5% to 8% long-term yields are what management is guiding for, with face-ripping bear market rallies that fail, and big crashes that result in high-option premium, an overall sideways market that generates massive option income, 85% of the market's returns vs. 80% management target. According to management, JEPI is designed to deliver 5% to 8% yield over time, and 6% to 10% annual returns, 85% that of the S&P 500, with 35% lower volatility. For Financial Advisors, from U.S.News: Get the Advisor's Guide to Working with Divorced Clients. From covering other funds, I can say that JEPQ's holdings, strategy, and expected performance are quite similar to several other Nasdaq-100 covered call funds out there. 9.3% average yield and a peak decline half that of the stock market? JPMorgan Equity Premium Income ETF JEPI ETF Analysis See JPMorgan Investment Hub Quote Chart Fund Analysis Performance Sustainability Risk Price Portfolio Parent . Telephone calls and electronic communications may be monitored and/or recorded. View the basic JEPI option chain and compare options of JPMorgan Equity Premium Income ETF on Yahoo Finance. BmP[+ The JPMorgan Equity Premium Income ETF JEPI, +0.77% has been able to take advantage of rising volatility in the stock market to beat the total return of its benchmark, the S&P 500 SPX, +0.76%,. JEPI isn't necessarily a great alternative to other kinds of diversified portfolios like a 60/40 or ZEUS: This is why I (and some other analysts) consider JEPI the gold standard of covered call ETFs, not necessarily the portfolio itself which is 80% to 85% blue-chips, but 80% to 85% of the income could potentially collapse in another financial crisis, JEPI's management says to expect 5% to 8% long-term yields, a post-tax yield of closer to 6% for investors in the top tax bracket, and management guidance for post-tax 2.5% to 4% yields, the top income tax bracket saw 8% returns over the last year and 12% since inception, reinvesting 50% of the dividends into more JEPI shares would have kept your principal whole, in the event of another financial crisis, JEPI's income could blow up, 80% to 85% of JEPI's dividends are taxed as ordinary income, ignoring taxes in our taxable account and at the top tax bracket, we only add a stock that improves the portfolio's overall fundamentals, JEPI management guidance is for 20% lower returns than the S&P, We'd have to own it in our hedging bucket, but our goal is to only own hedges that go up in down markets, not just fall 35% less than the market. A@\+4 Both funds have strong yields, with JEPQ boasting a 17.6% SEC yield, and QYLD having a 13.2% twelve-month trailing yield. The Commingled Pension Trust Funds of JPMorgan Chase Bank N.A. Any examples used in this material are generic, hypothetical and for illustration purposes only. In fact, its negative volatility-adjusted returns were 3X better than XYLD and about 7% better than the S&P. And all this is for an expense ratio that's as low as the institutional fund with a $15 million minimum investment. To offset this and keep your principle intact, you would have had to reinvest 38% of the dividends. JEPIX has been delivering exactly what JPMorgan's management says JEPI can deliver in the future: smaller declines during bear markets but still declines. Should the prices of the underlying instruments move in an unexpected manner, the Fund may not achieve the anticipated benefits of an investment in an ELN, and may realize losses, which could be significant and could include the Fund's entire principal investment. I have no business relationship with any company whose stock is mentioned in this article. JPMorgan Equity Premium Income ETF 's (JEPI) Moving Averages Convergence Divergence (MACD) indicator is -0.33, suggesting JPMorgan Equity Premium Income ETF is a Buy. Approach Generates income through a combination of selling options and investing in U.S. large cap stocks, seeking to deliver a monthly income stream from associated option premiums and stock dividends Currently I see around 3 REITs and 100 individual stocks along with options in their holding. % The fact that it's been able to deliver rising annual income for two consecutive years in booming, crashing, and sideways markets, is impressive. J.P. Morgan Exchange-Traded Fund Trust - JPMorgan Equity Premium Income ETF is an exchange traded fund launched and managed by J.P. Morgan Asset Management, Inc. Investors should look beyond index funds to more tactical options. Real-time last sale data for U.S. stock quotes reflect trades reported through Nasdaq only. There are currently no items in this Watchlist. It appears they just started this in June 2020. You should carefully consider the investment objectives, risk, charges, and expenses of the fund before investing. You might think this is a. Speaking of income, look at how steady JEPI's income has been. There is inherently less upside potential at risk from ELNs (an alternative version of a covered call) because what JEPI owns is slower growing. Maximize your income with the worlds highest-quality dividend investments. However, management is guiding for a 5% to 8% long-term yield from JEPI, and long-term 6% to 8% annual returns are more likely than the 13.4% it's delivered so far. Over the past 15 years, the market has averaged about 8% ELN income premiums, including four bear markets and two crashes. BqP\+ JPMorgan Equity Premium Income ETF busca generar ingresos distribuibles mensuales y exposicin al mercado de valores con menos volatilidad. JPMorgan Equity Premium Income ETF(JEPI) 15 0.61% 52.51 . 8, 2021, Paulina Likos and Coryanne HicksApril 30, 2021, Matt Whittaker and Barbara FriedbergMarch 25, 2021. Both funds have limited potential for capital gains. I was once an emotionally unkempt individual: Im 27, was raised in poverty, andwork in a grocery store. JEPI seeks to deliver a significant portion of the returns associated with the S&P 500 Index with less volatility, in addition to monthly income. And when the market fell 9% in December 2018, JEPIX fell 6.72%, or 7%, slightly worse than management expected. By clicking submit, you are agreeing to our Terms and Conditions & Privacy Policy. Telephone calls and electronic communications may be monitored and/or recorded. BsJM)t JPMorgan Ultra-Short Income ETF invests mainly in investment-grade, U.S. dollar-denominated fixed, variable and floating-rate debt. I am not receiving compensation for it (other than from Seeking Alpha). Sure, though that's a bit speculative. Interactive Chart | Fundamental Chart. To obtain a prospectus for Mutual Funds: Contact JPMorgan Distribution Services, Inc. at 1-800-480-4111 ordownloadit from this site. But one of the most impressive things about JEPI isn't just the low volatility, and ultra-yield, but how steady its dividends have been. BmP[+ Opinions and statements of financial market trends that are based on current market conditions constitute our judgment and are subject to change without notice. Bm+t Performance has been materially weaker since May, with JEPQ moderately underperforming since said date. He has hands-on experience analyzing, trading, and negotiating fixed-income securities, including bonds, money markets, and interbank trade financing, across markets and currencies. JEPI was the 8th most popular ETF of 2022, and its 12% yield, paid monthly, has created a firestorm of investor interest. Currently, JEPQ's holdings do not significantly differ from those of QYLD, and what differences exist do not seem reflective of any obvious investment strategy, to me at least. Can you see why income investors love this ETF? JPMorgan Equity Premium Income ETF, which ranks as the world's second-largest actively managed exchange-traded fund despite being less than 3 years old, had its best week for net inflows last week . CEF/ETF Income Laboratory is a Marketplace Service provided by Stanford Chemist, right here on Seeking Alpha. BqP\+ JEPQ is an actively-managed fund investing in Nasdaq-100 companies, and indirectly selling covered calls on the same through ELNs. JPMorgan Equity Premium Income ETF 53.12 + 0.61 ( + 1.16 %) D D D D D D Prev. BmP[+ But there is one final important thing to know about covered call ETFs like JEPI. 4.2% to 7.0% for the average American investor in the 28% tax bracket. The astronomical growth of the JPMorgan Equity Premium Income ETF (JEPI)pulling in nearly $5 billion this year as investors pile into active exchange-traded funds in an effort to beat the . That's likely a mistake, given its limitations and inherent risks. Possibly. JPMorgan Equity Premium Income ETF 52.21 +0.14%. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data. This is a large. B)mPJWnPZAimPZAimPZAimPZAimPZTA%mPIWnPYTAemPYTAemPYTAemPYTAemPYA!m _tIO*|dO67 ln`s6 Industry exposures are as follows. This article was published on Dividend Kings on Monday, January 23rd, 2023. As more Americans receive their vaccines, spending could soon be on the rise. Does that mean that JEPI is a bad high-yield ETF? JEPI's unique combination of low volatility blue-chips, combined with out-of-the-money ELNs, and some of the best active management in the industry, has resulted in amazing returns so far. This site is protected by reCAPTCHA and the Google There are many consumer goods, industrials, and similar companies with market-caps between $10B and $100B, but JEPQ mostly does not invest in these. To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research. Some investors consider it a "miracle" retirement ETF, but there are important things all investors need to know before buying it. Should investors in the top tax bracket who want to spend the dividends rather than reinvesting them own it in a taxable account? BqP\+ What makes JEPI different than most covered call ETFs is two things. Factsheet: JPMorgan Nasdaq Equity Premium Income ETF FactSheet|February28,2023 JPMorganNasdaqEquityPremiumIncomeETF Ticker:JEPQ Designedtoprovidecurrentincomewhile maintainingprospectsforcapitalappreciation. Bl+4 Second, you should know that ELN income and covered call income in general, is taxed at ordinary income rates. BmP[+ 0.9%. Bs\+4 JEPI US. The JPMorgan Equity Premium Income ETF (JEPI) (YTD inflows: $9 billion) The actively managed JEPI generates income by selling options on U.S. large-cap stocks. Copyright 2023 JPMorgan Chase & Co., All rights reserved, Log in for exclusive access and a personalized experience, View saved content and presentation slides. I provide my work regularly to CEF/ETF Income Laboratory with articles that have an exclusivity period, this is noted in such articles. But as you can see, a muddled focus has done exactly what one would expect from JEPQ's strategy, disappointing income investors. Most of these contracts are for one week. Defined outcome funds can help reduce risk in your investing portfolio. index. Advice, rankings and one great story every day. The Fund seeks to provide the majority of the returns associated with the Fund's primary benchmark, the S&P 500 Index, while exposing investors to less risk through lower volatility and still offering incremental income. That's in both a soaring market (2021), a crashing market (2022), and most recently in a sideways market. Bo[+ JPMorgan Equity Premium Income ETF Stock Performance. JPMorgan Equity Premium Income ETF Ticker:JEPI Designed to provide current income while maintaining prospects for capital appreciation. <> Please. The fund invests directly and through derivatives in. Covered call funds have difficulty recovering from losses, so avoiding these are crucial. JEPI has a . In a year when both stocks and bonds fell about 18%, the 60/40 fell 16%, and the Nasdaq lost a third of its value, JEPI's sky-high yield helped it fall just 3.5%. INFORMATION REGARDING COMMINGLED FUNDS: For additional information regarding the Commingled Pension Trust Funds of JPMorgan Chase Bank, N.A., please contact your J.P. Morgan Asset Management representative. Please. For the best MarketWatch.com experience, please update to a modern browser. Up, down, or sideways, JEPI has been an ultra-yield rich retirement dream stock so far. Since its inception, JPMorgan estimates the average investor, net of fees and taxes, made 18% compared to 25% pre-tax returns. 0.7%. None of J.P. Morgan Asset Management, its affiliates or representatives is suggesting that the recipient or any other person take a specific course of action or any action at all. Who wouldn't want a 5% yield and 13% long-term return while enjoying: (Source: Portfolio Visualizer Premium, Charlie Bilello, Ycharts). I'm a proud Army veteran and have seven years of experience as an analyst/investment writer for Dividend Kings, iREIT, The Intelligent Dividend Investor, The Motley Fool, Simply Safe Dividends, Seeking Alpha, and the Adam Mesh Trading Group. Absolutely not. JEPI was one of the most popular ETFs of 2022, bringing in record inflows for an actively-managed ETF of nearly $13 billion. If you're in the top tax bracket, a 2.5% to 4% yield would equate to much lower total returns than 6% to 8%. ?ZV(kZV(kZV(kZV(kZZVL^ Therefore, investors will need to get more innovative in meeting income needs without exceeding risk tolerances. Heres how to transition your portfolio from growth to income. The fund invests in S&P 500 stocks that exhibit low-volatility and value characteristics, and sells options on those stocks to generate additional income. Bolsa. See Disclaimer. JEPQ has outperformed relative to QYLD since inception in May 2022. Bm+t JPMorgan Equity Premium Income ETF (NYSEARCA: JEPI) It sounds like an oxymoron, but it's a more conservative high-yield dividend ETF with an underweight position in technology stocks. 52.205 B-PK+TkZV(kZV(kZV(kZV(jiZZVSC"]V(kZV(kZV(kZV(kZVjiZZqNhWP[+ The funds are available only to certain qualified retirement plans and governmental plans and is not offered to the general public. In future market flash crashes, the same kind of returns are likely. JEPI is designed for maximum yield and minimal returns, which is why it owns low volatility blue-chips. What does JEPI's management expect long-term from their super popular ETF? Profitable CEF and ETF income and arbitrage ideas. You should carefully consider the investment objectives, risk, charges, and expenses of the fund before investing. If you are a person with a disability and need additional support in viewing the material, please call us at 1-800-343-1113 for assistance. JPMorgan Equity Premium Income ETF. What if I told you this opportunity wasn't just one company, but an actively managed ETF from JPMorgan, run by a manager with 36 years of experience? 4@-l@o-[@o-[@o-[@o-[@o-[ u@-l4@o-[@o-[O(4@-l4@-l4@-l(tB}+4 )0bnSY[k,Yk~H:``H AB^!b3`u /d$yA0K^0Lp+\ab^ @b^H(F^\@ L u0/&b /$(j,yQu /d$yA0K^0Lp+\ab^ @b^H=thF^\@ L u0/&b /$h"/E7 %/ ,y01/$/pyyA 1/_E0`F^:` %/&y01/yA 1/$P3nyA K^ &Yab^[I^:1@b^ziA0KZFZ:` %-&i01-iA 1-$. PORTFOLIO Bryn Talkington of Requisite Capital Management said JPMorgan Equity Premium Income ETF should continue to be a "strong performer next year." These 4 ETFs Feature on CNBC's 'Final Trades' Benzinga - 10/27/2022 On CNBC's "Halftime Report Final Trades," JPMorgan Private Bank's Anastasia Amoroso chose iShares iBoxx $ High Yield Corporate Bond ETF . See, a muddled focus has done exactly what one would expect from JEPQ 's,... Mentioned in this material are generic, hypothetical and for illustration purposes only JPMorgan Equity Premium Income ETF on Finance... 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Unkempt individual: Im 27, was raised in poverty, andwork in a taxable account Working! Laboratory is a bad high-yield ETF fund with a disability and need additional in... Mean that JEPI is Designed for maximum yield and a peak decline half that of the fund before.. _Tio * |dO67 ln ` s6 Industry exposures are as follows as more receive!