SPYI: I Spy An Expensive Way To Underperform -- Strong Sell

Doodad Capital507 FollowersFollow5ShareSavePlay(8min)Comments(10)SummaryNEOS S&P 500 High Income ETF (SPYI) underperforms standard S&P 500 ETFs like VOO, lagging by 20% over three years on a total return basis.SPYI’s covered call strategy provides some downside protection but significantly limits upside participation, especially during strong market rallies.VOO’s expense ratio of 0.03% is vastly superior to SPYI’s 0.68%, making VOO a more cost-effective long-term investment vehicle.Robust tailwinds—AI capex, rising defense spending, and lower rates—favor broad S&P 500 exposure; SPYI’s structure is ill-suited for this bullish environment. Torsten Asmus/iStock via Getty Images Introduction The NEOS S&P 500 High Income ETF (SPYI) is a fund that aims to provide consistent income for investors, based on monthly payouts, with the potential for slight upside gain captured in rising markets. ThisThis article was written byDoodad Capital507 FollowersFollowI am a young individual investor specializing in finding and analyzing deep value and growth opportunities. I focus primarily on event or news driven research with a large emphasis on fundamental analysis.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within 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. I am not a registered investment, tax, or legal advisor or broker and therefore cannot promise or guarantee any financial returns from my opinions on this page or site. The content of this article is based on my own personal thoughts and research, and you should do your own due diligence before making any investment decisions. This article may be structured as such, but it is not financial or investment advice. While I do make my best effort to ensure that all information in my articles is accurate and up-to-date, occasionally unintended errors or misprints may occur. Remember that all investments in the market face the risk of going to $0. The writer of this article has no business or personal relationship with any company mentioned in the above 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.