Income ETF funds have become a big part of the ETF landscape in recent years, combining equity exposure and current income. More and more investors have looked to the category’s combination of ETF tax efficiency and flexibility, as well, making it one to watch in the growing ETF space. One such fund, the Goldman Sachs S&P 500 Premium Income ETF (GPIX), has taken that popularity and gathered increasing assets. Nearing $2 billion in AUM, it could be worth considering for investors wanting income in an uncertain market.
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GPIX currently sits at just under $2 billion in AUM. Specifically, the fund has $1.9 billion in current AUM, having gathered more than $1.1 billion in the last six months on net, per ETF Database data. That spike follows a slower rise in AUM since its 2023 launch, suggesting an uptick in flows and AUM growth pace this year. What, then, might be attracting those flows?
The income ETF charges 29 basis points for its approach. GPIX actively invests in firms within the S&P 500. Indeed, the income ETF largely aims to match the capitalization, style, and industry characteristics of the index. Where the strategy sets itself apart, however, is with its call options. GPIX sells call options on 25% to 75% of its portfolio therein to generate income. Its managers also retain the flexibility to use FLEX options to generate income, as well.
Taken together, the fund has returned 13.7% YTD according to ETF Database data. That has outperformed its ETF Database Category average in that time. What’s more, the strategy has outperformed that average over the last three months and over the last year, as well. It offered a 7.97% 12-month trailing distribution rate as of September 30 this year.
Together, that may make the fund an appealing offering for investors to consider. Economic uncertainty continues to rise, especially impacting those at or near retirement. For those investors, income matters quite a bit. GPIX offers a combination of equity growth and income that may make it worth considering to end the year.
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