NEOS Investments estimated that return of capital made up 94% of SPYI’s Sept. 18 payment, a provisional split that can affect shareholders’ tax basis and later tax bills.
NEOS estimated the return-of-capital portion at $0.5014 per share, out of a total $0.5338 distribution. The notice describes the estimate as a book calculation and says it is not for tax reporting. Fund results through fiscal year-end and tax rules could change the final classification.
NEOS says a return-of-capital distribution generally is not taxed immediately and may reduce a shareholder’s current tax liability. NEOS says the resulting lower adjusted cost basis may increase taxable gains when shares are later sold, raising a shareholder’s tax bill.
The final federal tax classification will appear in the calendar-year Form 1099-DIV.
