Hilton Capital Sells $25 Million Worth of GPIX -- Signal or Portfolio Maintenance?

What happened

In a recent SEC filing, Hilton Capital Management, LLC, disclosed the sale of 478,741 shares of the Goldman Sachs S&P 500 Premium Income ETF (NASDAQ:GPIX) during the first quarter of 2026. The estimated transaction value was $25.0 million, calculated using the quarter’s average closing price. The fund's quarter-end GPIX position value decreased by $26.1 million -- reflecting both the shares sold and GPIX’s price movement during the quarter.

What else to know

• The GPIX position accounts for 1.1% of Hilton Capital Management, LLC's 13F AUM after the sale.
• Top holdings after the filing:
  • NYSE: SGOV: $157.4 million (11.9% of AUM)
  • NASDAQ: VCIT: $87.7 million (6.6% of AUM)
  • NASDAQ: VCSH: $82.8 million (6.3% of AUM)
  • NASDAQ: JEPQ: $60.3 million (4.6% of AUM)
  • NYSE: JPIE: $44.7 million (3.4% of AUM)
• As of May 22, 2026, GPIX shares were trading at $55.46, up about 27% over the past year -- trailing the S&P 500 by roughly 1.2 percentage points, while outperforming its Derivative Income category benchmark by roughly 2.6 percentage points.

ETF overview

ETF snapshot

The Goldman Sachs S&P 500 Premium Income ETF (GPIX) is designed to generate current income while maintaining the potential for capital appreciation, primarily through a premium income approach linked to the S&P 500 Index.

• Sells options on S&P 500 equities to generate premium income, combining equity market participation with enhanced yield.
• Appeals to income-focused investors who want equity market exposure alongside an above-average yield.

What this transaction means for investors

At first glance, Hilton Capital cutting its GPIX stake by more than 60% sounds like a significant vote of no confidence -- but context, as always, matters. The firm still holds nearly 283,000 shares, valued at $14.2 million. With the sale representing roughly 1.9% of the firm's total AUM, this is a meaningful -- but not dramatic -- trim for a fund of this size.

It's also worth noting the makeup of Hilton Capital’s broader portfolio. Their top five positions -- led by an ultra-short Treasury ETF -- skew heavily toward income-oriented, lower-volatility instruments. GPIX fits neatly into that income-focused playbook with its 8.0% TTM (trailing twelve-month) distribution yield, though the fund's options-based strategy will tend to lag a plain S&P 500 fund in a strong bull market. (That’s by design, as some upside is exchanged for income.) That said, Investors who piled into GPIX for its yield have still enjoyed a roughly 26% price gain over the past year -- not bad for an income vehicle. And the fund’s expense ratio of 0.29% is competitive for an options-based income strategy.

See The Motley Fool’s guide to ETF investing here.

Bottom line: this kind of institutional trimming after a strong run is pretty routine. The fact that Hilton Capital held on to a $14 million stake suggests the fund still sees plenty of value in GPIX’s income-generating strategy.

GPIX can play a legitimate role in a diversified portfolio -- particularly for investors in or near retirement who want to maintain equity exposure with a meaningful income stream. The key caveat: the premium income strategy is designed to trade some upside for yield, so investors expecting both a 8.0% payout and full S&P 500 participation during a bull market will likely be disappointed.

Andy Gould has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends iShares Trust - iShares 0-3 Month Treasury Bond ETF. The Motley Fool has a disclosure policy.