JEPQ - JEPQ: This 9% Yielding Monthly Dividend ETF Is Perfect For 2 Kinds Of Investors
2024-07-13 07:00:00 ET
Summary
- JPMorgan Equity Premium Income ETF, JEPI, is a beloved high-yield monthly dividend ETF, and JPMorgan has an even higher-yielding version called JPMorgan Nasdaq Equity Premium Income ETF, JEPQ.
- JEPQ uses the Nasdaq as its base, offering higher income but more volatility than JEPI.
- JEPQ is designed for maximum income with similar volatility as the S&P, but investors need to be aware of potential downsides and tax implications.
- 30% to 50% of JEPQ's impressive gains go to taxes, and management's post-tax return guidance is 4% to 6%.
- JEPQ is perfect for 2 kinds of investors. It's definitely not a "high-yield Nasdaq ETF."
JPMorgan Equity Premium Income ETF ( JEPI ) is very popular with retirees and investors seeking generous monthly income. I wrote about it here:
I'm a big fan of JEPI. I consider it a gold standard covered call ETF due to its unique approach to generating relatively higher, more stable income in an ETF designed for 85% of the market's upside with about 65% of the downside.
Since writing that article, I have had several requests to analyze the JPMorgan Nasdaq Equity Premium Income ETF ( JEPQ )....
JEPQ: This 9% Yielding Monthly Dividend ETF Is Perfect For 2 Kinds Of Investors