USD - Shrinking Monthly Paychecks From Popular JEPI What You Need To Know

2024-06-24 12:23:35 ET

Summary

• JPMorgan Equity Premium Income ETF offers monthly income through a call option approach with potential for growth and stable price action.
• The JEPI ETF generates income through equities and equity-linked notes, with a fluctuating payout based on underlying stock movements and option income.
• Despite underperformance in price action relative to the market, JEPI provides solid total returns and offers a 7% to 10% yield, making it a good choice for monthly income.
• The shrinking payout over the last two years has been a cause for concern, but we explain what will lead to higher distributions.
• We use a blended trading and income investing approach as a strategy, while stressing the price an investor pays is paramount.

Are you looking for some income monthly from an exchange-traded fund, or ETF, that moves largely in tandem with the market but also offers bountiful income? Well, we have previously covered a very stable and conservative ETF in the Schwab US Dividend ETF ( SCHD ). We also covered the more risky PIMCO Dynamic Income Fund ( PDI ), but downgraded that to hold on price action as an option to consider on a pullback for income. But less conservative than SCHD and more so than PDI is the JPMorgan Equity Premium Income ETF ( JEPI )....

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