Wealth Firm Exits GPIX: Long-Term Investors Should Note

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On Thursday, B&D White Capital Company disclosed in a quarterly SEC filing that it divested its full position in GPIX, realizing approximately $8.6 million during the quarter ended September 30.

Transaction Details

As per a quarterly Form 13F submission to the Securities and Exchange Commission, Texas-based B&D White Capital Company, operating under the moniker Coyle Capital, liquidated its entire stake in the Goldman Sachs S&P 500 Premium Income ETF (GPIX +0.61%). The sale encompassed 172,332 shares, valued at an estimated $8.7 million, for the quarter ending September 30.

Portfolio Composition

Top holdings post-filing:

  • NASDAQ:AMZN: $136 million (17.4% of AUM)
  • NYSEMKT:AVUS: $60.2 million (7.7% of AUM)
  • NYSEMKT:ILCG: $50.7 million (6.5% of AUM)
  • NYSEMKT:VTI: $38.5 million (4.9% of AUM)
  • NYSEMKT:IWF: $35.2 million (4.5% of AUM)

As of Friday, GPIX closed at $52.73, reflecting a 7% annual increase.

ETF Performance Metrics

Metric Value
AUM $1.7 billion
Dividend yield 8%
Price (as of market close Friday) $52.73
1-year total return 16%

ETF Structure and Objectives

  • The fund aims to generate premium income by allocating at least 80% of assets to S&P 500 equity securities, mirroring the benchmark’s style, capitalization, and sector characteristics.
  • The portfolio is diversified across S&P 500 constituents, offering exposure to large-cap U.S. equities.
  • The ETF is structured to prioritize premium income generation.

The Goldman Sachs S&P 500 Premium Income ETF provides diversified access to S&P 500 equities. Its 8% dividend yield and transparent ETF framework cater to institutional investors seeking efficient exposure to U.S. large-cap equities.

Strategic Implications

B&D White Capital’s full exit from GPIX signals a broader realignment away from income-focused equity products following a year of outperformance in covered-call strategies. This follows a similar disposition of its GPIQ position, indicating a deliberate shift toward core equity exposure. The move coincides with the fund’s top holdings, including Amazon, Avantis US Equity ETF, and iShares Morningstar Growth ETF.

GPIX, launched in late 2023, has amassed $1.96 billion in assets, offering a 7.97% trailing distribution rate. Its appeal stems from steady monthly payouts derived from option premiums and dividends. However, such mechanisms may limit upside potential during market rallies. For long-term investors, this exit underscores a critical portfolio consideration: premium income ETFs can deliver consistent cash flow but may underperform in bull markets.

Glossary

13F reportable assets: Assets mandatorily disclosed quarterly by institutional investment managers to the SEC, revealing their equity holdings.

Assets under management (AUM): Total market value of investments managed by a fund or entity.

ETF (exchange-traded fund): A pooled investment vehicle traded on stock exchanges, holding a diversified portfolio of assets.

Premium income: Income derived from strategies that collect premiums, typically via options, to enhance yield.

Dividend yield: Annual dividends expressed as a percentage of a security’s current price.

Benchmark: A reference index used to evaluate a fund’s performance.

Large-cap: Companies with market capitalizations exceeding $10 billion.

Diversified: Spreading investments across multiple assets to mitigate risk.

Total return: Price appreciation plus reinvested dividends and distributions.

Institutional investors: Entities managing substantial capital professionally, such as pension funds or endowments.

Form 13F: Quarterly SEC filing requiring institutional managers to disclose equity holdings.

Stake: Ownership interest in a security or company.

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2025-10-26 22:18