Question 1

What is QQQI?

Accepted Answer

QQQI (NEOS Nasdaq-100 High Income ETF) is a monthly dividend ETF managed by NEOS Investments. It uses a unique call spread strategy on Nasdaq 100 to generate high income while allowing partial upside participation. Launched in January 2024, it has an expense ratio of 0.68%. QQQI won "Best New Active ETF" at the 2025 ETF.com Awards.

Question 2

How often does QQQI pay dividends?

Accepted Answer

QQQI pays dividends monthly. Payments are typically made at the end of each month, making it attractive for investors seeking regular cash flow.

Question 3

What is the difference between QQQI and QYLD?

Accepted Answer

QQQI uses a call spread strategy allowing partial upside participation, while QYLD uses 100% covered calls with almost no upside. QQQI also uses Section 1256 index options for 60/40 tax treatment. QQQI offers slightly lower yield (~13% vs ~11-12%) but better total return potential and tax efficiency.

Question 4

What is the difference between QQQI and JEPQ?

Accepted Answer

Both are Nasdaq-based monthly dividend ETFs. QQQI offers higher distribution yield (~13% vs ~9%) through a call spread strategy, while JEPQ uses JPMorgan's active management with individual stock selection. QQQI tracks the index more closely, while JEPQ is an actively managed strategy.

Question 5

What is a call spread strategy?

Accepted Answer

QQQI's call spread strategy involves selling call options while simultaneously buying higher-strike call options. This generates net premium income while capping some gains, but allows participation in moderate market rallies. This differs from pure covered call strategies like QYLD.

Question 6

What are the tax benefits of QQQI?

Accepted Answer

QQQI uses Section 1256 index options, which receive favorable tax treatment. Capital gains from these contracts are taxed 60% as long-term and 40% as short-term, regardless of holding period. This can provide meaningful tax savings compared to ordinary income treatment.

Question 7

What is DRIP (Dividend Reinvestment)?

Accepted Answer

DRIP (Dividend Reinvestment Plan) automatically uses your dividends to purchase additional shares. With QQQI, DRIP increases your share count, leading to higher total distributions over time. The high yield compounds effectively with DRIP.

Question 8

What are the taxes on QQQI dividends?

Accepted Answer

For US investors, QQQI distributions benefit from Section 1256 treatment (60% long-term, 40% short-term). For international investors, a 15-30% withholding tax may apply depending on tax treaties with the US.

Question 9

How accurate are the simulation results?

Accepted Answer

This calculator provides projections based on historical data and assumptions. QQQI's call spread strategy can cause distribution fluctuations, so actual returns may vary. Please consult a financial advisor before making investment decisions.

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