SPYI vs XYLD: New vs Established S&P 500 Covered Call
Both SPYI and XYLD sell call options on the S&P 500 to generate income. XYLD uses a straightforward at-the-money strategy with near-total upside cap. SPYI employs a more sophisticated approach that retains more market participation.
XYLD (Global X S&P 500 Covered Call) has been writing covered calls on the S&P 500 since 2013, selling one-month at-the-money calls each month and distributing the premium. The approach is simple and transparent, but it caps almost all upside. In 2023-2024, XYLD participated in nearly none of the S&P 500 rally above the strike price. SPYI (NEOS S&P 500 High Income) launched in 2022 with a more sophisticated approach: it uses S&P 500 index options (not individual stock options), writes at a slightly different strike, and uses tax-efficient return-of-capital distributions. SPYI has delivered higher total returns in recent periods because its options structure gives it more participation in moderate market rallies while still generating strong income. SPYI costs 0.68% vs XYLD's 0.60%. An 8 basis point difference that SPYI has more than covered through better performance.
Whether the lower-cost fund suits your situation depends on your existing holdings, account type, tax situation, and how you use each fund. This is a cost comparison, not a personalized recommendation.
📋 SPYI vs XYLD — Key Facts Side by Side
| Metric | SPYI | XYLD |
|---|---|---|
| Fund Name | Neos S&P 500(R) High Income ETF | Global X S&P 500 Covered Call ETF |
| Issuer | NEOS | Global X |
| Tracks Index | Active (S&P 500 index option strategy) | CBOE S&P 500 BuyWrite Index |
| Expense Ratio | 0.68% | 0.60% ✓ |
| Cost per $10K/yr | $68.00 | $60.00 |
| AUM | $10.4B | $3.2B |
| Holdings | 503 | 503 |
| Inception | 2022 | 2013 |
| 1-Year Return | +5.63% | +5.42% |
| 3-Year Return | +16.07% | +11.76% |
| 5-Year Return | — | +7.69% |
| Dividend Yield | 1.46% | 9.29% |
| Holdings Overlap | See holdings overlap → | |
| Avg Bid-Ask Spread | 0.04% | 0.05% |
Expense ratio, AUM, and returns updated Jul 14, 2026 from ETF BFF database. Returns are annualised. Not investment advice.
📊 SPYI vs XYLD — Annualised Returns
Annualised returns (trailing, price-based). Past performance does not guarantee future results.
🎯 Which Fund Fits Which Investor?
- already use NEOS and prefer staying within one fund family
- want the lowest fees: saves ~$8/yr per $10K vs SPYI
- already use Global X and prefer staying within one fund family
💰 What the Fee Difference Actually Costs
Adjust the numbers for your situation. This models each fund's expense ratio compounding against your balance over time.
Assumes a constant annual return reinvested, with each fund's expense ratio deducted yearly. Illustrative only; actual returns vary. Past performance does not guarantee future results.
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❓ SPYI vs XYLD — Frequently Asked Questions
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