SHP ETF Trust NEOS S&P 500 High Income ETF (BATS: SPYI)

Latest news for SHP ETF Trust NEOS S&P 500 High Income ETF (BATS:SPYI)

Technology

Financial Services

Healthcare

Consumer Cyclical

Industrials

Consumer Defensive

Communication Services

Energy

Real Estate

Utilities

Basic Materials

Other

The Fund is an actively-managed exchange-traded fund ETF that seeks to achieve its investment objective by investing in a portfolio of stocks that make up the S&P 500 Index the S&P 500 or the Reference Index and a call options strategy, which consists of a mix of written sold call options and long call options on the S&P 500 Index SPX call options. Under certain circumstances, the call options strategy may include transactions with covered call options.

Microsoft Corp

Apple Inc

NVIDIA Corporation

Amazon.Com Inc

Meta Platforms, Inc.

Alphabet Inc. Class A

Alphabet, Inc. – Class C

Eli Lilly & Co.

Berkshire Hathaway, Inc.

Broadcom (equity)

NEOS S&P 500 High Income ETF

Markets

Trading Ideas

ETFs

AMZN

MSFT

SPYI

JEPI

XYLD

Introduction

2023 was a year that took many by surprise, including myself.

JEPI: Do Not Make The Same Mistake Two Years In A Row, Buy This Covered Call ETF Instead

AAPL

AVGO

NVDA

QQQI

QYLD

TSLA

A few months ago, I analyzed the total performance of the three most popular S&amp;P 500 covered call ETFs in 2023: the JPMorgan Equity Premium Income ETF (ARCA: JEPI), the GlobalX S&amp;P500 Covered Call ETF (ARCA: XYLD), and the NEOS S&amp;P 500 High Income ETF (BATS: SPYI). 

QQQI: The Undiscovered Nasdaq-100 Covered Call ETF You&#39;ve Been Looking For (14.4% Distribution Yield)


	The JPMorgan Equity Premium Income ETF (ARCA: JEPI) provides their investors with consistent monthly income and lower volatility. 
	During times of immense bullishness, JEPI fails to capture even a fraction of total return against their benchmark index. 


JEPI: No Longer An Income-Focused Investor&#39;s Only Holdings, It&#39;s Time To Play Offense

SHP ETF Trust NEOS S&P 500 High Income ETF

Independent presidential candidate Robert F. Kennedy Jr. reportedly engaged in discussions with former President Donald Trump about endorsing his campaign and potentially taking up a senior role in a second Trump administration.
What Happened: Kennedy, who is running as an independent candidate, held talks with Trump about endorsing his campaign and potentially taking up a senior role in a Trump administration, The Washington Post <a href="https://www.washingtonpost.com/politics/2024/07/22/rfk-jr-floated-job-trump-white-house-he-weighed-endorsing-trump/">reported</a>, citing four people familiar with the matter. 
These discussions took place shortly after an assassination attempt on Trump during a rally on Jul. 13.
Despite the talks, no formal agreement was reached, with concerns within Trump&#8217;s circle about the implications of offering a job in exchange for a political endorsement. Kennedy, a vocal critic of vaccines, expressed his willingness to discuss children&#8217;s health and the chronic disease epidemic with any political party.
Trump and Kennedy also discussed the possibility of Kennedy leaving the presidential race and endorsing Trump. However, Trump&#8217;s advisers expressed reservations about appointing Kennedy, given his stance on vaccines.
Kennedy stated his willingness to discuss children&#8217;s health with any political party, noting that Trump has been more receptive to him than the Democratic National Committee. &#8220;I have a lot of respect for President Trump for reaching out to me,&#8221; Kennedy said in an interview on Monday.
Trump&#8217;s campaign spokeswoman, Danielle Alvarez, confirmed the meeting, stating "President Trump met with RFK and they had a conversation about the issues just as he does regularly with important figures in business and politics because they all recognize he will be the next president of the United States."
Team Kennedy did not immediately respond to&nbsp;<a href="http://pro.benzinga.com/" target="_blank" rel="noreferrer noopener">Benzinga</a>'s request for comment.
See Also: <a href="https://www.benzinga.com/news/24/07/39875181/trump-wants-republicans-reimbursed-after-biden-quits-we-have-to-start-all-over-again?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Trump Wants Republicans Reimbursed After Biden Quits: &#8216;We Have To Start All Over Again&#8217;</a>
Why It Matters: Kennedy&#8217;s campaign has reportedly faced <a href="https://www.benzinga.com/markets/equities/24/07/39871966/kennedys-campaign-still-in-the-red-despite-running-mate-shanahans-2-5m-boost-will-he-exit-the-pr">significant financial challenges</a>, despite a $2.5 million boost from his running mate, Nicole Shanahan. The campaign raised nearly $5.4 million but spent over $6.2 million, highlighting ongoing financial hurdles. 
Additionally, President Joe Biden recently announced his withdrawal from <a href="https://www.benzinga.com/news/24/07/39874154/bidens-exit-from-presidential-race-sparks-massive-reactions-from-first-lady-gavin-newsom-marjorie-ta">the 2024 presidential race</a>, sparking reactions from various political figures and introducing new uncertainties into the election.
Biden&#8217;s exit has introduced new uncertainties into the election, causing traders to reassess their market positions. This has implications for the so-called &#8220;Trump trade,&#8221; which refers to market strategies <a href="https://www.benzinga.com/news/24/07/39883677/investors-anticipate-unraveling-of-trump-trade-as-biden-exits-presidential-race-but-analyst-says-its">banking on stocks</a> that would likely benefit from a potential return of Trump to the White House.
Last week, a video of a phone call between Trump and Kennedy was posted on social media and later verified by Kennedy. Trump is heard saying, "I would love you to do something – and I think it would be so good for you and so big for you," seemingly <a href="https://www.benzinga.com/news/24/07/39807224/trump-told-robert-kennedy-jr-over-the-phone-that-the-bullet-felt-like-the-worlds-largest-mosquito">referring to the 2024 election race</a>.
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/news/24/07/39872063/political-strategist-says-these-three-democrats-could-replace-biden-in-the-presidential-race-and-vp?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Political Strategist Says These Three Democrats Could Replace Biden In The Presidential Race — And VP Harris Isn&#8217;t One Of Them</a></li>
</ul>
Image Via Shutterstock 
This story was generated using <a href="https://www.benzinga.com/author/benzinga-neuro">Benzinga Neuro</a> and edited by <a href="https://www.benzinga.com/topic/Kaustubh-Bagalkote" target="_blank" rel="noreferrer noopener">Kaustubh Bagalkote</a>

News

Politics

Robert Kennedy Jr. Eyes Role In Trump's Administration Amid Endorsement Chatter: Report

Outlook
Logitech raised its full-year&nbsp;outlook&nbsp;for Fiscal Year 2025:
<table cellspacing="0">
<tbody>
<tr>
<td colspan="1" rowspan="1">
&nbsp;
</td>
<td colspan="1" rowspan="1">
Previous FY25&nbsp;outlook
</td>
<td colspan="1" rowspan="1">
New FY25&nbsp;outlook
</td>
</tr>
<tr>
<td colspan="1" rowspan="1">
Sales
</td>
<td colspan="1" rowspan="1">
$4.3&nbsp;-&nbsp;$4.4 billion
</td>
<td colspan="1" rowspan="1">
$4.34&nbsp;-&nbsp;$4.43 billion
</td>
</tr>
<tr>
<td colspan="1" rowspan="1">
Sales growth (in US dollars, year over year)
</td>
<td colspan="1" rowspan="1">
0%&nbsp;-&nbsp;2%
</td>
<td colspan="1" rowspan="1">
1%&nbsp;-&nbsp;3%
</td>
</tr>
<tr>
<td colspan="1" rowspan="1">
Non-GAAP operating income
</td>
<td colspan="1" rowspan="1">
$685&nbsp;-&nbsp;$715 million
</td>
<td colspan="1" rowspan="1">
$700&nbsp;-&nbsp;$730 million
</td>
</tr>
<tr>
<td colspan="1" rowspan="1">
Non-GAAP op. inc. growth / (decline) (year over year)
</td>
<td colspan="1" rowspan="1">
(2)% -&nbsp;2%
</td>
<td colspan="1" rowspan="1">
0%&nbsp;-&nbsp;4%
</td>
</tr>
</tbody>
</table>

Earnings

Guidance

LOGI

Logitech Raises 2025 Outlook, Now Expects Sales Of $4.34B-$4.43B (Prior $4.3B-$4.4B) Vs. $4.369B Consensus And Non-GAAP Operating Income Of $700M-$730M (Prior $685M-$715M)

Logitech International (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LOGI#NASDAQ">LOGI</a>) reported quarterly earnings of $1.13 per share which beat the analyst consensus estimate of $0.86 by 31.4 percent. This is a 73.85 percent increase over earnings of $0.65 per share from the same period last year. The company reported quarterly sales of $1.088 billion which beat the analyst consensus estimate of $1.035 billion by 5.14 percent. This is a 11.65 percent increase over sales of $974.500 million the same period last year.

Earnings Beats

Logitech International Q1 2025 Adj EPS $1.13 Beats $0.86 Estimate, Sales $1.088B Beat $1.035B Estimate

Tesla and SpaceX CEO Elon Musk has spoken about his stance against what he calls <a href="https://www.benzinga.com/news/24/03/37885051/elon-musk-says-google-infected-with-woke-mind-virus-after-search-engine-user-points-to-bloodbath-def">the &#8220;woke mind virus,&#8221;</a> sharing his experience with his son&#8217;s transition to a female identity.
What Happened: On Monday, during an interview with Dr. Jordan Peterson at his <a href="https://www.benzinga.com/news/24/06/39404789/drone-footage-reveals-tesla-giga-texas-expansion-work-to-house-50-000-nvidia-gpus-ceo-elon-musk-says" target="_blank" rel="noreferrer noopener">Tesla Gigafactory in Texas</a>, Musk <a href="https://www.benzinga.com/news/22/06/27787063/one-of-elon-musks-children-fighting-to-change-last-name-and-legally-declaring-gender-identity-report">expressed his disapproval</a> of one of his children, born Xavier Alexander Musk transitioning to Vivian Jenna Wilson. 
He labeled the practice of sex change procedures on children as &#8220;evil,&#8221; stating that he was &#8220;tricked&#8221; into consenting to puberty blockers for his child, which he described as &#8220;sterilization drugs.&#8221;
See Also: <a href="https://www.benzinga.com/top-stories/24/07/39883235/can-tesla-q2-earnings-spark-a-golden-cross-heres-what-the-charts-indicate?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Can Tesla Q2 Earnings Spark A Golden Cross? Here&#8217;s What The Charts Indicate</a>
&#8220;My son Xavier is dead, killed by the woke mind virus,&#8221; he stated, adding, &#8220;I vowed to destroy the woke mind virus after that&#8230; and we are making some progress.&#8221;
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
<div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">JUST IN: Elon Musk says his son is &quot;dead&quot; thanks to the woke mind virus after he was put on puberty blockers, says he vowed to &quot;destroy the woke mind virus after that.&quot; &#x1f525;&#x1f525; &quot;I was essentially tricked into signing documents for one of my older boys&#8230; This was before I had… <a href="https://t.co/wfWztIziTs">pic.twitter.com/wfWztIziTs</a>
&mdash; Collin Rugg (@CollinRugg) <a href="https://twitter.com/CollinRugg/status/1815496170334204202?ref_src=twsrc%5Etfw">July 22, 2024</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
</figure>
Why It Matters: Vivian publicly identified as transgender in June 2022 and legally changed her name. She has also previously expressed a desire to sever all ties with her biological father.
Musk&#8217;s ex-wife, Justine Wilson, publicly supported their daughter&#8217;s decision, <a href="https://www.benzinga.com/news/22/06/27801710/elon-musks-ex-wife-speaks-out-on-daughters-name-change-heres-what-she-said">expressing her pride in Vivian&#8217;s courage</a>.
The relocation of SpaceX&#8217;s headquarters from California to Texas earlier this month may have been influenced by Musk&#8217;s <a href="https://www.benzinga.com/news/24/07/39804744/spacex-x-to-move-headquarters-from-california-to-texas-musk-calls-it-the-final-straw-criticizes-gov">opposition to the &#8220;woke&#8221; left</a>. 
The tech mogul criticized California Gov. Gavin Newsom (D-Calif.) following a new law that prevents schools from informing parents if their child identifies with a different gender or uses different pronouns than what&#8217;s on school records.
&#8220;I did make it clear to Governor Newsom about a year ago that laws of this nature would force families and companies to leave California to protect their children,&#8221; the tech billionaire said at the time.
Read Next: <a href="https://www.benzinga.com/news/24/07/39873131/apple-skips-tsmcs-2nm-chip-for-iphone-17-unveils-first-ios-18-public-beta-and-more-this-week-in-appl?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Apple Skips TSMC&#8217;s 2nm Chip For iPhone 17, Unveils First iOS 18 Public Beta And More: This Week In Appleverse</a>
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Elon Musk Vowed To Destroy 'Woke Mind Virus' After Being 'Tricked' Into Signing Puberty Blocker Documents For His Child

In the run-up to the upcoming 2024 elections, analysts from research and brokerage firm Bernstein have suggested that Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) traders may not have fully considered the possible victory of former President Donald Trump, an event that could significantly shake up the cryptocurrency market.
What Happened: The Bernstein team, led by Gautam Chhugani, posits that the market has not accounted for a potential positive shift in cryptocurrency regulations if Trump is reelected in November, a Decrypt <a href="https://decrypt.co/240859/potential-trump-victory-bitcoin-not-priced-bernstein">report </a>stated Monday. They anticipate significant growth stemming from institutional investors allocating to cryptocurrency and associated stocks.
Bernstein analysts are keeping a close eye on seven key cryptocurrency stocks as Trump gears up to speak at the Bitcoin Nashville conference on July 27. The research firm has a positive outlook on the cryptocurrency sector, forecasting considerable upside potential for select companies in light of a potentially improved regulatory environment.
See Also: <a href="https://www.benzinga.com/markets/cryptocurrency/24/07/39872368/mark-cuban-says-trumps-re-election-wont-impact-bitcoins-price-dogecoin-killer-shiba-inus-b?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Mark Cuban Says Trump&#8217;s Re-Election Won&#8217;t Impact Bitcoin&#8217;s Price, &#8216;Dogecoin Killer&#8217; Shiba Inu&#8217;s Burn Rate</a>
The report flagged seven stocks across three categories: Bitcoin mining consolidators including Riot Platforms Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RIOT#NASDAQ">RIOT</a>), CleanSpark Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CLSK#NASDAQ">CLSK</a>), and Marathon Digital Holdings Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MARA#NASDAQ">MARA</a>), hybrid Bitcoin/AI data centers including Core Scientific Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CORZ#NASDAQ">CORZ</a>) and Iris Energy Ltd. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/IREN#NASDAQ">IREN</a>), and cryptocurrency broking/exchange platform Robinhood Markets Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HOOD#NASDAQ">HOOD</a>), as well as the Bitcoin corporate treasury, MicroStrategy Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSTR#NASDAQ">MSTR</a>).
Why It Matters: Trump&#8217;s upcoming speech at the Bitcoin 2024 Conference in Nashville and his recent enthusiasm for cryptocurrency have been making headlines. Trump&#8217;s event, scheduled for July 27, aims to raise funds for his presidential campaign while highlighting his newfound support for crypto. The invitation for his exclusive event <a href="https://www.benzinga.com/markets/cryptocurrency/24/07/39889133/trump-fundraiser-at-bitcoin-conference-reaches-845k-asking-price-per-seat">boasts a staggering $844,600 ticket price, equivalent to the price of 13 Bitcoins</a>.
Analyst have warned traders about <a href="https://www.benzinga.com/markets/cryptocurrency/24/07/39891040/shorting-btc-before-trumps-bitcoin-conference-speech-is-a-dangerous-game-10x-research">the risks of shorting Bitcoin before Trump&#8217;s forthcoming speech</a> at the conference. There are widespread rumors that Trump might announce Bitcoin as a <a href="https://www.benzinga.com/markets/cryptocurrency/24/07/39866338/bitcoin-as-a-strategic-reserve-asset-for-the-us-expert-details-how-trump-could-make-it-hap" target="_blank" rel="noreferrer noopener">strategic reserve asset</a> for the U.S. during his speech on July 27.
Price Action: At the time of writing, Bitcoin was exchanging hands at $67,565.13, dropping marginally by 0.57% in the last 24 hours, according to <a href="https://pro.benzinga.com/dashboard?_gl=1&#x2A;380nj0&#x2A;_ga&#x2A;MTEyOTAyOTcxMy4xNzEzMzY0NTYy&#x2A;_ga_V7ZK73W7N0&#x2A;MTcxNDk4MzIzMi42LjEuMTcxNDk4OTE0Ni4wLjAuMA..">data from Benzinga Pro</a>. 
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/markets/cryptocurrency/24/07/39889089/kamala-harris-inspired-kama-meme-coin-explodes-1-500-in-3-weeks-flips-biden-themed-boden-c">Kamala Harris-Inspired KAMA Meme Coin Explodes 1,500% In 3 Weeks, Flips Biden-Themed BODEN Coin</a></li>
</ul>
Disclaimer: This content was partially produced with the help of <a href="https://www.benzinga.com/author/benzinga-neuro" target="_blank" rel="noreferrer noopener">Benzinga Neuro</a> and was reviewed and published by Benzinga editors.

Coverage of Bitcoin, Etherum, Ripple and all the latest digital currencies.

Cryptocurrency

$BTC

CLSK

Core Scientific, Inc. - Class A Common Stock

CORZ

HOOD

IREN

MARA

MSTR

RIOT

Potential Trump Victory Could Stir Bitcoin Market, Bernstein Analysts Predict —  Implications For These Seven Crypto Stocks Outlined

Wiz, a cloud security startup, has decided to forgo a $23 billion acquisition deal with Google&#8216;s parent company Alphabet Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>), (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) and will instead focus on an initial public offering.
What Happened: The acquisition, which would have been Google&#8217;s largest, was called off due to antitrust and investor concerns, according to a CNBC <a href="https://www.cnbc.com/2024/07/23/google-wiz-deal-dead.html">report</a> on Monday. 
"Saying no to such humbling offers is tough," Wiz co-founder Assaf Rappaport informed employees of the decision in a memo, emphasizing the company&#8217;s commitment to its pre-existing goals, including an IPO and reaching $1 billion in annual recurring revenue. The report cited a person familiar with the company's thinking.
The deal would have nearly doubled Wiz&#8217;s $12 billion valuation from its most recent funding round. The startup, founded in 2020, has experienced rapid growth under Rappaport&#8217;s leadership.
Wiz&#8217;s cloud security products, which include prevention, active detection, and response, have attracted significant interest from large firms and would have bolstered Google&#8217;s competition with Microsoft Corp, which also offers security software.
Alphabet&#8217;s cloud division, which has been facing strong competition from Microsoft and Amazon.com, Inc., reached profitability in 2023 after years of substantial investment.
Wiz and Google did not immediately respond to&nbsp;<a href="http://pro.benzinga.com/" target="_blank" rel="noreferrer noopener">Benzinga</a>'s request for comment.
See Also: <a href="https://www.benzinga.com/markets/cryptocurrency/24/07/39872368/mark-cuban-says-trumps-re-election-wont-impact-bitcoins-price-dogecoin-killer-shiba-inus-b?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Mark Cuban Says Trump&#8217;s Re-Election Won&#8217;t Impact Bitcoin&#8217;s Price, &#8216;Dogecoin Killer&#8217; Shiba Inu&#8217;s Burn Rate</a>
Why It Matters: The potential acquisition of Wiz by Google was first reported in mid-July, with analysts predicting that this deal could set the stage for a significant shift in the <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/07/39779768/googles-poker-move-with-wiz-could-be-the-kick-off-for-big-tech-m-a-in-2025-analyst">Big Tech M&amp;A landscape</a>. The acquisition was seen as a strategic move that could enhance Google&#8217;s cloud security capabilities and help it compete with major rivals such as Amazon and Microsoft.
However, the collapse of this deal reflects the current climate, where exits in the technology industry have been rare. Startups are waiting for more <a href="https://www.benzinga.com/news/24/07/39820669/google-parent-alphabets-q2-expected-to-shine-with-ai-youtube-shorts-cloud-strength-analyst">receptive markets before going public</a>, and cash-rich companies are wary of not winning regulatory clearance for transactions.
Price Action: Alphabet Inc Class A stock closed at $181.67 today, up 2.26%. In after-hours trading, the stock increased by 0.14%. Year to date, Alphabet Inc Class A has risen by 31.48%. Meanwhile, Alphabet Inc Class C stock closed at $183.35 today, up 2.21%. In after-hours trading, the stock gained 0.11%, according to <a href="https://pro.benzinga.com/dashboard">data from Benzinga Pro</a>.
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/markets/equities/24/07/39870083/black-swan-investor-says-greatest-bubble-in-human-history-is-on-the-verge-of-bursting-calls-stoc?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Black-Swan Investor Says &#8216;Greatest Bubble In Human History&#8217; Is On The Verge Of Bursting, Calls Stocks &#8216;Mega-Tinderbox-Time Bomb&#8217;</a></li>
</ul>
Image Via Shutterstock 
This story was generated using <a href="https://www.benzinga.com/author/benzinga-neuro">Benzinga Neuro</a> and edited by <a href="https://www.benzinga.com/topic/Kaustubh-Bagalkote" target="_blank" rel="noreferrer noopener">Kaustubh Bagalkote</a>

Equities

IPOs

Global

Startups

GOOG

GOOGL

Google's $23B Acquisition Of Wiz Falls Through, Startup To Pursue IPO Instead: Report

The first-ever Ethereum (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/eth/usd">ETH</a>) spot ETFs have been <a href="https://www.benzinga.com/markets/cryptocurrency/24/07/39897440/ethereum-etfs-get-final-go-ahead-from-the-sec-what-happens-next">greenlighted by the SEC and are set to begin trading tomorrow morning</a>. Interestingly, two relatively lesser-known Ethereum-branded coins seem to have outperformed the marquee asset in 24-hour gains.
What Happened: Ethereum Name Service popped more than 5%, emerging as the best-performing cryptocurrency in the last 24 hours. The coin's trading volume jumped 66% to $191 million, signaling significant buying activity.
Similarly, Ethereum Classic popped 3% to hit a monthly high. ETC's trading volume nearly exploded 184% to $452 million in the last 24 hours.
<figure class="wp-block-table"> 
<table>
<tbody>
<tr>
<td>Cryptocurrency</td>
<td>Gains +/-</td>
<td>Price (Recorded at 10:44 p.m. EDT)</td>
</tr>
<tr>
<td>Ethereum Name Service (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/">ENS</a>)</td>
<td>+5.63%</td>
<td>$28.08</td>
</tr>
<tr>
<td>Ethereum Classic (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/etc/usd">ETC</a>)</td>
<td>+3.06%</td>
<td>$24.78</td>
</tr>
</tbody>
</table>
</figure>
These increases come despite a drop in Ethereum, which has lost 1.47% in the last 24 hours.&nbsp;
Ethereum Classic was created as a hard fork of the original Ethereum chain back in 2016 over disagreements within the community following a hack. The new chain inherited the name Ethereum as we know it, while the original one functions as Ethereum Classic.
Additionally, ENS is a token associated with Ethereum Name Service, a decentralized naming system that converts complex, machine-readable names to ones easily understandable by humans.
See Also:<a href="https://www.benzinga.com/markets/cryptocurrency/24/06/39359780/dogecoin-shiba-inu-floki-are-dino-coins-says-trader-he-likes-these-3-other-meme-coins-as-b?itm_source=parsely-api"> </a><a href="https://www.benzinga.com/markets/cryptocurrency/24/07/39891725/dogecoin-up-15-in-7-days-and-one-indicator-shows-it-may-be-primed-for-an-aggressive-up-mov">Dogecoin Up 15% In 7 Days And One Indicator Shows It May Be &#8216;Primed For An Aggressive Up Move&#8217;</a>
Why It Matters: ENS and ETC are fundamentally different from Ethereum, but many retail investors see them as cheaper alternatives. 
It is worth noting that both ENS and ETC have much lower unit prices than ETH. So, while ETH gains popularity among institutions, individual investors may be tempted to shift their focus to lower-cap &#8216;Ethereum&#8217; coins
Price Action: At the time of writing, Bitcoin was exchanging hands at $67,503 trading mostly flat in the last 24 hours, according to <a href="https://pro.benzinga.com/dashboard?_gl=1&#x2A;380nj0&#x2A;_ga&#x2A;MTEyOTAyOTcxMy4xNzEzMzY0NTYy&#x2A;_ga_V7ZK73W7N0&#x2A;MTcxNDk4MzIzMi42LjEuMTcxNDk4OTE0Ni4wLjAuMA..">data from Benzinga Pro</a>.&nbsp;
Read Next:&nbsp;
<ul>
<li><a href="https://www.benzinga.com/markets/cryptocurrency/24/07/39891040/shorting-btc-before-trumps-bitcoin-conference-speech-is-a-dangerous-game-10x-research">Shorting BTC Before Trump&#8217;s Bitcoin Conference Speech Is A Dangerous Game: 10x Research</a></li>
</ul>

Movers

$ENS

$ETC

$ETH

Why Are Ethereum Classic And Ethereum Name Service Shooting Up On Spot ETH Approval Day?

Major U.S. indices closed higher on Monday, with the Dow Jones Industrial Average increasing by 0.3% to 40,415.44, the S&amp;P 500 advancing 1.1% to 5,564.41, and the Nasdaq climbing 1.6% to 18,007.57.
These are the top stocks that gained the attention of retail traders and investors throughout the day:
Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>)
Nvidia&#8217;s shares rose by 4.76% to close at $123.54. The company is reportedly developing a new AI chip, provisionally named &#8220;B20&#8221;, <a href="https://www.benzinga.com/news/24/07/39877062/nvidia-reportedly-developing-a-new-version-of-its-flagship-ai-chip-for-chinese-market-amid-us-export">designed to comply</a> with U.S. export controls for the Chinese market. This move comes in response to Washington&#8217;s decision to tighten its controls on semiconductor exports to China in 2023. 
CrowdStrike Holdings Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CRWD#NASDAQ">CRWD</a>)
CrowdStrike shares fell by 13.46% to close at $263.91. The cybersecurity company experienced a significant global IT outage last week, which led to a sharp drop in its stock price. The company&#8217;s CEO, George Kurtz, <a href="https://www.benzinga.com/trading-ideas/long-ideas/24/07/39888488/jim-cramer-applauds-crowdstrikes-response-to-global-it-outage-sees-swift-recovery-ahead-">quickly took responsibility</a> for the outage, stating it was due to &#8220;a defect found in a single content update&#8221; and was not a result of a cyberattack. 
See Also: <a href="https://www.benzinga.com/general/entertainment/24/07/39891426/amc-entertainment-stock-halted-movie-theater-chain-announces-restructuring-of-debt-load-ada?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">AMC Entertainment Announces Restructuring Of Debt Load, Adam Aron Says Box Office Challenges Are In &#8216;Rearview Mirror&#8217; (UPDATED)</a>
AMC Entertainment Holdings Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AMC#NYSE">AMC</a>)
AMC shares increased by 5.39% to close at $5.28. The company announced plans to restructure its debt load, which led to a temporary halt in trading of its shares. AMC is reportedly moving its U.S. theaters into a <a href="https://www.benzinga.com/general/entertainment/24/07/39891426/amc-entertainment-stock-halted-movie-theater-chain-announces-restructuring-of-debt-load-ada">different unit of the company</a> to exchange its existing debt for new obligations backed by those theater locations. 
Verizon Communications Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VZ#NYSE">VZ</a>)
Verizon&#8217;s stock fell by 6.08% to close at $39.09. The company reported its fiscal <a href="https://www.benzinga.com/news/earnings/24/07/39883078/verizon-q2-earnings-wireless-revenue-and-broadband-subs-gain-traction-sales-fall-short-of-expectati">second-quarter results</a>, with sales increasing by 0.6% year over year to $32.8 billion, slightly missing the analyst consensus estimate of $33.1 billion. 
Tesla, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>)
Tesla&#8217;s shares rose by 5.15% to close at $251.51. The electric vehicle company is expected to release its <a href="https://www.benzinga.com/news/24/07/39890904/whats-going-on-with-tesla-stock-monday">quarterly financial earnings</a> on Tuesday after the market closes. 
Photo by Jirapong Manustrong on Shutterstock
Prepare for the day&#8217;s trading <a href=""Premarket">with top premarket movers and news</a> by Benzinga.
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/markets/cryptocurrency/24/07/39871849/analyst-predicts-bitcoin-to-soar-by-83-but-theres-one-major-catch-were-going-to-get-that-c?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Analyst Predicts Bitcoin To Soar By 83%, But There&#8217;s One Major Catch: &#8216;We&#8217;re Going To Get That Continuation As Long As &#8230;&#8217;</a></li>
</ul>
This story was generated using <a href="https://www.benzinga.com/author/benzinga-neuro">Benzinga Neuro</a> and edited by <a href="https://www.benzinga.com/author/shivdeep-dhaliwal" target="_blank" rel="noreferrer noopener">Shivdeep Dhaliwal</a>

CRWD

Nvidia, CrowdStrike, AMC, Verizon, Tesla: Why These 5 Stocks Are On Investors' Radars Today

In a bid to bolster the artificial intelligence industry in Saudi Arabia, Saudi Aramco&#8217;s venture arm, Wa&#8217;ed Ventures, has invested $15 million in South Korean AI chipmaker Rebellions Inc.
What Happened: Rebellions is collaborating with Samsung Electronics Co. to develop its proprietary AI chips. The startup recently announced its intention to merge with Sapeon Korea Inc., a subsidiary of SK Telecom Co., and is considering an initial public offering in South Korea, <a href="https://www.bloomberg.com/news/articles/2024-07-23/aramco-s-venture-arm-backs-south-korea-s-ai-chipmaker-rebellions">reported</a> Bloomberg.
Wa&#8217;ed Ventures, with a $500 million investment fund, is a key player in the Saudi Arabian tech investment scene. This investment in Rebellions is the second in the AI industry in less than a week, following a $6.5 million funding round for California-based AI platform aiXplain.
Fahad Alidi, managing director at Wa&#8217;ed Ventures, sees these investments as a strategic move to advance Saudi Arabia&#8217;s position in the global technology and innovation race.
Rebellions plans to use the funding to establish a new subsidiary in Saudi Arabia and commence business operations there.
See Also: <a href="https://www.benzinga.com/news/24/07/39859372/fbi-reportedly-used-israel-based-security-firms-unreleased-technology-to-crack-trump-shooters-phone?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">FBI Reportedly Used Israel-Based Security Firm&#8217;s Unreleased Technology To Crack Trump Shooter&#8217;s Phone</a>
Why It Matters: The investment in Rebellions is a part of Saudi Arabia's broader strategy to diversify its economy away from oil. Recently, Saudi Aramco announced an <a href="https://www.benzinga.com/markets/equities/24/06/39219771/saudi-aramcos-11-2b-stock-sale-to-fuel-mohammed-bin-salmans-economic-transformation-plans-for-th">$11.2 billion stock sale</a> to fuel Crown Prince Mohammed bin Salman's economic transformation plans for the Kingdom. This stock sale, the largest global offering in three years, aims to fund various initiatives under the Vision 2030 plan.
Moreover, the investment in AI technology aligns with Saudi Arabia's increasing need for data centers and semiconductors. As noted by Lumida Wealth co-founder Ram Ahluwalia, "<a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/05/38577767/semiconductors-are-the-new-oil-wealth-manager-says-saudi-arabias-need-for-data-cent">Semiconductors are the New Oil</a>," highlighting the Kingdom's strategic pivot towards technology.
Additionally, the U.S. government has recently slowed down the issuance of <a href="https://www.benzinga.com/general/politics/24/05/39098684/us-taps-brakes-on-ai-chip-sales-to-middle-east-over-national-security-concerns">licenses for the export of AI chips</a> to the Middle East, citing national security concerns. This move could have significant implications for the global tech industry and underscores the importance of Saudi Arabia developing its own AI capabilities.
Despite earlier reports suggesting a potential scaling back of the ambitious $1.5 trillion NEOM project, Saudi Arabia has confirmed that the <a href="https://www.benzinga.com/general/politics/24/04/38512268/mohammed-bin-salman-scaling-back-ambitious-1-5-trillion-neom-project-saudi-economy-minister-says-the">NEOM megaprojects</a> will proceed as initially planned. This is part of the broader Vision 2030 initiative to diversify the Saudi economy away from oil.
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/news/24/07/39881748/elon-musks-xai-flips-the-switch-on-100k-nvidia-h100-gpus-worth-up-to-4b-in-memphis-supercluster-most?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Elon Musk&#8217;s xAI Flips The Switch On 100K Nvidia H100 GPUs Worth Up To $4B In Memphis Supercluster: &#8216;Most Powerful AI Training Cluster In The World&#8217;</a></li>
</ul>
Image Via Shutterstock 
This story was generated using <a href="https://www.benzinga.com/author/benzinga-neuro">Benzinga Neuro</a> and edited by <a href="https://www.benzinga.com/topic/Kaustubh-Bagalkote" target="_blank" rel="noreferrer noopener">Kaustubh Bagalkote</a>

Tech

Mohammed Bin Salman's AI Ambitions Get A Boost As Saudi Aramco's Venture Arm Invests $15M In South Korean AI Chipmaker

The CEO of CrowdStrike Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CRWD#NASDAQ">CRWD</a>), George Kurtz, has been called upon by a U.S. congressional panel to testify regarding the <a href="https://www.benzinga.com/news/24/07/39861744/microsoft-outage-what-states-services-companies-saw-the-blue-screen-of-death">recent worldwide tech outage</a>. The panel has requested Kurtz to appear before the Subcommittee on Cybersecurity and Infrastructure Protection.
What Happened: The U.S. House of Representatives Homeland Security Committee has formally asked Kurtz to testify on the global tech outage that occurred last week, Reuters reported. 
The outage was a result of a faulty update to CrowdStrike&#8217;s security software, which affected millions of devices running on Microsoft Corp&#8216;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) Windows operating system.
The incident caused widespread <a href="https://www.benzinga.com/markets/equities/24/07/39854612/windows-pcs-crash-worldwide-with-users-experiencing-blue-screen-of-death-issue-crowdstrike-updat">disruptions across various industries</a>, including aviation, finance, and healthcare. Although services were gradually restored, the episode raised concerns about the concentration of critical software in the hands of a few companies and the potential for future incidents.
See Also: <a href="https://www.benzinga.com/news/24/07/39883677/investors-anticipate-unraveling-of-trump-trade-as-biden-exits-presidential-race-but-analyst-says-its?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Investors Anticipate Unraveling Of &#8216;Trump Trade&#8217; As Biden Exits Presidential Race, But Analyst Says &#8216;It&#8217;s A Bit Too Early For The Markets To Declare Victory For Trump&#8217;</a>
The congressional panel, in its letter to Kurtz, acknowledged CrowdStrike&#8217;s response and coordination with stakeholders but emphasized the gravity of the situation, which some have labeled as the most significant IT outage in history. The panel has asked Kurtz to schedule a hearing with the subcommittee by Wednesday.
&#8220;CrowdStrike is actively in contact with relevant Congressional Committees. Briefings and other engagement timelines may be disclosed at members&#8217; discretion,&#8221; a company spokesperson said.
Why It Matters: The recent global outage has had significant repercussions for CrowdStrike . Shares of the company fell sharply, dropping over 11% on Friday and continuing to decline on Monday. Analysts from Guggenheim and BTIG downgraded the stock from Buy to Neutral, <a href="https://www.benzinga.com/news/24/07/39890295/why-crowdstrike-shares-are-trading-lower-by-around-13-here-are-other-stocks-moving-in-mondays-mid-da">reflecting concerns over the company&#8217;s handling</a> of the incident.
Experts predict that the financial impact of the outage could exceed $1 billion, with potential <a href="https://www.benzinga.com/news/24/07/39879895/if-youre-a-lawyer-for-crowdstrike-youre-probably-not-going-to-enjoy-the-rest-of-your-summer-say-dan">demands for compensation</a> and legal actions looming. Dan Ives, a tech analyst for Wedbush Securities, noted that CrowdStrike&#8217;s legal team might face a challenging summer as they navigate the fallout.
Despite the negative impact, some analysts, including Jim Cramer, have praised CrowdStrike&#8217;s <a href="https://www.benzinga.com/trading-ideas/long-ideas/24/07/39888488/jim-cramer-applauds-crowdstrikes-response-to-global-it-outage-sees-swift-recovery-ahead-">response to the crisis</a>. CEO George Kurtz promptly acknowledged the issue, attributing it to a defect in a single content update and clarifying that it was not a security breach or cyberattack.
The outage has also raised concerns about CrowdStrike&#8217;s <a href="https://www.benzinga.com/news/24/07/39886199/crowdstrike-faces-downgrades-amid-concerns-over-pricing-and-renewals-following-disruption">pricing and renewal strategies</a>. The company&#8217;s stock faced further downgrades amid worries about its ability to retain customers and maintain competitive pricing following the disruption.
Price Action: Crowdstrike stock closed at $263.91 on Monday, down 13.46%. In after-hours trading, the stock dipped further 0.34%. Over the past five days, the stock has dropped by 30.23%. However, year to date, Crowdstrike has gained 6.89%, according to <a href="https://pro.benzinga.com/dashboard">data from Benzinga Pro</a>. 
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/markets/cryptocurrency/24/07/39872368/mark-cuban-says-trumps-re-election-wont-impact-bitcoins-price-dogecoin-killer-shiba-inus-b?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Mark Cuban Says Trump&#8217;s Re-Election Won&#8217;t Impact Bitcoin&#8217;s Price, &#8216;Dogecoin Killer&#8217; Shiba Inu&#8217;s Burn Rate Increases And More: This Week In Cryptocurrency</a></li>
</ul>
Image Via Shutterstock 
This story was generated using <a href="https://www.benzinga.com/author/benzinga-neuro">Benzinga Neuro</a> and edited by <a href="https://www.benzinga.com/topic/Kaustubh-Bagalkote" target="_blank" rel="noreferrer noopener">Kaustubh Bagalkote</a>

CrowdStrike CEO George Kurtz To Testify Before Congress On Faulty Update Causing Global Disruptions

Leading cryptocurrencies traded broadly flat Monday as the SEC gave a final nod to spot ETFs tracking the price movement of Ethereum.
<figure class="wp-block-table"> 
<table>
<tbody>
<tr>
<td>Cryptocurrency</td>
<td>Gains +/-</td>
<td>Price (Recorded 9:30 p.m. EDT)</td>
</tr>
<tr>
<td>Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>)</td>
<td>-1.00%</td>
<td>$67,359.39</td>
</tr>
<tr>
<td>Ethereum (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/eth/usd">ETH</a>) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
<td>-1.55%</td>
<td>$3,483.31</td>
</tr>
<tr>
<td>Dogecoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/doge/usd">DOGE</a>)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
<td>-1.64%</td>
<td>$0.1387</td>
</tr>
</tbody>
</table>
</figure>
What Happened: Bitcoin meandered in the $67,000 &#8211; $68,000 region, while Ethereum started to witness selling as the <a href="https://www.benzinga.com/markets/cryptocurrency/24/07/39897440/ethereum-etfs-get-final-go-ahead-from-the-sec-what-happens-next#:~:text=Price%20Action%3A%20At%20the%20time,during%20Monday's%20regular%20trading%20session.">news of spot ETF approvals</a> started rolling in.
A whale transferred more than $30 million in Ether to Binance after the news, raising suspicions of a dump.
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
<div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">After the <a href="https://twitter.com/hashtag/SEC?src=hash&amp;ref_src=twsrc%5Etfw">#SEC</a> approved 9 spot <a href="https://twitter.com/hashtag/Ethereum?src=hash&amp;ref_src=twsrc%5Etfw">#Ethereum</a> <a href="https://twitter.com/hashtag/ETF?src=hash&amp;ref_src=twsrc%5Etfw">#ETF</a> applications, a whale deposited 8,762 <a href="https://twitter.com/search?q=%24ETH&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$ETH</a>($30.4M) into <a href="https://twitter.com/hashtag/Binance?src=hash&amp;ref_src=twsrc%5Etfw">#Binance</a>. The whale withdrew the 8,762 <a href="https://twitter.com/search?q=%24ETH&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$ETH</a> from <a href="https://twitter.com/hashtag/Binance?src=hash&amp;ref_src=twsrc%5Etfw">#Binance</a> at $3,876 between May 27 and May 29. If he sold, he would lose ~$3.6M.<a href="https://t.co/f6yQTgQYsv">https://t.co/f6yQTgQYsv</a> <a href="https://t.co/i3fn3S7AMs">pic.twitter.com/i3fn3S7AMs</a>
&mdash; Lookonchain (@lookonchain) <a href="https://twitter.com/lookonchain/status/1815566392558830014?ref_src=twsrc%5Etfw">July 23, 2024</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
</figure>
The market witnessed more than $105 million in liquidations in the last 24 hours, with nearly $75 million in upside bets getting wiped out.&nbsp;
Ethereum's Open Interest rose marginally by 0.25%. An increase in OI, coinciding with a drop in price, is construed as the opening of new short positions, in turn signaling a continuation of the downtrend.
Bitcoin's OI fell 1.11% in the last 24 hours, indicating the liquidation of long-position traders.
The Cryptocurrency Fear &amp; Greed Index showed a reading of 71, increasing from 70 the previous day. The values implied the prevalence of "Greed" sentiment in the market.
Top Gainers (24-Hours)
<figure class="wp-block-table"> 
<table>
<tbody>
<tr>
<td>Cryptocurrency</td>
<td>Gains +/-</td>
<td>Price (Recorded at 9:30 p.m. EDT)</td>
</tr>
<tr>
<td>Helium (HNT)</td>
<td>+4.18%</td>
<td>$5.10</td>
</tr>
<tr>
<td>cat in a dogs world (MEW)</td>
<td>+3.63%</td>
<td>$0.007637</td>
</tr>
<tr>
<td>XRP (XRP)</td>
<td>+2.16%</td>
<td>$0.6076</td>
</tr>
</tbody>
</table>
</figure>
The global cryptocurrency market stands at $2.44 trillion, down 1.44% in the last 24 hours.
Stocks started the week with a bang. The S&amp;P 500 rose 59.41 points, or 1.08%, to end at 5,564.41, marking its best performance since early June. The Nasdaq Composite surged 1.58% to finish at 18,007.57, while the blue-chip index, Dow Jones Industrial Average, added 0.32% to hit 40,415.44 at the closing bell.
The rally was spurred by AI chip giant NVIDIA Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) which bounced 4.76% during the day, wiping out some losses from the previous week.
Last week, major indices like the S&amp;P 500 and the Nasdaq Composite registered their biggest weekly losses since April.
According to the CME FedWatch tool, traders are anticipating a 91% chance of the Fed lowering interest rates during September's FOMC meeting.
See More: <a href="https://www.benzinga.com/money/best-crypto-scanners">Best Cryptocurrency Scanners</a>
Analyst Notes: Widely-followed cryptocurrency trader KALEO anticipates a higher probability of pullback after the spot Ether ETFs are approved.
That said, they believed buying the dip was the "best" position to enter as Ether looked bullish on a higher time frame.
"We&#8217;re still early enough into this bull market that shorting is a greedy play if you&#8217;re giga-bullish on a higher time frame (ETH hasn&#8217;t even touched a new ATH yet)," the trader emphasized.
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
<div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true"><a href="https://twitter.com/hashtag/Ethereum?src=hash&amp;ref_src=twsrc%5Etfw">#Ethereum</a> / <a href="https://twitter.com/search?q=%24ETH&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$ETH</a> Still see there being a high likelihood we see some type of pullback after the spot ETF launches. We&#39;re still early enough into this bull market that shorting is a greedy play if you&#39;re giga-bullish on a higher time frame (ETH hasn&#39;t even touched a new ATH… <a href="https://t.co/iitD2l7QCe">pic.twitter.com/iitD2l7QCe</a>
&mdash; K A L E O (@CryptoKaleo) <a href="https://twitter.com/CryptoKaleo/status/1815496997115171183?ref_src=twsrc%5Etfw">July 22, 2024</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
</figure>
Another well-known trader, going by the pseudonym Moustache noted that the apex cryptocurrency has retested its previous all-time high of $69,000 for five months, something which they interpreted as bullish.
"The longer the better, because the stronger the support. Much higher in 2024. Be ready fam," the trader enthusiastically remarked.
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
<div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true"><a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw">#Bitcoin</a> Did you know that <a href="https://twitter.com/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$BTC</a> has already retested it&#39;s 2021 ATH for 5 months now? That&#39;s so bullish tbh. The longer the better, because the stronger the support.&#x1f4af; Much higher in 2024. Be ready fam. <a href="https://t.co/vALWKcY1pr">pic.twitter.com/vALWKcY1pr</a>
&mdash; 
</blockquote></div></figure>

$DOGE

Bitcoin, Dogecoin Trade Flat, Ethereum Drops As Spot ETFs Get Approved:  The Altcoin King Might Retrace But Analyst Thinks Dip Buying Is The 'Best' Position

In the wake of President Joe Biden&#8217;s decision to <a href="https://www.benzinga.com/general/politics/24/07/39874057/biden-drops-out-of-2024-race-in-bombshell-announcement-it-has-been-the-greatest-honor-of-my-life">withdraw from the presidential race</a> and endorse Vice President Kamala Harris, Senator Ted Cruz (R-Texas) has warned his party not to underestimate her potential as a formidable candidate.
What Happened: Cruz voiced his concerns on his podcast, &#8220;The Verdict&#8221;. He noted that Republicans often dismiss Harris as a joke, a perception he believes could be detrimental given the potential impact of substantial free media coverage that could portray Harris as a strong contender, <a href="https://thehill.com/homenews/campaign/4787242-ted-cruz-warns-against-underestimating-kamala-harris/">reported</a> The Hill.
&#8220;Republicans, I worry, vastly underestimate Kamala Harris. They don't think very highly of her. They don't think she's terribly bright. When you or I bring up Kamala Harris' name in Republican circles, people laugh. It's immediately a punchline,&#8221; said Cruz.
Following Biden&#8217;s endorsement, Harris managed to raise $81 million within the first 24 hours of her campaign. Despite this, Cruz maintains his belief that former President Donald Trump will win the November election, but cautioned that it won&#8217;t be an easy victory.
&#8220;Now I still think Trump wins in November. But this is not a layup. It is not given,&#8221; cautioned Cruz.
Cruz also expressed concern about overconfidence within the Republican party, especially following the Republican National Convention. He urged his party members to focus on working hard towards the election, rather than premature celebrations.
See Also: <a href="https://www.benzinga.com/general/education/24/07/39871374/mark-cuban-reflects-on-visiting-trump-at-the-white-house-hes-talking-nonsense-about-a-lot-of-th?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Mark Cuban Reflects On Visiting Trump At The White House: &#8216;He&#8217;s Talking Nonsense About a Lot of Things&#8217;</a>
Why It Matters: The political landscape underwent a significant shift when Biden announced his decision not to run for re-election in the 2024 presidential race.
Meanwhile, Harris received <a href="https://www.benzinga.com/news/24/07/39875041/gavin-newsom-backs-kamala-harris-calls-vp-tough-fearless-and-tenacious-the-ideal-candidate-to-counte">strong support</a> from Democrats, including California Governor Gavin Newsom, who praised her as &#8220;tough&#8221;, &#8220;fearless&#8221;, and &#8220;tenacious&#8221;, as reported by <a href="https://www.benzinga.com/news/24/07/39875041/gavin-newsom-backs-kamala-harris-calls-vp-tough-fearless-and-tenacious-the-ideal-candidate-to-counte">Benzinga</a>. 
Harris herself confidently expressed her readiness to confront Trump, <a href="https://www.benzinga.com/news/24/07/39896965/kamala-harris-says-shes-taken-on-perpetrators-of-all-kinds-before-i-know-donald-trumps-type">drawing on her prosecutorial experience</a>.
Photo by Consolidated News
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/news/24/07/39872063/political-strategist-says-these-three-democrats-could-replace-biden-in-the-presidential-race-and-vp?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Political Strategist Says These Three Democrats Could Replace Biden In The Presidential Race — And VP Harris Isn&#8217;t One Of Them</a></li>
</ul>
This story was generated using <a href="https://www.benzinga.com/author/benzinga-neuro">Benzinga Neuro</a> and edited by <a href="https://www.benzinga.com/author/shivdeep-dhaliwal" target="_blank" rel="noreferrer noopener">Shivdeep Dhaliwal</a>

General

Ted Cruz Says Trump Victory In November Not A Given, Cautions Republicans Against Underestimating Kamala Harris: 'This Is Not A Layup'

Tesla and SpaceX CEO Elon Musk has announced the timeline for the chatbot <a href="https://www.benzinga.com/news/24/05/39027735/elon-musks-xai-raises-6b-heres-where-it-stands-against-openai-anthropic-and-other-ai-rivals">models of his AI company</a> xAI scheduled to be released later this year.
What Happened: On Monday, while speaking with Dr. Jordan B. Peterson at his <a href="https://www.benzinga.com/news/24/06/39404789/drone-footage-reveals-tesla-giga-texas-expansion-work-to-house-50-000-nvidia-gpus-ceo-elon-musk-says">Gigafactory in Texas</a>, Musk said that Grok 2 has &#8220;finished training&#8221; and is now in the bug-fixing stage. The official release is planned for next month.
&#8220;It should be on par, or close to GPT-4,&#8221; he said, comparing Grok 2&#8217;s capabilities with OpenAI&#8217;s model. The tech billionaire <a href="https://www.benzinga.com/news/24/05/38862733/openai-chief-scientist-that-quit-months-after-participating-in-coup-against-sam-altman-likely-to-joi">co-founded OpenAI</a> in 2015 and left the startup in 2018 over some differences. 
The tech mogul went on to say that Grok 3 is currently being trained at the Memphis Data Center and is expected to be released by December.
See Also: <a href="https://www.benzinga.com/news/24/07/39855896/how-to-fix-crowdstrike-issue-causing-blue-screen-of-death-on-your-windows-pc?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">How To Fix CrowdStrike Issue Causing Blue Screen Of Death On Your Windows PC</a>
&#8220;What we're doing in the Memphis Data Center is we're actually training Grok 3. So that'll probably finish training in about three or four months and then there'll be some fine-tuning and bug fixing and whatnot. And we're hoping to release Grok 3 by December,&#8221; he stated, adding, &#8220;And Grok 3 should be the most powerful AI in the world at that point.&#8221;
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
<div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">My conversation with <a href="https://twitter.com/elonmusk?ref_src=twsrc%5Etfw">@elonmusk</a>. Live today at 3pm ET. <a href="https://t.co/RyaZFmvC8i">https://t.co/RyaZFmvC8i</a>
&mdash; Dr Jordan B Peterson (@jordanbpeterson) <a href="https://twitter.com/jordanbpeterson/status/1815427698703090085?ref_src=twsrc%5Etfw">July 22, 2024</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
</figure>
Why It Matters: Musk&#8217;s AI company, xAI, has made significant strides in enhancing Grok. In May earlier it was reported that xAI plans to integrate multimodal inputs into Grok, allowing users to <a href="https://www.benzinga.com/news/24/05/38957813/elon-musks-xai-to-equip-grok-with-multimodal-ai-users-can-soon-get-text-based-answers-for-uploaded-p">upload images and receive text-based</a> responses.
Earlier this month, Musk disclosed that <a href="https://www.benzinga.com/news/24/07/39594885/elon-musk-reveals-the-staggering-amount-of-nvidia-h100-gpus-that-will-be-used-to-train-xai-chatbot-g">Grok 3 would be trained on</a> a massive 100,000 Nvidia H100 chips. These chips are crucial for handling data processing in large language models (LLMs) and are highly sought after in Silicon Valley.
The tech billionaire has also been using Grok to make fun of his adversaries and competitors. He previously used the AI <a href="https://www.benzinga.com/news/24/05/39004738/elon-musk-uses-grok-to-throw-shade-at-googles-fumbling-ai-powered-search-how-many-rocks-should-i-eat">platform to critique</a> Google&#8217;s AI-powered search feature, which was receiving backlash from users over <a href="https://www.benzinga.com/news/24/05/38826439/at-google-io-2024-sundar-pichai-and-team-announces-new-gemini-models-project-astra-ai-fraud-protecti">its poor performance</a>.
Check out more of Benzinga's Consumer Tech coverage by <a href="https://www.benzinga.com/topic/consumer-tech" target="_blank" rel="noreferrer noopener">following this link</a>.
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/news/24/07/39830453/days-after-elon-musk-deemed-university-of-tokyos-idea-pointless-scientists-develop-smiling-robot-wit?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Days After Elon Musk Deemed University Of Tokyo&#8217;s Idea &#8216;Pointless,&#8217; Scientists Develop Smiling Robot With Living Skin</a></li>
</ul>
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Elon Musk Says 'Grok 3 Should Be The Most Powerful AI' Upon Its Release, Gives Timeline For xAI Models Aiming To Beat Gemini, ChatGPT

Rep. Alexandria Ocasio-Cortez (D-N.Y.) has called for the resignation of Secret Service Director Kimberly Cheatle, questioning the agency&#8217;s handling of the <a href="https://www.benzinga.com/news/24/07/39761846/trump-left-bloodied-after-shots-fired-at-pennsylvania-rally-evacuated-by-secret-service">recent assassination attempt</a> on former President Donald Trump.
What Happened: On Monday, Ocasio-Cortez took to X to express her concerns. She questioned the Secret Service&#8217;s protective measures during the incident, particularly the range of their protective perimeter. She also criticized the agency&#8217;s lack of public response to questions from Congress.
Ocasio-Cortez asked, &#8220;Why was the Secret Service's protective perimeter in Butler shorter than the range of an AR-15?&#8221; She said it didn&#8217;t take 60 days to answer that question.
She told Cheatle at a House Oversight Committee hearing that irrespective of the party it was unacceptable to wait that long for the report to come out.
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
<div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Why was the Secret Service's protective perimeter in Butler shorter than the range of an AR-15? It does not take 60 days to answer that question. The agency's failure to publicly account for these questions and others from Congress is unacceptable. Dir. Cheatle should resign. <a href="https://t.co/5C50Qi5EJS">pic.twitter.com/5C50Qi5EJS</a>
&mdash; Rep. Alexandria Ocasio-Cortez (@RepAOC) <a href="https://twitter.com/RepAOC/status/1815539179910058208?ref_src=twsrc%5Etfw">July 23, 2024</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
</figure>
The post comes in the wake of a failed assassination attempt on Trump during a rally in Pennsylvania. The incident, which occurred on July 13, led to widespread criticism of the Secret Service&#8217;s security measures.
See Also: <a href="https://www.benzinga.com/news/24/07/39878848/trump-vs-harris-first-poll-after-bidens-exit-shows-majority-approve-of-decision-but-heres-how-it-mig?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Trump Vs. Harris: First Poll After Biden&#8217;s Exit Shows Majority Approve Of Decision, But Here&#8217;s How It Might Affect Ex-President&#8217;s Chances</a>
Why It Matters: The Secret Service has faced scrutiny following the assassination attempt. Cheatle, who appeared before the House Oversight Committee, admitted that the agency had <a href="https://www.benzinga.com/general/politics/24/07/39892168/we-failed-during-trump-assassination-attempt-secret-services-kimberly-cheatle-grilled-by-oversig">failed in its duty</a> to protect the former president. Despite this, she has <a href="https://www.benzinga.com/news/24/07/39784760/secret-service-director-kimberly-cheatle-says-the-buck-stops-with-me-on-trump-assassination-attempt">refused to step down</a> from her position.
Reports suggest that Trump had been requesting additional security measures for two years before the incident, but these requests were repeatedly ignored by high-ranking officials. The Secret Service cited a lack of resources as the reason for this.
Ocasio-Cortez is not the first to call for Cheatle&#8217;s resignation. Earlier, Rep. Marjorie Taylor Greene (R-Ga.) also <a href="https://www.benzinga.com/news/24/07/39830256/marjorie-taylor-greene-slams-absolute-security-failure-over-attempted-trump-assassination-secret-ser">demanded</a> Cheatle step down, citing the security failure during the assassination attempt.
Photo via Shutterstock
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/news/24/07/39896965/kamala-harris-says-shes-taken-on-perpetrators-of-all-kinds-before-i-know-donald-trumps-type">Kamala Harris Says She&#8217;s Taken On Perpetrators Of All Kinds Before: &#8216;I Know Donald Trump&#8217;s Type&#8217;</a></li>
</ul>
This story was generated using <a href="https://www.benzinga.com/author/benzinga-neuro">Benzinga Neuro</a> and edited by <a href="https://www.benzinga.com/author/shivdeep-dhaliwal" target="_blank" rel="noreferrer noopener">Shivdeep Dhaliwal</a>

'Why Was The Secret Service's Protective Perimeter In Butler Shorter Than The Range Of An AR-15?' — AOC Asks Kimberly Cheatle On Trump Assassination Attempt

In a landmark development, the SEC has approved the commencement of trading for spot Ethereum (CRYPTO: ETF) exchange-traded funds Monday, exposing mainstream investors to the price moves of the world&#8217;s second-largest cryptocurrency.
What Happened: Bloomberg senior ETF analyst Eric Balchunas confirmed the news, as the 424(b) forms are now available on the SEC site, meaning the regulator has cleared them for trading from tomorrow.
The SEC has given its approval to registration forms from 21Shares, Bitwise, BlackRock, Fidelity, Franklin Templeton, VanEck and Invesco Galaxy. The only funds that don&#8217;t have effective documents from the SEC are Grayscale&#8217;s Trust and Mini Trust, which analysts <a href="https://x.com/JSeyff/status/1815509442890453141">expected </a>to come tomorrow morning before trading commences.
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
<div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">It's official: Spot Eth ETFs have been made effective by the SEC. The 424(b) forms are rolling in now, the last step = all systems go for tomorrow's 930am launch. Game on. <a href="https://t.co/9MaBDBA8co">pic.twitter.com/9MaBDBA8co</a>
&mdash; Eric Balchunas (@EricBalchunas) <a href="https://twitter.com/EricBalchunas/status/1815489137484722333?ref_src=twsrc%5Etfw">July 22, 2024</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
</figure>
Coinbase Global Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/COIN#NASDAQ">COIN</a>), which happens to be the custodian for 8 of the 9 newly approved ETFs,also announced the clearance, describing it as an important milestone for cryptocurrencies.
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
<div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">ETH ETFs have arrived. Today, the SEC approved 9 spot ETH ETF applications. Their much celebrated arrival marks another important milestone for crypto in expanding access to and diversifying our cryptoeconomy. Here's why &#x1f9f5; <a href="https://t.co/o6KfgGlUDn">pic.twitter.com/o6KfgGlUDn</a>
&mdash; Coinbase &#x1f6e1;&#xFE0F; (@coinbase) <a href="https://twitter.com/coinbase/status/1815525645318778894?ref_src=twsrc%5Etfw">July 22, 2024</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
</figure>
The websites of the new investment products, including Blackrock&#8217;s ishares Ethereum Trust, also went live, unlocking a new era of trading for cryptocurrency-based funds.
See Also: <a href="https://www.benzinga.com/markets/cryptocurrency/24/07/39877439/elon-musk-jokes-hes-an-alien-scientist-with-a-japanese-pseudonym-but-dogecoin-designer-cla?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Elon Musk Jokes He&#8217;s An &#8216;Alien Scientist With A Japanese Pseudonym,&#8217; But Dogecoin Designer Clarifies Tesla CEO Is &#8216;Not Satoshi Nakamoto&#8217;</a>
Why It Matters: Despite an initial lack of engagement between the SEC and issuers, the approvals were granted unexpectedly. Firms had received <a href="https://www.benzinga.com/markets/cryptocurrency/24/05/38995513/sec-approves-spot-ethereum-etfs-opening-door-for-mainstream-investors">approval of 19b-4 forms in May</a> but needed their registration statements to go effective before launching.
Prior to the anticipated launch of spot Ethereum ETFs in the U.S., <a href="https://www.benzinga.com/markets/cryptocurrency/24/07/39795530/ethereum-etfs-to-attract-over-5b-in-inflows-but-returns-could-be-lower-than-expected-citi">Citi projected up to $5.4 billion in inflows within the first six months</a>. The bank cautioned that actual inflows and returns could be lower than projected.
Analysts led by Alex Saunders noted that Ethereum offers long-term diversification benefits due to its varied use-cases. However, these benefits are not currently reflected in the market.
Furthermore, Michaël van de Poppe, a widely-followed cryptocurrency analyst, anticipated a <a href="https://www.benzinga.com/markets/cryptocurrency/24/07/39876688/top-crypto-trader-reveals-why-hes-more-interested-in-these-ethereum-linked-coins">surge in activity</a> and value of tokens in the Ethereum ecosystem after the approval.
Price Action: At the time of writing, Ethereum was exchanging hands at $3,470.06, down 1.42% in the last 24 hours, according to <a href="https://pro.benzinga.com/dashboard?_gl=1&#x2A;380nj0&#x2A;_ga&#x2A;MTEyOTAyOTcxMy4xNzEzMzY0NTYy&#x2A;_ga_V7ZK73W7N0&#x2A;MTcxNDk4MzIzMi42LjEuMTcxNDk4OTE0Ni4wLjAuMA..">data from Benzinga Pro</a>. Shares of Coinbase closed 2.86% higher at $265.15 during Monday&#8217;s regular trading session.
Photo Courtesy: Shutterstock.com
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/markets/cryptocurrency/24/07/39884149/michelle-obama-for-democratic-nominee-crypto-bettors-think-her-odds-have-just-tripled?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Michelle Obama For Democratic Nominee? Crypto Bettors Think Her Odds Have Just Tripled</a></li>
</ul>

COIN

Ethereum ETFs Get Final Go-Ahead From The SEC: What Happens Next?

Reuters Reports Harris Campaign Secures Enough Delegates To Clinch Democratic Presidential Nomination, Citing Campaign Sources

On Monday, Cathie Wood-led Ark Invest made significant trades involving CrowdStrike Holdings Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CRWD#NASDAQ">CRWD</a>) and Tesla Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>), despite the turbulent market conditions surrounding these companies.
The CrowdStrike Trade
The Ark Fintech Innovation ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ARKF#NYSE">ARKF</a>) and ARK Next Generation Internet ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ARKW#NYSE">ARKW</a>) funds bought a total of 20,219 shares of CrowdStrike, valued at approximately $5.34 million based on the closing price of $263.91 on the same day. This move comes despite CrowdStrike&#8217;s recent challenges.
CrowdStrike&#8217;s<a href="https://www.benzinga.com/trading-ideas/long-ideas/24/07/39888488/jim-cramer-applauds-crowdstrikes-response-to-global-it-outage-sees-swift-recovery-ahead-"> shares had been declining</a> following a global IT outage last week, for which the cybersecurity firm has accepted responsibility.
CEO George Kurtz attributed the outage to &#8220;a defect found in a single content update&#8221; and confirmed it was not a security incident or cyberattack. Despite this, analysts predict the outage could cost over $1 billion, with potential lawsuits and demands for remuneration looming.
Former hedge fund manager and TV anchor Jim Cramer has praised Crowdstrike&#8217;s response to the outage and expressed optimism about the company&#8217;s future. He also appreciated Kurtz&#8217; handling of the tech glitch that affected users of Microsoft&#8217;s Windows operating system.
&#8220;CrowdStrike has unbelievable technology and it was not their technology that was the problem, it was a sloppy update, of which he completely owned,&#8221; said Cramer.
The Tesla Trade
Ark Invest&#8217;s ARKW fund sold 14,859 shares of Tesla, valued at approximately $3.74 million based on the closing price of $251.51 on the same day. Ark Invest is typically bullish stance on the Elon Musk-led electric vehicle maker.
<a href="https://www.benzinga.com/markets/equities/24/07/39878173/cathie-woods-ark-offloads-12-24m-in-tesla-shares-ahead-of-q2-earnings-what-investors-should-know">Ark Invest has been selling Tesla shares</a> in recent sessions, despite Wood&#8217;s optimistic outlook on the company&#8217;s potential in the autonomous taxi sector. Wood has a $2,600 target for the EV maker. Tesla is set to report second-quarter earnings on Tuesday.
Other Key Trades: 
<ul>
<li>Ark Invest&#8217;s ARKF fund sold shares of Kaspi.kz AO (KSPI).</li>
<li>Ark Invest&#8217;s ARKG fund sold shares of Teladoc Health Inc (TDOC) and bought shares of 10X Genomics Inc (TXG). </li>
<li>Ark Invest&#8217;s ARKK fund sold shares of Teladoc Health Inc (TDOC) and bought shares of 10X Genomics Inc (TXG). </li>
<li>Ark Invest&#8217;s ARKQ fund bought shares of Oklo Inc (OKLO).</li>
</ul>
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/markets/cryptocurrency/24/07/39875607/bitcoin-ethereum-hold-steady-dogecoin-spikes-as-biden-bows-out-of-presidential-race-king-c?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Bitcoin, Ethereum Hold Steady, Dogecoin Spikes As Biden Bows Out Of Presidential Race: King Crypto Might Have A Chance To Reclaim $71.5K, Forecasts Analyst</a></li>
</ul>
This story was generated using <a href="https://www.benzinga.com/author/benzinga-neuro">Benzinga Neuro</a> and edited by <a href="https://www.benzinga.com/author/shivdeep-dhaliwal" target="_blank" rel="noreferrer noopener">Shivdeep Dhaliwal</a>

ARKF

ARKW

Cathie Wood's Ark Invest Snaps Up $5.3M In Beaten-Down Crowdstrike Shares, Dumps $3.7M Worth Of Tesla Stock Before Q2 Earnings

Amazon.com Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>) has acquired Bray Film Studios, the former production site for the iconic Hammer horror film series, to expand its UK-based television and film production.
What Happened: Amazon&#8217;s Prime Video division has purchased Bray Film Studios, located near London, for an undisclosed sum. Amazon <a href="https://www.aboutamazon.eu/news/retail/amazon-prime-video-acquires-the-iconic-bray-film-studios-in-the-uk">said</a> the studios consist of five stages, workshops, and offices.
Bray Studios has previously collaborated with Amazon MGM Studios, assisting in the production of the second season of the Prime Video series The Lord of the Rings: The Rings of Power in 2022. The next Amazon MGM Studios production at Bray will be the second season of the Russo brothers&#8217; spy series Citadel, featuring Richard Madden and Priyanka Chopra Jonas.
The agreement significantly boosts the UK's studio and production industry, which hosts major Hollywood films at facilities owned by Disney, Sky, Warner Brothers Discovery, and Amazon. Last year, half of the top 20 film releases, including &#8220;Barbie&#8221; and &#8220;Wonka,&#8221; were at least partially produced in Britain, <a href="https://www.ft.com/content/8e8f4f0e-5f9d-4f8b-9f1b-2d9e7a3f1c7e">according</a> to the Financial Times report.
Hammer has produced notable horror and fantasy films such as The Mummy, The Curse of Frankenstein, and Terence Fisher's Dracula. Bray Film Studios has also been the site for productions like The Rocky Horror Picture Show, Ridley Scott's Alien, Eric Clapton's &#8216;MTV Unplugged&#8217; TV special and album, and the Elton John biopic Rocketman.
See Also: <a href="https://www.benzinga.com/markets/24/07/39877083/elon-musk-may-have-endorsed-trump-but-tesla-would-have-done-even-worse-without-bidens-7-5k-ev-tax-cr?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Elon Musk May Have Endorsed Trump, But Tesla Would Have Done &#8216;Even Worse&#8217; Without Biden&#8217;s $7.5K EV Tax Credit, Says Fund Manager</a>
Why It Matters: The acquisition of Bray Film Studios is in line with Amazon&#8217;s recent efforts to expand its content library. In May 2021, the company <a href="https://www.benzinga.com/m-a/21/05/21297885/amazon-buys-mgm-studios-for-8-45b-what-you-need-to-know">acquired MGM Studios for $8.45 billion</a>, significantly boosting its content offerings for Prime Video. This latest acquisition indicates Amazon&#8217;s continued commitment to expanding its content production capabilities.
Amazon&#8217;s move also comes at a time when other tech giants are <a href="https://www.benzinga.com/news/24/07/39886297/apple-adjusts-hollywood-approach-cuts-costs-on-original-shows-report">reassessing their Hollywood strategies</a>. Apple Inc., for instance, is reportedly cutting costs on original shows and movies after spending over $20 billion on content that has yet to attract large audiences.
Amazon&#8217;s recent financial performance has been strong, with the company <a href="https://www.benzinga.com/news/earnings/24/04/38534302/amazon-q1-earnings-highlights-revenue-beat-eps-beat-aws-hits-100-billion-annual-run-rate-and-more">reporting a 13% year-over-year increase</a> in net sales in its first-quarter financial results. 
Meanwhile, Amazon Prime&#8217;s increasing dominance in international markets, such as Japan, is also <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/07/39766528/amazon-prime-and-youtube-premium-linked-to-japans-rising-digital-deficit-putting-pr">raising concerns about the country&#8217;s digital deficit</a>. The platform&#8217;s popularity is contributing to a significant imbalance in Japan&#8217;s digital trade, potentially pressuring the yen&#8217;s value,&nbsp;according to&nbsp;Kazuma Kishikawa, an economist at the Daiwa Institute of Research.
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/markets/cryptocurrency/24/07/39875607/bitcoin-ethereum-hold-steady-dogecoin-spikes-as-biden-bows-out-of-presidential-race-king-c?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Bitcoin, Ethereum Hold Steady, Dogecoin Spikes As Biden Bows Out Of Presidential Race: King Crypto Might Have A Chance To Reclaim $71.5K, Forecasts Analyst</a></li>
</ul>
Image Via Shutterstock 
This story was generated using <a href="https://www.benzinga.com/author/benzinga-neuro">Benzinga Neuro</a> and edited by <a href="https://www.benzinga.com/topic/Kaustubh-Bagalkote" target="_blank" rel="noreferrer noopener">Kaustubh Bagalkote</a>

Education

Media

Amazon Buys Historic Bray Film Studios Known For 'Dracula' And 'The Curse Of Frankenstein'

In a speech at the Democratic campaign headquarters, Vice President Kamala Harris confidently expressed her readiness to confront Donald Trump, drawing on her prosecutorial experience and outlining her vision for the country.
What Happened: As reported by Reuters on Thursday, Harris thanked President Joe Biden and confirmed Jen O&#8217;Malley Dillon and Julie Chavez Rodriguez would continue as campaign heads. 
She drew a contrast between her vision and Trump&#8217;s regressive approach, stating, &#8220;I took on perpetrators of all kinds. Predators who abused women, fraudsters who ripped off consumers, cheaters who broke the rules for their own gain. So hear me when I say I know Donald Trump&#8217;s type.&#8221;
Harris warned of potential actions by Trump, including a national abortion ban, and asked the audience about their vision for the country. She championed a future of freedom, compassion, and rule of law over chaos, fear, and hate. She concluded her speech with a call to action, asking, &#8220;Are you ready to get to work?&#8221;
See Also: <a href="https://www.benzinga.com/news/24/07/39878848/trump-vs-harris-first-poll-after-bidens-exit-shows-majority-approve-of-decision-but-heres-how-it-mig?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Trump Vs. Harris: First Poll After Biden&#8217;s Exit Shows Majority Approve Of Decision, But Here&#8217;s How It Might Affect Ex-President&#8217;s Chances</a>
Why It Matters: Harris&#8217;s assertive stance comes in the wake of President Biden&#8217;s unexpected <a href="https://www.benzinga.com/general/politics/24/07/39874057/biden-drops-out-of-2024-race-in-bombshell-announcement-it-has-been-the-greatest-honor-of-my-life">decision to withdraw</a> from the 2024 presidential race. Trump <a href="https://www.benzinga.com/news/24/07/39875181/trump-wants-republicans-reimbursed-after-biden-quits-we-have-to-start-all-over-again">questioned Biden&#8217;s withdrawal</a> and suggested the Republican Party should be compensated for the sudden change.
California Governor Gavin Newsom has <a href="https://www.benzinga.com/news/24/07/39875041/gavin-newsom-backs-kamala-harris-calls-vp-tough-fearless-and-tenacious-the-ideal-candidate-to-counte">publicly endorsed Harris</a> for the upcoming presidential race, calling her &#8220;tough&#8221;, &#8220;fearless&#8221;, and &#8220;tenacious&#8221;. Harris, a former U.S. Senator from California, is seen as the party's top choice to succeed President Biden.
Harris has previously <a href="https://www.benzinga.com/news/24/01/36728971/kamala-harris-blames-trump-for-supreme-courts-reversal-on-roe-v-wade-he-is-proud-that-women-have-bee">blamed Trump</a> for the Supreme Court&#8217;s reversal on Roe V. Wade, connecting the introduction of new stringent abortion laws to his actions.
Photo: Lev Radin via Shutterstock
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/news/24/07/39870306/biden-claps-back-after-trumps-ev-mandate-comments-at-rnc-what-the-hell-was-he-talking-about?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Biden Claps Back After Trump&#8217;s EV &#8216;Mandate&#8217; Comments At RNC: &#8216;What The Hell Was He Talking About?&#8217;</a></li>
</ul>
This story was generated using <a href="https://www.benzinga.com/author/benzinga-neuro">Benzinga Neuro</a> and edited by <a href="https://www.benzinga.com/author/shivdeep-dhaliwal" target="_blank" rel="noreferrer noopener">Shivdeep Dhaliwal</a>

Kamala Harris Says She's Taken On Perpetrators Of All Kinds Before: 'I Know Donald Trump's Type'

When passion fuels our actions sometimes we can take things too far. Brian Thomas Borland, a 68-year-old marijuana enthusiast did just that when he told a jury to find him guilty of cannabis charges.
What happened: Borland, a well-known cannabis advocate in Northland, New Zealand was on a trial after police discovered two cannabis grow sites and about 100 plants, <a href="https://www.rnz.co.nz/news/national/522677/cannabis-advocate-brian-borland-tells-jury-to-find-him-guilty" target="_blank" rel="noreferrer noopener">writes</a> RNZ. He faced charges related to cannabis cultivation and dealing marijuana on two properties on separate occasions.
"You have no choice but to find me guilty, " he told the jury, arguing that "Everyone should have the right to grow their own cannabis if they wish."
He stressed the need for changes in the law."Why I took these actions was simply to defy the law."
After 11 minutes of deliberation, the jury reached a verdict: Guilty.
After all, the jury was following the law, and as lawyer Pablo Hambler said in a closing statement there was no question as the whether he broke the law. "You may be sympathetic towards his position but this is not a case of what the law should be or what Borland might like it to be," Hambler said. "The law of cultivating and selling it to other people is illegal."
Read Also: <a target="_blank" href="https://www.benzinga.com/markets/cannabis/24/06/39320186/22-8m-europeans-used-weed-last-year-german-university-launches-marijuana-cultivation-course-and-" rel="noreferrer noopener">UK Man Who Went To Prison 4 Times For Running Cannabis Cafe Is Back In The Game</a>
50 Years In Cannabis, Not The First Charge
Borland faced charges, but didn't stop there. In January 2023, he launched a business and a Facebook page openly marketing the sale of cannabis and seeds. The police found 52 plants and more than 600 grams of cannabis, and he was charged. He then pleaded not guilty, saying the cannabis was meant for clients with medical needs.
Borland confirmed he&#8217;d been in the cannabis business for about 50 years, seven of which he spent in prison. This time, he used the closing statement to make a make a statement – opposition to cannabis laws.
"Not all our laws are fair and the judiciary has a moral and ethical obligation to ensure the laws they administer are fair and just. Cannabis laws are not fair and all they are doing are protecting medical companies that sell an inferior product," he told the jury.
The judge tried to reason with him, saying he understood his moral stand, but advised him to rethink how would it be to go to prison, especially as an older man. "It seems to be a waste of a life but it's entirely up to you, you seem to be making a martyr of yourself."
"I just have to do what I have to do," Borland said.
He is still waiting for the sentence.
Read more on <a target="_blank" href="https://www.rnz.co.nz/news/national/522677/cannabis-advocate-brian-borland-tells-jury-to-find-him-guilty" rel="noreferrer noopener">RNZ</a>.
Read Next:
<ul>
<li><a href="https://www.benzinga.com/markets/cannabis/24/07/39874209/joe-biden-drops-out-what-would-happen-with-cannabis-legalization-under-kamala-harris-or-donald-t" target="_blank" rel="noreferrer noopener">Joe Biden Drops Out: What Would Happen With Cannabis Legalization Under Kamala Harris Or Donald Trump?</a></li>
</ul>
Photo: Courtesy of H_Ko via Shutterstock

Cannabis

Passionate Pot Advocate In New Zealand Tells Jury To Jail Him As He Fights For His Right To Cultivate Cannabis

Dividend Harvesting Portfolio Week 172: $17,200 Allocated, $1,532.26 In Projected Dividends

Undercovered Dozen June 14-20: Bank of America Preferreds, Cisco, Matterport, And More

SPYI: Continues To Perform As Expected

SPYI: I Love Covered Calls, Especially When The Upside Isn't Capped

Dividend Harvesting Portfolio Week 172: $17,300 Allocated, $1,540.02 In Projected Dividends

Dividend Harvesting Portfolio Week 173: $17,300 Allocated, $1,540.02 In Projected Dividends

Neos S&P 500(R) High Income ETF declares $0.5051 dividend

What's better than getting paid a dividend every quarter? How about getting paid one every month? That's exactly what the NEOS S&P 500 High Income ...

SPYI ETF: Get Paid Every Month, Enjoy the Massive Yield

Dividend Harvesting Portfolio Week 175: $17,500 Allocated, $1,566.24 In Projected Dividends

Dividend Harvesting Portfolio Week 176: $17,600 Allocated, $1,580.69 In Projected Dividends

AGNC

BACRP

BXSL

CNNRF

CSCO

CSGP

MTTR

QQQM

SOFI

Press Releases

NEOS Investments Announces March ETF Suite Distributions

NEOS Investments Announces April ETF Suite Distributions

NEOS Investments Announces May ETF Suite Distributions

BNDI

CSHI

<h3>Introduction</h3>

2023 was a year that took many by surprise, including myself.

The S&amp;P 500 Index (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) returned a total of 26.3% &mdash; carried higher by the outperformance of the Magnificent Seven. However, this 26.3% total return didn&#39;t come without a fair share of volatility &mdash; as the S&amp;P 500 Index fell -10% over a three-month period during the latter half of 2023.

With that being said, there are many investors (including myself) who would prefer a more stable and predictable return &mdash; with income in mind.

In this post, I&#39;m going to compare the total return of the three most popular S&amp;P 500 Index covered call ETFs in an effort to better understand why the JPMorgan Equity Premium Income ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JEPI#NYSE">JEPI</a>) performed so poorly in 2023 &mdash; as well as make a prediction for 2024.

<h3>2023 In Review</h3>

If you&#39;re an income investor like me, your portfolio is anchored by covered call ETFs that are benchmarked against the total return of the S&amp;P 500. Unfortunately, 2023 proved not every S&amp;P 500 covered call ETF is made equal.

Now, before you all come after me with comments like &quot;You can&#39;t compare JEPI to the S&amp;P 500 Index! JEPI doesn&#39;t hold the same stocks, it&#39;s a completely different strategy!&quot;

You&#39;re right. However, the fund&#39;s investment objective as shared in their<a href="https://am.jpmorgan.com/JPMorgan/TADF/46641Q332/SP?site=JPMorgan" style="text-decoration-line:none"> summary prospectus</a> states the following:

&quot;The investment objective of the Fund is to seek current income while maintaining prospects for capital appreciation.

The Fund seeks to achieve this objective by (1) creating an actively managed portfolio of equity securities comprised significantly of those included in the Fund&#39;s primary benchmark, the Standard &amp; Poor&#39;s 500 Total Return Index (S&amp;P 500 Index)...&quot;

And as shown<a href="https://www.morningstar.com/etfs/arcx/jepi/performance" style="text-decoration-line:none"> here on Morningstar</a>, JEPI&#39;s benchmark index is the S&amp;P 500.

Now that we&#39;re all on the same page, let&#39;s dive into the numbers, starting with JEPI.

<h3>JPMorgan Equity Premium Income ETF Facts</h3>

The total return of JEPI in<a href="https://www.morningstar.com/etfs/arcx/jepi/performance" style="text-decoration-line:none"> 2023 was 9.8%</a>, capturing only 37% of the total return of the S&amp;P 500 index.

As we all know, the S&amp;P 500 Index was led higher in 2023 by the Magnificent Seven &mdash; seven stocks JEPI&#39;s fund managers understandably decided to leave out of the fund&#39;s holdings throughout the year. Only two of those seven names, Microsoft Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) and Amazon.com, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>), were held by the fund in 2023.

As stated in the summary prospectus, &quot;The Fund seeks a lower volatility level than the S&amp;P 500 Index.&quot; JEPI certainly achieved this, as the price of their shares only slipped -7.8% during the -10% drawdown the S&amp;P 500 experienced between the months of August and October of 2023. And when you add monthly distributions to that figure, risk-averse investors become increasingly happier &mdash; a win in my book.

However, it&#39;s equally as important to ask yourself the question &quot;Is the return I see the return I get?&quot;

JEPI uses<a href="https://www.investopedia.com/terms/e/equity-linkednote.asp" style="text-decoration-line:none"> Equity Linked Notes</a> (ELNs) to generate monthly income for their investors. In the eyes of the IRS, the income generated by these ELNs are taxed as ordinary income &mdash; meaning after taxes, this 9.8% figure might be materially lower for some folks depending on their tax brackets.

As a fellow JEPI investor, I&#39;m constantly weighing my opportunity cost. By choosing JEPI over the next best thing, I&#39;m capturing only 37% of the S&amp;P 500&#39;s total return. Sure, I&#39;m doing so in an effort to smooth out the volatility of my portfolio while also generating monthly income &mdash; but at the expense of upside potential and higher taxes.

Let&#39;s move on.

<h3>Global X S&amp;P 500&reg; Covered Call ETF Facts</h3>

The total return of XYLD (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XYLD#NYSE">XYLD</a>) in 2023<a href="https://www.morningstar.com/etfs/arcx/xyld/performance" style="text-decoration-line:none"> was 11.0%</a>, capturing only 42% of the total return of the S&amp;P 500 Index.

XYLD was able to marginally outperform JEPI by 1.2% as<a href="https://www.globalxetfs.com/prospectus-regulatory/?id=2954" style="text-decoration-line:none"> the fund held</a> &quot;all the equity securities in the S&amp;P 500 Index in substantially similar weight.&quot;

But, if XYLD held the Magnificent Seven inside of their fund, why did it only capture 42% of their S&amp;P 500&#39;s total return? I thought the Mag Seven was the reason the S&amp;P 500 performed so well?

They were.

But, unfortunately for my fellow XYLD investors because the fund wrote at-the-money (ATM) covered calls against their holdings, their total upside was capped at just the premium generated by the option contracts. Here is a<a href="https://www.globalxetfs.com/funds/xyld/" style="text-decoration-line:none"> link to review XYLD&rsquo;s holdings</a> as of 4/15/24 &mdash; which also displays their &ldquo;Upside Cap Details.&rdquo;&nbsp;

According to XYLD&#39;s summary prospectus (emphasis added):

&quot;The Fund writes a single &quot;at-the-money&quot; call option, which is when the strike price is near to the market price of the underlying asset, as determined on the monthly option writing date of the Underlying Index in accordance with the Underlying Index methodology.

The Fund&#39;s covered call options may partially protect the Fund from a decline in the price of the Reference Index through means of the premiums received by the Fund. However, when the equity market is rallying rapidly, the Underlying Index is expected to underperform the Reference Index.&quot;

And underperform it did.

However, unlike JEPI, XYLD uses<a href="https://www.investopedia.com/terms/s/section-1256-contract.asp" style="text-decoration-line:none"> Section 1256 contracts</a> to generate their monthly income for investors. These Section 1256 contracts are treated much more favorably than ELNs in the eyes of the IRS &mdash; with income to be taxed as 60% long-term capital gains and 40% short-term, allowing investors to keep more of that 11.0% yield come tax time in April.

<h3>Neos S&amp;P 500(R) High Income ETF Facts</h3>

The total return on SPYI (BATS:<a class="ticker" href="https://www.benzinga.com/stock/SPYI#BATS">SPYI</a>) in 2023<a href="https://www.morningstar.com/etfs/bats/spyi/performance" style="text-decoration-line:none"> was 18.1%</a>, capturing nearly 69% of the S&amp;P 500 Index&#39;s total return.

SPYI was able to materially outperform both XYLD and JEPI in 2023 by 7.1% and 8.3%, respectively. SPYI was able to<a href="https://neosfunds.com/wp-content/uploads/SPYI-Prospectus.pdf" style="text-decoration-line:none"> do this by</a> &quot;investing in a portfolio of stocks that make up the S&amp;P 500 Index,&quot; while also implementing a covered call option strategy that wrote out-of-the-money covered call option contracts.hoose

Let&#39;s take a look at SPYI&#39;s<a href="https://neosfunds.com/spyi/#holdings" style="text-decoration-line:none"> holdings</a> (as of 4/15/24) to get a better understanding as to why this covered call ETF outperformed its competitors by such a wide margin.&nbsp;

As you can see hyperlinked above, the management team behind SPYI decided to write two covered call option contracts against the S&amp;P 500 expiring on May 17 at the strike prices of 5,350 and 5,405. Assuming these contracts are rolled every 4-to-6 weeks, something SPYI&#39;s management team has stated in<a href="https://youtu.be/8xykeGA5eJU?si=9Y6KrXuBpSPLNiQa" style="text-decoration-line:none"> multiple interviews</a>, they were likely written early-April.&nbsp;

The S&amp;P 500 Index was trading around ~5,220 during this time frame &mdash; which means their management team wrote these options contracts 2.5% and 3.5% out-of-the-money. These percentage points might not seem like a big deal, but when we have weeks like we did when these contracts were written (new all-time highs in the S&amp;P 500 Index), writing out-of-the-money contracts vs. at-the-money contracts can move the needle from a total return perspective.

For added perspective,<a href="https://www.globalxetfs.com/funds/xyld/" style="text-decoration-line:none"> shared here</a> are XYLD&#39;s covered call option contracts (as of 4/15/24) &mdash; choosing to write option contracts at the 5,135 strike price. Just last week, the S&amp;P 500 Index was trading around 5,200 &mdash; which means XYLD investors weren&#39;t capturing any upside beyond 5,135. At the time of writing, the S&amp;P 500 Index has fallen back down to 5,050 &mdash; putting XYLD investors back in the money. Hard to say how long that might last.&nbsp;

Similar to XYLD, SPYI uses<a href="https://www.investopedia.com/terms/s/section-1256-contract.asp" style="text-decoration-line:none"> Section 1256 contracts</a> to generate their monthly income for investors &mdash; allowing them to keep more of that 12.16% annual distribution yield in their pockets when Uncle Sam comes knocking.

All in all, SPYI offered strong outperformance against XYLD and JEPI in 2023 &mdash; both from an income generation and tax-efficiency perspective.

JEPI paid out $4.62 per share last year, an 8.4% yield against their $54.98 closing price on December 29, 2023. XYLD paid out $4.15 per share last year, a 10.5% yield against their $39.44 closing price on December 29, 2023.

SPYI paid out $5.80 per share last year, a 12.0% yield against their $48.20 closing price on December 29, 2023.

<h3>Don&rsquo;t Make The Same Mistake Two Years In A&nbsp;Row</h3>

2024 is shaping up to be much of the same &mdash; the S&amp;P 500 continues to make new all-time-highs, the Federal Reserve is now projected to cut interest rates three times before year-end, and inflation is continuing to subside.&nbsp;

We&rsquo;re officially three months into the calendar year, giving us an opportunity to check in on the performance of the above-mentioned S&amp;P 500 covered call ETFs &mdash; let&rsquo;s kick things off with the JPMorgan Equity Premium ETF.&nbsp;

According to<a href="https://www.morningstar.com/etfs/arcx/jepi/performance" style="text-decoration-line:none"> Morningstar</a>, JEPI&rsquo;s Q1 total performance was 6.36% &mdash; this included 4.3% of price appreciation ($54.88 to $57.27).&nbsp;

So far, so good &mdash; right?&nbsp;

Moving on to the Global X S&amp;P 500 Covered Call ETF &mdash; according to<a href="https://www.morningstar.com/etfs/arcx/xyld/performance" style="text-decoration-line:none"> Morningstar</a>, XYLD&rsquo;s Q1 total performance was 5.86%. This included 3.6% of price appreciation ($39.36 to $40.77).

It seems that during Q1, XYLD underperformed JEPI by -0.5%.&nbsp;

Finally, the NEOS S&amp;P 500 High Income ETF&rsquo;s Q1 total performance, according to<a href="https://www.morningstar.com/etfs/bats/spyi/performance" style="text-decoration-line:none"> Morningstar</a>, was 7.67% &mdash; this included 4.5% of price appreciation ($48.12 to $50.33).

SPYI has outperformed JEPI and XYLD by 1.31% and 1.81%, respectively, during the first quarter of 2024. And it makes sense that SPYI experienced higher price appreciation than its peers during the same period of time. Because they wrote out-of-the-money covered call option contracts, SPYI&rsquo;s share price was able to appreciate as the S&amp;P 500 Index traded to new all-time-highs throughout February and March.&nbsp;

Despite JEPI&rsquo;s total performance in Q1 being &ldquo;only&rdquo; 1.31% below SPYI&rsquo;s, this doesn&rsquo;t take into account their Equity Linked Notes &mdash; a very tax-inefficient way to generate income for shareholders. After considering income taxes, SPYI&rsquo;s Section 1256 Contracts further solidify the fund&rsquo;s outperformance relative to its peers.&nbsp;

To put all of this in perspective, the S&amp;P 500&rsquo;s total return during Q1 was 10.40%. This means XYLD only captured 56.3% of the S&amp;P 500&rsquo;s total return during Q1, JEPI only captured 61.1%, while SPYI captured over 73%.&nbsp;

If calendar year 2023 and the first three months of 2024 have proven anything to us, it&rsquo;s that SPYI&rsquo;s covered call strategy is superior to its peers &mdash; especially if you care about price appreciation, income, and tax efficiency.&nbsp;

So if you&rsquo;re looking for a covered call ETF that offers consistent monthly income and the ability for long-term capital appreciation generated from the S&amp;P 500&rsquo;s constituents, don&rsquo;t make the same mistake two years in a row.

Disclaimer: This is not financial advice or recommendation for any investment. The content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice.

Austin Hankwitz is a writer, which means he&#39;s not always right with his predictions or recommendations. Since that also applies to his grammar, please excuse any typos you may find. Also, this article is free: Written and distributed only to assist in research while providing a forum for second-level thinking. In some circumstances, he has a business relationship with a company whose stock is mentioned in this article.

Each investor is responsible to conduct their own due diligence and to understand the risks associated with any information that is reviewed. The information contained herein does not constitute and shouldn&rsquo;t be construed as a solicitation of advisory services. Consult a registered financial advisor and/or certified financial planner before making any investment decisions.

This article is from an unpaid external contributor. It does not represent Benzinga&#39;s reporting and has not been edited for content or accuracy.

A few months ago, I analyzed the total performance of the three most popular S&amp;P 500 covered call ETFs in 2023: the JPMorgan Equity Premium Income ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JEPI#NYSE">JEPI</a>), the GlobalX S&amp;P500 Covered Call ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XYLD#NYSE">XYLD</a>), and the NEOS S&amp;P 500 High Income ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/SPYI#BATS">SPYI</a>).&nbsp;

The covered call ETF that came out on top was the NEOS S&amp;P 500 High Income ETF&nbsp;for three reasons: they had full exposure to the holdings inside of the S&amp;P 500, wrote out-of-the-money covered calls, and used Section 1256 contracts for enhanced tax-efficiency.&nbsp;

The total performance of <a href="https://www.benzinga.com/quote/SPYI">SPYI</a>&nbsp;in 2023 was<a href="https://www.morningstar.com/etfs/bats/spyi/performance" style="text-decoration-line:none"> 18.1%</a>, capturing nearly 69% of the S&amp;P 500 Index&#39;s total return last year. Compared to the JPMorgan Equity Premium Income ETF&#39;s<a href="https://www.morningstar.com/etfs/arcx/jepi/performance" style="text-decoration-line:none"> total return of 9.8%</a>, and the GlobalX S&amp;P 500 Covered Call ETF&#39;s<a href="https://www.morningstar.com/etfs/arcx/xyld/performance" style="text-decoration-line:none"> total return of 11.0%</a>.

I share these figures because the team that built SPYI &mdash; and all of the category leading performance that came with it &mdash; has used the same techniques and strategy to build the NEOS Nasdaq-100 High Income ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQI#NASDAQ">QQQI</a>).

<h3>What Is QQQI?</h3>

The NEOS Nasdaq-100 High Income ETF&nbsp;is an ETF that aims to offer high monthly income in a tax-efficient manner and upside potential when the Nasdaq-100 Index (<a href="https://www.benzinga.com/quote/QQQ">QQQ</a>) rises.&nbsp;

Let&rsquo;s break that down simply &mdash; as we all know, an ETF is a basket of stocks.

In this case, the basket is constructed to replicate the holdings of the Nasdaq-100 Index. Remember, the Nasdaq-100 Index sits right next to the S&amp;P 500 Index in popularity and portfolio construction. This index tracks the total performance of the 100 largest, most-actively traded stocks listed on the Nasdaq. Think Apple (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>), Microsoft (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>), Nvidia (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>), Broadcom (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>), Meta Platforms (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>), Tesla (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>)&hellip; you get the picture.

The Nasdaq-100 Index<a href="https://www.morningstar.com/etfs/xnas/qqq/performance" style="text-decoration-line:none"> delivered +54.9% returns</a> for its investors in 2023, the best year since 1999. Again, this was largely due to the AI craze we saw by companies like Microsoft, Nvidia, and others &mdash; but incredibly impressive nonetheless.

So, what&#39;s the difference between QQQ&nbsp;and QQQI?

A single letter, I.

And that letter stands for income.&nbsp;

Think about it like this &mdash; a 55% return in an investment is awesome. However, to realize that return in your bank account, you&rsquo;ll need to sell shares of stock. Considering the trailing twelve month dividend yield of the Nasdaq-100 Index is 0.52%, 99.48% of that return was in the form of share price appreciation &mdash; not cash dividends paid to you.

But what if there was an ETF that aimed to offer exposure to the Nasdaq-100 Index while also optimizing for tax-efficient income for their shareholders?

<h4>Enter QQQI.&nbsp;</h4>

The NEOS team has successfully done this with their S&amp;P 500 Index equivalent ETF, SPYI &mdash; paying a 12.14% annual distribution yield (as of 3/15/24) to investors while also allowing their share price to trend higher over time. Again, SPYI delivered a total return of 18.1% in 2023 &mdash; with 12% of that being paid out as monthly income to their shareholders.

I&rsquo;m a shareholder in and receive monthly income from SPYI.&nbsp;

Now the team is introducing QQQI &mdash; a way for income-focused investors to have exposure to the Nasdaq-100, in a tax-efficient manner.

How Does QQQI Work?

Let&rsquo;s start by understanding how the normal QQQ ETF works &mdash; by investing into the same stocks that represent the Nasdaq-100 Index, the QQQ ETF experiences the same return as the Nasdaq-100 Index.

Simple enough, right? Have the same stuff, experience the same returns. I mean, this is precisely how every index-focused ETF works.&nbsp;

So, what does QQQI do?&nbsp;

They hold the exact same stocks in the exact same weightings as the Nasdaq-100 Index, as shown below. Therefore it should perform similarly to the Nasdaq-100 Index, but why not exactly the same...?

<div>
Covered call option contracts.

Let&rsquo;s break what that means &mdash; NEOS says &ldquo;We&rsquo;re going to sell Nasdaq-100 covered calls against our holdings. We&rsquo;re going to choose a date that&rsquo;s about 1-month into the future, and a strike price up to 5% out-of-the-money.&rdquo;

In return, they receive premium income from the buyer of those option contracts. They take that premium income and pay it out in the form of a monthly distribution to their shareholders.

Now that you understand the high-level strategy &mdash; let&rsquo;s walk through the specific intricacies that set them apart from other Nasdaq-100 income-focused ETFs on the market today.&nbsp;

<div>
<h3>Section 1256 Contracts:</h3>

These are the type of &ldquo;<a href="https://www.investopedia.com/terms/s/section-1256-contract.asp#:~:text=The%20purpose%20of%20Section%201256,the%20contract%20should%20be%20calculated." style="text-decoration-line:none">option contracts</a>&rdquo; they chose to use when selling their covered calls. Long-story short, the income produced when using these contracts is taxed at 60% long-term capital gains, and 40% short-term capital gains.

Compare this to the 100% short-term capital gains investors have to pay on their income when selling &ldquo;normal&rdquo; covered calls. Over the long-haul, we&rsquo;re talking about a material savings on taxes when Uncle Sam comes knocking.

<div>
<h4>Out-of-the-Money:</h4>

By selling their option contracts &ldquo;<a href="https://www.investopedia.com/terms/o/outofthemoney.asp#:~:text=Out%20of%20the%20money%20is,above%20the%20put's%20strike%20price." style="text-decoration-line:none">OTM</a>,&rdquo; they&rsquo;re ensuring their investors can participate in upside share price appreciation.

Here&rsquo;s what I mean &mdash; when you sell an<a href="https://www.investopedia.com/terms/a/atthemoney.asp" style="text-decoration-line:none"> at-the-money</a> covered call, you&rsquo;re guaranteeing your return upfront. If the price of the underlying equity trades higher than the total amount of premium you&rsquo;ve received, too bad.

Because the NEOS team is selling covered call option contracts up to 5% OTM, investors are able to participate in some upside share price appreciation.

Sure, if the Nasdaq-100 increases by +10% in a single month &mdash; QQQI investors won&rsquo;t realize that entire 10% return because they&rsquo;re only writing contracts to include up to +5% in share price appreciation. But that&rsquo;s the &ldquo;trade-off&rdquo; you make when you&rsquo;re trying to optimize for tax-efficient income vs. share price appreciation.

This is very different from the GlobalX Nasdaq 100 Covered Call ETF, (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QYLD#NASDAQ">QYLD</a>). Their option contract strategy sells &quot;<a href="https://www.investopedia.com/terms/a/atthemoney.asp" style="text-decoration-line:none">at-the-money</a>&quot; covered calls, capping the upside to the total premium generated by selling the contract. There is not upside share price appreciation participation with &quot;ATM&quot; covered calls.&nbsp;

<div>Early Innings

Considering this ETF just launched late-January, we&#39;re still in the early innings of tracking its performance relative to the GlobalX Nasdaq 100 Covered Call ETF. With that being said, QQQI announced their first monthly distribution a few weeks ago at $0.5939 per share.

At time of writing (3/15/24), this comes out to be a<a href="https://neosfunds.com/qqqi/#distributions" style="text-decoration-line:none"> 14.42% annual distribution yield</a>, a whopping +2.8% higher than QYLD&#39;s<a href="https://www.globalxetfs.com/funds/qyld/" style="text-decoration-line:none"> 11.62% distribution yield</a>.&nbsp;

Will this higher distribution yield sustain? It&#39;s anyone&#39;s guess.

However, SPYI paid investors $5.80 per share in 2023, a 12.0% yield against their $48.20 closing price on December 29, 2023 - coming in at +1.5% higher than XYLD&#39;s 12-month yield using the same time frames. And because they wrote &quot;out-of-the-money&quot; covered calls, the price of SPYI appreciated by +2.1% (<a href="https://finance.yahoo.com/quote/SPYI/history?period1=1661817600&amp;period2=1709856000&amp;interval=1d&amp;filter=history&amp;frequency=1d&amp;includeAdjustedClose=true" style="text-decoration-line:none">from $46.26 to $47.24</a>) during 2023 compared to XYLD&#39;s -1.7% (<a href="https://finance.yahoo.com/quote/XYLD/history?period1=1552003200&amp;period2=1709856000&amp;interval=1d&amp;filter=history&amp;frequency=1d&amp;includeAdjustedClose=true" style="text-decoration-line:none">from $39.56 to $38.84</a>).

If history repeats itself, QQQI&#39;s out-of-the-money covered call option contract strategy might outperform QYLD&#39;s at-the-money covered call option strategy from a total return perspective in 2024. However, we&#39;ll have to wait and see.

<div>Downside Risks</div>
</div>
</div>
</div>

<div>
As with any covered call ETF, the downside risk is obvious - underperformance in relation to the index the ETF is tracking. However, we haven&rsquo;t yet seen this take place with QQQI in 2024.&nbsp;

Since inception on January 30th, QQQI&#39;s total return has been 1.9% (as of 3/15/24). During the same period of time, QQQ&#39;s total return has been 1.6% (as of 3/15/24). The reason for the slight outperformance has to do with the premium collected when selling their out-of-the-money covered calls.&nbsp;

Simply put, QQQ has been trading sideways since mid-February &mdash; resulting in a zero total return to investors over the last month or so. Considering QQQI aims to offer exposure to the same index, it makes sense that QQQI&rsquo;s stock price has also traded sideways during the same period of time. However, because QQQI seeks to distribute high monthly income for their investors and subsequently paid a $0.5939 per share distribution on February 23rd &mdash; in stagnant markets QQQI comes out on top.&nbsp;

QYLD&#39;s total return during the same time period has only been 1.4% (as of 3/15/24) &mdash; 50 bps lower than QQQI&#39;s &mdash; given their at-the-money covered call option contract strategy.&nbsp;

Time will tell just how much QQQI might underperform or outperform QQQ in 2024. Again, in 2023 SPYI only captured ~69% of the S&amp;P 500 Index&#39;s total return. With that being said, I&#39;m not going to begin to speculate where QQQI might land in relation to QQQ&#39;s total performance for 2024.&nbsp;
Conclusion</div>

<div>
The same team that built the category leading S&amp;P 500 covered call ETF, SPYI, has introduced a new covered call ETF, QQQI. This covered call ETF uses Section 1256 contracts to ensure tax-efficiency, writes out-of-the-money covered call option contracts, and is already beginning to show strong results early on.&nbsp;

As with all investments, it&#39;s important to spend time observing performance in relation to their fund&#39;s investment objective as outlined in their<a href="https://neosfunds.com/wp-content/uploads/qqqi_sumpro.pdf" style="text-decoration-line:none"> prospectus</a>. When comparing very early results to &quot;the next best thing,&quot; performance looks promising. With that being said, I look forward to revisiting QQQI&#39;s performance in 6-9 months once we&#39;ve seen more distributions paid to investors.&nbsp;

As a fellow income-focused investor, I&#39;m always weighing my options in efforts to determine the best possible way to invest my money. At time of writing, I&#39;m eager to expand my small-but-growing position in QQQI. If you&#39;re interested in doing your own research on&nbsp;QQQI, I found this <a href="https://youtu.be/y3WTECl7do0?si=QifGxukAAsqL7Doj">interview on&nbsp;YouTube</a> to be helpful.&nbsp;
</div>
</div>

This article is from an unpaid external contributor. It does not represent Benzinga&#39;s reporting and has not been edited for content or accuracy.

QQQI: The Undiscovered Nasdaq-100 Covered Call ETF You've Been Looking For (14.4% Distribution Yield)

<ul>
	<li>The JPMorgan Equity Premium Income ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JEPI#NYSE">JEPI</a>) provides their investors with consistent monthly income and lower volatility.&nbsp;</li>
	<li>During times of immense bullishness, JEPI fails to capture even a fraction of total return against their benchmark index.&nbsp;</li>
	<li>When paired with SPYI (BATS:<a class="ticker" href="https://www.benzinga.com/stock/SPYI#BATS">SPYI</a>), another options-based high-income ETF, JEPI plays defense while SPYI plays offense.&nbsp;</li>
</ul>

<h3>Introduction</h3>

The JPMorgan Equity Premium Income ETF&nbsp;is a wildly popular ETF in the options-based ETF market with more than $29 billion in assets under management &mdash; and for good reason. The ETF boasts a healthy 9.93% 12-month rolling dividend&nbsp;yield, has exposure to U.S. large-cap stocks, all while prioritizing low volatility for its investors.

However, there are some flaws. In this post, I&rsquo;ll be comparing JEPI to &ldquo;the next best thing.&rdquo; Don&rsquo;t get me wrong, JEPI deserves a place in most dividend-focused investor portfolios &mdash; the real question though is &ldquo;how big?&rdquo;

<h3>Quick Background</h3>

The JPMorgan Equity Premium Income ETF&rsquo;s investment objective is simple:&nbsp;seek current income while maintaining prospects for capital appreciation.

The Fund seeks to achieve this objective by implementing two unique strategies.

<ul>
	<li>Create an actively managed portfolio of equity securities comprised significantly&nbsp;of those included in the Fund&rsquo;s primary benchmark, the S&amp;P 500 Index.</li>
	<li>Through equity-linked notes (ELNs), sell call options with exposure to the S&amp;P 500 Index.</li>
</ul>

The resulting Fund is designed to provide investors with performance that captures a majority of the returns associated with the S&amp;P 500 Index, while exposing investors to lower volatility than the S&amp;P 500 Index and also incremental income.

Plainly speaking, this ETF aims to deliver incremental income to its investors with the potential for capital appreciation while optimizing for low volatility.

But, at what cost?

<h3>Performance Over The Years</h3>

2021 was the first full calendar year JEPI was trading for, so we&rsquo;ll start there. During 2021, JEPI&rsquo;s&nbsp;<a href="https://www.morningstar.com/etfs/arcx/jepi/performance" rel="nofollow" style="border:0px solid; box-sizing:border-box; --tw-border-spacing-x:0; --tw-border-spacing-y:0; --tw-translate-x:0; --tw-translate-y:0; --tw-rotate:0; --tw-skew-x:0; --tw-skew-y:0; --tw-scale-x:1; --tw-scale-y:1; --tw-pan-x: ; --tw-pan-y: ; --tw-pinch-zoom: ; --tw-scroll-snap-strictness:proximity; --tw-gradient-from-position: ; --tw-gradient-via-position: ; --tw-gradient-to-position: ; --tw-ordinal: ; --tw-slashed-zero: ; --tw-numeric-figure: ; --tw-numeric-spacing: ; --tw-numeric-fraction: ; --tw-ring-inset: ; --tw-ring-offset-width:0px; --tw-ring-offset-color:#ffffff; --tw-ring-color:#3b82f680; --tw-ring-offset-shadow:0 0 #0000; --tw-ring-shadow:0 0 #0000; --tw-shadow:0 0 #0000; --tw-shadow-colored:0 0 #0000; --tw-blur: ; --tw-brightness: ; --tw-contrast: ; --tw-grayscale: ; --tw-hue-rotate: ; --tw-invert: ; --tw-saturate: ; --tw-sepia: ; --tw-drop-shadow: ; --tw-backdrop-blur: ; --tw-backdrop-brightness: ; --tw-backdrop-contrast: ; --tw-backdrop-grayscale: ; --tw-backdrop-hue-rotate: ; --tw-backdrop-invert: ; --tw-backdrop-opacity: ; --tw-backdrop-saturate: ; --tw-backdrop-sepia: ; background-color:rgba(0, 0, 0, 0); text-decoration-line:none">total return was 21.61%</a>&nbsp;&mdash; capturing nearly 75% of the total return of the&nbsp;<a href="https://am.jpmorgan.com/us/en/asset-management/adv/products/jpmorgan-equity-premium-income-etf-etf-shares-46641q332#/performance" rel="nofollow" style="border:0px solid; box-sizing:border-box; --tw-border-spacing-x:0; --tw-border-spacing-y:0; --tw-translate-x:0; --tw-translate-y:0; --tw-rotate:0; --tw-skew-x:0; --tw-skew-y:0; --tw-scale-x:1; --tw-scale-y:1; --tw-pan-x: ; --tw-pan-y: ; --tw-pinch-zoom: ; --tw-scroll-snap-strictness:proximity; --tw-gradient-from-position: ; --tw-gradient-via-position: ; --tw-gradient-to-position: ; --tw-ordinal: ; --tw-slashed-zero: ; --tw-numeric-figure: ; --tw-numeric-spacing: ; --tw-numeric-fraction: ; --tw-ring-inset: ; --tw-ring-offset-width:0px; --tw-ring-offset-color:#ffffff; --tw-ring-color:#3b82f680; --tw-ring-offset-shadow:0 0 #0000; --tw-ring-shadow:0 0 #0000; --tw-shadow:0 0 #0000; --tw-shadow-colored:0 0 #0000; --tw-blur: ; --tw-brightness: ; --tw-contrast: ; --tw-grayscale: ; --tw-hue-rotate: ; --tw-invert: ; --tw-saturate: ; --tw-sepia: ; --tw-drop-shadow: ; --tw-backdrop-blur: ; --tw-backdrop-brightness: ; --tw-backdrop-contrast: ; --tw-backdrop-grayscale: ; --tw-backdrop-hue-rotate: ; --tw-backdrop-invert: ; --tw-backdrop-opacity: ; --tw-backdrop-saturate: ; --tw-backdrop-sepia: ; background-color:rgba(0, 0, 0, 0); text-decoration-line:none">S&amp;P 500&rsquo;s 28.71%</a>.

2022 was even better, as the S&amp;P 500 experienced immense volatility, JEPI did what it was designed to do &mdash; produce incremental income for its investors while exposing investors to lower volatility when compared to the S&amp;P 500.

In 2022, JEPI delivered a&nbsp;<a href="https://www.morningstar.com/etfs/arcx/jepi/performance" rel="nofollow" style="border:0px solid; box-sizing:border-box; --tw-border-spacing-x:0; --tw-border-spacing-y:0; --tw-translate-x:0; --tw-translate-y:0; --tw-rotate:0; --tw-skew-x:0; --tw-skew-y:0; --tw-scale-x:1; --tw-scale-y:1; --tw-pan-x: ; --tw-pan-y: ; --tw-pinch-zoom: ; --tw-scroll-snap-strictness:proximity; --tw-gradient-from-position: ; --tw-gradient-via-position: ; --tw-gradient-to-position: ; --tw-ordinal: ; --tw-slashed-zero: ; --tw-numeric-figure: ; --tw-numeric-spacing: ; --tw-numeric-fraction: ; --tw-ring-inset: ; --tw-ring-offset-width:0px; --tw-ring-offset-color:#ffffff; --tw-ring-color:#3b82f680; --tw-ring-offset-shadow:0 0 #0000; --tw-ring-shadow:0 0 #0000; --tw-shadow:0 0 #0000; --tw-shadow-colored:0 0 #0000; --tw-blur: ; --tw-brightness: ; --tw-contrast: ; --tw-grayscale: ; --tw-hue-rotate: ; --tw-invert: ; --tw-saturate: ; --tw-sepia: ; --tw-drop-shadow: ; --tw-backdrop-blur: ; --tw-backdrop-brightness: ; --tw-backdrop-contrast: ; --tw-backdrop-grayscale: ; --tw-backdrop-hue-rotate: ; --tw-backdrop-invert: ; --tw-backdrop-opacity: ; --tw-backdrop-saturate: ; --tw-backdrop-sepia: ; background-color:rgba(0, 0, 0, 0); text-decoration-line:none">total return of -3.53%</a>&nbsp;compared to the&nbsp;<a href="https://am.jpmorgan.com/us/en/asset-management/adv/products/jpmorgan-equity-premium-income-etf-etf-shares-46641q332#/performance" rel="nofollow" style="border:0px solid; box-sizing:border-box; --tw-border-spacing-x:0; --tw-border-spacing-y:0; --tw-translate-x:0; --tw-translate-y:0; --tw-rotate:0; --tw-skew-x:0; --tw-skew-y:0; --tw-scale-x:1; --tw-scale-y:1; --tw-pan-x: ; --tw-pan-y: ; --tw-pinch-zoom: ; --tw-scroll-snap-strictness:proximity; --tw-gradient-from-position: ; --tw-gradient-via-position: ; --tw-gradient-to-position: ; --tw-ordinal: ; --tw-slashed-zero: ; --tw-numeric-figure: ; --tw-numeric-spacing: ; --tw-numeric-fraction: ; --tw-ring-inset: ; --tw-ring-offset-width:0px; --tw-ring-offset-color:#ffffff; --tw-ring-color:#3b82f680; --tw-ring-offset-shadow:0 0 #0000; --tw-ring-shadow:0 0 #0000; --tw-shadow:0 0 #0000; --tw-shadow-colored:0 0 #0000; --tw-blur: ; --tw-brightness: ; --tw-contrast: ; --tw-grayscale: ; --tw-hue-rotate: ; --tw-invert: ; --tw-saturate: ; --tw-sepia: ; --tw-drop-shadow: ; --tw-backdrop-blur: ; --tw-backdrop-brightness: ; --tw-backdrop-contrast: ; --tw-backdrop-grayscale: ; --tw-backdrop-hue-rotate: ; --tw-backdrop-invert: ; --tw-backdrop-opacity: ; --tw-backdrop-saturate: ; --tw-backdrop-sepia: ; background-color:rgba(0, 0, 0, 0); text-decoration-line:none">S&amp;P 500&rsquo;s -18.11%</a>. As the markets experienced increased volatility, JEPI was able to leverage its unique &ldquo;actively-managed&rdquo; characteristic and begin to lean into less volatile sectors of the stock market until skies turned blue again.

With that being said, 2023 hasn&rsquo;t been as bright. As of writing this (11/7/23), JEPI&rsquo;s year-to-date&nbsp;<a href="https://www.morningstar.com/etfs/arcx/jepi/performance" rel="nofollow" style="border:0px solid; box-sizing:border-box; --tw-border-spacing-x:0; --tw-border-spacing-y:0; --tw-translate-x:0; --tw-translate-y:0; --tw-rotate:0; --tw-skew-x:0; --tw-skew-y:0; --tw-scale-x:1; --tw-scale-y:1; --tw-pan-x: ; --tw-pan-y: ; --tw-pinch-zoom: ; --tw-scroll-snap-strictness:proximity; --tw-gradient-from-position: ; --tw-gradient-via-position: ; --tw-gradient-to-position: ; --tw-ordinal: ; --tw-slashed-zero: ; --tw-numeric-figure: ; --tw-numeric-spacing: ; --tw-numeric-fraction: ; --tw-ring-inset: ; --tw-ring-offset-width:0px; --tw-ring-offset-color:#ffffff; --tw-ring-color:#3b82f680; --tw-ring-offset-shadow:0 0 #0000; --tw-ring-shadow:0 0 #0000; --tw-shadow:0 0 #0000; --tw-shadow-colored:0 0 #0000; --tw-blur: ; --tw-brightness: ; --tw-contrast: ; --tw-grayscale: ; --tw-hue-rotate: ; --tw-invert: ; --tw-saturate: ; --tw-sepia: ; --tw-drop-shadow: ; --tw-backdrop-blur: ; --tw-backdrop-brightness: ; --tw-backdrop-contrast: ; --tw-backdrop-grayscale: ; --tw-backdrop-hue-rotate: ; --tw-backdrop-invert: ; --tw-backdrop-opacity: ; --tw-backdrop-saturate: ; --tw-backdrop-sepia: ; background-color:rgba(0, 0, 0, 0); text-decoration-line:none">total return has been 5.67%</a>&nbsp;&mdash; with shares of the ETF having traded down -1.58%, closing the day at $53.62&nbsp;per share. Compare this now to the S&amp;P 500&rsquo;s&nbsp;<a href="https://www.morningstar.com/etfs/arcx/spy/quote" rel="nofollow" style="border:0px solid; box-sizing:border-box; --tw-border-spacing-x:0; --tw-border-spacing-y:0; --tw-translate-x:0; --tw-translate-y:0; --tw-rotate:0; --tw-skew-x:0; --tw-skew-y:0; --tw-scale-x:1; --tw-scale-y:1; --tw-pan-x: ; --tw-pan-y: ; --tw-pinch-zoom: ; --tw-scroll-snap-strictness:proximity; --tw-gradient-from-position: ; --tw-gradient-via-position: ; --tw-gradient-to-position: ; --tw-ordinal: ; --tw-slashed-zero: ; --tw-numeric-figure: ; --tw-numeric-spacing: ; --tw-numeric-fraction: ; --tw-ring-inset: ; --tw-ring-offset-width:0px; --tw-ring-offset-color:#ffffff; --tw-ring-color:#3b82f680; --tw-ring-offset-shadow:0 0 #0000; --tw-ring-shadow:0 0 #0000; --tw-shadow:0 0 #0000; --tw-shadow-colored:0 0 #0000; --tw-blur: ; --tw-brightness: ; --tw-contrast: ; --tw-grayscale: ; --tw-hue-rotate: ; --tw-invert: ; --tw-saturate: ; --tw-sepia: ; --tw-drop-shadow: ; --tw-backdrop-blur: ; --tw-backdrop-brightness: ; --tw-backdrop-contrast: ; --tw-backdrop-grayscale: ; --tw-backdrop-hue-rotate: ; --tw-backdrop-invert: ; --tw-backdrop-opacity: ; --tw-backdrop-saturate: ; --tw-backdrop-sepia: ; background-color:rgba(0, 0, 0, 0); text-decoration-line:none">total return year-to-date of 15.15%</a>&nbsp;&mdash; with JEPI having only captured 38% of their benchmark index&rsquo;s performance thus far in 2023.

2023 has not been a banner year for the ETF as the &ldquo;Magnificent Seven&rdquo; continues to propel the S&amp;P 500 higher.

However, if you include performance of both 2021, 2022, and year-to-date 2023 &mdash; JEPI has delivered a 21.12% total return for its investors. Compare that figure now to the 21.98% total return of the S&amp;P 500 Index &mdash;&nbsp;pretty incredible.

<h3>The Next Best Thing</h3>

Since 2021, JEPI has proven to continually accomplish its investment objective of delivering incremental income to its investors with the potential for capital appreciation while optimizing for low volatility.

However, during times of immense bullish sentiment (most of 2023) it&rsquo;s obvious JEPI is unable to keep up with its benchmark index. This is because of the way their management team writes their covered call option contracts as well as the Fund&rsquo;s underlying holdings. As explained above, this has caused the Fund to only capture 38% of the S&amp;P 500&rsquo;s year-to-date returns.

To complement JEPI, I&rsquo;ve introduced the NEOS S&amp;P 500 High Income ETF to my portfolio &mdash; a very similar ETF that has been able to capture over 97% of the S&amp;P 500&rsquo;s total return year-to-date while paying a 12.19% annual distribution yield to its investors.

SPYI&rsquo;s price action year-to-date has been positive 2.41%, while paying income of 10.27% &mdash;&nbsp;<a href="https://www.morningstar.com/etfs/bats/spyi/performance" rel="nofollow" style="border:0px solid; box-sizing:border-box; --tw-border-spacing-x:0; --tw-border-spacing-y:0; --tw-translate-x:0; --tw-translate-y:0; --tw-rotate:0; --tw-skew-x:0; --tw-skew-y:0; --tw-scale-x:1; --tw-scale-y:1; --tw-pan-x: ; --tw-pan-y: ; --tw-pinch-zoom: ; --tw-scroll-snap-strictness:proximity; --tw-gradient-from-position: ; --tw-gradient-via-position: ; --tw-gradient-to-position: ; --tw-ordinal: ; --tw-slashed-zero: ; --tw-numeric-figure: ; --tw-numeric-spacing: ; --tw-numeric-fraction: ; --tw-ring-inset: ; --tw-ring-offset-width:0px; --tw-ring-offset-color:#ffffff; --tw-ring-color:#3b82f680; --tw-ring-offset-shadow:0 0 #0000; --tw-ring-shadow:0 0 #0000; --tw-shadow:0 0 #0000; --tw-shadow-colored:0 0 #0000; --tw-blur: ; --tw-brightness: ; --tw-contrast: ; --tw-grayscale: ; --tw-hue-rotate: ; --tw-invert: ; --tw-saturate: ; --tw-sepia: ; --tw-drop-shadow: ; --tw-backdrop-blur: ; --tw-backdrop-brightness: ; --tw-backdrop-contrast: ; --tw-backdrop-grayscale: ; --tw-backdrop-hue-rotate: ; --tw-backdrop-invert: ; --tw-backdrop-opacity: ; --tw-backdrop-saturate: ; --tw-backdrop-sepia: ; background-color:rgba(0, 0, 0, 0); text-decoration-line:none">a total return of 13.30%</a>. And after taking into account their tax-efficient strategies &mdash;&nbsp;ensuring more is kept in my pockets come tax time by leveraging&nbsp;<a href="https://www.investopedia.com/terms/s/section-1256-contract.asp" rel="nofollow" style="border:0px solid; box-sizing:border-box; --tw-border-spacing-x:0; --tw-border-spacing-y:0; --tw-translate-x:0; --tw-translate-y:0; --tw-rotate:0; --tw-skew-x:0; --tw-skew-y:0; --tw-scale-x:1; --tw-scale-y:1; --tw-pan-x: ; --tw-pan-y: ; --tw-pinch-zoom: ; --tw-scroll-snap-strictness:proximity; --tw-gradient-from-position: ; --tw-gradient-via-position: ; --tw-gradient-to-position: ; --tw-ordinal: ; --tw-slashed-zero: ; --tw-numeric-figure: ; --tw-numeric-spacing: ; --tw-numeric-fraction: ; --tw-ring-inset: ; --tw-ring-offset-width:0px; --tw-ring-offset-color:#ffffff; --tw-ring-color:#3b82f680; --tw-ring-offset-shadow:0 0 #0000; --tw-ring-shadow:0 0 #0000; --tw-shadow:0 0 #0000; --tw-shadow-colored:0 0 #0000; --tw-blur: ; --tw-brightness: ; --tw-contrast: ; --tw-grayscale: ; --tw-hue-rotate: ; --tw-invert: ; --tw-saturate: ; --tw-sepia: ; --tw-drop-shadow: ; --tw-backdrop-blur: ; --tw-backdrop-brightness: ; --tw-backdrop-contrast: ; --tw-backdrop-grayscale: ; --tw-backdrop-hue-rotate: ; --tw-backdrop-invert: ; --tw-backdrop-opacity: ; --tw-backdrop-saturate: ; --tw-backdrop-sepia: ; background-color:rgba(0, 0, 0, 0); text-decoration-line:none">Section 1256 contracts</a>&nbsp;and&nbsp;<a href="https://www.investopedia.com/terms/t/taxgainlossharvesting.asp" rel="nofollow" style="border:0px solid; box-sizing:border-box; --tw-border-spacing-x:0; --tw-border-spacing-y:0; --tw-translate-x:0; --tw-translate-y:0; --tw-rotate:0; --tw-skew-x:0; --tw-skew-y:0; --tw-scale-x:1; --tw-scale-y:1; --tw-pan-x: ; --tw-pan-y: ; --tw-pinch-zoom: ; --tw-scroll-snap-strictness:proximity; --tw-gradient-from-position: ; --tw-gradient-via-position: ; --tw-gradient-to-position: ; --tw-ordinal: ; --tw-slashed-zero: ; --tw-numeric-figure: ; --tw-numeric-spacing: ; --tw-numeric-fraction: ; --tw-ring-inset: ; --tw-ring-offset-width:0px; --tw-ring-offset-color:#ffffff; --tw-ring-color:#3b82f680; --tw-ring-offset-shadow:0 0 #0000; --tw-ring-shadow:0 0 #0000; --tw-shadow:0 0 #0000; --tw-shadow-colored:0 0 #0000; --tw-blur: ; --tw-brightness: ; --tw-contrast: ; --tw-grayscale: ; --tw-hue-rotate: ; --tw-invert: ; --tw-saturate: ; --tw-sepia: ; --tw-drop-shadow: ; --tw-backdrop-blur: ; --tw-backdrop-brightness: ; --tw-backdrop-contrast: ; --tw-backdrop-grayscale: ; --tw-backdrop-hue-rotate: ; --tw-backdrop-invert: ; --tw-backdrop-opacity: ; --tw-backdrop-saturate: ; --tw-backdrop-sepia: ; background-color:rgba(0, 0, 0, 0); text-decoration-line:none">tax-loss harvesting</a>&nbsp;&mdash; my after-tax returns become increasingly more favorable.

It&rsquo;s my understanding the main reason why SPYI has been able to outperform JEPI year-to-date has to do with how they write their covered call option contracts. According to their&nbsp;<a href="https://neosfunds.com/spyi/#holdings" rel="nofollow" style="border:0px solid; box-sizing:border-box; --tw-border-spacing-x:0; --tw-border-spacing-y:0; --tw-translate-x:0; --tw-translate-y:0; --tw-rotate:0; --tw-skew-x:0; --tw-skew-y:0; --tw-scale-x:1; --tw-scale-y:1; --tw-pan-x: ; --tw-pan-y: ; --tw-pinch-zoom: ; --tw-scroll-snap-strictness:proximity; --tw-gradient-from-position: ; --tw-gradient-via-position: ; --tw-gradient-to-position: ; --tw-ordinal: ; --tw-slashed-zero: ; --tw-numeric-figure: ; --tw-numeric-spacing: ; --tw-numeric-fraction: ; --tw-ring-inset: ; --tw-ring-offset-width:0px; --tw-ring-offset-color:#ffffff; --tw-ring-color:#3b82f680; --tw-ring-offset-shadow:0 0 #0000; --tw-ring-shadow:0 0 #0000; --tw-shadow:0 0 #0000; --tw-shadow-colored:0 0 #0000; --tw-blur: ; --tw-brightness: ; --tw-contrast: ; --tw-grayscale: ; --tw-hue-rotate: ; --tw-invert: ; --tw-saturate: ; --tw-sepia: ; --tw-drop-shadow: ; --tw-backdrop-blur: ; --tw-backdrop-brightness: ; --tw-backdrop-contrast: ; --tw-backdrop-grayscale: ; --tw-backdrop-hue-rotate: ; --tw-backdrop-invert: ; --tw-backdrop-opacity: ; --tw-backdrop-saturate: ; --tw-backdrop-sepia: ; background-color:rgba(0, 0, 0, 0); text-decoration-line:none">holdings</a>&nbsp;(11/7/22), the Fund is writing covered call option contracts with a strike price roughly 5% &ldquo;out of the money.&rdquo;

By writing covered call option contracts &ldquo;out of the money,&rdquo; SPYI&rsquo;s price is able to appreciate in value in rising markets &mdash; like the market we&rsquo;ve experienced thus far in 2023.

<h3>A Dynamic Duo</h3>

Again, I firmly believe JEPI deserves a place in dividend-focused investors&rsquo; portfolios &mdash; especially when you take into account their immense outperformance during the volatile year of 2022. However, 2023 has proven to investors that flaws with the ETF exist and can seriously eat into investor returns when compared to those of the S&amp;P 500.

I believe SPYI is a great complement to this ETF. With the same benchmark index, SPYI has been able to capture over 97% of the S&amp;P 500&rsquo;s total return year-to-date while delivering a consistent monthly distribution to their investors.

Together, they are an income-focused investor&rsquo;s dream. Consistent monthly income, upside potential, tax efficiency, and lower volatility during times of uncertainty.

Disclaimer: This is not financial advice or recommendation for any investment. The content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice.

JEPI: No Longer An Income-Focused Investor's Only Holdings, It's Time To Play Offense

It&rsquo;s been six months since I first began researching the NEOS S&amp;P 500 High Income ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/SPYI#BATS">SPYI</a>) &mdash; continuously benchmarking its performance against the JPMorgan Equity Premium ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JEPI#NYSE">JEPI</a>).

In this post, I want to analyze the NEOS S&amp;P 500 High Income ETF&rsquo;s performance year-to-date as well as compare that performance to other popular income-focused ETFs. To remind everyone, the Neos S&amp;P 500 High Income ETF&nbsp;<a href="https://neosfunds.com/spyi/" rel="nofollow">investment objective</a> seeks to generate high monthly income in a tax efficient manner with the potential for equity appreciation in rising markets.

SPYI is an actively-managed exchange-traded fund that seeks to achieve its investment objective by investing in a portfolio of stocks that make up the S&amp;P 500 Index and a call option strategy, which consists of a mix of written (sold) call options and long (bought) call options on the S&amp;P 500 Index.

<h3>Price Performance</h3>

When researching high-income ETFs to add to an income-focused portfolio, an important consideration is total performance. Plainly speaking, what&#39;s the point of holding an ETF that generates double-digit distribution yields if the price return of the ETF declines over time?

For example, at the time of writing (10/23/23), JEPI&rsquo;s price return year-to-date has been -3.06% &mdash; compared to the S&amp;P 500&rsquo;s year-to-date return of 11.07%. Sure, JEPI paid their investors 6.51% in income year-to-date &mdash; but even after considering both their year-to-date price action and their yield (<a href="https://www.morningstar.com/etfs/arcx/jepi/performance" style="text-decoration-line:none">3.05% total return</a>), you still would have been better off investing into the S&amp;P 500 and simply selling your profits to supplement your income.&nbsp;

We see a similar story with the Global X S&amp;P 500 Covered Call ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XYLD#NYSE">XYLD</a>). This ETF&rsquo;s price return has been slightly more favorable than JEPI&rsquo;s &mdash; coming in at -3.01% year-to-date, as well as boasting a healthy 8.40% in income paid year-to-date. However, when considering their <a href="https://www.morningstar.com/etfs/arcx/xyld/performance" style="text-decoration-line:none">total return of 5.56%</a>, you still would have been better off investing into the S&amp;P 500 and simply selling your profits to supplement your income.

<h3>What About SPYI?&nbsp;</h3>

SPYI&rsquo;s price action year-to-date has been 1.62%, while paying income of 9.34% &mdash; <a href="https://www.morningstar.com/etfs/bats/spyi/performance" style="text-decoration-line:none">a total return of 10.99%</a>. This figure is substantially closer to the S&amp;P 500&rsquo;s total return of 11.38% year-to-date. So close, in fact, that SPYI has captured over 96% of the S&amp;P 500&rsquo;s total return thus far in 2023.&nbsp;

And after taking into account their tax-efficient strategies &mdash; ensuring more is kept in your pocket come tax time by leveraging <a href="https://www.investopedia.com/terms/s/section-1256-contract.asp" style="text-decoration-line:none">Section 1256 contracts</a> and <a href="https://www.investopedia.com/terms/t/taxgainlossharvesting.asp" style="text-decoration-line:none">tax-loss harvesting</a> &mdash; your after-tax returns become increasingly more favorable when compared to simply selling your short-term S&amp;P 500 profits to supplement your income.

From a pure price return perspective, SPYI has outperformed both JEPI and XYLD by 4.68% and 4.63%, respectively. This is mainly because of the way that SPYI writes their option contracts. According to the <a href="https://neosfunds.com/spyi/#holdings" style="text-decoration-line:none">holdings</a> (as of 10/23/23), the Fund is writing covered call option contracts with a strike price roughly 5% &ldquo;out of the money.&rdquo;&nbsp;

Compare this now to XYLD&rsquo;s <a href="https://www.globalxetfs.com/funds/xyld/#holdings" style="text-decoration-line:none">holdings</a> (as of 10/23/23) &mdash; who seems to be writing covered call option contracts with a strike price &ldquo;at the money.&rdquo; Because of this &quot;passively managed&quot; option strategy, XYLD&#39;s monthly dividend payments to their investors vary greatly. This is likely because of their inability to adjust option positioning month-to-month despite market volatility or price action.

By writing covered call option contracts &quot;out of the money,&quot; SPYI&#39;s price is able to appreciate in value in rising markets. This isn&#39;t the case for XYLD, as once the S&amp;P 500 has appreciated beyond the strike price of their covered calls, their upside is capped at the total amount of premium generated by the option contracts.

<h3>Yields</h3>

As shared before, SPYI&rsquo;s year-to-date income has been 9.34% &mdash; with a current annualized distribution yield of 12.22% (as of 10/23/23). Year-to-date, SPYI has paid out $4.37 per share in the form of cash dividends to their investors.&nbsp;

Year-to-date, XYLD has paid out $3.21 per share in the form of cash dividends to their investors and boasts a 10.21% annual distribution yield. Year-to-date, JEPI has paid out $3.44 per share in the form of cash dividends to their investors and boasts a 8.19% annual distribution yield. Both of these yields are quite healthy, but certainly not double digits like SPYI&rsquo;s.

<h3>Conclusion</h3>

The NEOS S&amp;P 500 High Income ETF has outperformed both the JPMorgan Equity Premium Income ETF and the Global X S&amp;P 500 Covered Call ETF in price appreciation, income generated year-to-date, and total return.&nbsp;

Moreover, these returns don&#39;t include the favorable tax efficiencies afforded to its investors &mdash; potentially keeping even more money in investor pockets when Uncle Sam comes knocking. JEPI and XYLD certainly have their place in income-focused investor portfolios &mdash; but with their year-to-date total returns lagging both the S&amp;P 500 and SPYI in a meaningful way &mdash; I begin to question &quot;Where?&quot;

As an income-focused investor myself, I&#39;m surprised more investors don&#39;t know about the obvious benefits of choosing SPYI over its peers.

This content is for informational purposes only and is not intended to be investing advice.

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Comments

SHP ETF Trust NEOS S&P 500 High Income ETF

News

Latest news for SHP ETF Trust NEOS S&P 500 High Income ETF (BATS:SPYI)

Wednesday, April 17, 2024

Friday, March 15, 2024

Tuesday, November 07, 2023

Monday, October 23, 2023