Goldman Sachs’ GPIQ underperformed its benchmark as option premiums failed to offset Apple’s earnings-driven surge.
The Goldman Sachs Nasdaq-100 Core Premium Income ETF (GPIQ) fell 6.1% in July, lagging Apple’s 15.23% gain after the tech giant’s earnings beat. The fund’s covered-call strategy transferred upside to option buyers instead of shareholders.
Since GPIQ’s October 26, 2023 launch, its 89.08% total return trails QQQ’s 89.21% price return, excluding QQQ’s dividends. Apple, GPIQ’s top holding, rose 94.31% over the same period, highlighting the strategy’s trade-offs.
GPIQ charges a 0.29% expense ratio ($29 per $10,000), slightly above QQQ’s 0.20% ($20 per $10,000), but the performance gap stems from the options overlay rather than fees.