In an easing monetary policy environment, yields start to fall in line with rate cuts. Bond investors might be seeking to supplant the income they’ve grown accustomed to. One area they may not have explored is options income, specifically in the energy sector. This is where the newly launched MLP & Energy Infrastructure High Income ETF (MLPI ) from NEOS ETFs can be beneficial.
“NEOS has had success gathering assets in 2025 by offering advisors options based high income strategies," said TMX VettaFi Head of Research Todd Rosenbluth, noting the success of their other funds — namely the NEOS S&P 500 High Income ETF (SPYI ) and NEOS Nasdaq 100 High Income ETF (QQQI ). "It is great to see them continue to expand their lineup for the MLP investment style.”
As mentioned the majority of the capital markets are calling for additional rate cuts. That makes the introduction of MLPI and other income ETFs offered by NEOS timely. MLPI, in particular, invests in master limited partnerships (MLPs) tied to the energy sector as well as energy infrastructure companies. Income is derived from the premiums through writing (selling) call options on one or more ETFs invested principally in energy infrastructure MLPs. This gives MLPI the dual benefit of equity appreciation from the companies in the fund’s holdings and income from its options-based strategy.
Furthermore, the fund offers tax loss harvesting opportunities along with tax efficiency via the pass-through benefits and tax deferrals inherent in the MLP structure.
At 68 basis points or $68 per every $10,000 invested, the fund is also actively managed. This gives NEOS portfolio managers the autonomy to adjust the holdings of the fund as necessary. The ability to suit current conditions in the market adds a built-in risk management component to MLPI.
Income Innovators
NEOS has been at the forefront of offering options-based strategies to the ETF marketplace. The addition of MLPI reflects that ongoing push to innovate. Whether for income or tax-efficiency and diversification, NEOS has an ETF that can slot into any portfolio.
From more familiarized exposure tied to the S&P 500 via the aforementioned SPYI to more nuanced offerings in digital assets like the NEOS Bitcoin High Income ETF (BTCI), NEOS has a fund that can fit a variety of investors seeking income optionality. In addition to BTCI, other news funds NEOS introduced this year were the NEOS Real Estate High Income ETF (IYRI ), NEOS Gold High Income ETF (IAUI ), and NEOS MSCI EAFE High Income ETF (NIHI).
Visit the NEOS website to access the full roster of their award-winning income ETFs.
For more news, information, and analysis, visit the Tax Efficient Income Content Hub.
