Seeking Income And Stability? NEOS's Gold High Income ETF May Be Your Answer

Zinger Key Points

While investors search for stable income in the volatile market, NEOS Investments brings its next innovation: the NEOS Gold High Income ETF IAUI. The new fund is unique in merging physical gold exposure with an innovative options strategy aimed at producing high monthly income, a timely release considering the increasing demand for stable yield from safe-haven assets.

IAUI's strategy combines up to 25% holdings in physically backed gold ETPs (exchange traded products) with a synthetic options approach that buys calls and sells puts on gold ETPs. This dual method allows the fund to closely track gold prices while producing income. Adding to the yield, IAUI also sells covered calls on gold ETPs as reference assets, converting capped upside into consistent income.

Also Read: Fidelity’s New Futures ETF Offers Investors A New Way To Hedge Risks

Gold’s performance this year has mirrored increasing global economic anxiety. After reaching an all-time high of $3,500 per ounce in April, prices recently rallied amid new trade tensions and other economic factors. With the U.S. dollar weakening and volatility remaining elevated, gold continues to be a preferred safe haven, and IAUI provides a new means of gaining exposure while offering improved income potential.

IAUI also invests in government securities as collateral, achieving growth and safety with active management to control risk and capture gains.

The launch of the new ETF broadens NEOS’s increasing alternatives portfolio, which also features high-income Bitcoin and real estate holdings. With an expense ratio of 0.78%, IAUI offers an appealing option for income-focused investors wishing to diversify from conventional bonds and shares.

As demand for safe havens strengthens, the NEOS Gold High Income ETF is likely to rapidly rise to become a popular vehicle for investors wanting both gold’s security and increased income flows.

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IAUINEOS ETF Trust NEOS Gold High Income ETF
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