Nasdaq 100 Core Premium Income ETF (GPIQ)
NASDAQ (NMS) NASDAQ (NMS) Primary 
Can GPIQ Dethrone JEPQ As King Of Nasdaq 100 Income?
I initiated coverage on JEPQ over a year ago, recommending it for aggressive income investors due to its high yield and Nasdaq 100 upside. GPIQ, a newer fund, has outperformed JEPQ in total return since inception, but has only existed in a bull market. The outperformance is very slight. Both funds utilize similar strategies: buying Nasdaq 100 components and selling call options to generate income, leading to minor price appreciation but high dividend distribution.
GPIQ: Dynamic Options ETF With Monthly Distributions
Goldman Sachs Nasdaq-100 Core Premium Income ETF offers a 9% dividend yield with distributions paid out on a monthly basis. The fund's dynamic options strategy allows for capital appreciation while providing income, differentiating it from other high-yield funds with synthetic exposure. GPIQ's portfolio includes top tech companies like Apple, Microsoft, and NVIDIA, benefiting from potential AI-driven growth, despite capping upside in bull markets.
GPIQ: Nasdaq-100 Exposure With Yield
The Goldman Sachs Nasdaq-100 Core Premium Income ETF uses an options overlay to boost yield, targeting investors bullish on the Nasdaq-100. GPIQ's holdings are concentrated in Information Technology (49.64%), Communication Services (16.16%), and Consumer Discretionary (14.59%), focusing on growth-driven companies. Compared to other Nasdaq-100 ETFs, GPIQ's call options strategy provides steadier income, but may limit gains in strong markets.
Outperforming The Competition: A Look At GPIQ
GPIQ uses an options strategy to enhance yield by writing call options on the NASDAQ-100 Index. By writing covered calls on only a portion of its long positions, the fund retains upside potential on the remaining, uncovered positions. The fund offers a 10% distribution yield while maintaining upside potential in its underlying holdings.
GPIQ: Better At Capturing Nasdaq 100 Upside
I rate GPIQ as a Buy due to its stellar performance, on target to distribute a 10.5% yield with strong capital appreciation and total returns. GPIQ's strategy involves selling at-the-money call options on 25-75% of its NASDAQ 100 portfolio, adjusted monthly based on market conditions. Limited history and lack of information about options strategy specifics from the management team pose a risk. Performance so far, however, has been good.
GPIQ: So Far So Good In This New Fund
Goldman Sachs Nasdaq-100 Core Premium Income ETF is a top-performing covered call fund focused on the Nasdaq index.
