JEPI ETF JPMorgan Equity Premium Income - A Great Source of Passive Income For Me
πππSince its inception in 2020, $JPMorgan Equity Premium Income ETF(JEPI)$ has been hugely popular with investors seeking regular dividend income. In fact JEPI is so popular that it has become the biggest derivative income ETF in the world with Assets Under Management of USD 34.293 billion. This is followed by $J.P. MORGAN NASDAQ EQUITY PREMIUM INCOME ETF(JEPQ)$ at USD 14.8 billion and $Global X Nasdaq 100 Covered Call ETF(QYLD)$ at USD 8 billion.
JEPI is an actively managed fund that invests in large cap US stocks and equity linked notes. It seeks to provide similar returns as the S&P500 Index with lower volatility and monthly income.
JEPI curates its portfolio by selecting stocks from the S&P 500 Index using a proprietary process to identify value stocks with favourable risk/return characteristics along with ESG considerations. Then JEPI uses S&P 500 Index Call Options to generate the distributable monthly income.
JEPI is managed by 2 of the JPMorgan's most experienced portfolio managers Hamilton Reiner and Raffaele Zingone who have 70 years of industry experience between the 2 of them.
The Top 10 holdings include Progressive Corp, Trane Technologies, $Meta Platforms, Inc.(META)$
The Top 10 holdings weightage is 18%. Total number of holdings is 120. The expense ratio is 0.35%, one of the lowest among similar competing ETFs. In contrast QYLD ETF expense ratio is 0.60%.
Dividends are paid monthly. The current dividend yield is 7.55%.
Performance wise JEPI is up 0.8% in the past 5 days and 5.8% year todate. Since its inception in 2020, JEPI has risen 16%.
Wall Street Analysts are bullish on JEPI with a Buy rating, Average Target price of USD 63.21, an upside potential of 8% according to Tipranks.
JEPI suits investors who are seeking dividend income and who are also more risk adversed which fits my goal of FIRE - Financial Independence Retire Early.
JEPI forms part of my long term portfolio to provide a more balanced return. I like that I have the best fund managers from JPMorgan which is the biggest US bank by market capitalisation to look after JEPI without having to pay the high fees charged by the experts.
Investing does not have to be complicated with JEPI. Just buy and hold long term and let the magic of compounding happen over time.
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- zumaΒ·08-29thx1Report