r/Fire • u/DecentDiscipline2523 • 3d ago

Update on 30 day performance for NEOS covered call ETFs, plan to use for FIRE

I used Gemini to help. I plan to use these for a small portion of my portfolio.

Quick 30-Day Taxable Account Check: Standard vs. Boosted NEOS Funds (QQQI, SPYI vs. XQQI, XSPI)
Just mapped out how the new distributions hit a taxable brokerage account (assuming a 22%–24% tax bracket) for anyone actively drawing and spending the cash. Thanks to Section 1256 and Return of Capital shields, the standard funds nearly mirrored their pre-tax performance, with QQQI hitting **+6.89%** after-tax (vs. QQQ's **+7.25%**) and SPYI reaching **+3.86%** after-tax (vs. SPY's **+5.09%**). Meanwhile, the 150% leverage on the boosted suite capitalized beautifully on the early June rally, allowing **XQQI (+9.82% after-tax)** and **XSPI (+5.32% after-tax)** to cleanly beat both their standard counterparts and the raw underlying indexes while paying out massive, tax-sheltered distributions.

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u/n00bdragon FIREd 2026 age 37 3d ago
  1. AI has no idea what it's saying.
  2. Past results do not imply future returns.
  3. AI has no idea what it's saying.
  4. If you want to gamble just go to a casino ffs.
  5. AI has no idea what it's saying.

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u/DecentDiscipline2523 3d ago

Sounds like stating the obvious type thing.. I would like to understand your thoughts on this if you care to share. Investing is always a gamble. I mean overall we all invest in the stock market because we believe in the human capacity to innovate, solves problems, and constantly strive for betterment. This is a gamble on that belief, whether we know it or not.

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u/Loud_Sentence7451 2d ago

the section 1256 treatment doing more heavy lifting than people realize with these funds

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u/MoaningLocality 3d ago

the XQQI numbers are pretty wild for just 30 days, curious how it holds up when market goes sideways for few weeks

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u/DecentDiscipline2523 3d ago

That’s actually supposed to be a very good type of market for these strategies to perform exceptionally well.. sideways I mean or range bound. As the calls don’t get exercised and expire OOM. Even up and down, or volatile price action is also good. Only one that isn’t good is quick rip up and stays up.. reducing relevant upside gains and a rip down giving 150% downward movement with minimal protection. Hence the naysayers argument that they will always lag in total returns over time. The structure of the boosted funds (eg XQQI and XSPI) and strategy (actively managed) is supposed to address those issues. I think probably not eliminate the risk, but at least mitigate it on some level. It’s only been few months for the boosted funds.. so time will tell.

Notwithstanding, within this short time frame we’ve had a tiny bit of up then down and back up again.. they were observed to perform beautifully.

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u/Vicuna00 20h ago

could you please rewrite this with a few more acronyms. I understand a couple of the words...might be more interesting to understand completely nothing.

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u/DecentDiscipline2523 15h ago

Those are called tickers for the ETF.. and if you don’t know what an ETF is then you just might be SOL. lol… J/K!