Share-split context: A reverse split was recorded on Dec 27, 2024 with coefficient 0.2. A reverse split combines multiple old shares into fewer new shares and mechanically raises the quoted price per share. That mechanical increase does not restore lost investment value. The returns in this report are already split-adjusted, while reverse-split history remains a separate structural warning.

ETF Education Report: NEOS Enhanced Income Credit Select ETF (HYBI)

What this ETF is trying to do

The NEOS Enhanced Income Credit Select ETF (HYBI) is an exchange-traded fund that focuses on generating income. It uses strategies like covered calls and options to help provide cash to investors.

What the numbers show

When looking at this ETF, it is important to understand the difference between "price return" and "total return."

• Price Return: This measures only the change in the share price. For HYBI, the year-to-date (YTD) price return is approximately -4.16%. The one-year price return is approximately -5.03%. This means the share price has gone down over these periods.

• Total Return: This measures the overall performance, including the cash distributions paid out to investors. The YTD total return is approximately 1.81%, and the one-year total return is approximately 2.95%.

Because this ETF has a history of reverse splits, we use split-adjusted returns to look at performance. A reverse split happens when multiple old shares are combined into fewer new shares, which causes the price per share to rise mechanically. This does not mean the investment gained value; it is just a structural change in how the shares are counted.

Income and distribution explanation

HYBI focuses on providing regular cash to investors. The distribution yield is approximately 8.32%. This number describes the cash distributions relative to the current ETF price. The fund usually pays out monthly, with 12 payments recorded over the last year.

It is important to remember that a high distribution yield is not the same as total return. While the distributions provide cash, they do not guarantee that your original investment (the principal) will stay the same value.

NAV erosion explanation

"NAV erosion" is a term used to describe when the Net Asset Value (the actual value of the fund's assets) decreases over time. StockValueFinder uses an "erosion-risk score" to measure this risk.

HYBI has an erosion score of 75, which is labeled as "mild price erosion." This is a measurement of risk, not a guarantee that the value has collapsed. There is no "severe erosion-risk flag" for this ETF.

Pros

• The fund provides a distribution yield of approximately 8.32%.

• The total return (which includes distributions) is positive, even though the share price itself has declined.

Cons

• The share-price return has been negative for both the year-to-date and one-year periods.

• The fund has a history of reverse splits.

• There is a "mild" erosion-risk score present.

Beginner takeaway

For new investors, the main lesson here is to look at total return rather than just the share price or just the yield. While the share price of HYBI has fallen, the total return is positive because the cash distributions helped offset some of that price decline. Always remember that high yields can exist even when a share price is dropping.