NEOS Investments | Best Options Strategies ETF Issuer ($1bn-$10bn)
Winner of Best Options Strategies ETF Issuer ($1bn-$10bn), NEOS Investments, was launched in August 2022 by a team of options-based ETF pioneers with decades of experience developing and managing some of the industry’s most widely used options-based ETFs.
“The goal for our inaugural suite was to provide income solutions across equities, fixed income, and cash alternatives, covering the core allocations investors rely on when building portfolios,” says Garrett Paolella, Co-Founder and Managing Partner at NEOS Investments.
The firm’s name carries a double meaning: “neos” is the Greek word for “new,” and it also stands for Next Evolution Option Strategies. While the name reflects innovation, the team behind NEOS brings deep experience. Co-founders Garrett Paolella and Troy Cates have worked together for more than 18 years and launched their first options-based ETF well over a decade ago in 2013.
“All of our strategies follow a systematic, rules-based approach that incorporates many factors into our investment process,” Paolella says. “As we continue building a firm focused on being a true solutions provider, we believe it’s important to meet investors where they are.”
It seems to be working. In just over three years since launch, NEOS has expanded its product lineup to 13 ETFs covering equities, fixed income, and alternative asset classes, offering solutions designed to align with investors’ income needs based on their risk tolerance.
“What’s been unique and exciting is the support we’ve received from investors across all ages and demographics,” Paolella says. “Our investor base ranges from individuals in their 20s to those in late-stage retirement. We’ve found there are two mindsets: older investors seeking cash flow in retirement, and younger investors looking for passive income to supplement their lifestyle. The evolution has been great to see.”
Paolella also notes that the options-based ETF space has grown significantly since he and Troy first entered it in 2013, when they launched one of the earliest options-based ETFs in the market. Today, there are more than 700 ETFs that incorporate an options-based strategy. [source: ETF Central]”
Helping drive this growth is increased interest from investors seeking income across a range of portfolio allocations, including time-tested assets like gold, newer exposures such as Bitcoin, and even growth equities that have not traditionally offered an income component. One example is BTCI, the NEOS Bitcoin High Income ETF, which has raised nearly USD900 million since its launch in October 2024. The fund aims to provide exposure to bitcoin along with high monthly income and upside potential, all within an accessible ETF structure.
Looking ahead, NEOS plans to continue expanding its lineup of income-focused products across sectors where investor demand is strongest. Paolella emphasises that the firm remains committed to offering thoughtful, well-constructed solutions through a sustainable approach to income generation, rather than chasing short-term outcomes or gimmicky trends.
“Our win in this year’s awards is a testament to NEOS’ focus on being a true solutions provider, aiming to deliver the best performance and after-tax outcomes for our investors,” Paolella says. “We’re incredibly thankful for the trust our shareholders place in our products, and we’re excited to continue meeting the objectives of our current funds while innovating new solutions for the future.”
Important Disclosures:
Investors should carefully consider the investment objectives, risks, charges and expenses of Exchange Traded Funds (ETFs) before investing. To obtain an ETF’s prospectus containing this and other important information, please call (866) 498-5677 or view/download a prospectus at https://neosfunds.com. Please read the prospectus carefully before you invest.
An investment in NEOS ETFs involve risk, including possible loss of principal. The use of derivative instruments involves risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional investments. These risks include (i) the risk that the counterparty to a derivative transaction may not fulfill its contractual obligations; (ii) risk of mispricing or improper valuation; and (iii) the risk that changes in the value of the derivative may not correlate perfectly with the underlying asset, rate or index. Derivative prices are highly volatile and may fluctuate substantially during a short period of time. The use of leverage by the Fund, such as borrowing money to purchase securities or the use of options, will cause the Fund to incur additional expenses and magnify the Fund’s gains or losses. The earnings and prospects of small and medium sized companies are more volatile than larger companies and may experience higher failure rates than larger companies. Small and medium sized companies normally have a lower trading volume than larger companies, which may tend to make their market price fall more disproportionately than larger companies in response to selling pressures and may have limited markets, product lines, or financial resources and lack management experience. The funds are new with a limited operating history.
The value of a Spot Bitcoin ETP security may be more volatile than the market as a whole and may perform differently from the value of the market as a whole. The Fund will have significant exposure to the Bitcoin Futures ETF through its options positions that utilise the Bitcoin Futures ETF as the reference asset. Bitcoin is a relatively new innovation and the market for bitcoin is subject to rapid price swings, changes and uncertainty.
The information on this website or within this interview does not constitute investment advice or a recommendation of any products, strategies, or services. Investors should consult with a financial professional regarding their individual circumstances before making investment decisions. NEOS Investments or its affiliates, nor Foreside Fund Services, LLC, or its affiliates accept any responsibility for loss arising from the use of the information contained herein.
NEOS ETFs are distributed by Foreside Fund Services, LLC
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