(NUSI) NEOS Trust - Ratings and Ratios

The NEOS ETF Trust (NASDAQ:NUSI) is an actively managed exchange-traded fund that employs a unique investment strategy to achieve its objectives. By combining a portfolio of stocks from the Nasdaq-100 Index with a put spread options collar on the same index, the fund aims to balance potential upside with downside protection. This approach is designed to mitigate risk while still allowing for participation in the growth of the underlying index.

The funds investment strategy is centered around maintaining at least 80% of its net assets, plus any borrowings for investment purposes, in securities or derivative instruments linked to the Nasdaq-100 Index. As a non-diversified fund, NUSI may have a more concentrated portfolio compared to diversified ETFs, which can result in higher volatility. The Nasdaq-100 Index is known for its heavy weighting in technology and growth stocks, which can be both a driver of growth and a source of risk.

From a technical standpoint, NUSI has demonstrated a strong upward trend, with its last price of $49.86 exceeding both its 20-day and 50-day simple moving averages (SMA20 and SMA50) of $48.41 and $48.96, respectively. The significant gap between the current price and its 200-day SMA of $32.03 indicates a substantial recovery and growth since the longer-term average was established. The Average True Range (ATR) of 1.12, representing a 2.25% daily volatility, suggests moderate daily price movements. Given the 52-week high and low of $53.72 and $22.04, respectively, the current price is nearing the upper end of its recent range, indicating potential resistance or consolidation ahead.

Fundamentally, the Assets Under Management (AUM) of $298.17 million indicate a reasonable level of investor interest and capital commitment. As an Equity Hedged ETF, NUSIs strategy is particularly appealing in volatile or declining markets, as it seeks to cushion against significant downturns while still participating in potential upside.

Forecasting future performance involves integrating both technical and fundamental analyses. Given NUSIs current technical setup, with the price above key short-term moving averages and a relatively high ATR, it suggests a continued potential for volatility. If the Nasdaq-100 Index continues to perform well, NUSIs strategy could benefit from the upside while the put spread options collar works to limit downside risk. However, if the index faces a significant correction, the protective collar could help mitigate losses. With its AUM and the ongoing interest in hedged equity strategies, NUSI is positioned to potentially continue its growth trajectory, albeit with the inherent risks associated with its investment strategy and the underlying index. A break above the 52-week high could signal further upside potential, while a drop below the SMA50 could indicate a need to reevaluate the funds prospects.