If you hold the NEOS S&P 500 High Income ETF (NASDAQ:SPYI), you own it for one reason: a monthly distribution tied to the S&P 500 that clears roughly 12% annualized without asking you to sell equity. SPYI’s data-driven call strategy has delivered that for years, and it is why the fund became NEOS’s flagship. But NEOS quietly launched a sibling in early 2026 that runs the same playbook at higher intensity, and it now pays a distribution rate well above SPYI. If income is the whole point of owning SPYI, the boosted version deserves a serious look.
The sibling is the NEOS Boosted S&P 500 High Income ETF (NASDAQ:XSPI), and its Nasdaq twin, the NEOS Boosted Nasdaq-100 High Income ETF (NASDAQ:XQQI), pushes the yield even higher.
What SPYI Actually Delivers
SPYI holds S&P 500 constituents, sells index call options against the portfolio, and uses Section 1256 tax treatment to convert a large share of option premium into 60/40 long-term/short-term capital gains. Investors get a monthly distribution in the low double digits, meaningful upside participation when the index rallies, and a tax profile that beats ordinary-income covered-call ETFs. That combination is why SPYI attracted billions in assets. Nothing about the fund is broken.
Where SPYI Leaves Yield on the Table
SPYI writes calls on 100% of its notional exposure. Premium income is capped by how much index you actually own. For a retiree or income-focused holder trying to maximize monthly cash without adding a second position, that ceiling is the constraint. Raising the payout requires either accepting a lower-quality underlying, a worse tax structure, or leverage. XSPI takes the leverage route inside the same NEOS framework.
The Boosted Mechanism
XSPI is designed to create roughly 150% notional exposure to the same S&P 500 strategy SPYI runs, using a call spread structure rather than a single short call. That extra 50% of notional exposure generates additional option premium, which flows straight to the distribution. The math shows up in the payments. XSPI has paid seven monthly distributions between February and August 2026, totaling $4.8156 per share, with the most recent payment of $0.6994 on August 7. Annualized against a closing price of $50.03, that works out to roughly a 16.8% forward distribution rate, several hundred basis points above what SPYI has paid over the same window.
Price action has kept up too. XSPI is up 11.35% since its February inception and 3.87% over the past month. NAV has held up while funding the payout, addressing the single biggest concern with any high-distribution vehicle.
The Nasdaq Version Pays More
If your income allocation leans toward tech beta, XQQI applies the same 150% notional call spread to the Nasdaq-100. It has paid $5.9095 per share over seven months, with the latest August distribution of $0.8236. Against a $49.27 price, that annualizes to roughly a 20.1% forward distribution rate. XQQI has also outperformed its S&P sibling on price, up 12.67% since inception.
The Tradeoffs You Have to Accept
Leverage cuts both ways. A 150% notional exposure means drawdowns during a sharp index selloff will exceed what SPYI holders experience, and the call spread caps upside more aggressively in strong rallies. Expenses run at 0.98% for both XSPI and XQQI, notably higher than SPYI’s 0.68%. A portion of distributions will likely be classified as return of capital, which defers rather than eliminates tax, and NAV can drift lower over long flat markets. And the track record is short. Both funds have only been trading since February 2026, so they have not yet been tested through a real correction.
Making the Swap
In a taxable account, selling SPYI outright likely triggers capital gains given its price appreciation since most holders bought in. A cleaner path is redirecting new contributions and reinvested distributions into XSPI while leaving the SPYI position intact. In an IRA or Roth, a direct swap has no tax friction. Sizing matters too. Because XSPI carries embedded leverage, treating it as a one-for-one SPYI replacement quietly increases equity risk. Splitting the position, roughly two-thirds SPYI and one-third XSPI, lifts blended yield toward 14% while keeping notional exposure near 100%.
The Call
XSPI is a more aggressive version of SPYI, engineered for holders who have decided the payout is the priority and are willing to accept the leverage that unlocks it. If SPYI’s 12% meets the income target, there is no case to switch. If you want closer to 17%, or 20% on the Nasdaq side, and you understand what a 150% notional exposure means in a sharp selloff, the boosted siblings earn their place in the income sleeve (and if you’d rather stick with unlevered names that still cut a check every 30 days, we rounded up seven monthly payers in a free report here).
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