Gold ETF Offers Monthly Income with 1.05% Yield

The NEOS Gold High Income ETF currently offers a 1.05% dividend yield. This fund manages $618.08 million in assets. It targets investors seeking income from a non-yielding asset. The stock trades at $49.53 per share. This represents a 1.45% decline in recent sessions.

Gold prices sit 20% below the January record high. The metal reached an all-time high of $5,589.38 per troy ounce. This peak occurred on January 28. Since the start of 2024, gold has risen by 160%. These gains stem from persistent macroeconomic pressures.

Macro Drivers Sustain Demand

Inflation remains a significant factor for gold. The August Consumer Price Index showed 3.4% year-over-year growth. Energy costs contribute heavily to this figure. Brent crude oil trades near $108 per barrel. Diesel prices in the United States hit record highs.

Central banks continue to accumulate physical gold. The World Gold Council reports 130 tons bought in seven months. July alone saw 23 tons purchased. The National Bank of Poland acquired eight tons. The U.S. dollar is down 13% from its five-year high.

Options Strategy Generates Yield

The ETF uses a data-driven call option strategy. It invests up to 25% of assets in gold ETPs. The fund sells call options with notional values of 50% to 100% of net assets. This action generates the monthly income distribution.

Collateral consists of U.S. government securities. Treasury bills and notes provide additional yield. The fund also buys calls and sells puts on gold ETPs. This synthetic exposure tracks the price of gold. It limits downside risk while capturing upside potential.

Physical Gold Storage Costs

Physical gold requires IRS-approved custodians. Investors must pay for insurance and storage. The asset offers lower liquidity than equities. It generates no cash flow during holding periods. The NEOS fund eliminates these direct holding costs.