Why Goldman Sachs GPIQ is the Safest High-Yield Monthly Dividend ETF To Buy Now

Goldman Sachs Nasdaq-100 Core Premium Income ETF (Nasdaq: GPIQ) presents a compelling opportunity for investors seeking a steady stream of monthly income as well as exposure to top tech stocks, with the added benefit of being managed by world-class investment bank Goldman Sachs (NYSE: GS). Let’s take a deeper dive into GPIQ to see if it belongs in your portfolio.

How GPIQ works

GPIQ provides exposure to the Nasdaq-100 Index by owning all of the stocks within it while generating income from those positions by using a covered call strategy. A covered call strategy involves holding stocks and selling call options on them to collect premiums. GPIQ passes this income on to investors through monthly distributions.

By selling call options, GPIQ generates steady cash flow and reduces volatility, offering some downside protection in flat or declining markets. However, this strategy also limits upside potential in bull markets since gains are capped at the option’s strike price.

GPIQ’s top 10 holdings

GPIQ’s portfolio is composed of leading Nasdaq-100 companies and all of the Magnificent 7, giving investors exposure to best-in-class technology companies. Here are the top 10 holdings as of its latest filing:

• Apple Inc. (Nasdaq: AAPL): 8.9%
• Microsoft Corp. (Nasdaq: MSFT): 7.89%
• NVIDIA Corp. (Nasdaq: NVDA): 7.88%
• Amazon.com Inc. (Nasdaq: AMZN): 5.63%
• Broadcom Inc. (Nasdaq: AVGO): 4.13%
• Meta Platforms Inc. (Nasdaq: META): 3.49%
• Netflix Inc. (Nasdaq: NFLX): 2.76%
• Costco Wholesale Corp. (Nasdaq: COST): 2.69%
• Alphabet Inc. (Class A) (Nasdaq: GOOGL): 2.62%
• Alphabet Inc. (Class C) (Nasdaq: GOOG): 2.52%

Tesla (Nasdaq: TSLA), the Mag 7 stock not on this list, is a holding of GPIQ, but is outside of the top 10.

The holdings of GPIQ provide significant upside potential while the covered call strategy helps generate income and reduce overall volatility.

Monthly distributions

GPIQ launched in October 2023 and has paid distributions each month since December 2023. It has paid at least $0.40 per share for the last 10 months, including $0.41484 per share earlier this month, $0.4377 per share in February, and $0.4285 per share in January. If you were to annualize its latest distribution of $0.41484 per share, it would amount to about $4.98 per share and would give it a yield of roughly 10.9% at the time of this writing.

The consistent monthly payout shows that GPIQ is a reliable source of monthly income, even in uncertain market environments like the one we’ve had so far in 2025.

Why it’s a safe investment

GPIQ is a safe investment because of the combination of income and protection it provides. In addition to enabling the monthly distributions, GPIQ’s covered call strategy reduces volatility through the protection it provides in flat or declining markets, since the covered calls offset the lack of movement or downside movement in the underlying stock positions it holds.

Additionally, GPIQ’s holdings make it safer than other monthly dividend payers. As we already discussed, its portfolio is comprised of top-tier Nasdaq-100 companies with heavier weightings towards the best-in-breed technology stocks, like Apple, Alphabet, Meta, Amazon.com, Microsoft, and Nvidia. This focus on quality, established companies provides a solid foundation and reduces the risk of significant losses while also maintaining the potential for growth.

In summary, the combination of owning high-quality companies and an income-producing options strategy makes GPIQ one of the safest options for investors seeking a steady source of monthly income.

Does GPIQ belong in your portfolio?

With ongoing uncertainty in the market, including tariffs, geopolitical tensions, and recession fears, GPIQ offers investors the opportunity to generate significant income along with the potential for price appreciation and the benefit of downside protection. For those seeking a high-yield ETF with reliable monthly distributions, GPIQ is one of the safest options you will find in the market and could be exactly what you’ve been searching for.

The post Why Goldman Sachs GPIQ is the Safest High-Yield Monthly Dividend ETF To Buy Now appeared first on 24/7 Wall St..