QQQI is an income-oriented Nasdaq-100 ETF — not a pure QQQ replacement.
QQQI seeks high monthly income in a tax-efficient manner with potential for equity appreciation. It invests around the Nasdaq-100 and uses a data-driven call-option strategy that may include both sold and purchased NDX index options. That gives investors tech-heavy equity exposure plus option-income mechanics, but it also changes the return profile: investors should evaluate total return, NAV behavior, distribution composition, and upside participation — not just the stated distribution rate.
The distribution is the hook. Total return is the scorecard.
High monthly income
QQQI’s distribution frequency is monthly. NEOS listed a 14.11% distribution rate and a 14.14% 12-month trailing distribution rate as of Apr. 30, 2026, with the latest displayed amount at $0.6297 per share.
Nasdaq-100 upside potential
The fund’s underlying exposure is the Nasdaq-100® Index, which concentrates the portfolio around large non-financial Nasdaq companies, including dominant technology and communication-services names.
Options change the ride
The options overlay is designed to generate income and may allow upside capture, but call-writing strategies can lag a sharply rising Nasdaq-100 when option income cannot fully offset foregone upside.
Current official fund facts.
Official NEOS fund details
- Fund ticker: QQQI
- CUSIP: 78433H675
- ISIN: US78433H6751
- Management fee: 0.68%
- Total annual fund operating expenses: 0.68%
- Shares outstanding: 212,420,000
Pricing at the May 18 close
- NAV: $56.32
- Market price: $56.34
- NAV daily change: -$0.06 / -0.11%
- Market daily change: -$0.07 / -0.12%
- Premium / discount: +0.04%
- 30-day median bid-ask spread: 0.02%
QQQI’s current top holdings are still mega-cap tech heavy.
NEOS listed these top holdings as of May 19, 2026. Holdings are subject to change and are not a recommendation to buy or sell any security.
The income is high, but it is not the same thing as SEC yield.
QQQI’s distribution rate annualizes the most recent distribution and divides it by the fund’s most recent ex-date NAV. NEOS separately reported a 30-day SEC yield of 0.05% as of Apr. 30, 2026, meaning most of the headline cash flow should be understood through the options/distribution framework rather than traditional portfolio income alone.
2026 displayed distribution history
- Jan. 2026: $0.6359
- Feb. 2026: $0.6140
- Mar. 2026: $0.6089
- Apr. 2026: $0.6297
- May 2026: declaration / ex-dividend schedule listed, amount not displayed on the captured NEOS table.
Tax note
NEOS states that QQQI distributions have been classified as return of capital and may include option premiums, dividends, capital gains, and interest. Return of capital can reduce cost basis and affect taxes when shares are sold.
Recent returns were strong, but Nasdaq-100 upside still matters.
For comparison, NEOS listed the Nasdaq-100 Index at 41.22% for the 1-year period and 22.74% annualized since QQQI’s inception period as of Apr. 30, 2026. That is the core tradeoff to track: income stability and lower volatility potential versus full upside capture.
QQQI’s appropriate “annual dividend return” is its distribution return — not traditional dividend yield.
Because QQQI is an options-income ETF, the most accurate language is annual distribution return. NEOS reports a 14.11% distribution rate and a 14.14% 12-month trailing distribution rate as of Apr. 30, 2026. Those figures are based on the fund’s cash distributions, but they are not the same as total return, SEC yield, or a guaranteed dividend.
Annualized distribution math
| Measure | Period / Method | Amount / Rate |
|---|---|---|
| Official distribution rateAnnualizes the latest distribution against ex-date NAV | As of Apr. 30, 2026 | 14.11% |
| Trailing distribution rateUses the prior 12 months of distributions | As of Apr. 30, 2026 | 14.14% |
| Latest monthly distributionApril 2026 displayed amount | $0.6297 × 12 annualized | $7.5564 |
| SEC yieldTraditional income-yield calculation | 30-day SEC yield as of Apr. 30, 2026 | 0.05% |
Cash distributions paid
| Year | Months Included | Cash Paid / Share |
|---|---|---|
| 2026 YTDDeclared and displayed through April | Jan–Apr 2026 | $2.4885 |
| 2025 full yearAll 12 monthly distributions | Jan–Dec 2025 | $7.4435 |
| 2024 partial yearFund launched in early 2024 | Feb–Dec 2024 | $6.7294 |
| Current annualized run-rateLatest shown monthly payout × 12 | $0.6297 × 12 | $7.5564 |
Why the 14% figure is not “free yield”
QQQI’s distribution rate annualizes recent cash paid out. It does not measure capital appreciation, NAV preservation, or tax-adjusted total return. A shareholder can receive a high monthly distribution while the fund’s NAV still rises, falls, or lags the Nasdaq-100 depending on market direction, option results, and distribution composition.
Tax and return-of-capital caveat
NEOS states that QQQI distributions have been classified as return of capital and may include option premiums, dividends, capital gains, and interest. Return of capital can reduce cost basis and may increase taxable gain when shares are sold.
QBH translation: The appropriate annual dividend return for QQQI is the fund’s annualized distribution profile: 14.11% official distribution rate, 14.14% trailing distribution rate, and $7.4435/share paid across calendar-year 2025. Use total return and NAV behavior to judge whether the income engine is actually creating value.
The upside story is cash flow. The downside story is capped participation and derivative risk.
What bulls like
- Monthly distributions from a tech-heavy Nasdaq-100 wrapper.
- Potentially tax-efficient option income via NDX index options classified as Section 1256 contracts.
- Large asset base, tight bid-ask spread, and very small NAV premium at the May 18 close.
What bears watch
- There is no guarantee the ETF will make monthly distributions, and distributions can fluctuate.
- Options and derivatives carry risks including counterparty, mispricing, valuation, correlation, volatility, and leverage effects.
- Covered-call strategies can underperform in fast upward markets because sold calls may limit upside.
What to watch next.
Bottom line
QQQI is best viewed as a Nasdaq-100 income overlay, not a pure growth ETF. The fund may fit investors seeking monthly cash flow from a technology-heavy equity allocation, but the correct yardstick is total return after distributions, taxes, and opportunity cost versus a plain Nasdaq-100 exposure. The current data support the core story: high stated monthly distribution rate, large asset base, tight market/NAV spread, and concentrated mega-cap tech exposure — with derivative, distribution, and upside-participation risks that should not be ignored.
QBH framing: track QQQI like an income engine attached to growth-stock beta. Great for cash-flow-focused investors who understand the options tradeoff; risky for anyone chasing the yield without watching NAV, total return, and distribution composition.
Sources used to verify this page
- NEOS QQQI fund page
Verified investment objective, options strategy, fund details, net assets, expense ratio, NAV/market price, distribution rate, trailing distribution rate, distribution history, performance, top holdings, and risk disclosures. - NEOS QQQI Summary Prospectus
Verified standardized performance context; annual dividend/distribution return figures come from the NEOS fund page distribution table. - NEOS QQQI Annual Shareholder Report
Cross-check source for fiscal-year NAV return, benchmark comparison, distribution yield, and return-of-capital commentary. - Schwab ETF report
Cross-check source for price, portfolio overview, and top-ten holdings as reported for QQQI. - Yahoo Finance historical quote
Cross-check for recent historical QQQI price prints. - Morningstar QQQI quote page
Cross-check for NAV/category context.
Market data note: The intraday price snapshot is point-in-time market data captured during the May 19, 2026 U.S. trading session and will change.
Disclaimer: This is educational market commentary, not investment advice or a recommendation to buy or sell QQQI or any security. Verify current fund materials, NAV, distribution composition, tax treatment, and prices before making any investment decision.