Goldman Sachs Asset Management has launched two actively managed ETFs designed to create monthly income at a stable rate.
The Goldman Sachs S&P 500 Core Premium Income ETF (GPIX) and the Goldman Sachs Nasdaq-100 Core Premium Income ETF (GPIQ) are transparent funds designed to allow investors to generate current income and growth through a dynamic options overwrite strategy, Goldman Sachs Asset Management said.
GPIX was created to try to replicate the capitalization and industry characteristics of its benchmark, the S&P 500 Index, which includes about 500 large cap companies representing about 80% of available market capitalization. At the same time the fund should provide monthly income distributions at a relatively stable rate.
GPIQ seeks was designed to be similar to its benchmark, the Nasdaq-100 Index, which tracks 100 of the largest domestic and international non-financial companies listed on the Nasdaq. It also should provide monthly income distributions at a relatively stable rate.
“GPIX and GPIQ leverage the benefits of the ETF wrapper to broaden investor access to the expertise of the broader Wealth Investment Solutions team, a global deep and broad platform skilled at designing and building personalized portfolios and customized investment solutions tailored to client investment goals and objectives,” Monali Vora, head of wealth investment solutions at Goldman Sachs Asset Management, said in a statement.
“As we have experienced extended periods of volatility, investors have been demanding more ways to enhance their core portfolio holdings with products that can potentially deliver consistent monthly income, lower volatility and offer a diverse source of yield,” Michael Crinieri, global head of ETFs at Goldman Sachs Asset Management, said in a statement. GPIX and GPIQ “meet (the) demand for cost-effective active solutions that aim to deliver more specific investment outcomes.”
With the addition of GPIX and GPIQ, Goldman Sachs Asset Management manages more than $30 billion across 43 ETF strategies.