Key Highlights

  • The fund charges a 0.68% expense ratio and reported a monthly distribution rate of 9.02% (twelve-month trailing rate of 9.03%) as of August 31, 2026, paying a USD 0.4084 per share distribution that month.
  • The fund held approximately USD 380.5 million in Assets under management as of September 8, 2026, with a net asset value of USD 54.72 and a Market Price of USD 54.71 that same day.
  • The fund's top holdings as of August 31, 2026 were NVIDIA at 8.47%, Apple at 7.58%, Microsoft at 6.06%, Micron Technology at 4.69%, and Amazon.com at 4.65%, reflecting the technology weighting of the underlying Nasdaq-100 Index.
  • Since its December 19, 2019 inception, the fund has generated an annualized return of 10.00%, including a 12.53% one-year net asset value return and a fifty-two week trading range of USD 50.08 to USD 56.76.

Fund Objective and Position Within the Options Income Category

The NEOS Nasdaq-100 Hedged Equity Income ETF (NASDAQ:QQQH) is an actively managed exchange-traded fund from NEOS Investments that holds a full replication of the Nasdaq-100 index and layers a data-driven options overlay atop that equity exposure. According to the fund's own literature, the strategy seeks to generate high monthly income in a tax-efficient manner while maintaining a measure of downside protection, distinguishing it from unhedged covered call funds that exchange a greater degree of upside for premium income. The strategy employs Nasdaq-100 (NDX) index options, which receive Section 1256 tax treatment, and combines short call positions with a constant, fully financed hedge intended to cushion the portfolio against market declines. The fund commenced operations on December 19, 2019 and trades on the Nasdaq exchange.

Income Generation and Hedge Structure

The fund's income is derived primarily from premiums collected through the sale of call options against its Nasdaq-100 holdings, supplemented by underlying dividends, with a portion of monthly distributions classified as a return of capital. As of the fund's fact sheet dated August 31, 2026, the distribution rate stood at 9.02% (9.03% on a trailing twelve-month basis), paid monthly, with a per-share distribution of USD 0.4084 that month, while the thirty-day SEC Yield was reported at negative 0.01%, a figure reflecting the accounting treatment of option income rather than conventional bond-like yield. The fund's collar-like structure, combining written calls with a financed protective position, is designed to moderate the impact of sharp Nasdaq-100 drawdowns relative to holding the index outright, though the fact sheet states explicitly that upside participation is capped by the strike prices of the short calls and that downside protection is itself limited by gaps in the put strike coverage.

Performance, Costs, and Portfolio Composition

The fund carries a 0.68% expense ratio and held approximately USD 380.5 million in assets under management as of September 8, 2026, with shares priced at a net asset value of USD 54.72 and a market price of USD 54.71 that day, within a fifty-two week range of USD 50.08 to USD 56.76. Per the fact sheet dated August 31, 2026, the fund returned 2.87% over the trailing month, negative 0.48% over three months, 7.41% over six months, 7.14% year to date, 12.53% over the trailing year, 18.46% annualized over three years, and 10.00% annualized since inception, each measured on a net asset value basis. The portfolio's top ten holdings are concentrated in mega-capitalization technology names, led by NVIDIA (8.47%), Apple (7.58%), Microsoft (6.06%), Micron Technology (4.69%), and Amazon.com (4.65%), followed by Advanced Micro Devices, Alphabet Class A and Class C shares, Broadcom, and Tesla, mirroring the Nasdaq-100 Index's substantial technology and semiconductor weighting. The fact sheet further notes that the Nasdaq-100 includes smaller and mid-capitalization constituents alongside its largest names, which can introduce additional volatility, and that the fund's derivative positions carry counterparty, valuation, and correlation risks distinct from those of a conventional index-tracking product.

Where Things Stand

The fund occupies a distinct position among Nasdaq-100 income strategies: rather than selling calls against the index purely to maximize premium, it pairs that overlay with a financed hedge intended to moderate drawdowns, at the cost of a 0.68% expense ratio and capped upside participation. As of the most recent fact sheet and fund data, it is distributing at a monthly rate near 9%, managing approximately USD 380.5 million in assets, and has delivered a 10.00% annualized return since its December 2019 inception, supported by a technology-weighted portfolio led by NVIDIA, Apple, and Microsoft. The extent to which the fund's collar structure continues to balance income generation against downside protection in future Nasdaq-100 drawdowns is likely to depend on how option premiums and hedging costs behave during periods of elevated or declining volatility.