NEOS Gold High Income ETF (IAUI): An Income-Focused Approach to Gold Exposure

Gold has long been a popular choice for diversifying investment portfolios, especially during times of inflation, geopolitical tension, and changes in monetary policy. In recent years, the metal has experienced a surge in value, further solidifying its reputation as a safe-haven asset and a hedge against economic uncertainty. However, gold's journey has not been a smooth one, with the metal experiencing periods of stagnation and little growth or income generation.

This has left investors grappling with the decision of whether to maintain exposure to gold for its diversification advantages or to shift their investments towards assets that can provide a steady income stream.

To address this dilemma, the NEOS Gold High Income ETF (IAUI) has been designed to combine the traditional role of gold as a store of value with an income-generating options strategy. By doing so, IAUI aims to deliver a high monthly income while still maintaining the potential for upside growth. The fund achieves this by allocating up to 25% of its holdings to low-cost physical gold exchange-traded products (ETPs), with the remaining 75% generated through synthetic exposure via gold options.

This approach allows the fund to track gold's price movements directly while limiting its direct physical gold exposure.

The strategy employed by IAUI is data-driven and involves selling covered calls to generate high monthly income. By laddering call options out of the money, rather than covering the entire portfolio, the fund seeks to preserve upside potential while also ensuring tax efficiency. This approach is made possible by reporting taxes via Form 1099-DIV rather than a K-1, simplifying the year-end tax reporting process for investors.

Through this sophisticated options-based strategy, IAUI is designed to offer investors a more productive way to stay invested in gold, without solely relying on price appreciation or accurately timing the market.

IAUI's unique approach to gold exposure has been recognized by the financial community, as it was named the Best New Options Income ETF at the 2026 ETF.com Awards. The fund was created by a team of options-based ETF pioneers who have previously established and managed some of the largest options-based ETFs in the market. NEOS, the firm behind IAUI, is a global asset manager headquartered in Westport, CT, with over 30 professionals and decades of combined investment experience.

The company utilizes quantitative methods to deliver investment solutions known for their high monthly income potential and tax efficiency across various portfolio exposures and asset classes.

As with any investment, it is essential for investors to carefully consider the investment objectives, risks, charges, and expenses associated with NEOS ETFs before investing. This includes understanding the potential for large price swings and the possibility of loss, as well as the fact that NEOS ETFs do not guarantee monthly distributions, with the amounts varying from month to month.

Additionally, distributions made by NEOS ETFs have been classified as a return of capital and may result in higher taxes paid in the future when the shares are sold, even if sold at a loss compared to the original investment.

Investors should also be aware that the use of derivative instruments, as employed by IAUI, carries additional risks compared to investing directly in securities and traditional investments. These risks include potential counterparty default, mispricing or improper valuation, and the possibility that changes in the value of the derivative may not perfectly correlate with the underlying asset, rate, or index.

Furthermore, the use of leverage by the fund, such as borrowing money to purchase securities or employing options, will lead to additional expenses and magnify the fund's gains or losses.

It is worth noting that NEUS ETFs are relatively new, with a limited operating history. The NEUS Gold High Income ETF (IAUI) specifically was awarded the Best New Options Income ETF at the 2026 ETF.com Awards, following a rigorous four-phase selection process that includes quantitative screening, qualitative evaluation, shortlist selection, and final award.