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. That interest comes among growing uncertainty in the broader economy and rising prices. Those ETFs, then, could be worth investigating for curious investors, both those near retirement and those just starting out.
GPIQ and GPIX, income ETFs from Goldman Sachs, both have added more than $1 billion in net inflows since January 1. The Goldman Sachs Nasdaq-100 Premium Income ETF (GPIQ) added $1.04 billion in net inflows YTD, per ETF Database, as of September 5. The Goldman Sachs S&P 500 Premium Income ETF (GPIX), meanwhile, picked up $1.01 billion in that same time frame.
The fund pair provides income via similar strategies that build off of two different indexes. Both strategies charge a 29 basis point fee for an active approach. They each actively invest in firms within their respective indexes, but add on a call strategy to produce that current income. The income ETFs look to mirror their benchmarks based on attributes like style, capitalization, and industry characteristics, for example.
That has helped GPIQ return 10.9% YTD, according to ETF Database data, as of September 5. That performance beat both the fund’s ETF Database Category and FactSet Segment averages at 9% and 6.4%, respectively. GPIX also beat those averages on a YTD basis. That fund has returned 9.3% YTD.
The income ETFs’ significant flows speak to their ability to combine that performance with income. According to Goldman Sachs data, GPIQ offered a 9.89 12-month trailing distribution rate as of July 31. GPIX provided its investors with a 12-month trailing distribution rate of 8.17.
Looking ahead, if economic uncertainty and risk rises, income can help those nearing retirement or even those younger investors wanting income and performance as well.
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