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How Income ETF Duo GPIQ & GPIX Can Meet Client Needs 

BY | ETF Database
7:08 am ET 09/08/26 | 6 VIEWS
The headlines may sensationalize, but it’s hard to miss: Markets are under some pressure right now. While that has yet to impact all clients, it risks spreading to equities and stocks more broadly even in a strong earnings year. With inflation rising too, investors and advisors may want to consider income ETF funds like the Goldman Sachs S&P 500 Premium Income ETF (GPIX A) and the Goldman Sachs Nasdaq-100 Premium Income ETF (GPIQ A).Key Takeaways: Income ETF strategies can help investors meet portfolio goals, especially amid rising costs and with many nearing retirement. Where bond ETFs provide income often via bond coupons, equity income ETFs use call options. That lets funds like GPIQ and GPIX combine equity upside with that crucial current income, delivering 10.1% and 8.1% in 12-month trailing distributions, respectively, as of July 31. The pair of income ETF strategies have pulled in serious inflows so far this year, speaking to that current income appeal. Rather than take a more traditional approach to income via bond coupons, the pair embrace the ETF wrapper’s flexibility by using options. GPIX and GPIQ charge 29 basis points, with both funds looking to provide that crucial income. The income ETF duo both launched in 2023, with their respective three-year anniversaries arriving next month. Traditionally, when ETFs hit their third year of operation, they get added to key brokerages. That can prove a catalyst for interest from investors waiting for sufficient performance data. As such, the timing could be right for the duo of income ETF strategies to stand out. How, then, do they invest? The pair of funds actively invest in their respective index of focus. The funds look to combine capital growth with that crucial income. They both use an options overlay strategy, selling call options on between 25% and 75% of their equity investments. They add in FLEX options, as well, to get that income. See more: As Bonds Rout, Lean On These Short-Term Bond ETFs for Help Together, that has helped GPIX and GPIQ return 13.4% and 15.6% YTD, respectively, according to ETF Database data. The pair of income ETFs provided an 8.11% and a 10.12% 12-month trailing distribution rate, respectively, pre Goldman Sachs data as of July 31. Overall, then, the pair of strategies may be one to watch, with some important tailwinds just as risks are mounting. For more news, information, and strategy, visit the Future ETFs Content Hub.

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