investors.
- I recommend QQQI as a satellite holding for aggressive or moderate income portfolios, but conservative investors should consider less volatile alternatives.
John "Jack" Bowman is a registered investment advisor, economics educator, research analyst, and commentator from Southern California. He mostly covers macroeconomics, income-focused investments, derivatives, alternatives, and portfolio management. "History does not repeat, but it does instruct." — Timothy Snyder, On Tyranny
Analyst’s Disclosure: I/we have a beneficial long position in the shares of JEPI, JEPQ either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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