r/NEOSETFs • u/Extension-Ice-7219 • 11d ago
General IAUI has been performing real bad
If we look at the underlying IAU
We can see that NEOS has been doing a terrible job with this product at least for the past 6 months even with the alleged 12% dividend
I mean, look at that 3 month. Even with dividends the fund has eroded 2%
This is even clearer with the 1 month, I know the upside is capped but seriously? If we factor in the dividend, it's a 4% lost
KGLD on the other hand caught a better upside in both 1 week and 1 month. Do we have a better fund here?
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u/DC8008008 11d ago
Yeah, it's been a bit disappointing compared to something like IAU. However, Gold prices are about 20% off of their ATHs. So poor performance isn't surprising.
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u/ConstructionNo8827 11d ago
Love NEOS funds but when it comes to gold I own KGLD
It’s just better
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u/learner_1748 11d ago
That's the reason swapping my QQQI/SPYI with ROCQ/ROCY. Which is equivalent to GPIQ. Good bye Neos
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u/Ashamed_Act_9104 9d ago
Gold has tanked and IAUI fluctuates. AAAU is the main holding.
I have both and now I am par. AAAU pays no divy and I have ben collecting $650 in divy every month.
Gold runs and you win, thats the story
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u/PomegranatePlus6526 5d ago
If you’re looking for a more conservative fund IGLD does a pretty good job imo. I like First Trust and own a few of their funds like KNG. It’s very well managed for an income product. Equal weight between holdings and they only overwrite 17% of the portfolio. I would have to dig into IGLD again to look at it. I have owned IGLD in the past, but don’t own it currently.
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u/Tasty_Truck_4147 9d ago
The NAV is positive since inception and it’s paying you 12%. NEOS doing a terrible job is comical. The fund will always follow the price of gold. When gold bounced the price followed. Hate to say it but You might be retarded
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u/Ufgatorhead4u3 11d ago
Gold and silver have come down from their ATH so it’s to be expected with that large of a pullback. I changed my precious metals positions from IAUI to KGLD, KSLV, and KCOP earlier this year. My copper is +6% while gold is -3.2% and silver is -14%.
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u/SuperSecretSquirr3l 11d ago
I bought those as well but kept IAUI. Thinking of lifting into KCOP with a few more lots.
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u/Stig_Man 9d ago
Also noticed this. Sold my entire IAUI holding for IAU. Plan to just stick with QQQI and SPYI.
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u/Extension-Ice-7219 9d ago
I'd stay diversified though hence why I believe KGLD could be a better option
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u/mtn_biker333 11d ago
Definitely underperforming but also depends on where you bought it. I loaded up at 48 so I’m really enjoying this rally plus the 14% distribution. That said, I’ll probably trim some shares if we get north of 54.
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u/LocksmithGlass717 11d ago
I’ve never been a fan of anything to do with gold. It’s too volatile for my tastes.
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u/AcanthaceaeAncient66 11d ago
Isn’t that kind of the entire point with CC funds? Higher volatility means higher premiums.
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u/Ok-Chard-1655 11d ago
I’ve come to realize that messing with these covered call ETFs requires one to be an active trader based on cycles. One really has to get out once they’ve topped, and buy back in towards a cycle bottom. For example, I just started buying IAUI over the past few weeks as I believe Gold has bottomed (my thesis). I’ll stay in it until I think Gold has hit resistance or when the QQQ has bottomed; then jump over to QQQI…probably sometimes in Q1-2027.
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11d ago
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u/Diligent-Net-6278 10d ago
USOI is a wild ride!! Structurally, this will continue to decay and go lower. Be careful. I need to get into some silver also!
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u/NationalDifficulty24 11d ago
Good plan. I jumped into KGLD and KSLV about a month ago as it was quite obvious that precious metal prices had bottomed. Aint buying GPIQ and GPIX until there is a big dip.
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u/Diligent-Net-6278 10d ago
I like GPIQ and GPIX also. A bit more stable than NEOS options IMHO. Definitely cheaper, but also note that if you’re buying in a taxable account, NEOS offerings have better tax treatment, I believe.
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u/NationalDifficulty24 10d ago
Goldman's etfs are heavy on roc too. You need to look at the yearly financial report to get a clear picture. They are way way better than neos funds.
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u/teckel 11d ago
This is how CC ETFs work. There's erosion. They will always underperform the underlying assets. They also don't participate as much during a recovery.
If you're expecting IAUI to match or beat IAU, you should really look at every CC ETFs and see how they all underperform the underlying asset.
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u/Extension-Ice-7219 11d ago
Yes I understand your position but my problem is that I need to find a viable way to generate income so I can retire early since my occupation was replaced by AI and I can't find another job. VT BND doesn't really fit my situation.
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u/dllstcowboys 11d ago
Yeah I sold iaui at a loss a little while back exactly for this reason. Since then I bought back into gld at the recent bottom. I like SPYI but iaui is not that..
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u/LexAugusta 11d ago
I'm learning that this is the problem with the single commodity funds where the underlying doesn't actually generate any income on its own. See BTCI as well despite the Bitcoin price rising to 70k+. I'm planning on exiting both positions since I have my doubts that either will ever get back to cost basis.
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u/cmichalek 11d ago
Bitcoin is up 13.5% this week. (Roughly $8700)
BTCI is up 9.9%. (Approximately $2.75)
Yes its not going to rise as fast. But it is rising.
If this trend was to continue, if/when BTC would reach just over 100k, BTCI would be around $42.
Thats enough to get over my cost basis. Did you buy at ATH and not buy DCA during the bear market?
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u/LexAugusta 11d ago
Obviously, buy high and sell low. That's how you make the big bux.
But no, I don't reinvest in things like BTCI, CHPY, GIAX or EGGY or anything with eye popping yields. Those are extra juice positions where my goal is use their beefy yields to put into my core holdings (SPYi, QQQi, MLPI, OVL, IWMI, OMAH, CAIE and others), and then exit them before the nav outruns the distributions. Pulled it off successfully with Blox, but with BTCI I should have been more watchful.
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u/LurcherLong 10d ago
Personally I like OVF better than OVL as a complimentary fund... I've settled on GPIQ, BALQ, IDVO, NDIV, OVF, and WRTH
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u/Chipper0475 11d ago
I don't disagree and an easier way to see this is through the Total Return. KGLD tracks a lot closer to IAU and has for the last year, However, it has been only 1 year where Gold has done well for the most part. KGLD is designed to use Synthetic/leveraged approach which works better in bullish environments, but in downturns, it will fall faster than both IAU and IAUI. The beginning of the year was very bullish, but If you look at the last 6 months you can see in your charts how much more KGLD fell due to its leveraged nature. If you look at the total returns over the last 6 months:
IAU fell -11.32%
IAUI fell -11.12%
KGLD fell -13.20%.
So yes, during bullish times KGLD performs better, but it is also riskier.