Just found out about the JPMorgan Nasdaq Equity Premium Income ETF, ticker JEPQ. This is yielding just over 12%!
Info: JPMorgan Nasdaq Equity Premium Income ETF-ETF Shares | JEPQ | J.P. Morgan Asset Management
* Generates income through a combination of selling options and investing in U.S. large cap growth stocks, seeking to deliver a monthly income stream from associated option premiums and stock dividends
* Seeks to deliver a significant portion of the returns associated with the Nasdaq 100 Index with less volatility
* Constructs a long equity portfolio through a proprietary data science driven investment approach designed to drive portfolio allocations while maximizing risk-adjusted expected returns
I really don’t understand the investing strategy of this fund. Nor the amount of risk involved. Clearly they are trying to say this has less risk, less volatility than QQQ, with an outstanding yield.
Thoughts from those that understand this better? Avoid or jump in?
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Looks to be using a covered call strategy, which is usually less volatile than the underlying index and can generate excess returns in a volatile market.
It can also limit upside potential.
Hawkwin
Knows nothing about this particular fund but finds it interesting.
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At a .35% Expense Ratio, it’s pretty expensive. I guess the folks that actively manage this ETF need to earn their money. I prefer to stay away from funds that have high expense ratios.
It’s also a brand new (May 2022) fund, so there is limited historical performance to consider.
The share performance is -6% since inception so you need to consider whether the dividend yield is worth the loss in share value.
Best ~
'38Packard
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On the Destiny Solutions Board, I posted a list of the 8 monthly dividend payers I’ve added to every week since last June.
JEPI has a dividend yield of 12.15% and paid $6.37 per share in the past year. Again, this is not a misprint: the dividend is paid every month and the last ex-dividend date was Mar 1, 2023.
Here are the holdings:
Here is what the distribution in the recent past looks like:
Daily, Weekly, Monthly charts for $JEPI (I’ve posted this one here on METAR before.)
(Late edit) Disclosure: I bought $JEPI first time last December. The other monthly divvy payers I bought last June. I’ve been doubling and tripling weekly purchases of $JEPI and I’ve almost got it even in total amount invested with the 7 other monthly payers.
And thank you for $JEPQ. I was not aware of it being a monthly paying symbol as well. Nor was I aware it was a covered call strategy ETF. I’m already in another covered call ETF paying monthly, so I’ll compare it to mine. JP Morgan isn’t going out of business anytime soon.
Here are recent dividend payouts for $JEPQ:
Here are the holdings in $JEPQ (open the link to see about 80 listed)
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To add to the already mentioned comments:
these type investments will not go up in value to the same degree as the indexes,
these type investments usually will generate a nice dividend in a sideways market,
these type investments are held by myself during this time of sideways movement by the markets and I think they are solid at this time…doc
IMHO and I am no expert. I also hold GOGL, QYLD, OILK
edit
I am going to look at SDIV too…doc
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