- JEPI aims to pay distributions north of 7% while simultaneously reducing downside risk with a unique strategy that has caught the attention of many income-seeking investors.
- While some investors may be disappointed in the limited amount of downside protection I'm forecasting for during recessions, it's likely to be a fair trade-off for many.
- I'll be backtesting the fund through to the Great Financial Crisis and will give non-income-dependent investors the chance to build their very own JEPI, just without the yield.
- I'll also look at the types of equity-linked notes JEPI has been purchasing, which explains how the fund is able to boost yield by over 6% with just a 15% allocation to these notes.
For further details see:
JEPI Does Its Job: A Deep Dive Into This High-Yielding S&P 500 Fund