XYLD - JEPI: Much To Be Desired In 2024

2024-01-25 17:46:53 ET

Summary

• JPMorgan Equity Premium Income ETF underperformed its competitors XYLD and SPYI in 2023, capturing only 37% of the S&P 500's total return.
• The JEPI ETF's use of Equity-Linked Notes, or ELNs, resulted in higher tax rates for investors.
• The outlook for JEPI in 2024 is uncertain, with potential underperformance if the S&P 500 is led higher by the Magnificent Seven.

Introduction

2023 was a year that took many by surprise, including myself.

The S&P 500 Index (SP500) returned a total of 26.3% - carried higher by the outperformance of the Magnificent Seven. However, this 26.3% total return didn't come without a fair share of volatility - as the S&P 500 Index fell -10% over a three-month period during the latter half of 2023.

With that being said, there are many investors (including myself) who would prefer a more stable and predictable return - with income in mind....

For further details see: