NEOS CSHI uses T‑bill options to lift yield to 4.7%

The NEOS Enhanced Income 1–3 Month T‑Bill ETF, ticker CSHI, holds one- to three-month U.S. Treasury bills and overlays an options strategy to boost income. Todd Rosenbluth, head of research, described the structure in a recent interview and cited a distribution yield near 4.7% as of the end of April and about $1 billion in assets under management.

CSHI’s core securities are ultra-short Treasury bills. The fund writes options against that cash-like base to collect premiums, a method intended to add yield while keeping duration and interest-rate sensitivity low.

Rosenbluth pointed to the ETF’s performance within its short-term bond category. He referenced a four-star Morningstar rating and noted the fund had outperformed peers by roughly 70 basis points over the prior three years, based on the data he reviewed. The fund’s expense ratio is 0.38 percentage point (38 basis points).

Rosenbluth described risk as limited because the underlying holdings are very short-dated Treasuries, but he also warned that a pure T‑bill fund or cash would be marginally safer because they do not use an options overlay and can incur lower fees. “You might be safer if you were just in cash. You might be safer if you were just in pure T‑bills,” he said.

He identified two common uses for CSHI: a place to park cash with higher income than many money-market alternatives, and a component of a short-duration fixed-income allocation to reduce interest-rate sensitivity while collecting option premiums.

The yield and performance figures cited reflect data available at the end of April and were discussed during a late-May interview; those figures may have changed since then. Investors are directed to the fund’s published materials and independent research for up-to-date information on holdings, fees and performance.