Goldman’s Nasdaq Income Fund Returned 87.58% Since Its October 2023 Launch Against QYLD’s 56.19%

Retirees like the Global X NASDAQ 100 Covered Call ETF (NASDAQ:QYLD) because it pays every month and holds the Nasdaq’s biggest names. Global X says QYLD has made monthly distributions for 12 years running, and income investors count on that kind of consistency. QYLD now has a direct rival. The Goldman Sachs Nasdaq-100 Premium Income ETF (NASDAQ:GPIQ) launched in October 2023 and has grown investors’ money much faster than QYLD since then.

From October 26, 2023 through delayed quotes in the Monday, November 9 early afternoon session, GPIQ returned 87.58%, and QYLD returned 56.19%. That puts GPIQ ahead by 31.39 points. A $100,000 position in GPIQ grew to $187,580, while the same amount in QYLD grew to $156,190. Both periods start on the same date, and both figures assume every distribution was reinvested.

What These Return Figures Assume

Both funds pay large monthly distributions, and many owners spend them. Investors who took the cash did not get the returns above. Those figures describe a holder who used every payment to buy more shares. For anyone living on the monthly check, the since-launch gap shows the growth they gave up by spending, and their own result in either fund will look different.

QYLD Paid the Bigger Monthly Check

Over the trailing twelve months, a $100,000 position in QYLD paid out $12,113.19, or $1,009.43 a month on average. The same amount in GPIQ paid $10,901.02, or $908.42 a month. Both funds made twelve payments during that period.

A retiree who needs the largest possible monthly check has a legitimate reason to choose QYLD (we rounded up seven more funds and stocks that pay on a monthly schedule in a free report if that is the goal). The cost has been slower growth of the balance since GPIQ launched.

Recent Results Favor QYLD

QYLD leads in all three periods (albeit by a small margin), and both funds lost ground over the past month. GPIQ’s edge comes entirely from its full record since launch. Over the past year, QYLD has led.

How Each Fund Generates Income

The two funds hold Nasdaq stocks and sell options to make income, but they take different approaches. That choice affects how much of a rally each fund keeps.

QYLD is passively managed. It seeks to track the Cboe Nasdaq-100 BuyWrite V2 Index, which holds the stocks in the Nasdaq-100 and writes call options on the same index. Global X describes the strategy as rules-based and notes that writing covered calls “can limit the upside potential of the underlying security.”

GPIQ is actively managed. It “seeks current income while maintaining prospects for capital appreciation.” Under normal circumstances, it invests at least 80% of its net assets in companies in its benchmark, the Nasdaq-100. It can use options and other derivatives to generate premium income. In practice, QYLD follows a fixed rulebook while GPIQ’s managers choose how to use options.

Check for Return of Capital Before Buying

Part of a distribution from an options-income fund can be a return of your own invested money. That portion is your own principal coming back to you. Before buying either fund, read its distribution notices and its year-end tax forms to see how each payment is classified.

Per-share payout amounts differ from yields. Because they trade at very different share prices, comparing payouts per share tells you nothing. Compare dollar income on equal-sized positions, as in the figures above.

Limits of This Comparison

GPIQ’s record starts in late October 2023, so no five-year or ten-year comparison is possible. QYLD has been around since 2013, but most of that history has no GPIQ equivalent. The comparison above covers one shared period.

Tax Considerations When Moving Between Funds

In an IRA or other tax-advantaged account, selling QYLD to buy GPIQ triggers no tax bill. In a taxable account, selling QYLD shares that have gained in value creates a capital gain. Some investors avoid that by sending new contributions and reinvested distributions to a different fund while leaving existing shares in place. That way, the position shifts over time without a large tax hit.

Which Fund Matches Each Income Goal

For investors who spend every distribution, QYLD has paid the larger monthly check. If you reinvest and want your balance to grow, GPIQ has the better record since launch. In that case, GPIQ’s since-launch record is the more relevant comparison point.

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