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NEOS’ SPYI and CSHI offer Buffett-style 90/10 with about 11.3% yield

The approach keeps a 90% S&P 500 and 10% short-term Treasury bills mix, but shifts the goal from capital appreciation to higher cash flow via covered-call style options.

Saturday, July 25, 2026 · Written up by our desk · ETFs

Yahoo Finance outlines a way to adapt Warren Buffett’s widely cited 90/10 framework for investors focused on income rather than growth. Buffett’s original model places 90% of his estate in a low-cost S&P 500 index fund and 10% in short-term U.S. Treasury bills after his death, a simple allocation meant to balance long-term equity exposure with a highly liquid, low-risk sleeve.

Instead of using the underlying assets directly, the article describes swapping in NEOS Investments ETFs that aim to preserve the same broad split while increasing distributions. It says the portfolio uses the NEOS S&P 500 High Income ETF, SPYI, for the equity allocation, paired with another ETF, CSHI, for the Treasury portion.

According to Yahoo Finance, the resulting weighted average distribution yield is roughly 11.26%. The piece also notes that both ETFs rely on S&P 500 index options and use Section 1256 tax treatment, and that historically a meaningful share of distributions has been classified as return of capital.

The article flags trade-offs: higher income may come with higher fees and the possibility of lagging a traditional S&P 500 plus Treasury bill portfolio during bull markets. It also emphasizes tax-aware tactics such as tax-loss harvesting as part of the income strategy.

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