Ellis Investment Partners disclosed a purchase of Goldman Sachs S&P 500 Premium Income ETF (GPIX +0.54%) shares valued at an estimated $3.3 million during the quarter ended September 30, according to an SEC filing released Wednesday.
What Happened
According to an SEC filing on Wednesday, Ellis Investment Partners increased its stake in the Goldman Sachs S&P 500 Premium Income ETF by 64,462 shares during the third quarter. The estimated transaction value was $3.3 million. Following this buy, the fund’s position totals 107,147 shares valued at $5.6 million as of September 30.
What Else to Know
This was a buy; the GPIX stake now represents 1.01% of Ellis Investment Partners’ 13F reportable AUM.
Top holdings after the filing:
- NYSEMKT:VUG: $30.5 million (5.5% of AUM)
- NYSE:RNP: $27.3 million (4.9% of AUM)
- NASDAQ:DVY: $27 million (4.9% of AUM)
- NASDAQ:QQQ: $26.8 million (4.8% of AUM)
- NASDAQ:AAPL: $24.1 million (4.4% of AUM)
As of Thursday’s market close, GPIX shares were priced at $52.41, up 7% over the past year versus a 16% gain for the S&P 500.
ETF Overview
| Metric | Value |
|---|---|
| Total Fund Assets | $2 billion |
| Price (as of market close Thursday) | $52.41 |
| 1-year total return | 16% |
ETF Snapshot
- GPIX invests at least 80% of its net assets in equity securities of companies included in the S&P 500 Index, aiming to match the style, capitalization, and industry characteristics of the benchmark.
- Underlying holdings are diversified across S&P 500 constituents, with a portfolio composition designed to maintain close alignment with the index.
- The ETF provides investors with systematic exposure to large-cap U.S. equities and enhanced income potential.
The fund offers investors a rules-based approach to income generation from S&P 500 equities, maintaining broad market exposure while focusing on yield and diversification.
Foolish Take
Ellis Investment Partners’ latest investment in the Goldman Sachs S&P 500 Premium Income ETF (GPIX) highlights the continued appeal of income-focused equity strategies among institutional investors seeking steady returns. The ETF, which launched last year, blends traditional S&P 500 exposure with an options overlay that generates monthly income distributions, yielding a roughly 8% 12-month distribution rate as of September 30. That structure has drawn demand from investors looking for yield without leaving equities. GPIX’s assets under management stand $1.95 billion as of late October, underscoring its momentum in the premium-income ETF space.
For Ellis, and given the ETF’s top holdings in NVIDIA, Microsoft, and Apple, this move complements its growth-heavy investments in VUG, QQQ, and AAPL, adding a more defensive element to the portfolio after a strong year for risk assets. For long-term investors, GPIX offers an alternative to bond-like income with equity participation, even though the options strategy can lag in sharply rising markets.
Glossary
ETF (Exchange-Traded Fund): An investment fund traded on stock exchanges, holding a basket of assets like stocks or bonds.
AUM (Assets Under Management): The total market value of assets an investment firm or fund manages on behalf of clients.
13F reportable: Refers to holdings that must be disclosed in quarterly SEC filings by institutional investment managers with over $100 million in assets.
Dividend yield: Annual dividends paid by a fund or stock divided by its current price, shown as a percentage.
Trailing twelve-month: Data measured over the most recent 12 consecutive months, often used for performance or yield.
S&P 500 Index: A stock market index tracking the performance of 500 large U.S. companies, widely used as a benchmark.
Benchmark: A standard against which the performance of a security, fund, or investment manager is measured.
Large-cap: Refers to companies with a large market capitalization, typically over $10 billion.
Systematic exposure: Investment strategy aiming for consistent, rules-based exposure to a specific market or asset class.
Portfolio composition: The mix and proportion of different assets or securities held within an investment portfolio.
Premium Income: Investment strategy focused on generating additional income, often through options or enhanced yield techniques.
Outperforming: Achieving a higher return than a specific benchmark or comparable investment.
