What does the expense ratio tell me about the cost of holding ISPY and SPYI?

The expense ratio indicates the annual fee charged by the fund, which lowers your potential return. ISPY has an expense ratio of 0.56%, while SPYI costs 0.68%. This means SPYI charges 0.12 percentage points more annually. While this difference seems small, over long periods it can compound, reducing net returns. A lower expense ratio, like ISPY's, generally preserves more of your investment growth. Comparing these ratios is vital for understanding the total cost of ownership for each ETF.

How do dividend yields differ between ISPY and SPYI, and what drives them?

ISPY provides a 5.17% dividend yield, whereas SPYI offers a significantly higher 11.79%. These high yields stem from options strategies overlaying S&P 500 holdings, generating premium income rather than relying solely on corporate dividends. While SPYI's yield appears more attractive for income generation, higher distributions may not always translate to superior total returns. Both funds are categorised as derivative income ETFs, meaning income is a key focus, but investors must weigh the yield against potential limitations on capital appreciation and tax implications.

Why is inception date relevant when comparing ISPY and SPYI?

The inception date reveals how long a fund has been operating. SPYI launched on 30 August 2022, giving it over four years of performance history, while ISPY began on 18 December 2023, resulting in a shorter track record. Longer history helps investors assess consistency through various market cycles. ISPY's lack of long-term history might make its risk-return profile harder to predict. When evaluating these high-income derivative ETFs, consider that SPYI offers more established operational data, potentially providing greater transparency compared to the newer ISPY.

Which ETF is more suitable for prioritising lower fees over higher income?

ISPY is often associated with investors seeking a more balanced approach, combining moderate income with cost efficiency. With a 0.56% expense ratio, it is cheaper to hold than SPYI's 0.68%. While its 5.17% yield is lower than SPYI's 11.79%, this more moderate distribution may be more sustainable over time. Investors who prioritise maximising net returns and prefer lower operational costs over large distributions might find ISPY's fee structure more appealing. This choice balances income needs with the desire to minimise ongoing expenses in a high-income ETF strategy.

Does SPYI's higher yield guarantee better overall performance for investors?

SPYI's 11.79% dividend yield attracts income-focused investors, but it does not guarantee superior total performance. High yields often come with trade-offs, such as capped upside potential due to options strategies. SPYI also has a 0.68% expense ratio, which is higher than ISPY's 0.56%. Over time, these fees and the mechanics of derivative income can impact net returns. While SPYI provides substantial cash distributions, investors must consider that yield alone does not reflect total return or account for tax implications and market volatility affecting the underlying portfolio.

How do the top holdings of ISPY and SPYI compare in terms of concentration?

Both ISPY and SPYI maintain similar concentration levels in major tech stocks. For instance, NVDA and AAPL constitute 13.06% of ISPY's portfolio compared to 15.66% in SPYI. Both funds share an identical top ten holdings, with SPYI typically assigning slightly higher weights to these mega-cap stocks. This means that performance for both ETFs is heavily influenced by the tech sector's movement. If these top holdings underperform, both ISPY and SPYI are likely to experience similar negative impacts on their respective returns.

How do fund liquidity and asset size compare for ISPY and SPYI?

SPYI's net assets of $12.1 billion provide high liquidity, resulting in tighter bid-ask spreads and potentially lower trading costs. In comparison, ISPY has $1.2 billion in net assets, which is sufficient for most investors but smaller. Larger funds like SPYI typically handle market fluctuations more smoothly and facilitate easier entry and exit. However, ISPY's size is still notable for a newer fund. When choosing between them, consider that SPYI offers greater scale, while ISPY remains liquid enough for the average investor.

Is ISPY or SPYI better suited for short-term or long-term goals?

Both ISPY and SPYI are suitable for a variety of goals, depending on income requirements. SPYI may appeal to those needing substantial immediate cash flow due to its 11.79% yield. Conversely, ISPY, with its 5.17% yield and lower 0.56% expense ratio, might attract long-term holders seeking growth potential alongside moderate income. Neither fund is inherently better for every timeframe. Investors should evaluate their need for income versus growth, considering ISPY's shorter history and SPYI's established track record when determining which aligns with their objectives.

What does 'derivative income' mean for these S&P 500 ETFs?

Both ISPY and SPYI are categorised as Derivative Income ETFs. This means they aim to provide high yields primarily by writing options contracts on their holdings or the underlying index. This strategy generates premium income to distribute to shareholders, potentially enhancing yields compared to traditional equity ETFs. This method may lead to higher dividend payouts than non-derivative S&P 500 funds. However, this can also introduce different risk profiles. Investors should research these derivative strategies, as they may impact performance during strong market rallies.

How do I compare the actual costs of holding ISPY versus SPYI?

When comparing ISPY and SPYI, focus on the expense ratios and potential tax implications of distributions. ISPY's 0.56% expense ratio is lower than SPYI's 0.68%, saving you 0.12 percentage points annually. High distributions from options income, as seen with SPYI's 11.79% yield, can lead to significant tax liabilities depending on your jurisdiction. These costs impact net returns. Always factor in the expense ratio and tax consequences when choosing. *Educational content only. Please consult a qualified financial advisor for personalised advice.*

ISPY vs SPYI

Two funds, one decision: we compare cost, performance and what each ETF actually holds in September 2026.

Compare ISPY and SPYI on fees, holdings and dividends. See how each S&P 500 high income ETF tracks its market, including expense ratios and asset size, to understand their derivative income strategies. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

ISPY

Metric

SPYI

0.56%

Expense Ratio

0.68%

5.17%

Dividend Yield

11.79%

$1.18B

Net Assets

$12.13B

512

Holdings

511

Dec 18, 2023

Inception Date

Aug 30, 2022

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Index Tracked

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Derivative Income

Fund Category

Derivative Income

ISPY costs about $12.00 less per year for every $10,000 invested.

Shared Top Holdings

Holding	ISPY	SPYI
NVDANVIDIA Corporation	6.83%	8.14%
AAPLApple Inc.	6.23%	7.52%
MSFTMicrosoft Corporation	4.66%	5.65%
AMZNAmazon.com, Inc.	3.16%	3.77%
GOOGLAlphabet Inc.	2.60%	3.09%
AVGOBroadcom Inc.	2.16%	2.52%
GOOGAlphabet Inc.	2.08%	2.49%
METAMeta Platforms, Inc.	1.86%	2.27%
MUMicron Technology, Inc.	1.46%	1.67%
TSLATesla, Inc.	1.30%	1.58%

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Investment Analysis

ISPY

Pros

,
The fund's net assets of $1.2 billion provide reasonable size, offering sufficient liquidity and trading volume for most investors despite being newer to the market.
With a dividend yield of 5.17%, the fund offers a balanced income stream that is typically more sustainable than higher-yielding alternatives, reducing potential total return drag.

Considerations

,
The fund has a relatively short inception date of Dec 18, 2023, which limits the availability of long-term performance history and makes it harder to evaluate tracking consistency over full market cycles.
The absence of available sector weight data and a specific tracked index designation reduces transparency, making it difficult for investors to precisely assess the fund's underlying risk exposure and methodology.

SPYI

Pros

,
The fund’s net assets of $12.1 billion indicate high liquidity and trading volume, which generally results in tighter bid-ask spreads and lower transaction costs for investors.
Its dividend yield of 11.79% provides a substantial income stream, which may be particularly attractive to income-focused investors seeking regular cash distributions from their holdings.

Considerations

,
The expense ratio of 0.68% is higher than Fund A’s 0.56%, increasing the ongoing cost burden and potentially reducing net returns over time relative to cheaper alternatives.
The top holdings exhibit significant concentration in technology stocks, with NVDA and AAPL alone accounting for over 15% of the portfolio, increasing sensitivity to sector-specific downturns.

About ISPY and SPYI

ISPY (ISPY)

The SPDR S&P 500 High Income ETF aims to generate enhanced income alongside potential capital growth by combining S&P 500 index exposure with active options strategies, specifically writing calls and puts. Designed for investors seeking higher yield from a large-cap US equity base, it seeks to capture market upside while mitigating some downside risk through systematic option selling. As an exchange-traded fund listed in the UK, it offers accessibility to US markets with a focus on derivative-based income generation. Investors should understand that options strategies involve unique risks, including capped upside potential and sensitivity to volatility, and outcomes depend heavily on market direction and time decay. With a moderate expense ratio and a diversified holding profile, it suits those who are comfortable with income-focused derivatives within an ETF wrapper.

SPYI (SPYI)

The NEOS S&P 500 High Income ETF is designed to provide investors with high monthly income by combining exposure to the S&P 500 index with a covered call strategy. This approach aims to generate option premium income to enhance yields, potentially at the cost of limited upside participation during strong bull markets. The fund is actively managed and maintains a large number of holdings to diversify its equity exposure. It may be suitable for investors seeking regular income streams, though high yields often come with increased complexity and different risk profiles compared to traditional index funds. Investors should consider that dividends are not guaranteed, can fluctuate significantly, and may include return of capital, which can erode net asset value over time.

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ISPY vs SPYI

Fund Snapshot