$10,000 Gold Is a Threat to This Ultra-High Yield ETF

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Rich Duprey

Fri, March 27, 2026 astatine 8:50 AM CDT 5 min read

NEOS Gold High Income ETF (IAUI) has delivered a 12.2% annualized dividend output since its June 2025 launch, but its covered telephone strategy has returned conscionable 18% versus 44% for the underlying Goldman Sachs Physical Gold ETF implicit the aforesaid period, portion Credit Suisse Gold Shares Covered Call ETN (GLDI) likewise lagged plain golden by 26 percent points successful a rising market.
If golden maintains its multi-year rally toward the $10,000 end-of-decade targets analysts project, IAUI’s telephone options volition progressively headdress shareholder gains and displacement upside to enactment buyers, making the monthly organisation the lone instrumentality root alternatively than a bonus connected terms appreciation.
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Gold has pulled backmost astir 21% from its late-January highest of astir $5,600, yet analysts maintaining $10,000 terms targets by extremity of decennary are holding firm. For investors successful NEOS Gold High Income ETF (NYSEARCA:IAUI), that semipermanent bull thesis is precisely the problem. A money designed to make income from golden vulnerability is structurally penalized erstwhile golden surges — and the bigger the surge, the steeper the penalty.

IAUI launched June 4, 2025 and has gathered astir $396 cardinal successful assets successful nether a year. Its nonsubjective is straightforward: make precocious monthly income with the imaginable for appreciation based connected vulnerability to exchange-traded products that person nonstop vulnerability to gold. The money holds astir 63% successful U.S. Treasury Bills, uses those arsenic collateral for synthetic golden exposure, and holds astir 24% successful the Goldman Sachs Physical Gold ETF. The remaining portion is an progressive options overlay that sells covered calls against golden positions to make monthly distributions.

That operation has delivered a 12.2% annualized dividend yield, paid monthly. Recent distributions person tally from $0.51 per stock successful August 2025 up to $0.62 successful February 2026. One Seeking Alpha contributor described the money arsenic offering "effective drawdown mitigation and income procreation capabilities" done its partial, laddered telephone coverage. The trade-off, arsenic different expert enactment it plainly: IAUI "underperforms during beardown golden rallies but has milder drawdowns."

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Ed Yardeni, president of Yardeni Research, is "sticking with $10,000 by the extremity of the decade," adjacent aft lowering his year-end 2026 forecast to $5,000 per ounce. The structural drivers see persistent geopolitical uncertainty, continued cardinal slope demand, and sustained inflows from Asian golden ETF investors -- forces that persist done corrections.

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