The NEOS Enhanced Income Credit Select ETF (HYBI) is a fixed-income fund managed by Neos with $0.21 billion in assets under management. Launched in September 2024, HYBI seeks total return from income and capital appreciation, aiming to provide tax-efficient monthly income. A key differentiator is its investment strategy, which primarily invests in other high-yield corporate bond ETFs, offering diversification within the high-yield space.
The NEOS Enhanced Income Credit Select ETF (HYBI) is a fixed-income fund managed by Neos with $0.21 billion in assets under management. Launched in September 2024, HYBI seeks total return from income and capital appreciation, aiming to provide tax-efficient monthly income. A key differentiator is its investment strategy, which primarily invests in other high-yield corporate bond ETFs, offering diversification within the high-yield space.
ETF Overview
The investment objective of the NEOS Enhanced Income Credit Select ETF (the “Fund”) is to seek total return from income and capital appreciation while providing a tax efficient monthly income.
The NEOS Enhanced Income Credit Select ETF (HYBI) aims to achieve total return through a combination of income and capital appreciation. It seeks to provide tax-efficient monthly income by investing primarily in other high-yield corporate bond ETFs. This fund operates as a fund-of-funds, with its top holdings including the Xtrackers USD High Yield Corp Bd ETF (HYLB) at 32.20%, the iShares Broad USD High Yield Corp Bd ETF (USHY) at 32.13%, and the State Street® SPDR® Port Hi Yld Bd ETF (SPHY) at 31.16%. These ETFs provide exposure to a broad basket of high-yield corporate bonds. HYBI also holds smaller positions in money market funds like First American Treasury Obligs X (FXFXX) and Northern US Government Money Market (NOGXX). Sector allocation is diverse, with significant exposure to Technology (34.1%), Financial Services (12.6%), and Communication Services (11.2%). The fund's country exposure is primarily to 'Other' (75.0%) and the United States (25.0%). This ETF is designed for investors seeking diversified exposure to high-yield corporate bonds through a single investment vehicle.
Risk Metrics
HYBI's risk profile is influenced by its fund-of-funds structure and sector concentrations. The ETF's significant allocation to other high-yield ETFs introduces a layer of indirect risk, as the performance is dependent on the management and holdings of those underlying ETFs. Sector concentration is notable, with Technology comprising 34.1% of the portfolio, which could lead to increased volatility if the technology sector experiences a downturn. Financial Services and Communication Services also represent significant portions of the portfolio, at 12.6% and 11.2% respectively. The fund's beta is 0.00, indicating very low volatility relative to the overall market, but this may be misleading given the fund's short history. The expense ratio of 0.68% can create a drag on returns, especially in a low-yield environment. Investors should be aware of these concentration and expense-related risks when considering HYBI.
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<a href="/etf/bamb">Brookstone Intermediate Bond ETF (BAMB)</a> — 1.04% expense ratio
<a href="/etf/flcb">Franklin U.S. Core Bond ETF (FLCB)</a> — 0.15% expense ratio
<a href="/etf/nihi">NEOS MSCI EAFE High Income ETF (NIHI)</a> (Equity) — 0.75% ER
<a href="/etf/nlsi">NEOS Long/Short Equity Income ETF (NLSI)</a> (Equity) — 2.89% ER
<a href="/etf/spyh">NEOS S&P 500 Hedged Equity Income ETF (SPYH)</a> (Equity) — 0.68% ER
<a href="/etf/iyri">NEOS Real Estate High Income ETF (IYRI)</a> (Equity) — 0.68% ER
<a href="/etf/xqqi">NEOS Boosted Nasdaq-100 High Income ETF (XQQI)</a> (Equity) — 0.98% ER
<a href="/etf/iaui">NEOS Gold High Income ETF (IAUI)</a> (Commodity) — 0.78% ER
Risk Metrics
Beta: 0.00
Questions & Answers
What is HYBI and what does it track?
The NEOS Enhanced Income Credit Select ETF (HYBI) is a fixed-income ETF managed by Neos, launched in September 2024. It aims to provide total return from income and capital appreciation, with a focus on tax-efficient monthly income. HYBI achieves this by primarily investing in other high-yield corporate bond ETFs, such as the Xtrackers USD High Yield Corp Bd ETF (HYLB), iShares Broad USD High Yield Corp Bd ETF (USHY), and State Street® SPDR® Port Hi Yld Bd ETF (SPHY). These three ETFs make up over 95% of HYBI's holdings. Therefore, HYBI's performance is directly tied to the performance of these underlying high-yield bond ETFs.
What is the expense ratio for HYBI?
The expense ratio for the NEOS Enhanced Income Credit Select ETF (HYBI) is 0.68%. This means that for every $1000 invested in the fund, $6.80 is used to cover the fund's operating expenses. While there isn't a readily available category average for fund-of-funds with a similar strategy, the expense ratio is higher than some individual high-yield corporate bond ETFs. this may be worth researching expense ratio when evaluating the potential returns of HYBI.
What are the top holdings in HYBI?
The top holdings in the NEOS Enhanced Income Credit Select ETF (HYBI) are primarily other high-yield corporate bond ETFs. As of 2026-03-15, the top three holdings are: 1) Xtrackers USD High Yield Corp Bd ETF (HYLB) at 32.20%, 2) iShares Broad USD High Yield Corp Bd ETF (USHY) at 32.13%, and 3) State Street® SPDR® Port Hi Yld Bd ETF (SPHY) at 31.16%. The fund also holds First American Treasury Obligs X (FXFXX) at 3.82% and Northern US Government Money Market (NOGXX) at 0.80%.
Is HYBI a good long-term investment?
Determining whether HYBI is a suitable long-term investment depends on an individual's investment goals and risk tolerance. HYBI's strategy of investing in other high-yield ETFs provides diversification within the high-yield corporate bond market. However, the 0.68% expense ratio can impact long-term returns. With an AUM of $0.21 billion, HYBI has established a reasonable asset base since its inception in September 2024. Past performance does not guarantee future results, and potential investors should carefully consider the risks and benefits before investing.
How does HYBI compare to similar ETFs?
HYBI differs from many high-yield ETFs due to its fund-of-funds structure, primarily investing in other high-yield ETFs. For example, HYLB and USHY, two of HYBI's top holdings, are direct competitors in the high-yield space. HYBI's expense ratio of 0.68% is higher than HYLB (0.15%) and USHY (0.15%). However, HYBI offers a potentially more diversified approach within the high-yield market through its allocation strategy. With AUM of $0.21 billion, HYBI is smaller than both HYLB and USHY, which have significantly larger asset bases.
Does HYBI pay dividends?
As of 2026-03-15, the NEOS Enhanced Income Credit Select ETF (HYBI) has a dividend yield of 0.00%. While the fund's objective is to seek total return from income and capital appreciation while providing a tax efficient monthly income, the current dividend yield is zero. Investors seeking income should monitor HYBI's dividend payouts, as these can fluctuate based on market conditions and the performance of the underlying high-yield bond ETFs.