The combination of a middling Process Pillar rating and a Below Average People Pillar rating limit  NEOS Enhanced Income CA Alt ETF to a Morningstar Medalist Rating of Neutral.  The strategy charges fees in line with its similarly distributed peers, priced within the middle quintile.  

 The strategy's management team is about as experienced as others, but due to other weaknesses, the strategy earns a Below Average People Pillar. The fund's assessment garners an Average Process Pillar rating. The strategy's parent organization is industry standard, albeit with some strong attributes like low portfolio manager turnover and overall reasonable fees. This earns the firm an Average Parent Pillar rating.

Analyst Rating

Morningstar's evaluation of this fund's process seeks to understand management's investment philosophy, and whether it has been applied consistently over time and can add value across the market cycle. NEOS Enhanced Inc Csh Alt ETF earns an Average Process Pillar rating.    The main contributor to the rating is the firm's five-year retention rate of 100% over the period. The size of the portfolio management team also strengthens the process. With three portfolio managers, the fund is reasonably well-resourced. Lastly, the process is limited by the experience of the management team, which averages seven years at this fund.

 The investment strategy as stated in the fund's prospectus is as follows: 


The investment seeks to generate monthly income in a tax efficient manner.  The fund is an actively-managed ETF that seeks to achieve its investment objective by investing in 1-3 month T-Bills or in ETFs with substantial exposure to 1-3 month T-Bills and selling and purchasing S&P 500® Index put options to generate income to the fund beyond what is received from the Underlying Investments.

 This strategy's 12-month yield is 6.2%, higher than its average peer's 4.9%. Plus, its 30-day SEC yield (a standardized, point-in-time estimate of the fund’s future income return) sits at 4.9%. Higher yields tend to indicate higher credit risk.

Average

Process

NEOS Enhanced Inc Csh Alt ETF earns a Below Average People Pillar rating. The team is supported by the firm's five-year retention rate of 100%. However, the rating is held back by the experience of the management team, which averages seven years at this fund. The number of months that the management team has been running this vehicle together also holds the rating back. Since this is a newly incepted product, more time is needed to monitor the team's capability at executing the strategy.


Garrett Paolella, the longest-tenured manager on the strategy, provides strong guidance, offering 10 years of listed portfolio management experience.  Garrett Paolella draws on only two other listed supporting managers. Although, together they are adequately equipped, with seven years of average listed portfolio management experience.

Below Average

People

Since its inception one year ago, Neos Funds has demonstrated that it will hold its own as a steward of capital, warranting an Average Parent Pillar rating. Neos Funds currently manages six vehicles, with a total of $1.32 billion under management and a roster of three fund managers.   

 A pocket of strength is the firm’s below-average fees on its open-end and exchange-traded funds, demonstrating a firmwide commitment to minimizing costs and maximizing investors’ returns. The average net expense ratio of its funds is within the second-cheapest quintile of firms. 

 To maintain an Average rating, Neos Funds will be expected to maintain a consistent track record of positive investor experience.

Parent

Neos Enhanced Income Cash Alternative Etf

CSHI is an actively managed fund that invests in a portfolio of US ultra-short term Treasury bills while utilizing a combined with a US large-cap put spread futures strategy

CSHI is an actively managed fund that invests in a portfolio of US ultra-short term Treasury bills while utilizing a combined with a US large-cap put spread futures strategy.

Neos Enhanced Income Aggregate Bond Etf

Neos Nasdaq-100 High Income ETF

Neos S&P 500 High Income Etf

WESTPORT, Conn.--(BUSINESS WIRE)--NEOS Investments, an asset management firm comprised of leaders and pioneers in the options-based ETF space, announces May monthly distribution amounts for their suite of ETFs that pursue monthly income and tax efficiency across core portfolio exposures. ETF distribution information as of the May 2024 Ex-Div Date (5/22/2024)   Distribution Yield* Amount / Share (%) Amount / Share ($) Distribution Frequency Expense Ratio Nasdaq-100 High Income ETF (QQQI) 14.56%.

NEOS Investments Announces May ETF Suite Distributions

With the capital markets hanging on the U.S. Federal Reserve's every move, staying flexible in the current environment is necessary. That said, consider an active fund option in the NEOS Enhanced Income 1-3 Month T-Bill ETF (CSHI).

Stay Flexible in the Current Market With This Active Income ETF

Investors continue flocking to ultra-short and short-duration bonds this year on interest rate uncertainty. Federal Reserve Chair Jerome Powell's latest commentary after the May FOMC meeting indicates investors would do well to buckle in for higher for longer rates looking ahead.

How to Boost Short-Duration Income in Today's Rate Environment

Monday markets began to shake off last week's slump that followed a fresh round of inflation and rate fears. Much remains uncertain regarding interest rates, however, and many investors remain comfortably camped in cash.

Increasing Short-Duration Allocations? CSHI Enhances Income

Consumer spending beat expectations last month while consumer confidence fell slightly. The divergence is all part of a larger trend — a tale of two markets — that underscores the uncertainty investors face this year.

Enhance Your Tax-Efficient Income in Troubled Times

Market expectations regarding interest rates wavered in the aftermath of a strong jobs report last week. Short-duration investments continue to prove attractive as investors now mull over the potential for less interest rate cuts, or possibly none.

Look to CSHI as Interest Rate Concerns Rise

JPMorgan Equity Premium Income ETF

The last two years benefited options-based strategies enormously as investors sought to boost their income in challenging markets. I recently sat down with Troy Cates, co-founder and managing partner at NEOS investments LLC, to talk about the firm's most recent fund launch and the mainstreaming of options-based strategies.

Troy Cates Talks Growth of Options-Based Strategies

WESTPORT, Conn.--(BUSINESS WIRE)--NEOS Investments, an asset management firm comprised of leaders and pioneers in the options-based ETF space, announces March monthly distribution amounts for their suite of ETFs that pursue monthly income and tax efficiency across core portfolio exposures. ETF distribution information as of the March 2024 Ex-Div Date (3/20/2024)   Distribution Yield* Amount / Share (%) Amount / Share ($) Distribution Frequency Expense Ratio Nasdaq-100 High Income ETF (QQQI) 14.

NEOS Investments Announces March ETF Suite Distributions

Neos Enhanced Income Cash Alternative ETF offers high monthly income with contained risks through a portfolio of short-term U.S. Treasury bills and a put option strategy. The CSHI fund has raised over $330 million since its establishment in August 2022, meeting the demand for income-enhancing funds that use option writing. CSHI's investment strategy combines T-Bills for guaranteed returns with a put spread options overlay to generate higher income than traditional T-Bill investments alone.

CSHI: An Interesting Approach To Enhanced Income

iShares Core U.S. Aggregate Bond ETF

Vanguard Total Bond Market ETF

Markets remain frothy in the first quarter of 2024 as interest rate and economic uncertainty persist. Investors wanting to optimize the tax efficiency of their income this year should consider the suite of income ETFs from NEOS.

Boost Your Income Stream's Tax Efficiency With NEOS

Federal Reserve Chair Jerome Powell indicated that interest rates will hold for now in an appearance before Congress Wednesday. Investors looking to ride out the interest rate narrative would do well to consider ultra-short duration bonds for income opportunities.

While Interest Rates Hold Steady, CSHI Boosts Income

The Nasdaq continued its ascent in trading this afternoon on further Nvidia gains. Investors wanting to optimize income shouldn't miss the distribution yield of one of the most recent Nasdaq ETFs launched.

The Nasdaq-100 ETF With 14% Distribution Yield

Elevated equity concentration risk and interest rate uncertainty create a challenging and clouded near-term outlook. In ongoing uncertainty, investors continue to hunker down in short duration and cash alternatives.

Cash Alternatives Popular as Concentration Risk Threatens

The year is already off to a turbulent start with a higher-than-expected January CPI print casting doubt on rate cut timing. With several macro risks looming over markets and investors, optimizing income taxes earned on core allocations could prove advantageous.

A Guide to Understanding Taxes on Income Distributions

TrueShares Low Volatility Equity Income ETF

AXS Cannabis ETF

During the week, several new ETFs debuted on the U.S. market, but the ETF industry was fairly quiet overall. Just five funds launched from issuers including KraneShares, Morgan Stanley subsidiary Eaton Vance, Direxion, and American Beacon.

This Week in ETFs: Just 5 New Funds in Quiet Week

Last year proved tumultuous for markets and advisors, and money markets and cash alternative strategies proved enormously popular. Given the number of risk factors investors continue to navigate this year, short-duration bonds still hold strong appeal.

CSHI: New Name in 2024, Same Great Strategy

Rate cuts? Rate hikes? Fixed income investors strive for peace of mind knowing yield can be sustained over an extended period.

This ETF Enhances Income No Matter What Happens With Rates

In the current macroeconomic environment, bond bulls are thriving. But fixed income investors seeking yield may be wondering where to look.

This ETF Gives Active Yield Beyond Aggregate Bond Exposure

The prevailing consensus in 2024 is that the Federal Reserve will cut interest rates. But predicting central bank moves is an inexact science.

Obtain Active, Higher Yield Amid Economic Uncertainty in 2024

The exuberant optimism that closed out 2023 already hit its first stumbling block in the opening days of 2024. 10-year Treasury yields climbed while tech stocks extended their retreat as 2024 markets kick off with a volatile start.

Fed Rate Concerns Dominate 2024 Markets

CSHI invests in T-bills and S&P 500 put option spreads to generate income. CSHI yields 6.2% and has low volatility and drawdowns. The fund may experience small losses during severe bear markets, but overall risks are minor.

CSHI: T-Bill And Option Spreads ETF, 6.2% Yield

Investors flooded into money market funds this year in an environment of persistent uncertainty. High money market mutual fund yields linked to Fed fund rates generated significant income this year, and a potentially significant tax bill next year for investors.

Money Market Funds Are Great

Economic recession, side-stepping recession, rolling recession — there remains very little genuine consensus on what 2024 brings for the U.S. economy and markets. The high degree of uncertainty creates some challenges for advisors and investors alike.

Move Confidently Into 2024 With NEOS ETFs

The narrative of a soft landing continues to face pressure on numerous fronts heading into 2024. Heightened geopolitical risk, a still aggressively postured Fed, and slowly moderating inflation keep investors and markets on edge in the last month of 2023.

Feeling Uncertain About 2024? Put Cash to Work With CSHI

The Neos Enhanced Income Cash Alternative ETF aims to generate enhanced monthly income through a portfolio of T-bills and put spread options. CSHI carries risks related to short-term rates and a potential correction in the S&P 500, making it unsuitable for investors looking for cash parking vehicles. The fund's options portfolio is at risk due to low volatility, and a black swan event could result in significant losses. Investors should consider alternative funds like BIL or JAAA.

News for Neos Enhanced Income Cash Alternative Etf ETF (CSHI)