To The Moon

🌟🌟🌟I love dividends and $JPMorgan Equity Premium Income ETF(JEPI)$ pays me a dividend every single  month.    JEPI is also managed by $JPMorgan Chase(JPM)$  the largest bank in the US and the world 's largest bank by market capitalisation with USD 546.8 billion assets under management in 2023.

How does JEPI work? 

JEPI' s objective is to seek current income while trying to achieve capital appreciation.  JEPI seeks to produce income by creating an actively managed portfolio of stocks which are part of the S&P500 Index.  

There are 2 main activities done by JEPI.    The 1st activity is to invest in very high capitalisation, low volatility stocks taken from the S&P500 Index.  The 2nd activity is a simple covered call strategy.  This is done through Equity Linked Notes or ELNs. 

There are 3 things that makes JEPI so popular with investors.  Firstly it pays a dividend every month.  JEPI tries  to generate price growth.  JEPI maintains low volatility.  JEPI is also a high yield ETF. 

That is why JEPI has grown to USD 33 billion in Assets Under Management since its inception in May 20 2020.  For an actively managed ETF, the expense ratio is 0.40% which is rather low.

Performance wise JEPI is up 3.9% year todate and in 2023, JEPI has risen by 9.7%.

The Top 10 holdings include 3 of the Magnificent 7 -$Amazon.com(AMZN)$  which is up 16% year todate and in 2023 Amazon has jumped a huge 89%.  $Meta Platforms, Inc.(META)$  which is the 2nd best performing stock after Nvidia with a rise of 44% year todate and a whopping 176% in 2023.  $Microsoft(MSFT)$  which has overtaken Apple  to be the Top holding in the S&P500 Index.  Microsoft is up 11% year todate and in 2023 it has risen 63%.

The current distribution yield is 7.65% paid monthly. 

Covered Calls can generate fairly stable cash flows in many market conditions.  JP Morgan has put in 2 of its best fund managers Hamilton Reiner and Raffaele Zingone who have 70 years of experience between them to manage JEPI. 

JEPI ETF may not be suitable for those investors seeking high risks high returns due to its objective of low volatility in stocks.  But it is perfect for those who loves dividends like me.  Covered Calls Strategy is normally the domain of big institutions and seasoned traders.  But with JEPI, it is now available to small retail investors like me.  How good is that!   Best of all I look forward to the monthly dividends which is a great source of passive income while waiting for capital growth. 

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