Why Equity Income ETFs Can Star in Retiree Portfolios

Why Equity Income ETFs Can Star in Retiree Portfolios

It’s a complicated economic environment to retire in, with high costs and significant geopolitical and policy uncertainty. Still, people want and often may need to retire. However, thanks to innovation in the asset management world, investors have an increasing array of options. The recent proliferation of equity income ETFs, like the Goldman Sachs S&P 500 Premium Income ETF (GPIX) and the Goldman Sachs Nasdaq-100 Premium Income ETF (GPIQ), offer useful examples.

Key Takeaways:

  • Income ETFs GPIX and GPIQ will both celebrate their three-year ETF milestones in October.
  • The funds charge 29 basis points, offering both capital growth and income.
  • The strategies have both provided solid 12-month trailing distribution rates of 9.94% and 8.05%, respectively.

GPIX and its sibling GPIQ both celebrate their three-year ETF milestone in October. Hitting that mark traditionally helps ETFs gain exposure to more potential investors by highlighting a three-year track record.

GPIX and GPIQ charge a 29 basis point fee for investors interested in their approach. Both equity income ETFs look to generate income and capital growth, while mirroring the capitalization and overall style of their respective benchmark indexes.