CSHI: The Options-Based Cash Alternative Everyone Needs To Know About Right Now
Portfolio Pulse from Austin Hankwitz
The NEOS Enhanced Income Cash Alternative ETF (CSHI) is being highlighted as a superior alternative to the JPMorgan Ultra-Short Income ETF (JPST) for investors seeking to generate income while maintaining low volatility. CSHI uses a put option strategy to generate additional yield and distributes mid-single-digit percentages in cash to shareholders monthly. The fund has a 6.63% distribution yield and has outperformed JPST by 1.58% year-to-date. CSHI's income-generating investment is short-term U.S. Treasuries, while JPST's income-generating investments include corporate bonds, commercial paper, and various asset-backed securities.

September 25, 2023 | 3:44 pm
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NEGATIVE IMPACT
JPST has underperformed CSHI by 1.58% YTD, despite its popularity among investors seeking to generate income while maintaining low volatility.
JPST's underperformance compared to CSHI could lead to a shift of investors from JPST to CSHI, potentially driving down its price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
CSHI's put option strategy and focus on short-term U.S. Treasuries has led to a 6.63% distribution yield and 1.58% YTD outperformance over JPST.
CSHI's put option strategy and focus on short-term U.S. Treasuries has allowed it to generate a higher yield and outperform JPST. This could attract more investors to the fund, potentially driving up its price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100