Low S&P 500 Yield Drives Interest in NEOS ETF SPYI

The dividend yield on the largest S&P 500 ETF is about 1.06%, while the NEOS S&P 500 High Income ETF (SPYI) reports a 12.09% distribution paid monthly and $9.44 billion in assets under management. SPYI returned roughly 12% over the past 12 months and will mark its fourth anniversary in August.

Estimates place the S&P 500 dividend yield near multi-decade lows, at levels last seen about 50 years ago. In 2025 S&P 500 companies again spent more on share buybacks than on dividends, the fifth consecutive year that repurchase spending exceeded dividend outlays.

Index composition contributes to the low yield. Technology represents about 36.13% of the S&P 500. The seven largest mega-cap stocks together account for more than one-third of the index; two of those, Amazon and Tesla, do not pay dividends, and the other five have dividend yields below 1%.

SPYI pays monthly cash distributions and has reported positive price performance over the past year while maintaining a high distribution rate. The fund combines S&P 500 exposure with regular income payments.

Several large-cap companies, including Apple, Microsoft and Alphabet, have indicated plans to raise payouts. At the same time, companies are investing heavily in artificial intelligence and other capital projects, which may constrain larger dividend increases in the near term.

The gap between the low yield on broad-market S&P 500 ETFs and higher-distribution products has been reflected in investor flows toward funds that report larger current payouts. SPYI’s published figures include a 12.09% distribution rate, monthly distributions and $9.44 billion in AUM.