Key Takeaways
- Income ETFs using options strategies have pulled in notable flows this year.
- Iran war volatility may be contributing.
- Strategies like GPIX and GPIQ can help.
Income ETFs using options have been one of the biggest categories in recent years. As global volatility has risen, advisor clients and investors of all kinds have clamored for some added income. Options strategies have proliferated in response, packaged in the tax-efficient ETF wrapper. By combining equities exposure and options, those ETFs stood out in the first quarter.
See more: Clients Stuck Holding Cash? These ETFs Offer a Bridge
Goldman Sachs offers a variety of income ETFs that have been part of that rising cast. The firm’s suite includes names like GPIX and GPIQ. The two, launched in October 2023, provide active approaches to income. While their returns may have dipped much like the broader market, the huge flows they saw, and the income they offered, deserve greater attention.
GPIX, the Goldman Sachs S&P 500 Premium Income ETF, charges a 29 basis point fee. It combines call options with exposure to the S&P 500, which can offer long term benefits. Its income, however, is the primary source of appeal, helping draw more than $750 million in net inflows in the last three months per ETF Database data. That helped lift its AUM above $3 billion for the first time.
Specifically, GPIX looks to generate income via call options on 25% to 75% of a portfolio’s equity investments. It also uses FLEX options. That has helped GPIX offer an 8.11% 12-month trailing distribution rate over the last 12 months as of February 28, 2026, per Goldman Sachs Asset Management data.
GPIQ, the Goldman Sachs Nasdaq-100 Premium Income ETF, provides a Nasdaq-100 version of GPIX. The strategy’s equity holdings also have slowed with the broader market, but it too has added major inflows. GPIQ has also outpaced $750 million in net inflows. The income ETF offered a 10.1% 12-month trailing distribution rate as of February 28\, itself.
Income ETFs like these have seen those big flows likely as investors worry about global volatility. Energy prices are likely poised for severe disruption for months and months to come. Meanwhile, tariffs, monetary uncertainty, and a bloated tech market all loom, as well. Those factors, and the innovation found in income ETFs, has helped them pick up that notable attention.
On the other hand, if markets recover, and the Iran war’s impact is only somewhat limited, equities exposure within income ETFs could help them perform even more. Looking ahead, as options-based ETFs continue to innovate, funds like GPIX and GPIQ could prove to be even more relevant to investors.
Originally published on ETF Trends
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