Goldman Sachs' Covered-Call ETF Outshines Rival by 5% This Year

The Goldman Sachs Nasdaq-100 Premium Income ETF (GPIQ) has outperformed its larger rival, JPMorgan's Nasdaq Equity Premium Income ETF (JEPQ), in 2024. GPIQ returned 17% year-to-date, surpassing JEPQ's 12% return.

GPIQ achieves this performance through a direct call-writing strategy on its own equity holdings, avoiding the equity-linked notes used by JEPQ, which introduces counterparty risk. This structural difference highlights the trade-off between immediate income and long-term growth potential in covered-call ETFs.

While JEPQ offers higher monthly income distributions, GPIQ provides better total returns and lower fees, making it a preferable choice for investors seeking both income and Nasdaq upside participation.