JP Morgan Chase and Co subman
The JPMorgan Nasdaq Equity Premium Income ETF (NASDAQ:JEPQ) is one of the rarest things in the market:
A NASDAQ-100-based ETF that has a double-digit yield!
The fund’s income comes from two sources:
Income
JEPQ: The 11% Yield Comes At A Cost
Summary
- The JPMorgan Nasdaq Equity Premium Income ETF aims to deliver much of the NASDAQ-100's returns without the volatility.
- It sports a girthy 11.3% TTM dividend yield.
- The problem with the fund's strategy is that it places a ceiling on gains.
- This is because it generates income from covered calls, which result in holdings being sold off when they do well.
- At the same time, they don't provide a whole lot of protection when fund holdings decline in price. For extreme price declines, protective puts work better.
Financial journalist. Passed CFA Level 1. Seeking value and dividend growth opportunities, and sharing what I find on Seeking Alpha. Follow me on Youtube and Twitter: twitter.com/AJButton2
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