Two Of My Favorite High Income ETFs For Volatile Markets
"Get Tax-Advantaged Income From GPIQ & GPIX"
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As I write this, uncertainty surrounding the U.S. economy is building rapidly.
Coming into the year, I was bullish on the broader market—mainly driven by expectations for multiple interest rate cuts. Now, I’m not so sure.
But here’s the reality: in chaos comes opportunity.
And from where I sit, this may be one of the best environments in years to be an income-focused investor.
I’ve said this before and I’ll say it again:
👉 Every investor should have at least two portfolios.
👉 One of those should be 100% focused on income.
With the market likely facing muted returns in the near-to-medium term, income strategies can help bridge the gap—providing steady cash flow while the market figures itself out.
In this article, I’ll break down:
Why uncertainty is rising
Why income investing makes sense right now
Two high-yield ETFs I believe are well-positioned
Uncertainty Is Rising ↗️
In 2025, despite ongoing concerns, the market held up well.
The S&P 500 (SP500) finished the year up over 16%, led primarily by strength in the Technology Select Sector SPDR Fund (XLK) thanks to AI enthusiasm.
But 2026 is telling a different story.
Through the first few months of the year, sentiment has shifted. The market is beginning to price in a reality that many may have overlooked:
👉 The economy may not be as strong as advertised.
Personally, I’ve felt this disconnect for a while—based on what I’ve seen from everyday Americans.
And looking ahead, things may get worse before they get better.
We’re now dealing with:
Rising geopolitical tensions (including conflict with Iran)
Higher oil prices following disruptions like the Strait of Hormuz
Renewed inflation concerns
Mortgage rates climbing again
All of this matters because it directly impacts Fed policy expectations.
If inflation stays sticky, rate cuts get pushed out.
If rate cuts get pushed out, markets struggle.
Translation: More volatility. Potentially lower returns.
Why Income Investing Makes Sense Now 💵
If we enter a period of:
Sideways markets
Increased volatility
Slower economic growth
Then traditional “growth-only” strategies may struggle.
That’s where income investing shines.
Instead of relying purely on price appreciation, you:
Generate consistent cash flow
Reduce reliance on market timing
Stay invested while still getting paid
In uncertain markets, cash flow = flexibility + peace of mind.
High-Yield Pick #1
The first fund I like is: Goldman Sachs S&P 500 Premium Income ETF (GPIX)
Current Price: $50.12
Current Yield: ~8.8%
Unlike some competitors, GPIX:
Holds actual equities (not synthetic exposure)
Owns top-tier companies like:
NVIDIA (NVDA)
Apple (AAPL)
Microsoft (MSFT)
Amazon (AMZM)
Meta Platforms (META)
Technology remains its largest exposure via Technology Select Sector SPDR Fund.
The Strategy Advantage:
GPIX uses a dynamic covered call strategy, selling options on only 25%–75% of its portfolio.
That’s key.
Compared to peers like NEOS S&P 500 High Income ETF (SPYI), which often overwrite nearly 100%:
✔ More upside participation in bull markets
✔ Still generates strong income in flat markets
✔ Better balance between growth + income
Why It Works Right Now 👍🏾
In sideways or volatile markets:
Options premiums increase
Income generation improves
And that’s exactly the type of market we may be entering.
Add in:
Monthly distributions
Lower expense ratio (0.35% vs ~0.68% peers)
And you get a strong long-term income vehicle.
High-Yield Pick #2
Next up is: Goldman Sachs Nasdaq-100 Premium Income ETF (GPIQ)
Current Price: $49.68
Current Yield: ~10.9%
What Makes It Different 📝
GPIQ tracks the Nasdaq-100 (NDX).
That means:
Heavier tech exposure (~50%+)
More concentration (≈100 holdings vs ~500 in GPIX)
It also leans more into:
Communication services via Communication Services Select Sector SPDR Fund (XLC)
Same Strategy, Higher Income 💸
Like GPIX, GPIQ:
Uses dynamic covered calls (25%–75%)
Maintains upside exposure
Generates strong income
Compared to peers:
JPMorgan Nasdaq Equity Premium Income ETF (JEPQ)
NEOS Nasdaq-100 High Income ETF (QQQI)
GPIQ has held up competitively while offering:
✔ Higher yield
✔ Lower expense ratio
✔ Stable distributions
Why These Two Stand Out 👏🏾
So why GPIX and GPIQ?
1. Smarter Covered Call Strategy
Partial overwrite (not 100%)
Better long-term balance
2. Lower Costs
0.35% expense ratio
Less drag on returns
3. Tax Advantages
Use Section 1256 contracts
Favorable tax treatment
High portion classified as return of capital
4. Built for This Market
Thrive in flat/volatile conditions
Generate income when growth stalls
Risks to Consider ⚠️
Let’s be clear—these aren’t risk-free.
If we see:
A prolonged recession
Severe market drawdowns
Extended geopolitical conflict
👉 These funds will still decline.
High yields do not eliminate downside risk.
Bottom Line ✅
We’re entering a market environment where:
Growth may slow
Volatility may increase
Returns may be harder to come by
That’s exactly where income strategies can shine.
GPIX and GPIQ won’t outperform in every scenario—but they are designed for the environment we’re likely heading into.
And if your goal is to:
✔ Generate consistent income
✔ Stay invested
✔ Reduce reliance on market timing
Then building (or adding to) an income-focused portfolio right now may be one of the smartest moves you can make.
What do you think of the two covered call ETFs? Let me know in the comments.
Happy Investing!
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Not financial advice. For educational purposes only. I am not a licensed professional. Do your own due diligence.
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