Content and data provided by various third parties and Fidelity − Terms of Use | Help/Glossary
Research > ETFs > ETF / ETP Commentary > 

NEOS Expands Fixed Income Lineup With HYBI

BY | ETF Database
10/02/2024 | 154 VIEWS
NEOS Investments, manager of the popular NEOS S&P 500 High Income ETF (SPYI A), launched its latest expansion in the firm’s growing lineup. The NEOS Enhanced Income Credit Select ETF (HYBI), a recent mutual fund conversion, brings the firm’s signature strategy to the credit space.HYBI seeks total return from capital appreciation and income and to provide tax-efficient monthly income for investors. The fund recently converted from an open-end mutual fund, the WSTCM Credit Select Risk-Managed Fund. NEOS acquired the fund, and in the conversion process, also layered in a tax-efficient options income strategy. It joins the firm’s two current bond ETFs, the NEOS Enhanced Income Aggregate Bond ETF (BNDI A-) and the NEOS Enhanced Income 1-3 Month T-Bill ETF (CSHI ). See also: NEOS Investment Thriving 2 Years LaterHYBI Combines Credit Investing With Tax-Efficient IncomeActively managed, HYBI is a “fund of funds” in that it invests in other funds to gain exposure to the bonds it targets. The fund invests in both U.S. high yield bonds as well as U.S. investment-grade bonds. Securities are selected for their capital appreciation potential and/or interest income generation. The strategy has no restrictions regarding market cap, maturity, or credit quality. Through the use of a proprietary, quantitative model, the fund invests in a mix of high yield and investment-grade bonds. The strategy uses short-, intermediate-, and long-term trend-following models to determine favorable and unfavorable periods of high yield bonds. The manager also takes into account duration, credit, current Federal Reserve policy, and interest rate outlook when selecting securities. HYBI also generates income through its use of put options on the S&P 500 Index (SPX). The fund uses a put spread that sells short put options while buying long puts. The fund uses index options, which are taxed favorably as Section 1256 Contracts under IRS rules. Options held at year’s end are treated as if sold at fair market value on the last market day. Any capital gains or losses are taxed as 60% long-term and 40% short-term, no matter how long investors hold them. This can offer noteworthy tax advantages. The fund’s managers also engage in tax-loss harvesting opportunities throughout the year on the options as well as the bond allocations. HYBI carries a net expense ratio of 0.68%.For more news, information, and analysis, visit the Tax Efficient Income Channel.

More Commentary

Active ETFs Offer Tax Perks, Too
BY | ETF Database
11/21/2024 | 75 VIEWS
Sell on the Pop Prospects: November 20 Edition
BY | ETF Database
11/20/2024 | 36 VIEWS
The Case for Active Investing in 2025
BY | ETF Database
11/20/2024 | 70 VIEWS
View more Commentary

Search Commentary

Enter Keyword(s)
Filter Results

Performance data shown is past performance and is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. Yield and return will vary, therefore you have a gain or loss when you sell your shares. For standard quarterly performance, go to the fund's Snapshot page by clicking on the ETF/ETP's symbol.

ETFs may trade at a premium or discount to their NAV and are subject to the market fluctuations of their underlying investments.

For iShares ETFs, Fidelity receives compensation from the ETF sponsor and/or its affiliates in connection with an exclusive long-term marketing program that includes promotion of iShares ETFs and inclusion of iShares funds in certain FBS platforms and investment programs. Please note, this security will not be marginable for 30 days from the settlement date, at which time it will automatically become eligible for margin collateral. Additional information about the sources, amounts, and terms of compensation can be found in the ETF's prospectus and related documents. Fidelity may add or waive commissions on ETFs without prior notice. BlackRock and iShares are registered trademarks of BlackRock, Inc. and its affiliates.

FBS receives compensation from the fund's advisor or its affiliates in connection with a marketing program that includes the promotion of this security and other ETFs to customers ("Marketing Program"). The Marketing Program creates incentives for FBS to encourage the purchase of certain ETFs. Additional information about the sources, amounts, and terms of compensation is in the ETF's prospectus and related documents. Please note that this security will not be marginable for 30 days from the settlement date, at which time it will automatically become eligible for margin collateral.

News, commentary (including "Related Symbols") and events are from third-party sources unaffiliated with Fidelity. Fidelity does not endorse or adopt their content. Fidelity makes no guarantees that information supplied is accurate, complete, or timely, and does not provide any warranties regarding results obtained from their use.

Any data, charts and other information provided on this page are intended to help self-directed investors evaluate exchange traded products (ETPs), including, but limited to exchange traded funds (ETFs) and exchange traded notes (ETNs). Criteria and inputs entered, including the choice to make ETP comparisons, are at the sole discretion of the user and are solely for the convenience of the user. Analyst opinions, ratings and reports are provided by third-parties unaffiliated with Fidelity. All information supplied or obtained from this page is for informational purposes only and should not be considered investment advice or guidance, an offer of or a solicitation of an offer to buy or sell a particular security, or a recommendation or endorsement by Fidelity of any security or investment strategy. Fidelity does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating ETPs. Fidelity makes no guarantees that information supplied is accurate, complete, or timely, and does not provide any warranties regarding results obtained from their use. Determine which securities are right for you based on your investment objectives, risk tolerance, financial situation and other individual factors and re-evaluate them on a periodic basis.

Before investing in any exchange traded product, you should consider its investment objective, risks, charges and expenses. Contact Fidelity for a prospectus, offering circular or, if available, a summary prospectus containing this information. Read it carefully.

Copyright 1998–2024 FMR LLC. 
All rights reserved.