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It has been an eventful year in the tech space. Amid booming Mag 7 earnings, there were bouts of volatility. The Nasdaq 100 (QQQ) hit a near-term peak in March before pulling back during an inflation scare
JEPQ: Tech Volatility Perking Up, Stick With This Nasdaq 100 Covered Call ETF
Summary
- The JPMorgan Nasdaq Equity Premium Income ETF is recommended as a buy, offering upside potential amid increased volatility and strong recent performance.
- JEPQ generates income by selling options and investing in US large-cap growth stocks, aiming for high-income returns with reduced volatility.
- JEPQ's assets under management have grown significantly, and its dividend yield is primarily driven by option premiums, not traditional cash flows.
- The ETF is heavily weighted in the Information Technology sector, with significant holdings in Amazon and Tesla, and is well-positioned for a neutral to modest upside market.
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