Will 2026 see more than average market turbulence? One month in, and there is a case to make. Geopolitical risk already reared its ugly head, with the world entering a new era where nations feel much more free to attack one another. Meanwhile, U.S. central bank independence looks under threat just as the interest rate picture grows muddier than ever. Income ETFs, a very popular fund category in recent years, may offer key solutions.
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Income ETFs combine income strategies and the ETF’s own advantages as a wrapper in an appealing package. The ETF offers flexibility, transparency, tradability, and crucially, tax efficiency for potential investors. That flexibility, and the ETF rule’s streamlining of launches in 2019, have helped income ETFs blossom.
Income ETFs and Capital Growth
Amid that income ETF renaissance, Goldman Sachs has added two funds that may appeal as a source of additional ballast in 2026. The Goldman Sachs S&P 500 Premium Income ETF (GPIX ) and the Goldman Sachs Nasdaq-100 Premium Income ETF (GPIQ ) both charge 29 basis points for income views on the S&P 500 and Nasdaq-100, respectively.
Both funds launched in October 2023, putting them on target to celebrate their three-year ETF milestones this coming fall. The pair actively invests in stocks from their targeted index universes, applying a call strategy on those stocks. The use of call options and the exposure to the underlying equities intends to help investors grow capital while offering steady income.
GPIX has taken that approach and outperformed its ETF Database Category average over the last year, with GPIQ outperforming the Nasdaq-100 by an even greater margin. The funds returned 14.75% and 18.7%, respectively. GPIX provided an 8% 12-month trailing distribution rate as of December 31, per Goldman Sachs data. GPIQ has provided a 9.8% rate according to that metric, as well.
Looking ahead, the funds embrace the strengths of the ETF wrapper to stand out in the income ETFs space. For those looking to get income for a turbulent year, GPIX and GPIQ can intrigue.
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