170: Our New Favorite ETFs

The episode centers on NEOS Funds' suite of ETFs, which combine covered-call strategies with exposure to equities, commodities, and other assets to generate monthly income while addressing common investor challenges such as market volatility and the desire for cash flow without selling holdings.

Market conditions and portfolio durability

The hosts and NEOS managing partners Troy Cates and Garrett Paolella opened with observations on 2026 market behavior. Early expectations for multiple Fed rate cuts gave way to persistent inflation pressures, with oil prices rising toward $100 per barrel amid geopolitical events. Equity markets experienced a sharp Q1 selloff followed by a rapid Q2 rebound, producing V-shaped recoveries.

Cates and Paolella noted that investors often seek to buy dips yet frequently lack cash on the sidelines when opportunities appear. Their consistent recommendation was to maintain diversification and use systematic additions during drawdowns rather than attempting to time entries. This approach supports what they termed "durability," meaning a portfolio that can absorb volatility without prompting emotional exits. They observed that even large-fund managers encounter the same behavioral patterns among clients, reinforcing the value of preset allocation rules over reactive decisions.

Commodity-focused high-income ETFs