HDV - JEPI: Market Volatility May Affect Dividend Income Not For Everyone

2024-01-25 00:50:24 ET

Summary

• JPMorgan Equity Premium Income ETF gained popularity due to its launch after the initial COVID crash, appealing to income-oriented investors. However, JEPI is more suitable for tax-advantaged accounts.
• JEPI has a diversified portfolio with a majority weight in the tech sector and has offered solid returns, although underperforming the S&P 500.
• The current dividend yield is around 8.3%, but the market volatility can affect dividend income.

Overview

The JPMorgan Equity Premium Income ETF ( JEPI ) is an exchange-traded fund launched in May 20, 2020. I mention this because I think the timing of the creation of the fund helped boost its popularity. Following the initial covid crash in March of 2020, incomes were suppressed because businesses were closed and people couldn't go to work. Hence, the shift to income oriented investments grew and funds like JEPI offered a convenient solution....

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