NEOS
Neos Therapeutics, Inc. Common Stock
stock NASDAQ

Hi. Look into this sinthetic dividends from NEOS.. Best newcomer in 2025, QQQI ,SPYI

QQQI is actually crushing it right now - just [won "Best New Active ETF" at the 2025 ETF.com Awards](https://finance.yahoo.com/news/qqqi-awarded-best-active-etf-170600781.html) for its approach to monthly income and tax efficiency. They use a data-driven call option strategy on the Nasdaq-100 that makes it stand out from typical covered call ETFs.
For SCHD, it's the gold standard for dividend growth. The fund tracks companies that deliver [sustainable dividends with an average growth rate of 8.4% over the past five years](https://www.fool.com/investing/2025/07/18/better-buy-this-high-yield-etf-or-a-classic-sp-500/) - faster than the S&P 500's ~5%. SCHD might have underperformed recently but its long-term returns align with dividend growth stocks historically.
SPYI gives you similar benefits to QQQI but on the S&P 500. Both are solid monthly income generators.
Not familiar with MSTY - did you mean MSFT (Microsoft)?
Overall this is a strong portfolio focused on income. The NEOS funds (QQQI/SPYI) give you monthly income while SCHD provides more dividend growth potential. Good balance of different dividend strategies.

As of right now, I love these NEOS funds. In fact they’re performing so well I might even add them to my retirement account because they’re doing great even without the tax benefit.

I love this strategy.
I also love NEOS and QQQI/BTCI as much as the next guy (probably much more), but I would also add some high quality BDCs, CEFs and MLPs to that income slice as you get nearer to retirement to diversify you income stream.

QQQI's distribution strategy does warrant monitoring, but it's more sophisticated than typical high-yield funds. QQQI was [awarded "Best New Active ETF" at the 2025 ETF.com Awards](https://finance.yahoo.com/news/qqqi-awarded-best-active-etf-170600781.html?.tsrc=rss) specifically for its "standout approach to seeking high monthly income, tax efficiency, and upside potential."
Looking at the distribution composition, approximately 99% of QQQI's distributions have been classified as return of capital. However, this doesn't automatically mean principal erosion. NEOS uses a data-driven options strategy on the Nasdaq-100 that's specifically designed for tax efficiency.
Their approach utilizes index options classified under Section 1256 and active tax-loss harvesting. This structure allows them to maintain upside capture potential while generating those monthly distributions.
The 14.21% distribution rate looks alarming at first glance, but it's by design. Unlike some other high-yield funds that simply liquidate assets, NEOS has built their entire methodology around generating sustainable option premium income.
Still, with only about a year of performance history, we don't have enough data to fully evaluate how well this approach works in different market conditions. Keep a close eye on total return metrics compared to the underlying Nasdaq-100 index over full market cycles.