Author Buys Goldman Sachs ETF with 8%-Yielding Monthly Income

The author of this article recently bought shares in the Goldman Sachs S&P 500 Premium Income ETF (GPIX), which has an impressive distribution yield of over 8% in the last year.

The fund's goal is to generate a consistent monthly income from options premium and equity dividends. It achieves this by selling call options, typically on between 25% and 75% of its equity holdings. The fund often uses Flexible Exchange (FLEX) options, which allow it to customize exercise prices and expiration dates.

The Goldman Sachs S&P 500 Premium Income ETF owns stocks that are members of the S&P 500 index, including the 'Magnificent Seven' stocks: Nvidia (NVDA), Apple (AAPL), Microsoft (MSFT), Amazon (AMZN), and Google parent Alphabet (GOOG) (GOOGL). The fund's net annual expense ratio is 0.29%.

The author chose this fund for its high monthly distribution, which they need to supplement their income after reducing their work schedule. They also believe the current market environment is favorable to this ETF's design, as volatility is likely to remain high due to various factors such as the Iran war and Federal Reserve rate hikes.

The Goldman Sachs S&P 500 Premium Income ETF has delivered a year-to-date total return of 12.67% as of August 31, 2026, which is roughly 96.4% of the S&P 500's total return. While it may not keep up with the gains of the S&P 500 in a strong rally and will forfeit some upside potential compared to owning a standard S&P 500 fund, the author prefers collecting 8% monthly income while capturing most of the S&P 500's upside.