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There's new life in the gold market, and that momentum could represent a buying opportunity for bullion-enthused investors seeking income. The NEOS Gold High Income ETF (IAUI) is ready to meet the moment.
NEOS Gold High Income ETF (IAUI) is rated BUY, leveraging elevated gold call premiums to generate attractive income amid a recovering gold market. IAUI's strategy benefits from increased demand for upside gold exposure, with options income justifying the tradeoff of capped gains in a non-breakout environment. The fund's momentum has improved, trading above short-term averages but below its 200-day, supporting a recovery thesis rather than a breakout.
Gold's 2025 monster run looks like a distant memory. The SPDR Gold Shares (NYSEARCA:GLD) is down 5.59% year-to-date through August 4, and holders are paying 0.40% per year to sit on bullion that pays them nothing.
Income remains top of mind for financial advisors. But increasingly, it's not just about generating more yield.
Gold prices slumped mightily since the start of the war in Iran, putting a dent in one of its most intense bull markets in recent memory. However, some experts believe the yellow metal will eventually resume its bullish ways.
NEOS Gold High Income ETF offers a near 12% yield, appealing to income-focused investors seeking diversification and non-correlation to equities. IAUI employs a synthetic covered call strategy on gold ETPs, monetizing gold exposure while holding U.S. treasuries for fixed income. Recent gold price declines have pressured IAUI's NAV and distributions, with NAV down ~8% YTD and distributions falling 16% since January.
My short-term view on gold is positive but not aggressively bullish, as I expect a range-bound to moderately bullish market rather than another immediate sharp upside move. At first sight, this macro-environment can be favorable for the NEOS Gold High Income ETF's (IAUI) strategy and may happen, but it is not guaranteed and also can be short-lived. IAUI can compete with pure gold exposure if gold market stays flat or rises moderately, but I do not see enough margin of safety to call it a Buy.
There are several macro trends that I have high conviction in. However, there are also several sectors that are positioned to benefit immensely from these macro trends that the market has recently sold off. I detail why I am bullish on these sectors and some high-yielding funds that are well-positioned to benefit.
SEC filings for IAUI aren't indexed yet — common for recently launched funds. Browse the issuer's filings on SEC EDGAR directly.