Goldman Sachs ETF Trust Goldman Sachs S&P 500 Premium Income ETF

GPIX

Market cap $1.62B

For those who adopt a dividend strategy, having a “thermometer” with which to measure the real performance of our stocks is an immense advantage. This thermometer is NAV, a simple line on a graph that anyone can observe and understand without the need for calculations or interpretations. If it grows over the years, it means that the security earned its distributions: if it goes down, it means that it paid them at the expense of NAV.

JPMorgan Equity Premium Income ETF (JEPI) has underperformed expectations as growth stocks outpaced value, widening the gap this year. JEPI successfully avoided significant downside volatility, with a smaller drawdown compared to broader S&P 500 funds like GPIX during market declines. However, in bull markets, capturing upside volatility is critical, and GPIX demonstrated stronger performance by participating more fully in market rebounds.

The Goldman Sachs S&P 500 Premium Income ETF (GPIX) offers an attractive 8% yield using a covered call strategy on S&P 500 exposure. However, it has a familiar problem - it underperforms the underlying (SPY) holdings during uptrends. Buying SPY and selling shares each month for income may seem a better alternative.

Interest rates have fallen once already this fall, and could be set to fall yet more in the months ahead. Should the Fed tame inflation, those cuts could, then, see a shift in investor portfolios' fixed income allocations as yields drop.

The Goldman Sachs S&P 500 Premium Income ETF offers an 8% yield, with a unique partial call-overwrite strategy, balancing income and appreciation. GPIX's dynamic half-half overwrite approach allows for manager discretion, preserving upside potential and reducing long-term principal erosion versus peers. Since inception, GPIX has delivered strong total returns and consistent monthly payouts, making it ideal for retirees seeking reliable income.

Goldman Sachs S&P 500 Premium Income ETF has outperformed Neos S&P 500 High Income ETF, due to its flexible options strategy. GPIX offers a strong balance of income and total returns, with an 8% income target and better performance during market rallies, compared to SPYI. SPYI prioritizes higher income, with a 10-12% annual target, but employs a more rigid options strategy, leading to lower total returns than GPIX.

Goldman Sachs S&P 500 Premium Income ETF (GPIX) delivers high single-digit yields and capital appreciation via a dynamic covered call strategy on the S&P 500. GPIX has outperformed many covered call peers in both appreciation and income since inception, with a total return of 51.45% and $7.41 in distributions. The ETF's flexible options strategy allows for monthly income, but investors must weigh capped upside and variable distributions, versus pure S&P 500 exposure.

Covered call ETFs like GPIQ and GPIX offer retirees attractive income streams, especially when held in tax-advantaged accounts such as Roth IRAs. GPIQ provides Nasdaq-100 exposure with active management, a lower expense ratio (0.29%), and strong performance versus peers, making it ideal for income-focused investors. GPIX offers broader S&P 500 diversification, a similar cost structure, and outperforms many competitors, balancing sector concentration and yield for steady monthly payouts.

Could now be the time to add an active income ETF? Uncertainty abounds in 2025, and though the initial wave of tariff and geopolitical risk has receded, those risks still loom over many portfolios.

2025 is just about three-quarters of the way done, giving market watchers an opportunity to take stock of the big data points that have defined the year. In income ETFs, for example, two particular funds have already picked up $1 billion YTD.