JEPI: A Look Inside The World's Largest Covered Call ETF

Summary

• The JPMorgan Equity Premium Income Fund (JEPI) is the world's largest covered call fund, towering above almost all others, bar its sister fund JEPQ.
• The fund has a straightforward objective: deliver lower volatility equity market exposure, and sell covered calls on top of it to produce income.
• This article is intended to educate investors on JEPI's construction, potential for future performance, and risks.

Dragon Claws

Introduction

Among derivative (options-based) income funds, none stands taller than the JPMorgan Equity Premium Income ETF (NYSEARCA:JEPI), with nearly $40B in assets under management. It holds more assets than the next ten largest funds, excluding second place in the category, occupied by sister

Analyst’s Disclosure: I/we have a beneficial long position in the shares of JEPI, JEPQ either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.