Quick Read
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QQQI trailed the Nasdaq-100 by 6.6 percentage points over one year, costing a $300,000 holder nearly $20,000 in foregone gains.
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QQQI classified between 94% and 99% of its distributions as return of capital, meaning the monthly check mostly hands back your own money.
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QQQM delivers full Nasdaq-100 upside at 0.15%, while JEPQ runs a similar income overlay at 0.35%, and both come in cheaper than QQQI.
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Holders of the NEOS Nasdaq-100 High Income ETF (NASDAQ:QQQI) collected a sizable monthly distribution over the past year. A roughly 14% distribution yield on a $300,000 position paid out close to $7.65 per share in cash. The problem is what they gave up to get it. Measured against the plain Nasdaq-100, that same $300,000 stake trailed by an estimated $19,710 over one year. The check felt like income. Part of it was your own upside handed back to you.
Cost of Capped Upside
QQQI runs a covered-call overlay on Nasdaq-100 exposure. The fund sells index calls (the June filing lists short positions in NDX 7 C31050 and NDX 7 C31700) to generate premium it pays out monthly. When...