Following a year in which gold notched more than 50 record highs, some investors may be apprehensive about how much bullishness the yellow metal has left in its 2026. Fortunately, the prevailing wisdom among banks and other professional market participants is that gold is in for another impressive showing in 2026.
That doesn’t mean the commodity will move up in a straight line – it won’t – and that says unique approaches may be worth examining. Enter the NEOS Gold High Income ETF (IAUI ). That covered call ETF came to market last June, bringing an elevated income proposition to investing in gold – an asset that in traditional form doesn’t pay dividends or interest.
Youth aside, IAUI is already answering the income call as highlighted by a distribution rate of 12.53% and a 30-day SEC yield of 1.81% as of the end of December. It’s worth noting that as a covered call ETF, IAUI provides some exposure to gold’s potential upside – a relevant consideration at a time when the commodity is in the midst of an extended bull market.
Speaking of Gold Upside…
Among the points auguring well for IAUI in 2026 are advisors’ and investors’ remaining dedicated to gold, particularly ETFs.
“In December, global gold ETFs managed a seventh consecutive month of inflows, dominated by North American funds, as they had been for the full year. Futures positioning data had caught up by year end showing an increase in managed money net longs of US$11bn (59t) for December, an increase in value of US$8bn but a fall in tonnage by 173t for the full year,” according to the World Gold Council (WGC).
Another reason – one experienced gold investors know well – IAUI could thrive this year is an increasingly tenuous geopolitical outlook. Geopolitical events often prompt investors to embrace safe-haven assets of which bullion is one.
“US capture of Maduro and ongoing tensions in Venezuela reminds us that geopolitical flare-ups tend to recede quite quickly, but the frequency of such events and their cumulative effect over the last year has likely raised the pulse rate of markets and risk premia with it. Gold seems to be the main beneficiary in these scenarios,” the WGC added.
Bottom line: It will be macro factors that chart gold’s course this year and that could benefit IAUI investors.
“Gold’s support is less dependent on tight physical markets and more on its macro role: sustained central bank demand, hedging demand in a world of policy uncertainty, and diversification demand when stock-bond correlations remain elevated,” concluded the WGC.
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