When markets can't decide which way to go, maybe the smartest move is not picking a side at all. That's the thinking behind NEOS Investments' latest launch, the NEOS Long/Short Equity Income ETF (NLSI), which hit the market on December 11.

Here's the setup: NLSI combines a long/short equity strategy with options to generate income. Instead of betting on whether stocks go up or down, the fund plays both sides simultaneously. NEOS has built its reputation on options-based income strategies, and now it's bringing that expertise to the long/short world—a space traditionally dominated by hedge funds and active mutual funds, with only a handful of ETFs in the mix.

The fund runs on a proprietary model that constructs both the long and short equity portfolios. NEOS typically maintains around 30 long positions and 30 short positions, keeping things balanced. This neutrality means the fund's performance hinges more on picking the right stocks than on guessing where the overall market is headed. No aggressive bullish or bearish bets here—just an attempt to avoid the pitfalls of trying to time the market.

There's also a tax angle worth noting. NLSI uses options on the SPX Index that qualify as Section 1256 contracts, which come with blended 60/40 tax treatment. That means 60% of gains are taxed at long-term capital gains rates and 40% at short-term rates, regardless of how long you hold them. The fund also aims to benefit from tax-loss harvesting, adding another layer of potential efficiency.

The real goal here is monthly income paired with the possibility of equity appreciation, all while maintaining lower correlation with traditional equity and income investments. For investors tired of riding every market swing, NLSI positions itself as a strategy designed to operate steadily in the background—delivering returns that don't require you to correctly predict where stocks are going next.