This Gold ETF Turns a Non-Yielding Asset Into Monthly Income—But There's a Catch

This Gold ETF Turns a Non-Yielding Asset Into Monthly Income—But There’s a Catch

As gold trades more than 20% below its late-January intraday record, many of the macro conditions that fueled its multi-year rally remain in place. For investors who still see a long-term case for the precious metal, however, one drawback remains unchanged: gold itself doesn’t generate income. Now, one exchange-traded fund (ETF) is looking to attract investors who may have avoided the asset due to its lack of yield.

Mounting government debt, record U.S. debt levels, persistent inflation, geopolitical unrest, weakness in fiat currencies, and continued central bank gold buying all helped fuel gold’s multi-year rally. Cumulatively, those catalysts propelled the safe-haven asset to a more than 160% gain since the start of 2024 through its all-time high of $5,589.38 per troy on Jan. 28. But after six months of profit-taking and price consolidation, not only have those tailwinds not dissipated, they remain firmly in place.

The U.S. Bureau of Labor Statistics’ August Consumer Price Index (CPI) report showed headline inflation at 3.4% year over year (YOY). Energy has been a significant contributor to inflation, while supply disruptions tied to the Iran war, sharply reduced commercial traffic through the Strait of Hormuz, the shutdown of Saudi Arabia’s East-West pipeline, and disruptions in the Red Sea have helped keep oil prices elevated. The price of Brent crude —the global oil benchmark—is currently around $108 per barrel As a result, energy commodity prices have risen by 28% YOY according to the most recent CPI report, with diesel prices in the United States currently sitting at a record high.

The war between Russia and Ukraine shows no signs of subsiding, while weakness in the U.S. dollar —which is down around 13% from its five-year high—has also helped support gold prices. Meanwhile, those global conflicts and the resultant inflation have incentivized increased central bank gold-buying, which has amounted to 130 tons through the first seven months of the year, according to the World Gold Council. Twenty-three tons of the precious metal were purchased by central banks in July alone, eight tons of which were purchased by the National Bank of Poland.

NEOS Gold High Income ETF Today IAUI NEOS Gold High Income ETF $49.53 -0.73 (-1.45%) As of 09/16/2026 04:10 PM Eastern 52-Week Range $47.86 ▼ $64.57 Dividend Yield 1.05% Assets Under Management $618.08 million Add to Watchlist

While gold bugs have benefited from accumulating the physical metal for the past several years, owning the alternative asset has numerous disadvantages. If it is kept in a gold IRA, it must be insured and stored with an IRS-approved custodian. It is less liquid than equities, and critically important to income investors, it doesn’t provide yield. The NEOS Gold High Income ETF BATS: IAUI has set out to remedy that. Since its inception on June 4, 2025, the fund has aimed to offer monthly income through a data-driven call option strategy on gold exchange-traded products (ETPs). The ETF couples that yield with share appreciation based on its exposure to physical gold through the aforementioned ETPs. That strategy ent...