JEPI - Market Volatility? JEPI Can Help

2024-05-06 03:55:02 ET

Summary

• In this article, I argue for an upgrade from Hold to Buy rating for JPMorgan Equity Premium Income ETF.
• I expect increased market volatility ahead, providing a boost to JEPI's income generation.
• The Fund's valuation is more reasonable relative to the broader market, with more diversified and value-oriented holdings.

JEPI ETF: upgrade from Hold To Buy

I last covered JPMorgan Equity Premium Income ETF ( JEPI ) back in September 2023 (see the screenshot below). In that article, I rate the ETF as a hold due to the following considerations :

I don't see the current environment as a good setup for covered-call strategies in general, primarily due to considerations of risk-free rates and the current volatility index. I expect its future income to be under pressure due to high-interest rates and quieter volatility.

For further details see: