JEPI - FFA: Looking Outside Of The Beaten Path For Hidden Gems

2024-07-15 23:17:05 ET

Summary

• FFA offers high current income and potential capital appreciation through a diversified portfolio of high-quality stocks and a covered-call options strategy.
• FFA has historically strong total returns, trading at a significant P/E discount compared to S&P 500, and pays an attractive 7.0% managed distribution yield.
• FFA outperformed JEPI in total returns since inception, offering a potential alternative for investors concerned about high valuations in mega-cap stocks.

While derivative income funds like the JPMorgan Equity Premium Income ETF ( JEPI ) are all the rage with investors at the moment, for investors who are willing to look beyond these high-profile ETFs, there may be interesting opportunities to invest in funds with similar strategies and better valuations....

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