The Editor’s Choice: NEOS Continues to Defend the NAV
Some of my Discord buddies and I have a soft spot for NEOS. In a sea of funds that often cannibalize their own capital to pay you a dividend, NEOS focuses on NAV protection. They generally aim for sustainable distribution rates that allow the underlying asset to breathe.
They just dropped three new funds, and they are arguably the most interesting releases of the month:
MLPI (MLP & Energy Infrastructure High Income ETF):
Distribution: 15.56%
The Angle: Master Limited Partnerships (MLPs) are the toll roads of the energy sector—pipelines and storage. Traditionally, retail investors avoided them because they come with a tax nightmare called a K-1 form. MLPI solves this. You get the high yield of energy infrastructure, but in an ETF wrapper that issues a simple 1099. No K-1 headache.
NEHI (Ethereum High Income):
Distribution: 34.60%
The Elephant in the Room: We have to talk about it. NEOS’s new Ethereum fund (NEHI) came out of the gate swinging with a 34.60% annualized yield, significantly outpacing its Bitcoin sibling, BTCI, which sits at 27.07%.
NLSI (Long/Short Equity Income):
Distribution: 5.51%
The Watchlist: This is a sophisticated strategy usually reserved for hedge funds. By going long on undervalued stocks and shorting overvalued ones, they aim to generate income regardless of market direction. The yield is lower (5.51%), but this is a defensive play. I’m watching this one closely—it could be the stabilizer your portfolio needs in 2026.
Rapid Fire: The "Yield Chasers"
If NEOS is the responsible designated driver, GraniteShares, Defiance, and YieldMax are the ones buying rounds of shots. Here is the breakdown of the other December launches:
GraniteShares (YieldBoost) & Roundhill: The volatility plays are printing massive annualized numbers right out of the gate.
HMYY (Hims & Hers): 178.10%
RTYY (Riot Platforms): 179.31%
RGYY (Rigetti Computing): 163.44%
UNHW (Roundhill - United Healthcare): Sitting at a calmer 33.71%, this Roundhill product offers a defensive sector play with a juicy yield.
Defiance:
YBMN: An option income strategy on BMNR yielding 56.54%.
YieldMax:
The "Target 25" Series (TEST, NVIT, MSST): YieldMax has launched yet another product line targeting a strict 25% yield on TSLA, NVDA, and MSTR.
Editor's Note: You have to wonder if the trading desk they outsource to is getting tired of the paperwork. While choice is good, do we need five different ways to harvest yield from Tesla? We’ll track
TEST(26.11%) to see if it actually can hold the NAV at a 25% payout.
Future Watch: What’s Coming in 2026
Amplify's "HACK" Attack
Amplify has filed for a Covered Call ETF based on their thematic cybersecurity powerhouse, HACK. With the HACK ETF up 7.65% year-to-date(at the time of writing this article), adding an income layer on top of a high-growth sector like cybersecurity is a play that makes sense. It captures the upside volatility of tech but monetizes the chop.
Side Note: This addition does get me excited for the potential of CC-ETFs coming out on some of their other thematic ETF offerings in particular BLOK(Based on Blockchain), BATT(Batteries) & THNR(Weight Loss Drugs) which should all do well in 2026.
The Muni CEF Disappointment
Amplify also announced a Municipal CEF High Income ETF. I was initially excited here. Closed-End Funds (CEFs) can be magical because of their discounted DRIP program. Often times CEF companies will offer a discount to the NAV when auto-reinvesting their dividends is turned on. This means that if you DRIP your shares your dividends often times buy you shares cheaper than if you would have bought them outright on the open market. Pairing this with margin can be a useful tool. However, the filing suggests this fund simply buys CEFs that are trading at a discount on the open market. It’s a fund of funds that pays a dividend likely at ordinary income tax levels. We'll keep an eye on it, but curb your enthusiasm. No DRIP-at-the-NAV on this CEF Fund!
Defiance Goes 2x (Again) Finally, an honorable mention to Defiance, who cant help themselves but squeeze in another 2x leveraged tickers for the day traders. They have announced two new 2x Leveraged ETFs:
BTFL: 2x Bitfarms Ltd.
ONDL: 2x Ondas
Happy Trading Folks!