At a glance
BNDI charges 0.58% a year, below the 0.86% average of the 7 funds most like it (the cheapest of 8). It has $181.6M in assets, the 8th largest of that group; it paid 5.94% of its price in distributions over the past 12 months, monthly. Over the past year it returned +0.3% with distributions reinvested, the weakest of those 8 funds; over three years it returned +6.3% a year.
The short version
NEOS Enhanced Income Aggregate Bond ETF (BNDI) is an actively managed fund. It holds two large core bond ETFs, iShares Core U.S. Aggregate Bond (AGG) and Vanguard Total Bond Market (BND), and trades S&P 500 put options for extra income. That options layer helped lift its trailing 12-month yield to 5.94% as of October 27, 2026, paid monthly. It also adds stock-market risk that a plain bond fund doesn't carry.
Price history
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BNDI +0.3% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| BNDI official prospectus, to Dec 31, 2025 | — | +7.95% | — | — | — | +4.12% |
| BNDI price data to Oct 27, 2026 | +0.6% | +0.3% | +6.3% | — | — | +3.6% |
- Over the year to Oct 27, 2026, BNDI returned +0.3%, 8th of 8 among similar funds.
- Its worst full calendar year was 2024 (+1.8%); its best was 2025 (+8.0%).
- The deepest fall in its price history was 6.9% (Apr 5, 2023 to Oct 19, 2023), recovered by Dec 13, 2023.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +0.6% | — |
| 2025 | +8.0% | +7.95% |
| 2024 | +1.8% | +1.84% |
| 2023 | +6.9% | +6.80% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Before this security existed |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Before this security existed |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $2.2500 | |
| 2025 | $2.7100 | +4.2% |
| 2024 | $2.6000 | +3.2% |
| 2023 | $2.5200 |
What's inside
As of Jun 30, 2026, the fund held 2 securities; the ten largest made up 99.09% of assets.
| Fund held | Weight | |
|---|---|---|
| iShares Core U.S. Aggregate Bond ETF | 49.55% | |
| Vanguard Total Bond Market ETF | 49.54% |
By country
United States 99.09%By asset type
Stocks 99.09%What changed recently
- Over the three months to Jun 30, 2026, investors added a net $17.4M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +0.59%, +0.44%, +0.28%.
How it works
BNDI is managed by NEOS Investment Management, which picks the holdings rather than tracking an index. At least 80% of assets go into bonds, or into ETFs that follow the US aggregate bond market: Treasuries, mortgage-backed securities, corporate bonds and similar debt. In practice it is a fund of funds. As of June 30, 2026, 49.6% sat in AGG, 49.5% in BND and about 1% in cash. Its average duration, a measure of how much prices react to interest rates, normally runs 6 to 9 years. So it tends to fall when rates rise.
On top of the bonds, the fund runs a "put spread" on the S&P 500. It sells index put options worth up to 100% of net assets and collects a premium. In return it must pay out if the index falls below a set level. It also buys puts at lower levels, which limits that loss. As of June 30, 2026, it had sold puts at 6,850 and 6,925 and bought puts at 6,550 to 6,675, all expiring July 9, 2026. The manager may close these trades early. The setup aims to profit when stocks rise, stay flat or dip modestly. A sharp fall costs money.
The S&P 500 options settle in cash and qualify as "Section 1256 contracts." Their gains are taxed as 60% long-term and 40% short-term, no matter how long the fund held them. The fund may also sell losing positions to offset gains, a tactic called tax-loss harvesting.
What it really costs
- BNDI charges 0.58% a year, versus an average of 0.86% for the similar funds below (1st of 8, cheapest first).
- The fee includes a 0.03% waiver from the adviser, which may end.
- Using the prospectus's standard example, $10,000 invested would cost about $59 in the first year and $759 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| BNDI | $59 | $192 | $337 | $759 |
Structure and tax notes
- Invests in other funds rather than directly in stocks or bonds, so its holdings are those funds.
- Bond prices move opposite to interest rates; the longer the maturities it holds, the more its price reacts to rate changes.
In a retirement portfolio
BNDI aims to pay more monthly income than a plain aggregate bond fund by adding S&P 500 option premiums to the interest from its bond ETFs.
BNDI could add a bigger monthly payout than a plain core bond fund. Its trailing 12-month yield was 5.94% as of October 27, 2026. The catch: part of that income depends on the S&P 500 not falling sharply. In a stock crash, just when bonds are meant to cushion a portfolio, the put spread may lose money. That matters if you need to sell shares or draw income in a bad year. The fund launched in August 2022, so it has no record through the 2008 or 2020 crashes and missed most of the 2022 bear market. Its deepest drop was 6.9%, from April to October 2023, and it recovered by December 2023. Its weakest calendar year was 2024, at about 1.8%. It costs 0.58% a year: $59 in year one and $759 over ten years on $10,000, in the SEC's standard example. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Income seekers who want monthly payouts above a plain aggregate bond fund; its trailing yield was 5.94% as of October 27, 2026.
- Taxable-account investors who value the Section 1256 treatment of its S&P 500 options: gains taxed 60% long-term and 40% short-term.
- Investors comfortable with some stock-market risk who want AGG and BND bond exposure plus an options income layer in one fund.
Look elsewhere if
- Those who want bonds purely as a crash cushion; the S&P 500 puts it sells can lose money when stocks fall sharply.
- Cost-focused investors who could hold AGG or BND directly instead of paying BNDI's 0.58% expense ratio for the options overlay.
- People who want a long record: it launched in August 2022, had $181.6 million in net assets on June 30, 2026, and has never been through a full bear market.
Close alternatives
Matched by other buffer (defined-outcome) funds, largest first.
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| BNDI this fund | 0.58% | $181.6M | +0.3% | +6.3% |
| BUFR FT Vest Laddered Buffer ETF | 0.95% | $10.49B | +11.6% | +16.8% |
| BUFD FT Vest Laddered Deep Buffer ETF | 0.95% | $2.04B | +9.5% | +13.9% |
| PJAN Innovator U.S. Equity Power Buffer ETF - Ja… | 0.79% | $1.44B | +10.5% | +14.8% |
| PDEC Innovator U.S. Equity Power Buffer ETF - De… | 0.79% | $984.1M | +11.6% | +14.9% |
| FDEC FT Vest US Equity Buffer ETF - December | 0.85% | $1.31B | +12.9% | +18.5% |
| FJAN FT Vest US Equity Buffer ETF - January | 0.85% | $1.47B | +12.3% | +17.4% |
| FFEB FT Vest U.S. Equity Buffer Fund - February | 0.85% | $1.42B | +12.9% | +18.6% |
Questions investors ask
Does BNDI pay monthly dividends?
Yes. BNDI pays distributions every month, and monthly income is its stated goal. Over the 12 months to October 27, 2026, it paid $2.71 per share, a trailing yield of 5.94%. The money comes from two sources: interest from its bond ETFs and premiums from selling S&P 500 put options. The option income depends on how the stock market behaves, so monthly payments can vary and are not guaranteed.
What's the difference between BNDI and AGG?
BNDI actually owns AGG. As of June 30, 2026, 49.6% of the fund was in AGG and 49.5% in Vanguard's BND. On top, it adds an S&P 500 put-option strategy for extra income. That raises the payout but brings stock-market risk that AGG alone doesn't have. BNDI's expense ratio is 0.58%. It's worth comparing that with what it costs to own AGG or BND directly.
Is BNDI a buffer ETF?
No. Some fund screens group BNDI with buffer funds like FT Vest Laddered Buffer ETF (BUFR), but the strategies differ. Buffer funds hold stock exposure with a set limit on losses and gains. BNDI is a bond fund with an options income layer and no defined buffer. Those buffer funds charge 0.79% to 0.95%. They also returned far more in the year to October 27, 2026: BUFR gained 11.6%, BNDI 0.3%.
Can BNDI lose money if the stock market crashes?
Yes. BNDI sells S&P 500 put options worth up to 100% of its net assets. A sharp drop in stocks can cost the fund money, though the puts it buys limit those losses. It also carries interest-rate risk, with duration normally 6 to 9 years. Up to 30% of its directly held bonds can be junk bonds. Its deepest drop so far was 6.9%, in 2023.
How has BNDI performed since it launched?
Its returns have been modest. According to its prospectus, BNDI returned 6.8% in 2023, 1.84% in 2024 and 7.95% in 2025. Since its August 2022 launch, it averaged 4.12% a year through December 31, 2025. Based on market prices, it returned 0.3% over the year to October 27, 2026, and 6.3% a year over three years. Its strongest quarter was up 6.91%, and its weakest was down 3.2%, both in 2023.