How do the expense ratios of SPYI and TSPY compare?

SPYI has an expense ratio of 0.68 percent, while TSPY has an expense ratio of 0.71 percent. This results in a difference of 0.03 percentage points. In the context of exchange-traded funds, the expense ratio represents the annual fee paid to the fund manager. A lower expense ratio generally means less drag on overall returns, although in derivative income funds, fees are often higher due to the complexity of the option strategies employed. Investors should consider this difference when evaluating the long-term cost of ownership.

What does the expense ratio mean for my investment over time?

The expense ratio is an annual fee deducted directly from the fund's assets. For SPYI, this is 0.68 percent, and for TSPY, it is 0.71 percent. Over time, even small differences in these fees can impact the potential growth of an investment due to the compounding effect. For example, on a theoretical one-year basis, a 0.03 percentage point difference is minimal, but over ten or twenty years, it could compound into a more noticeable variance in net returns. Understanding these costs helps in evaluating the efficiency of the fund.

How do the asset sizes of SPYI and TSPY differ?

SPYI has net assets of 12.1 billion, whereas TSPY has net assets of 327 million. This significant difference in size indicates that SPYI is a much larger fund. Larger funds often benefit from higher liquidity, meaning investors can buy or sell shares more easily without significantly affecting the price. Conversely, TSPY's smaller asset base might lead to wider bid-ask spreads, potentially making transactions slightly less efficient. Investors should weigh the trade-off between potential liquidity benefits of larger funds and the specific strategies of smaller ones.

How do the dividend yields of SPYI and TSPY compare?

SPYI offers a dividend yield of 11.79 percent, while TSPY provides a higher yield of 13.87 percent. These yields are substantially higher than traditional S&P 500 funds, reflecting the income generated through covered call options strategies. While a higher yield might appear attractive, it is important to note that in derivative income funds, high distributions can sometimes erode the principal value over time if the underlying market growth does not keep pace. Investors should consider yield in the context of total return potential and risk.

What role do inception dates play when comparing ETFs?

SPYI was launched on 30 August 2022, providing investors with a performance history of approximately four years. In contrast, TSPY was established much more recently on 14 August 2024, offering a shorter track record. A longer inception date allows for a more robust analysis of how a fund performs under various market conditions, such as rising or falling interest rates and volatility. When evaluating TSPY, investors have less historical data to assess how the strategy responds to different economic cycles compared to SPYI.

How do the top holdings of SPYI and TSPY compare?

SPYI's top holdings include technology and communication services giants such as NVDA, AAPL, and MSFT. Unfortunately, TSPY's top holdings are currently not available. Due to this lack of transparency regarding TSPY's specific position breakdown, a direct comparison of concentration and sector exposure between the two funds is not possible. SPYI's known top 10 holdings suggest a concentration in major technology stocks, a common characteristic for S&P 500 index funds. Investors would need to await updated data on TSPY to verify its portfolio composition.

What types of investments are SPYI and TSPY suitable for?

SPYI and TSPY are both categorised as derivative income funds. SPYI, with its track record and large asset base, is suitable for investors seeking significant income through a well-established covered call strategy on the S&P 500. TSPY, while newer and offering a higher yield, is associated with investors looking for income potentially tied to growth stocks. Investors prioritising high current income may consider these funds, but they should be aware that the option strategies may cap upside potential compared to a traditional index fund.

What is a covered call strategy in the context of these ETFs?

A covered call strategy involves holding the underlying assets of an index, such as the S&P 500, and writing call options against them to generate premium income. SPYI and TSPY both fall into this category, which explains their high dividend yields of 11.79 percent and 13.87 percent, respectively, far exceeding a traditional S&P 500 ETF. This strategy produces cash flow from option premiums but may limit capital appreciation, as the funds might need to sell shares if the market price rises above the option's strike price.

What is an educational disclaimer?

An educational disclaimer clarifies that the content provided is for informational and learning purposes only and should not be interpreted as personalised financial advice. This is particularly important when comparing specific funds like SPYI and TSPY. Investment strategies, yields, and fees discussed here are based on provided fund data and general financial principles. Investors must conduct their own due diligence, consider their risk tolerance and financial goals, and consult with a qualified financial professional before making any investment decisions.

SPYI vs TSPY

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

Compare SPYI (NEOS S&P 500 High Income ETF) and TSPY (TapAlpha S&P 500 Growth & Daily Income ETF). Review fees, holdings, dividends and market tracking. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

SPYI

Metric

TSPY

0.68%

Expense Ratio

0.71%

11.79%

Dividend Yield

13.87%

$12.13B

Net Assets

$327.31M

511

Holdings

Aug 30, 2022

Inception Date

Aug 14, 2024

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Index Tracked

–

Derivative Income

Fund Category

Derivative Income

SPYI costs about $3.00 less per year for every $10,000 invested.

Shared Top Holdings

These funds do not share any of their top holdings.

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Investment Analysis

SPYI

Pros

Large assets of $12.1 billion support liquidity
Moderate expense ratio of 0.68 percent for an option strategy fund
High dividend yield of 11.79 percent provides significant income

Considerations

Concentrated top-10 holdings increase single-stock risk
Derivative income funds may face tax complexity for investors
High distribution rate potentially erodes principal over time

TSPY

Pros

Very high dividend yield of 13.87 percent
Lower expense ratio of 0.71 percent compared to some rivals
Focused on S&P 500 growth segment for capital appreciation potential

Considerations

Small net assets of $327 million limit liquidity
Recent inception in 2024 means short performance history
Issuer and tracking index details are not available

About SPYI and TSPY

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.

TSPY (TSPY)

The TapAlpha S&P 500 Growth & Daily Income ETF (TSPY) is a derivative income fund designed to offer investors exposure to the S&P 500 Growth Index while generating frequent income. Launched in August 2024, this fund utilises options strategies to aim for both capital appreciation and yield, distinguishing itself with a dividend distribution schedule as often as daily. With a current net asset value of approximately USD 327 million, the fund maintains a high headline dividend yield of around 13.87%, reflecting its income-generating focus. However, investors should be aware of its operational costs, which include a 0.71% expense ratio, and its concentrated structure, which currently holds just four assets. As with all derivative-based strategies, the fund's returns can fluctuate significantly, and it carries risks associated with equity markets and options trading. This investment is generally suited for those seeking income-oriented exposure to large-cap growth companies, rather than capital preservation.

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SPYI vs TSPY

Fund Snapshot

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Investment Analysis

SPYI

Pros

Considerations

TSPY

Pros

Considerations

About SPYI and TSPY

Buy SPYI or TSPY in Nemo

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Trusted & Regulated

6% Interest on Cash

Frequently asked questions

How do the expense ratios of SPYI and TSPY compare?

What does the expense ratio mean for my investment over time?

How do the asset sizes of SPYI and TSPY differ?

How do the dividend yields of SPYI and TSPY compare?

What role do inception dates play when comparing ETFs?

How do the top holdings of SPYI and TSPY compare?

What types of investments are SPYI and TSPY suitable for?

What is a covered call strategy in the context of these ETFs?

What is an educational disclaimer?

Fund Snapshot

About SPYI and TSPY

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