JEPI ETF: Don't You Dare Put All Your Eggs In One Basket

seekingalpha03-27

Consider purchasing JPMorgan Equity Premium Income ETF for market-like returns with moderate correlation and income generation.The JEPI ETF has a fluctuating payout but a solid track record and is ...

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Sadeugra/E+ via Getty Images If you are looking for an exchange-traded fund, or ETF, that moves in tandem with the market but also offers bountiful income, we think you should strongly consider purchasing the JPMorgan Equity Premium Income ETF (NYSEARCA:JEPI). But two things. First, do yourself a favor and wait for some market weakness. We will get some sort of correction, even if it is seasonal in nature, to get a better price. This ETF is really range bound over the last few years, making it an excellent opportunity for investors to pick their spots. Second, as good as JEPI is, in our opinion, and although it is diversified, never, ever put all of your eggs, or even most of your eggs, into one basket. It is just bad business. And for those of you who will celebrate the Easter holiday this weekend, or have children who fancy the so-called Easter Bunny, this is a very timely seasonal idiom, and some say proverb, to keep in mind this week. Folks, it goes for ETFs, not just single stocks. With these disclaimers in mind, we still think this is a winner to consider. Let's check back in on this sometimes controversial ETF. When suggesting an income name for our traders to park some principal and collect some cash flow, we are always looking for reliable income. Now, the thing is that JEPI does have a fluctuating payout, so making it easy to predict what you will earn month to month is difficult, but the ETF also moves higher with the market, generally speaking. Over the course of this ETF's existence, there is a solid track record here, and that we expect that record to continue, we think it is a fine buy, but please avoid piling in all at once. This is something most new investors do wrong. They think they need time in the market and that is it. While that is largely true, returns are magnified when you average into investments on weakness. Unless you are dollar cost averaging every single week or two, strongly consider legging into your investments on some weakness. Price matters. We are sure that statement will generate controversy in and of itself, but that is our opinion. Data by YCharts JEPI does a nice job of generating income through call options. The fund's managers segment off call options within the portfolio, and also sell calls that are out of the money. The structure here that most of the assets (~80%) are in equities, while the other 20% or so is allocated toward generating income, and not just through options but also through equity-linked notes. Equity-linked notes are structured instruments that at the most basic level blend the features of both fixed-income securities and equities. There are potential for gains here linked to the performance of the underlying equities or equity indices the fund is exposed to, and JEPI also provides some regular income through coupon payments. For more on the equity-linked assets and risks, you can brush up on that here. But this ETF isn't just writing covered call option against the actual equity positions, JEPI also generates income flow from the premiums on the call options that the linked notes write. Unlike other covered call ETFs, the 80% equity portion of JEPI's portfolio is uncapped, so it should move up (or down) with the market. Here is the complete set of holdings below:             Ticker Security Description Security Type Method Shares/Par Market Value (USD) Country Currency Sector Industry Coupon Maturity Date Effective Date Contract Size Strike Price % of Market Value % of Net Assets   AMZN AMAZON.COM INC COMMON DOMESTIC COMMON STOCK Physical 3230676 $ 580,584,783.96 United States USD Consumer Discretionary Broadline Retail 0.00       $ 0.00 1.74% 1.74%   PGR PROGRESSIVE CORP/THE DOMESTIC COMMON STOCK Physical 2794981 $ 575,821,985.62 United States USD Financials Insurance 0.00       $ 0.00 1.73% 1.72%   TT TRANE TECHNOLOGIES PLC DOMESTIC COMMON STOCK Physical 1892679 $ 567,103,408.77 Ireland USD Industrials Building Products 0.00       $ 0.00 1.7% 1.7%   MSFT MICROSOFT CORP COMMON DOMESTIC COMMON STOCK Physical 1328394 $ 561,724,686.84 United States USD Information Technology Software 0.00       $ 0.00 1.69% 1.68%   META META PLATFORMS INC DOMESTIC COMMON STOCK Physical 1112796 $ 559,758,643.92 United States USD Communication Services Interactive Media & Services 0.00       $ 0.00 1.68% 1.67%   MA MASTERCARD INC COMMON DOMESTIC COMMON STOCK Physical 1119166 $ 532,767,782.64 United States USD Financials Financial Services 0.00       $ 0.00 1.6% 1.59%   INTU INTUIT INC COMMON STOCK DOMESTIC COMMON STOCK Physical 810941 $ 518,264,283.69 United States USD Information Technology Software 0.00       $ 0.00 1.56% 1.55%   ABBV ABBVIE INC COMMON STOCK DOMESTIC COMMON STOCK Physical 2836352 $ 506,373,922.56 United States USD Health Care Biotechnology 0.00       $ 0.00 1.52% 1.51%   V VISA INC COMMON STOCK DOMESTIC COMMON STOCK Physical 1751138 $ 492,437,516.98 United States USD Financials Financial Services 0.00       $ 0.00 1.48% 1.47%   COST COSTCO WHOLESALE CORP DOMESTIC COMMON STOCK Physical 644464 $ 471,077,405.44 United States USD Consumer Staples Consumer Staples Distribution & Retail 0.00       $ 0.00 1.41% 1.41%   XOM EXXON MOBIL CORP COMMON DOMESTIC COMMON STOCK Physical 4085388 $ 468,389,734.20 United States USD Energy Oil, Gas & Consumable Fuels 0.00       $ 0.00 1.41% 1.4%   CMG CHIPOTLE MEXICAN GRILL DOMESTIC COMMON STOCK Physical 157872 $ 458,371,879.68 United States USD Consumer Discretionary Hotels, Restaurants & Leisure 0.00       $ 0.00 1.38% 1.37%   ETN EATON CORP PLC COMMON DOMESTIC COMMON STOCK Physical 1454652 $ 453,676,865.76 Ireland USD Industrials Electrical Equipment 0.00       $ 0.00 1.36% 1.36%   TRV TRAVELERS COS INC/THE DOMESTIC COMMON STOCK Physical 2001892 $ 451,486,702.76 United States USD Financials Insurance 0.00       $ 0.00 1.36% 1.35%   SO SOUTHERN CO/THE COMMON DOMESTIC COMMON STOCK Physical 6339260 $ 442,226,777.60 United States USD Utilities Electric Utilities 0.00       $ 0.00 1.33% 1.32%   GOOGL ALPHABET INC COMMON DOMESTIC COMMON STOCK Physical 2918036 $ 437,909,662.52 United States USD Communication Services Interactive Media & Services 0.00       $ 0.00 1.32% 1.31%   PG PROCTER & GAMBLE CO/THE DOMESTIC COMMON STOCK Physical 2731024 $ 437,482,734.56 United States USD Consumer Staples Household Products 0.00       $ 0.00 1.31% 1.31%   VRTX VERTEX PHARMACEUTICALS DOMESTIC COMMON STOCK Physical 1039049 $ 432,275,555.47 United States USD Health Care Biotechnology 0.00       $ 0.00 1.3% 1.29%   CMCSA COMCAST CORP COMMON DOMESTIC COMMON STOCK Physical 10105378 $ 430,893,317.92 United States USD Communication Services Media 0.00       $ 0.00 1.29% 1.29%   ACN ACCENTURE PLC COMMON DOMESTIC COMMON STOCK Physical 1289367 $ 430,416,491.94 Ireland USD Information Technology IT Services 0.00       $ 0.00 1.29% 1.29%   LIN LINDE PLC COMMON STOCK DOMESTIC COMMON STOCK Physical 914840 $ 427,138,796.00 Ireland USD Materials Chemicals 0.00       $ 0.00 1.28% 1.28%   YUM YUM BRANDS INC COMMON DOMESTIC COMMON STOCK Physical 3171161 $ 426,901,693.82 United States USD Consumer Discretionary Hotels, Restaurants & Leisure 0.00       $ 0.00 1.28% 1.28%   MDLZ MONDELEZ INTERNATIONAL DOMESTIC COMMON STOCK Physical 6006710 $ 425,575,403.50 United States USD Consumer Staples Food Products 0.00       $ 0.00 1.28% 1.27%   HON HONEYWELL INTERNATIONAL DOMESTIC COMMON STOCK Physical 2134433 $ 423,642,261.84 United States USD Industrials Industrial Conglomerates 0.00       $ 0.00 1.27% 1.27%   PEP PEPSICO INC COMMON STOCK DOMESTIC COMMON STOCK Physical 2430779 $ 419,552,455.40 United States USD Consumer Staples Beverages 0.00       $ 0.00 1.26% 1.26%   NXPI NXP SEMICONDUCTORS NV DOMESTIC COMMON STOCK Physical 1744398 $ 419,248,615.32 Netherlands USD Information Technology Semiconductors & Semiconductor Equipment 0.00       $ 0.00 1.26% 1.25%   LOW LOWE'S COS INC COMMON DOMESTIC COMMON STOCK Physical 1641505 $ 416,942,270.00 United States USD Consumer Discretionary Specialty Retail 0.00       $ 0.00 1.25% 1.25%   REGN REGENERON DOMESTIC COMMON STOCK Physical 415476 $ 399,309,828.84 United States USD Health Care Biotechnology 0.00       $ 0.00 1.2% 1.19%   UNH UNITEDHEALTH GROUP INC DOMESTIC COMMON STOCK Physical 797853 $ 387,660,815.64 United States USD Health Care Health Care Providers & Services 0.00       $ 0.00 1.16% 1.16%   NOW SERVICENOW INC COMMON DOMESTIC COMMON STOCK Physical 498225 $ 385,945,014.00 United States USD Information Technology Software 0.00       $ 0.00 1.16% 1.15%   LLY ELI LILLY & CO COMMON DOMESTIC COMMON STOCK Physical 497735 $ 384,818,837.90 United States USD Health Care Pharmaceuticals 0.00       $ 0.00 1.16% 1.15%   TXN TEXAS INSTRUMENTS INC DOMESTIC COMMON STOCK Physical 2160404 $ 369,105,023.40 United States USD Information Technology Semiconductors & Semiconductor Equipment 0.00       $ 0.00 1.11% 1.1%   TJX TJX COS INC/THE COMMON DOMESTIC COMMON STOCK Physical 3492310 $ 342,874,995.80 United States USD Consumer Discretionary Specialty Retail 0.00       $ 0.00 1.03% 1.03%   BMY BRISTOL-MYERS SQUIBB CO DOMESTIC COMMON STOCK Physical 6505123 $ 339,892,676.75 United States USD Health Care Pharmaceuticals 0.00       $ 0.00 1.02% 1.02%   UPS UNITED PARCEL SERVICE DOMESTIC COMMON STOCK Physical 2152829 $ 337,068,436.53 United States USD Industrials Air Freight & Logistics 0.00       $ 0.00 1.01% 1.01%   PEG PUBLIC SERVICE DOMESTIC COMMON STOCK Physical 5139305 $ 335,699,402.60 United States USD Utilities Multi-Utilities 0.00       $ 0.00 1.01% 1.0%   AZO AUTOZONE INC COMMON DOMESTIC COMMON STOCK Physical 103695 $ 328,798,179.90 United States USD Consumer Discretionary Specialty Retail 0.00       $ 0.00 0.99% 0.98%   ADI ANALOG DEVICES INC DOMESTIC COMMON STOCK Physical 1714752 $ 326,883,173.76 United States USD Information Technology Semiconductors & Semiconductor Equipment 0.00       $ 0.00 0.98% 0.98%   CME CME GROUP INC COMMON DOMESTIC COMMON STOCK Physical 1497875 $ 322,327,721.25 United States USD Financials Capital Markets 0.00       $ 0.00 0.97% 0.96%     SPX_27 Equity Linked Notes Synthetic 60690 $ 314,043,439.50 United States USD     0.00       $ 0.00 0.94% 0.94%     SPX_28 Equity Linked Notes Synthetic 60479 $ 313,793,477.13 United States USD     0.00       $ 0.00 0.94% 0.94%     SPX_26 Equity Linked Notes Synthetic 61315 $ 307,303,422.20 United States USD     0.00       $ 0.00 0.92% 0.92%     SPX_1 Equity Linked Notes Synthetic 58511 $ 303,325,119.77 United States USD     0.00       $ 0.00 0.91% 0.91%     SPX_29 Equity Linked Notes Synthetic 58660 $ 302,729,008.40 United States USD     0.00       $ 0.00 0.91% 0.91%     SPX_25 Equity Linked Notes Synthetic 61631 $ 302,525,008.15 United States USD     0.00       $ 0.00 0.91% 0.91%   EOG EOG RESOURCES INC COMMON DOMESTIC COMMON STOCK Physical 2375485 $ 302,280,466.25 United States USD Energy Oil, Gas & Consumable Fuels 0.00       $ 0.00 0.91% 0.9%     SPX_30 Equity Linked Notes Synthetic 58829 $ 301,873,365.73 United States USD     0.00       $ 0.00 0.91% 0.9%   MRK MERCK & CO INC COMMON DOMESTIC COMMON STOCK Physical 2404203 $ 301,270,677.93 United States USD Health Care Pharmaceuticals 0.00       $ 0.00 0.9% 0.9%     SPX_21 Equity Linked Notes Synthetic 59563 $ 300,738,947.67 United States USD     0.00       $ 0.00 0.9% 0.9%   KO COCA-COLA CO/THE COMMON DOMESTIC COMMON STOCK Physical 4950988 $ 299,039,675.20 United States USD Consumer Staples Beverages 0.00       $ 0.00 0.9% 0.89%     SPX_24 Equity Linked Notes Synthetic 59455 $ 297,895,115.65 United States USD     0.00       $ 0.00 0.89% 0.89%     SPX_2 Equity Linked Notes Synthetic 56080 $ 295,615,064.80 United States USD     0.00       $ 0.00 0.89% 0.88%     SPX_3 Equity Linked Notes Synthetic 55900 $ 295,552,803.00 United States USD     0.00       $ 0.00 0.89% 0.88%     SPX_22 Equity Linked Notes Synthetic 59667 $ 295,118,352.03 United States USD     0.00       $ 0.00 0.89% 0.88%   OTIS OTIS WORLDWIDE CORP DOMESTIC COMMON STOCK Physical 2974133 $ 294,558,132.32 United States USD Industrials Machinery 0.00       $ 0.00 0.88% 0.88%     SPX_23 Equity Linked Notes Synthetic 59766 $ 293,188,687.26 United States USD     0.00       $ 0.00 0.88% 0.88%   COP CONOCOPHILLIPS COMMON DOMESTIC COMMON STOCK Physical 2304588 $ 290,908,143.24 United States USD Energy Oil, Gas & Consumable Fuels 0.00       $ 0.00 0.87% 0.87%     SPX_19 Equity Linked Notes Synthetic 64315 $ 285,866,025.70 United States USD     0.00       $ 0.00 0.86% 0.86%   CTSH COGNIZANT TECHNOLOGY DOMESTIC COMMON STOCK Physical 3798234 $ 273,510,830.34 United States USD Information Technology IT Services 0.00       $ 0.00 0.82% 0.82%     SPX_20 Equity Linked Notes Synthetic 60822 $ 272,674,757.52 United States USD     0.00       $ 0.00 0.82% 0.82%     JPMORGAN US GOVT MMKT FUN MONEY MARKET Physical 265600822 $ 265,600,822.02 United States USD Financials Commercial Banks 0.00   04/13/2017   $ 0.00 0.8% 0.79%   EQIX EQUINIX INC REIT USD REIT Physical 331729 $ 262,901,867.08 United States USD Real Estate Specialized REITs 0.00       $ 0.00 0.79% 0.79%   CPAY FLEETCOR TECHNOLOGIES DOMESTIC COMMON STOCK Physical 843667 $ 259,562,589.22 United States USD Financials Financial Services 0.00       $ 0.00 0.78% 0.78%   PLD PROLOGIS INC REIT USD REIT Physical 2040967 $ 259,468,134.71 United States USD Real Estate Industrial REITs 0.00       $ 0.00 0.78% 0.78%   ADBE ADOBE INC COMMON STOCK DOMESTIC COMMON STOCK Physical 509485 $ 258,426,076.55 United States USD Information Technology Software 0.00       $ 0.00 0.78% 0.77%   SBAC SBA COMMUNICATIONS CORP REIT Physical 1134093 $ 247,663,229.34 United States USD Real Estate Specialized REITs 0.00       $ 0.00 0.74% 0.74%   NEE NEXTERA ENERGY INC DOMESTIC COMMON STOCK Physical 3832336 $ 239,942,556.96 United States USD Utilities Electric Utilities 0.00       $ 0.00 0.72% 0.72%   BRK.B BERKSHIRE HATHAWAY INC DOMESTIC COMMON STOCK Physical 582482 $ 238,771,021.44 United States USD Financials Financial Services 0.00       $ 0.00 0.72% 0.71%   DOV DOVER CORP COMMON STOCK DOMESTIC COMMON STOCK Physical 1335457 $ 234,185,739.52 United States USD Industrials Machinery 0.00       $ 0.00 0.7% 0.7%   TMO THERMO FISHER SCIENTIFIC DOMESTIC COMMON STOCK Physical 400451 $ 229,682,675.56 United States USD Health Care Life Sciences Tools & Services 0.00       $ 0.00 0.69% 0.69%   NSC NORFOLK SOUTHERN CORP DOMESTIC COMMON STOCK Physical 918516 $ 227,819,523.48 United States USD Industrials Ground Transportation 0.00       $ 0.00 0.68% 0.68%   ODFL OLD DOMINION FREIGHT DOMESTIC COMMON STOCK Physical 520516 $ 226,440,075.48 United States USD Industrials Ground Transportation 0.00       $ 0.00 0.68% 0.68%   CHD CHURCH & DWIGHT CO INC DOMESTIC COMMON STOCK Physical 2176351 $ 224,142,389.49 United States USD Consumer Staples Household Products 0.00       $ 0.00 0.67% 0.67%   ASML ASML HOLDING NV NY REG ADR Physical 225103 $ 220,360,079.79 Netherlands USD Information Technology Semiconductors & Semiconductor Equipment 0.00       $ 0.00 0.66% 0.66%   FI FISERV INC COMMON STOCK DOMESTIC COMMON STOCK Physical 1390798 $ 218,049,310.44 United States USD Financials Financial Services 0.00       $ 0.00 0.65% 0.65%   MNST MONSTER BEVERAGE CORP DOMESTIC COMMON STOCK Physical 3683085 $ 217,633,492.65 United States USD Consumer Staples Beverages 0.00       $ 0.00 0.65% 0.65%   DE DEERE & CO COMMON STOCK DOMESTIC COMMON STOCK Physical 531154 $ 211,415,226.62 United States USD Industrials Machinery 0.00       $ 0.00 0.63% 0.63%   CB CHUBB LTD COMMON STOCK DOMESTIC COMMON STOCK Physical 824437 $ 210,734,341.57 Switzerland USD Financials Insurance 0.00       $ 0.00 0.63% 0.63%   CSX CSX CORP COMMON STOCK DOMESTIC COMMON STOCK Physical 5681913 $ 209,321,674.92 United States USD Industrials Ground Transportation 0.00       $ 0.00 0.63% 0.63%   BKNG BOOKING HOLDINGS INC DOMESTIC COMMON STOCK Physical 55618 $ 201,723,148.92 United States USD Consumer Discretionary Hotels, Restaurants & Leisure 0.00       $ 0.00 0.61% 0.6%   ICE INTERCONTINENTAL DOMESTIC COMMON STOCK Physical 1421247 $ 193,019,555.07 United States USD Financials Capital Markets 0.00       $ 0.00 0.58% 0.58%   TXT TEXTRON INC COMMON STOCK DOMESTIC COMMON STOCK Physical 1981435 $ 189,662,958.20 United States USD Industrials Aerospace & Defense 0.00       $ 0.00 0.57% 0.57%   RTX RAYTHEON TECHNOLOGIES DOMESTIC COMMON STOCK Physical 1912716 $ 182,913,031.08 United States USD Industrials Aerospace & Defense 0.00       $ 0.00 0.55% 0.55%   USB US BANCORP COMMON STOCK DOMESTIC COMMON STOCK Physical 4166511 $ 181,451,554.05 United States USD Financials Commercial Banks 0.00       $ 0.00 0.54% 0.54%   KEYS KEYSIGHT TECHNOLOGIES DOMESTIC COMMON STOCK Physical 1186049 $ 180,967,356.42 United States USD Information Technology Electronic Equipment, Instruments & Components 0.00       $ 0.00 0.54% 0.54%   DOW DOW INC COMMON STOCK USD DOMESTIC COMMON STOCK Physical 3123508 $ 179,258,124.12 United States USD Materials Chemicals 0.00       $ 0.00 0.54% 0.54%   AXP AMERICAN EXPRESS CO DOMESTIC COMMON STOCK Physical 787422 $ 177,980,994.66 United States USD Financials Consumer Finance 0.00       $ 0.00 0.53% 0.53%   CDNS CADENCE DESIGN SYSTEMS DOMESTIC COMMON STOCK Physical 560188 $ 177,137,047.48 United States USD Information Technology Software 0.00       $ 0.00 0.53% 0.53%   WMT WALMART INC COMMON STOCK DOMESTIC COMMON STOCK Physical 2841250 $ 172,094,512.50 United States USD Consumer Staples Consumer Staples Distribution & Retail 0.00       $ 0.00 0.52% 0.51%   JKHY JACK HENRY & ASSOCIATES DOMESTIC COMMON STOCK Physical 1015267 $ 168,280,505.25 United States USD Financials Financial Services 0.00       $ 0.00 0.51% 0.5%   CL COLGATE-PALMOLIVE CO DOMESTIC COMMON STOCK Physical 1865971 $ 165,399,669.44 United States USD Consumer Staples Household Products 0.00       $ 0.00 0.5% 0.49%   BSX BOSTON SCIENTIFIC CORP DOMESTIC COMMON STOCK Physical 2456138 $ 165,273,526.02 United States USD Health Care Health Care Equipment & Supplies 0.00       $ 0.00 0.5% 0.49%   ELV ELEVANCE HEALTH INC DOMESTIC COMMON STOCK Physical 317636 $ 162,108,708.96 United States USD Health Care Health Care Providers & Services 0.00       $ 0.00 0.49% 0.48%   CMS CMS ENERGY CORP COMMON DOMESTIC COMMON STOCK Physical 2758043 $ 161,648,900.23 United States USD Utilities Multi-Utilities 0.00       $ 0.00 0.49% 0.48%   SNPS SYNOPSYS INC COMMON DOMESTIC COMMON STOCK Physical 267312 $ 156,195,747.84 United States USD Information Technology Software 0.00       $ 0.00 0.47% 0.47%   DHR DANAHER CORP COMMON DOMESTIC COMMON STOCK Physical 617047 $ 152,904,246.60 United States USD Health Care Life Sciences Tools & Services 0.00       $ 0.00 0.46% 0.46%   MDT MEDTRONIC PLC COMMON DOMESTIC COMMON STOCK Physical 1764242 $ 146,855,504.08 Ireland USD Health Care Health Care Equipment & Supplies 0.00       $ 0.00 0.44% 0.44%   FDX FEDEX CORP COMMON STOCK DOMESTIC COMMON STOCK Physical 469172 $ 132,573,932.04 United States USD Industrials Air Freight & Logistics 0.00       $ 0.00 0.4% 0.4%   JNJ JOHNSON & COMMON DOMESTIC COMMON STOCK Physical 853692 $ 132,510,072.24 United States USD Health Care Pharmaceuticals 0.00       $ 0.00 0.4% 0.4%   CRM SALESFORCE INC COMMON DOMESTIC COMMON STOCK Physical 383073 $ 117,243,322.38 United States USD Information Technology Software 0.00       $ 0.00 0.35% 0.35%   NVDA NVIDIA CORP COMMON STOCK DOMESTIC COMMON STOCK Physical 122227 $ 116,118,094.54 United States USD Information Technology Semiconductors & Semiconductor Equipment 0.00       $ 0.00 0.35% 0.35%   HUM HUMANA INC COMMON STOCK DOMESTIC COMMON STOCK Physical 313739 $ 108,895,669.51 United States USD Health Care Health Care Providers & Services 0.00       $ 0.00 0.33% 0.33%   KMB KIMBERLY-CLARK CORP DOMESTIC COMMON STOCK Physical 850944 $ 106,521,169.92 United States USD Consumer Staples Household Products 0.00       $ 0.00 0.32% 0.32%   SPGI S&P GLOBAL INC COMMON DOMESTIC COMMON STOCK Physical 247352 $ 103,511,864.96 United States USD Financials Capital Markets 0.00       $ 0.00 0.31% 0.31%   PCG PG&E CORP COMMON STOCK DOMESTIC COMMON STOCK Physical 6270319 $ 102,895,934.79 United States USD Utilities Electric Utilities 0.00       $ 0.00 0.31% 0.31%   UNP UNION PACIFIC CORP DOMESTIC COMMON STOCK Physical 417843 $ 101,891,015.55 United States USD Industrials Ground Transportation 0.00       $ 0.00 0.31% 0.3%   IR INGERSOLL RAND INC DOMESTIC COMMON STOCK Physical 1029769 $ 97,292,575.12 United States USD Industrials Machinery 0.00       $ 0.00 0.29% 0.29%   STX SEAGATE TECHNOLOGY DOMESTIC COMMON STOCK Physical 1092277 $ 96,349,754.17 Ireland USD Information Technology Computers & Peripherals 0.00       $ 0.00 0.29% 0.29%   LYB LYONDELLBASELL DOMESTIC COMMON STOCK Physical 955752 $ 96,043,518.48 United States USD Materials Chemicals 0.00       $ 0.00 0.29% 0.29%   AAPL APPLE INC COMMON STOCK DOMESTIC COMMON STOCK Physical 469973 $ 80,294,887.05 United States USD Information Technology Computers & Peripherals 0.00       $ 0.00 0.24% 0.24%   AMT AMERICAN TOWER CORP REIT REIT Physical 397999 $ 77,832,684.44 United States USD Real Estate Specialized REITs 0.00       $ 0.00 0.23% 0.23%   MSI MOTOROLA SOLUTIONS INC DOMESTIC COMMON STOCK Physical 215968 $ 75,139,586.56 United States USD Information Technology Communications Equipment 0.00       $ 0.00 0.23% 0.22%   PM PHILIP MORRIS DOMESTIC COMMON STOCK Physical 802140 $ 73,115,061.00 United States USD Consumer Staples Tobacco 0.00       $ 0.00 0.22% 0.22%   CNC CENTENE CORP COMMON DOMESTIC COMMON STOCK Physical 927927 $ 71,515,333.89 United States USD Health Care Health Care Providers & Services 0.00       $ 0.00 0.21% 0.21%   KVUE KENVUE INC COMMON STOCK DOMESTIC COMMON STOCK Physical 3416995 $ 70,560,946.75 United States USD Consumer Staples Personal Care Products 0.00       $ 0.00 0.21% 0.21%   GD GENERAL DYNAMICS CORP DOMESTIC COMMON STOCK Physical 249543 $ 69,617,506.14 United States USD Industrials Aerospace & Defense 0.00       $ 0.00 0.21% 0.21%   AMP AMERIPRISE FINANCIAL INC DOMESTIC COMMON STOCK Physical 143260 $ 61,818,122.60 United States USD Financials Capital Markets 0.00       $ 0.00 0.19% 0.18%   AME AMETEK INC COMMON STOCK DOMESTIC COMMON STOCK Physical 324377 $ 59,283,140.52 United States USD Industrials Electrical Equipment 0.00       $ 0.00 0.18% 0.18%   LDOS LEIDOS HOLDINGS INC DOMESTIC COMMON STOCK Physical 451008 $ 57,828,245.76 United States USD Industrials Professional Services 0.00       $ 0.00 0.17% 0.17%   VRSN VERISIGN INC COMMON DOMESTIC COMMON STOCK Physical 262396 $ 49,117,907.24 United States USD Information Technology IT Services 0.00       $ 0.00 0.15% 0.15%   MET METLIFE INC COMMON STOCK DOMESTIC COMMON STOCK Physical 622210 $ 45,483,551.00 United States USD Financials Insurance 0.00       $ 0.00 0.14% 0.14%   MO ALTRIA GROUP INC COMMON DOMESTIC COMMON STOCK Physical 981721 $ 42,469,250.46 United States USD Consumer Staples Tobacco 0.00       $ 0.00 0.13% 0.13%   MCD MCDONALD'S CORP COMMON DOMESTIC COMMON STOCK Physical 145581 $ 40,561,778.22 United States USD Consumer Discretionary Hotels, Restaurants & Leisure 0.00       $ 0.00 0.12% 0.12%   ORLY O'REILLY AUTOMOTIVE INC DOMESTIC COMMON STOCK Physical 30001 $ 34,113,237.07 United States USD Consumer Discretionary Specialty Retail 0.00       $ 0.00 0.1% 0.1%   D DOMINION ENERGY INC DOMESTIC COMMON STOCK Physical 677173 $ 32,673,597.25 United States USD Utilities Multi-Utilities 0.00       $ 0.00 0.1% 0.1%   GWW WW GRAINGER INC COMMON DOMESTIC COMMON STOCK Physical 32098 $ 32,346,438.52 United States USD Industrials Trading Companies & Distributors 0.00       $ 0.00 0.1% 0.1%   APD AIR PRODUCTS AND DOMESTIC COMMON STOCK Physical 120847 $ 28,708,413.32 United States USD Materials Chemicals 0.00       $ 0.00 0.09% 0.09%   BIIB BIOGEN INC COMMON STOCK DOMESTIC COMMON STOCK Physical 128644 $ 27,875,868.36 United States USD Health Care Biotechnology 0.00       $ 0.00 0.08% 0.08%   GL GLOBE LIFE INC COMMON DOMESTIC COMMON STOCK Physical 210251 $ 24,477,421.42 United States USD Financials Insurance 0.00       $ 0.00 0.07% 0.07%   VLTO VERALTO CORP DOMESTIC COMMON STOCK Physical 224782 $ 20,095,510.80 United States USD Industrials Commercial Services & Supplies 0.00       $ 0.00 0.06% 0.06%   WELL WELLTOWER INC REIT Physical 206778 $ 18,872,628.06 United States USD Real Estate Health Care REITs 0.00       $ 0.00 0.06% 0.06%   BDX BECTON DICKINSON & CO DOMESTIC COMMON STOCK Physical 71173 $ 17,200,378.91 United States USD Health Care Health Care Equipment & Supplies 0.00       $ 0.00 0.05% 0.05%   DTE DTE ENERGY CO COMMON DOMESTIC COMMON STOCK Physical 130702 $ 14,170,710.84 United States USD Utilities Multi-Utilities 0.00       $ 0.00 0.04% 0.04%     CASH CURRENCIES Physical 8459361 $ 8,459,361.07 United States USD     0.00       $ 0.00 0.03% 0.03%   Click to enlarge You should be able to scroll to the right on this table to see more details. JEPI has made a run, but the market is at or very near all time highs despite a slight breather. The ETF value has not kept pace. The roughly 80% of the fund in equities should run commensurate with the market, with very high correlation. With a near perfect correlation, we would expect JEPI would have been priced closer to the high $60s here. Still, while paper gains are always great to have, you buy this instrument for the massive income here. And the fact is that if you wait long enough, and the ETF continues to ebb and flow but pay reliable dividends, your entire initial investment can be recouped from this income alone, and then everything on top of that is gravy. Unlike a single stock which can go bust, JEPI is a basket of holdings, and will never go belly up. Now there are some nuances with the equity linked notes and the contract deliverables that one can make arguments regarding risk, but suffice it to say, the holdings here are major. Keep in mind from an options perspective, the income there stems from movements in rates, and volatility. In this low volatility environment, and mixed back and forth of rates, option premium income has been mixed. That said, this ETF has paid over $18 in distributions, and the ETF is up nearly 20%. That makes for a strong set of total returns. Of course, the second concern many have, aside from whether the ETF can keep pace with market gains, is if the distributions can continue to be so plentiful. Certainly it is worth noting distributions have fluctuated, and some of those factors were touched on above. Distributions were back on the rise in H2 2023 as rates calmed down and volatility was slightly elevated, particularly in September to November, only to start the year near some of the lower payout levels historically:   Seeking Alpha So, the distributions are going to fluctuate based on the equity movements and option income. When reviewing the holdings above as of March 25, 2024, it remains clear that the portfolio is still very much quality-oriented, with many lower-beta names versus some of the many other call option selling income ETFs we have looked at. So, when selling covered calls, and this is something that comes up frequently for beginners at our investing group, is that you can lose out if the underlying assets run up above the covered call ceiling and get called away. Then the fund has to buy back the stock and sell more calls, or roll them out. Since the fund sells out-of-the-money call options, there is flexibility, but with the market run up the last few months, a lot of maneuvering has had to be conducted. With that said, the JEPI ETF is doing its job well. It is not keeping a perfect pace with market movements, but depending on where the ETF is priced and the amount of income generated, you are collecting somewhere between a 7% and 10% yield. Even with all of the market swings, including two nasty bear markets in four years, and two strong bull market recoveries, the ETF prices has largely been in a defined range, allowing you to buy on weakness, and maybe trim on some rips, if you are astute at managing a position size or trading around the core position for even more income.  Overall, the JPMorgan Equity Premium Income ETF deserves your consideration for an income allocation. But never put all or most of your eggs into one basket, and please remember, price matters. Wait for a better entry, pick your spots.","kind":null,"is_publish_news":null,"is_publish_highlight":null,"is_publish_live":null,"is_publish_wemedia":null,"editions":null,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.22.4","shortVersion":"4.22.4","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2422362201"}