NEOS ETF Trust NEOS Enhanced Income Aggregate Bond ETF (ARCA: BNDI)

Latest news for NEOS ETF Trust NEOS Enhanced Income Aggregate Bond ETF (ARCA:BNDI)

The Fund invests under normal circumstances at least 80 percent of its assets in a diversified portfolio of bonds of varying maturities and exchange-traded funds that invest 80 percent or more of their assets in bonds and forwards, options or futures contracts related to bonds.

Vanguard Total Bond Market ETF

Ishares Core U.s. Aggregate

NEOS Enhanced Income Aggregate Bond ETF

Bonds

Federal Reserve

Markets

Trading Ideas

iShares Trust Barclays 7-10 Year Treasury Bond Fund

BNDI

Let&#39;s Rewind

2022 and 2023 were hectic - war, bank crises, and bear markets.

Inflation was still running rampant - with the core PCE having just peaked at +6.4% in February 2022. These consistent out-of-control inflation reports caused the Federal Reserve to take action by doing the only thing they know how to do - raise interest rates.

BNDI: 2024&#39;s Hidden Gem Bond ETF That Produces 2% Additional Income While Maintaining A Similar Risk Profile

NEOS ETF Trust NEOS Enhanced Income Aggregate Bond ETF

The European Commission (EC), which has the authority to approve medicines for the European Union (EU), will now review the CHMP recommendation.

News

Bristol Myers Squibb Gets Positive CHMP Opinion For CAR T Cell Therapy Breyanzi For Relapsed Or Refractory Follicular Lymphoma

The earnings results for TDK (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TTDKY#OTC">TTDKY</a>) for Q3 were made public on Friday, January 31, 2025 at 03:00 AM.
Here's a comprehensive overview of the announcement.
<h3>Earnings</h3>
TDK beat estimated earnings by 6.0%, reporting an EPS of $0.19 versus an estimate of $0.18.
Revenue was up $29.00 million from the same period last year.
<h3>Historical Earnings Summary</h3>
Last quarter the company beat on EPS by $0.17 which was followed by a 4.0% increase in the share price the next day.
Here's a look at TDK's past performance:

<table>
<thead>
<tr>
<th>Quarter</th>
<th>Q2 2025</th>
<th>Q1 2025</th>
<th>Q4 2024</th>
<th>Q3 2024</th>
</tr>
</thead>
<tbody>
<tr>
<td>EPS Estimate</td>
<td>0.20</td>
<td>0.10</td>
<td>0.04</td>
<td>0.15</td>
</tr>
<tr>
<td>EPS Actual</td>
<td>0.37</td>
<td>0.22</td>
<td>0.02</td>
<td>0.23</td>
</tr>
<tr>
<td>Revenue Estimate</td>
<td>3.98B</td>
<td>3.19B</td>
<td>3.23B</td>
<td>3.84B</td>
</tr>
<tr>
<td>Revenue Actual</td>
<td>3.83B</td>
<td>3.33B</td>
<td>3.27B</td>
<td>3.79B</td>
</tr>
</tbody>
</table>

To track all earnings releases for TDK <a href="https://www.benzinga.com/quote/TTDKY/earnings">visit their earnings calendar here.</a> 
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Earnings

TTDKY

Earnings Breakdown: TDK Q3

The&nbsp;&nbsp;&nbsp;&nbsp;Company&nbsp;&nbsp;&nbsp;&nbsp;declared&nbsp;&nbsp;&nbsp;&nbsp;a&nbsp;&nbsp;&nbsp;&nbsp;regular&nbsp;&nbsp;&nbsp;&nbsp;quarterly&nbsp;&nbsp;&nbsp;&nbsp;dividend&nbsp;&nbsp;&nbsp;&nbsp;of&nbsp;&nbsp;&nbsp;&nbsp;$0.55&nbsp;&nbsp;&nbsp;&nbsp;per&nbsp;&nbsp;&nbsp;&nbsp;share,&nbsp;&nbsp;&nbsp;&nbsp;an&nbsp;&nbsp;&nbsp;&nbsp;increase&nbsp;&nbsp;&nbsp;&nbsp;of&nbsp;&nbsp;&nbsp;&nbsp;7.8&nbsp;&nbsp;&nbsp;&nbsp;percent,&nbsp;&nbsp;&nbsp;&nbsp;which&nbsp;&nbsp;&nbsp;&nbsp;is&nbsp;&nbsp;&nbsp;&nbsp;payable&nbsp;&nbsp;&nbsp;&nbsp;on&nbsp;&nbsp;&nbsp;&nbsp;March&nbsp;&nbsp;&nbsp;&nbsp;4,&nbsp;&nbsp;&nbsp;&nbsp;2025&nbsp;&nbsp;&nbsp;&nbsp;to&nbsp;&nbsp;&nbsp;&nbsp;stockholders&nbsp;&nbsp;&nbsp;&nbsp;of&nbsp;&nbsp;&nbsp;&nbsp;record&nbsp;&nbsp;&nbsp;&nbsp;on&nbsp;&nbsp;&nbsp;&nbsp;February&nbsp;&nbsp;&nbsp;&nbsp;14,&nbsp;&nbsp;&nbsp;&nbsp;2025.&nbsp;&nbsp;&nbsp;&nbsp;

Dividends

Booz Allen Hamilton Declared A QUarterly Dividend Per Share Of $0.55, Up By 7.8%

Brookfield Bus Partners (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BBU#NYSE">BBU</a>) reported $7.427 billion in sales this quarter. This is a 44.60 percent decrease over sales of $13.405 billion the same period last year.

Brookfield Bus Partners Q4 Sales $7.427B Down From $13.405B YoY

Needham analyst Ryan Koontz maintains Calix (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CALX#NYSE">CALX</a>) with a Buy and raises the price target from $45 to $53.

Price Target

Analyst Ratings

CALX

Needham Maintains Buy on Calix, Raises Price Target to $53

Needham analyst Quinn Bolton reiterates Allegro Microsystems (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ALGM#NASDAQ">ALGM</a>) with a Buy and maintains $30 price target.

Reiteration

ALGM

Needham Reiterates Buy on Allegro Microsystems, Maintains $30 Price Target

Earnings Beats

Booz Allen Hamilton Q3 2025 Adj. EPS $1.55 Beats $1.51 Estimate, Sales $2.917B Beat $2.864B Estimate

Merck Says Committee For Medicinal Products For Human Use Of The European Medicines Agency Recommended The Approval Of CAPVAXIVE For Active Immunization Of Invasive Disease And Pneumonia Caused By Streptococcus Pneumoniae

TDK (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TTDKY#OTC">TTDKY</a>) reported its Q3 earnings results on Friday, January 31, 2025 at 03:00 AM.
Here's what investors need to know about the announcement.
<h3>Earnings</h3>
TDK beat estimated earnings by 6.0%, reporting an EPS of $0.19 versus an estimate of $0.18.
Revenue was up $29.00 million from the same period last year.
<h3>Overview of Past Earnings</h3>
Last quarter the company beat on EPS by $0.17 which was followed by a 4.0% increase in the share price the next day.
Here's a look at TDK's past performance:

<table>
<thead>
<tr>
<th>Quarter</th>
<th>Q2 2025</th>
<th>Q1 2025</th>
<th>Q4 2024</th>
<th>Q3 2024</th>
</tr>
</thead>
<tbody>
<tr>
<td>EPS Estimate</td>
<td>0.20</td>
<td>0.10</td>
<td>0.04</td>
<td>0.15</td>
</tr>
<tr>
<td>EPS Actual</td>
<td>0.37</td>
<td>0.22</td>
<td>0.02</td>
<td>0.23</td>
</tr>
<tr>
<td>Revenue Estimate</td>
<td>3.98B</td>
<td>3.19B</td>
<td>3.23B</td>
<td>3.84B</td>
</tr>
<tr>
<td>Revenue Actual</td>
<td>3.83B</td>
<td>3.33B</td>
<td>3.27B</td>
<td>3.79B</td>
</tr>
</tbody>
</table>

To track all earnings releases for TDK <a href="https://www.benzinga.com/quote/TTDKY/earnings">visit their earnings calendar here.</a> 
This article was generated by Benzinga's automated content engine and reviewed by an editor.

TDK Q3 Earnings Assessment

Evercore ISI Group analyst James Kammert initiates coverage on NNN REIT (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NNN#NYSE">NNN</a>) with a In-Line rating and announces Price Target of $42.

Initiation

Evercore ISI Group Initiates Coverage On NNN REIT with In-Line Rating, Announces Price Target of $42

Fujitsu (OTC:<a class="ticker" href="https://www.benzinga.com/stock/FJTSY#OTC">FJTSY</a>) lowers FY2024 GAAP EPS guidance from $0.77 to $0.76. Lowers FY2024 sales outlook from $25.26 billion to $22.78 billion.

Guidance

FJTSY

Fujitsu Lowers FY2024 GAAP EPS Guidance from $0.77 to $0.76; Lowers FY2024 Sales Guidance from $25.26B to $22.78B

WIIM

Signing Day Sports shares are trading higher after the company announced it retains rights as the National Recruiting Partner to the U.S. Army Bowl through 2026 in new deal.

Fujitsu (OTC:<a class="ticker" href="https://www.benzinga.com/stock/FJTSY#OTC">FJTSY</a>) lowers FY2024 Adj EPS guidance from $0.82 to $0.81. sees Adj sales of $22.784 billion.

Fujitsu Lowers FY2024 Adj EPS Guidance from $0.82 to $0.81; Sees Adj Sales $22.784B

B of A Securities analyst Jessica Reif Cohen downgrades Comcast (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CMCSA#NASDAQ">CMCSA</a>) from Buy to Neutral and lowers the price target from $50 to $38.

Downgrades

CMCSA

B of A Securities Downgrades Comcast to Neutral, Lowers Price Target to $38

Signing Day Sports Announced The Signing Of A New Sponsorship Agreement With The US Army Bowl  Through 2026, Extending Its Rights As "National Recruiting Partner"

Fujitsu (OTC:<a class="ticker" href="https://www.benzinga.com/stock/FJTSY#OTC">FJTSY</a>) reported quarterly earnings of $0.04 per share. This is a 200 percent increase over losses of $(0.04) per share from the same period last year. The company reported $6.07 billion in sales this quarter. This is a 3.63 percent decrease over sales of $6.30 billion the same period last year.

Fujitsu Q3 EPS $0.04 Up From $(0.04) YoY, Sales $6.07B Down From $6.30B YoY

U.S. stock futures climbed on Friday, pointing to a third straight week of gains fueled by strong corporate earnings. Futures were higher for all four major indices.
The dollar index strengthened after Donald Trump announced Thursday that the U.S. will implement a 25% tariff on imports from Canada and Mexico, effective Saturday, Feb. 1. He also threatened the <a href="https://www.benzinga.com/government/regulations/25/01/43377987/after-imposing-tariffs-on-canada-donald-trump-threatens-100-levy-on-brics-for-move-against-dollar-how-will-us-manage-production-from-slippers-to-ships-asks-expert">BRICS nations</a> to impose 100% tariffs if they issue BRICS reserve currency.
Investors await the Personal Consumption Expenditure data for December, which will be released before the market opens.
The 10-year Treasury yield is currently at 4.53%, and the two-year yield is at 4.21%. The CME Group&#8217;s FedWatch <a href="https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.htm">tool </a>indicates an 82% probability that the Federal Open Market Committee will maintain current interest rates in March 2025.
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Futures</td>
<td>Change (+/-)</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>0.78%</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>0.45%</td>
</tr>
<tr>
<td>Dow Jones</td>
<td>0.34%</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>0.01%</td>
</tr>
</tbody>
</table>
</figure>
In premarket trading on Friday, both the SPDR S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) and the Invesco QQQ Trust ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) were higher. SPY was up 0.42% at $607.59, and QQQ gained 0.80% to reach $527.22, based on <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a> data.
Cues From The Last Session
Stocks rallied Thursday following mixed reactions to a wave of earnings reports and economic data.
This followed Wednesday&#8217;s down session after the Fed held rates steady. Investor sentiment fluctuated due to DeepSeek&#8217;s low-cost AI model launch and Big Tech earnings, this week.
Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) shares fell 0.74% despite beating first-quarter revenue and earnings estimates as iPhone sales slipped in 2024 to $69.14 billion, versus $69.7 billion last year. Revenue reached $124.3 billion as compared to $124.13 billion expected by Benzinga Pro, and adjusted earnings per share was $2.40 as compared to the expectation of $2.36 per share.
IBM Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IBM#NYSE">IBM</a>) surged nearly 13% on artificial intelligence growth, Meta Platforms Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>) gained 1.6% on strong results, while Microsoft Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) fell 6.2% despite exceeding expectations due to weaker cloud revenue.
On the economic front, Q4 GDP growth and jobless claims were slightly below forecasts, but overall economic indicators remain strong, with the Fed, on Wednesday, citing a robust labor market and &#8220;somewhat elevated&#8221; inflation.
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Index</td>
<td>Performance (+/-)</td>
<td>Value</td>
</tr>
<tr>
<td>Nasdaq Composite</td>
<td>0.25%</td>
<td>19,681.75</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>0.53%</td>
<td>6,071.17</td>
</tr>
<tr>
<td>Dow Jones</td>
<td>0.38%</td>
<td>44,882.13</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>1.07%</td>
<td>2,307.45</td>
</tr>
</tbody>
</table>
</figure>
Insights From Analysts
According to the analysts at BlackRock, strong corporate earnings have set the tone for the fourth-quarter season in swing.
&#8220;Even with higher-for-longer interest rates, we think U.S. stocks can keep outperforming this year. We stay overweight. Resilient economic growth is helping sectors beyond tech. That's partly driven by artificial intelligence (AI) spurring earnings beyond the initial winners during an economic transformation and policy change, we think. Yet we eye risks to risk appetite changing this year depending on earnings and policy.&#8221;
With interest rates in focus Ed Yardeni and Eric Wallerstein of Yradeni Research, said in their QuickTakes note that Fed Chair Jerome Powell&#8217;s basic message during his press conference was that the Fed is in no hurry to lower interest rates, but the Fed still intends to lower them over time.
Hence, they described it as a &#8220;dovish pause&#8221;.
Approaching the week from a technical perspective Jeff Buchbinder, the chief equity strategist at LPL Financial said that the S&amp;P 500 remains near record-high territory amid improving market breadth and momentum. &#8220;Technical damage within the heavy-weight tech sector has been minimal as buyers stepped up near support from the mid-January lows.&#8221;
Despite Monday's pullback, sector breadth is also holding up relatively well, with the majority of tech stocks trading above their 200-day moving average, Buchbinder added.
&#8220;However, technical damage has been more pronounced on a relative basis, as the tech sector vs. S&amp;P 500 ratio chart recently dropped to multi-month lows,&#8221; he said.
See Also:&nbsp;<a href="https://www.benzinga.com/money/how-to-trade-futures">How to Trade Futures</a>
Upcoming Economic Data
Here&#8217;s what investors will keep an eye on Friday:
<ul>
<li>Fed Governor Michelle Bowman will be speaking at 8:30 a.m., ET.</li>
</ul>
<ul>
<li>Employment cost index data for Q4 will be released at 8:30 a.m., ET.</li>
</ul>
<ul>
<li>Also, the core and headline personal consumption expenditure, along with personal income and spending data will be announced at 8:30 a.m., ET.</li>
</ul>
<ul>
<li>The Chicago Business Barometer (PMI) for January will be out by 9:45 a.m., ET.</li>
</ul>
Stocks In Focus:
<ul>
<li>Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) was up 3.46% in the premarket on Friday after beating the fourth-quarter expectations on Tuesday, despite a slip in iPhone sales.</li>
</ul>
<ul>
<li>Colgate-Palmolive Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CL#NYSE">CL</a>) was up 0.03% as Wall Street expects it to report earnings of 89 cents per share on revenue of $4.99 billion, before the opening bell.</li>
</ul>
<ul>
<li>Phillips 66 (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PSX#NYSE">PSX</a>) fell 0.86% ahead of its earnings to be released before the opening bell. Analysts expect it to report quarterly earnings of 23 cents per share on revenue of $32.24 billion.</li>
</ul>
<ul>
<li>Chevron Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVX#NYSE">CVX</a>) was down 0.17% as Wall Street expects it to report earnings of $2.11 per share on revenue of $48.41 billion, before the opening bell.</li>
</ul>
<ul>
<li>Other companies that are slated to report earnings today included Exxon Mobil Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOM#NYSE">XOM</a>) up 0.6%, Novartis AG (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NVS#NYSE">NVS</a>) up 1.49%, Charter Communications Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CHTR#NASDAQ">CHTR</a>) up 2.09%, AbbVie Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ABBV#NYSE">ABBV</a>) up 0.99%, WW Grainger Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GWW#NYSE">GWW</a>) up 1.05% and Charter Communications Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CHTR#NASDAQ">CHTR</a>) up 2.09%.</li>
</ul>
<ul>
<li>Nauticus Robotics Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KITT#NASDAQ">KITT</a>) was up 46.15% after announcing a partnership to advance subsea autonomy solutions.</li>
</ul>
<ul>
<li>Cipher Mining Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CIFR#NASDAQ">CIFR</a>) was up 19.57% after the company announced a $50 million investment from Softbank.</li>
</ul>
Commodities, Gold And Global Equity Markets:
Crude oil futures were trading lower in the early New York session by 0.08% to hover around $72.67 per barrel.
The gold spot index was down by 0.08% to $2,791.94 per ounce. The Dollar Index was up 0.42% at 108.246 level.
Asian markets were higher on Friday except South Korea's Kospi index. Australia's ASX 200, Japan's Nikkei 225, South Korea's Kospi, Hong Kong's Hang Seng, and India's S&amp;P BSE Sensex rose. European markets were also higher in trade.
Read Next:
<ul>
<li><a href="https://www.benzinga.com/25/01/43376448/elon-musks-x-money-to-see-about-600-million-active-monthly-users-via-visa-direct-integration">Elon Musk&#8217;s &#8216;X Money&#8217; To See About 600 Million Active Monthly Users Via Visa Direct Integration: &#8216;Excited To Partner,&#8217; Says CEO</a></li>
</ul>
Photo courtesy: Shutterstock

Analyst Color

Equities

Government

Market Summary

Regulations

Broad U.S. Equity ETFs

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Forex

Treasuries

Pre-Market Outlook

ETFs

General

AAPL

ABBV

CHTR

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MSFT

US Stock Futures Climb After Apple Beats Q4 Expectations: Expert Says Tech Stocks Hold Above Key Level Despite DeepSeek Impact

OneMain Holdings (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OMF#NYSE">OMF</a>) reported quarterly earnings of $1.16 per share which beat the analyst consensus estimate of $1.15 by 0.87 percent. This is a 16.55 percent decrease over earnings of $1.39 per share from the same period last year. The company reported quarterly sales of $1.01 billion which missed the analyst consensus estimate of $1.04 billion by 3.27 percent. This is a 10.03 percent increase over sales of $917.00 million the same period last year.

Earnings Misses

OneMain Holdings Q4 Adj EPS $1.16 Beats $1.15 Estimate, Sales $1.01B Miss $1.04B Estimate

Autoliv Sees FY25 Organic Growth Of About 2%

In November 2024, a positive opinion was received from the Committee for Medicinal Products for Human Use (CHMP) recommending approval of lecanemab.1 As part of its decision-making process, the European Commission (EC) has asked the CHMP to consider information on the safety of lecanemab that became available after the adoption of the CHMP opinion in November 2024 and whether this may require an update of the opinion, and to consider whether the wording of the risk minimization measures in the opinion is clear enough to ensure correct implementation. These will be discussed at the CHMP meeting in February 2025.
 &nbsp;

BIIB

Biogen And Eisai Reveals Update On Ongoing Regulatory Review Of Marketing Authorization Application For lecanemab As Treatment For Early AD In European Union

Press Releases

NEOS Investments Announces May ETF Suite Distributions

NEOS Investments Announces June ETF Suite Distributions

NEOS Investments Announces July ETF Suite Distributions

NEOS Investments Announces August ETF Suite Distributions

NEOS Investments Announces September ETF Suite Distributions

NEOS Investments Announces October ETF Suite Distributions

NEOS Investments Announces November ETF Suite Distributions

NEOS Investments Announces Strategic Investment from Aretex Capital and Tom Lydon

NEOS Investments Announces December ETF Suite Distributions

NEOS Investments Announces January 2025 ETF Suite Distributions

CSHI

HYBI

NUSI

QQQI

SPYI

<h3>Let&#39;s Rewind</h3>

2022 and 2023 were hectic - war, bank crises, and bear markets.

Inflation was still running rampant - with the core PCE having just peaked at +6.4% in February 2022. These consistent out-of-control inflation reports caused the Federal Reserve to take action by&nbsp;doing the only thing they know how to do -&nbsp;raise interest rates.

Starting in March 2022, the Fed raised rates at the fastest speed in modern history - from essentially 0% to 4.75% in only 12 months. As you can imagine, this rapid increase in interest rates caused bond prices to go into a free fall.

<div>
For those of you unaware, bond prices move inversely with interest rates.

Think about it like this - if you&#39;re an investor looking to generate fixed income inside of your portfolio, buying bonds might seem like a&nbsp;good idea.

However, as the months tick by and interest rates continue to rise, the value of the older bonds begins to fall -&nbsp;who wants to own a bond paying 3% ... if you can own a bond paying 5%.

Now, after nearly two years of consistent interest rate hikes, it seems like the Federal Reserve might be taking a break -&nbsp;at least that&#39;s what the market is hoping for.

Since mid-October, the price of the iShares 7-10 Year Treasury Bond ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/IEF#NASDAQ">IEF</a>) has begun to make a comeback, having traded up +8.9%. With inflation now showing consistent contraction, the market is not only pricing in a Federal Reserve &quot;pause,&quot; but also interest rate cuts in 2024.&nbsp;

<h3>Fast Forward</h3>

Looking ahead to 2024 and 2025 - investors believe there are several reasons to be excited about adding core aggregate bond exposure to their portfolios. Bonds help provide stability in a multi-asset portfolio - coupon payments generate income, and bond prices tend to rise when economic growth slows.

Considering the slowing economic climate and current interest rates, bonds might be able to deliver on both of those fronts in 2024.

Aross many sectors of the bond market, yields have reached highs not seen since 2007. For example, the yield on a 5-year Treasury Bond is +241&nbsp;bps above the dividend yield of the S&amp;P 500 (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) at the moment. The only negative yielding debt left in the entire world is in Japan.&nbsp;

I think strong performance will begin in 2024. We could experience modest price appreciation as yields fall while paired with a very attractive bond yield. Economic growth should continue to slow, inflation will continue to cool, and central banks will begin to reverse their rate-hiking cycles.

Choosing bonds within the 3-10 year maturity range offers investors an attractive yield while being less exposed to longer-term risks regarding government deficits.

<h3>My Personal Choice</h3>

The&nbsp;Neos Enhanced Income Aggregate Bond ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BNDI#NYSE">BNDI</a>)&nbsp;allows me to capture 2-2.5% more income per year while adding negligible risk to my well-diversified portfolio.&nbsp;

According to the <a href="https://neosfunds.com/wp-content/uploads/BNDI-Prospectus.pdf">prospectus</a>, the Neos Enhanced Income Aggregate Bond ETF seeks to achieve its investment objective of generating monthly income in a tax-efficient manner by...

<blockquote>
&quot;(i) Investing 80% or more of its assets in bonds or ETFs that ... obtain exposure to the performance of the US Aggregate Bond market and (ii) selling and purchasing S&amp;P 500 Index put options to generate income to the Fund beyond what is received from the Underlying Investments.&quot;
</blockquote>

The prospectus also clearly states their intention to hold US Treasury bonds, government-related bonds, corporate bonds, mortgage-backed pass-through securities, commercial mortgage-backed securities and asset-backed securities to obtain exposure to the US Aggregate Bond market.

After looking at their <a href="https://neosfunds.com/bndi/#holdings">holdings</a> (as of 12/27/23), I&#39;ve confirmed this is the case - as the vast majority of the Fund&#39;s assets are invested evenly between the Vanguard Total Bond Market Index Fund ETF (<a href="https://www.benzinga.com/quote/BND">BND</a>), and the iShares Core US Aggregate Bond ETF (<a href="https://www.benzinga.com/quote/AGG">AGG</a>).&nbsp;

Their holdings also show us that their fund managers are buying put options on the S&amp;P 500 Index with a strike price about 9.5% below the current price of the S&amp;P 500 Index (4,781&nbsp;at the time of writing) - while simultaneously selling put option contracts about 5.5% below the current price of the S&amp;P 500 Index.

It&#39;s important to note that these put option contracts have expiration dates roughly two weeks out from the time of purchase.

Year-to-date, BNDI has paid $2.52 per share to their investors. This $2.52 figure roughly equates to the 5.53% distribution yield <a href="https://neosfunds.com/bndi/">shown here on their website</a>.&nbsp;

When taking into consideration the forward dividend yield of the underlying investments inside of BNDI as shared earlier - the fund managers are generating +239&nbsp;bps of additional yield on top of the already 3.14% yield produced by the fund&#39;s underlying investments.

They&#39;re doing this while taking on negligible risk, as shown on <a href="https://neosfunds.com/monthly-income-etfs/">this page of their website</a>.&nbsp;

If you compare Scenario 1: Hypothetical core asset allocation&#39;s portfolio yield and 1-yr standard deviation to Scenario 3&#39;s - you&#39;ll see that when you replace traditional fixed income securities with BNDI the portfolio&#39;s overall yield increased dramatically while 1-yr standard deviations remains nearly the same.

That&#39;s the secret sauce here with BNDI - when owned inside of a well-diversified portfolio, investors can expect heightened portfolio yield with near-identical risk.

<h3>Risks</h3>

As with all investment ideas, this one doesn&#39;t come without its risks. In my opinion, there are two main risk factors at play here - the Fed&nbsp;not&nbsp;cutting rates in 2024 and BNDI&#39;s put option strategy.

According to a&nbsp;<a href="https://privatebank.jpmorgan.com/nam/en/insights/latest-and-featured/outlook#:~:text=As%20we%20head%20into%202024,becoming%20more%20accessible%20to%20investors">recent report</a>&nbsp;shared with JPMorgan&#39;s private banking clients, Wall Street is assuming a +12% increase in bond prices per -1% cut in interest rates. Of course, these are all assumptions and nothing is guaranteed.

If the Fed does&nbsp;not&nbsp;cut interest rates in 2024 and instead holds steady throughout the year, BNDI would likely trade sideways - forcing investors to depend on the Fund&#39;s put option strategy and the existing yield of its underlying investments to generate returns for their portfolios.

If you&#39;re an income-focused investor, this outcome might not be a bad scenario for you. If you&#39;re looking for both price appreciation&nbsp;and&nbsp;yield, this outcome would be disappointing.

The second risk factor is their put option strategy - leaving the fund to be on the hook for paying out against the option contracts they&#39;ve sold. Considering the Fund managers&#39; backgrounds in options-based ETFs, this is something I&#39;m not worried about. This is the same leadership team successfully executing upon both the (<a href="https://www.benzinga.com/quote/SPYI">SPYI</a>) and (<a href="https://www.benzinga.com/quote/CSHI">CSHI</a>) ETFs - one of the main reasons I&#39;m interested in this &quot;hidden gem&quot; ETF in the first place.

Statistically speaking, this put option strategy going sour would be a Black Swan event of sorts. To learn more about this put option strategy, feel free to <a href="https://www.benzinga.com/23/09/34870903/cshi-the-options-based-cash-alternative-everyone-needs-to-know-about-right-now">read&nbsp;this analysis&nbsp;on CSHI</a> which uses a similar, but slightly more conservative, strategy.

<h3>In Summary</h3>

2022 and 2023 were quite hectic for the bond market as investors were forced to continually discount the price of bonds to offset increasing interest rates. However, 2024 is shaping up to be a year that could catalyze both price appreciation while locking in heightened rates.

The Neos Enhanced Income Aggregate Bond ETF is how I plan to play this move - not only will I be experiencing possible price appreciation given their fund&#39;s underlying assets with heightened rates, but I&#39;ll also be earning +2.2% more in income given their put option strategy while taking on very little additional risk.
</div>

This article is from an external contributor. It does not represent Benzinga&#39;s reporting and has not been edited for content or accuracy.

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