NIHI: Tax-Efficient Way To Collect A 10% Yield From International Stocks

Cain Lee8.16K FollowersFollow5ShareSavePlay(14min)CommentsSummaryNEOS MSCI EAFE High Income ETF targets income-focused investors with a unique option spread strategy on international equities, offering a ~10% yield.NIHI's approach allows for partial upside participation and tax-efficient distributions but limits capital appreciation versus standard international ETFs like IEFA.The fund's high yield is not guaranteed; distributions have already declined as markets fell, highlighting NAV erosion risk during prolonged downturns.NIHI is best suited for retirees seeking monthly, tax-advantaged income from international markets, with realistic expectations about total return and downside risks.spawns/iStock via Getty Images Overview After analyzing a plethora of different option ETFs, the NEOS has established a solid reputation for delivering funds that strike an efficient balance between growth and income. One of the newer funds, NEOS MSCI EAFE High Income ETF (This article was written byCain Lee8.16K FollowersFollowFinancial analyst by day and a seasoned investor by passion, I've been involved in the world of investing for over 15 years and honed my skills in analyzing lucrative opportunities within the market.I specialize in uncovering high quality dividend stocks and other assets that offer potential for long term-growth that pack a serious punch for bill-paying potential. I use myself as an example that with a solid base of classic dividend growth stocks, sprinkling in some Business Development Companies, REITs, and Closed End Funds can be a highly efficient way to boost your investment income while still capturing a total return that follows traditional index funds. I created a hybrid system between growth and income and manage to still capture a total return that is on par with the S&P.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in NIHI over the next 72 hours. 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. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.