To The Moon

🌟🌟🌟The US stocks fell sharply and bond yields spiked on Tuesday after the US Jobs Opening Data came in hotter than expected, casting further doubt on future interest rate cuts. When markets are in the doldrums, $JPMorgan Equity Premium Income ETF(JEPI)$ provide comfort as JEPI generates monthly income from dividends and premiums from selling call options. This helps reduce JEPI's downside exposure to the S&P 500 Index. JEPI is so popular among dividend income seeking investors that it is actually the largest actively managed ETF for covered call strategy with Assets Under Management of USD 36.97 billion. It has one of the lowest expense ratio of 0.35% compared to competing ETFs. JEPI curates its portfolio by selecting stocks from the S&P500 index using a proprietary process to identify value stocks with favourable risk to return characteristics along with ESG considerations. After selecting and ranking the stocks, the final portfolio will hold those stocks with lower volatility compared to th benchmark S&P500 Index. In addition, JEPI uses Equity linked notes (ELNs) to provide the returns of the S&P500 Index with Covered Call Options written. The objective is to provide the same return as the S&P Index with lower volatility over a 3 to 5 year period combined with monthly income. The Top 10 holdings include Nvidia, Meta Platforms, Amazon.com, Trane Technologies, Progressive Corp, Mastercard Inc, ServiceNow, Google, Visa and Microsoft. The Top 10 holdings weightage is 18%. Total number of holdings is 116. The current dividend yield is 7.34%. Dividends are paid monthly. JEPI will go ex dividend on February 3 2025. JEPI is managed by 4 experienced portfolio managers who have a combined experience of 90 years in the industry. The lead manager Hamilton Reiner has 38 years experience in the industry while Raffaele Zingone has 34 years. They are assisted by Matt Bensen and Judy Jansen with 10 years in the industry each. I like JEPI as it provides me with a monthly source of passive income and the Fund Manager is JPMorgan which is US's largest bank and one of the biggest banks globally. Even though JEPI only started in May 20 2020, it has been so successful that other fund managers followed with similar Covered Call Strategy ETFs. Morgan Stanley launched $PARAMETRIC EQUITY PREMIUM INCOME ETF(PAPI)$ which started in October 16 2023. BlackRock launched $iShares Advantage Large Cap Income ETF(BALI)$ in September 2023. Nonetheless JEPI still takes the crown as the most popular Covered Call Strategy ETF with the largest Assets Under Management of USD of USD 36.97 billion. JEPI has also received a 4 star rating from Morningstar under the Derivative Income Category. Covered Call Strategy is normally the domain of big institutions and expert traders. However with JEPI, I am able to take advantage of this without lifting a finger. As dividend income is one of my goals in investing, JEPI suits me to perfection. However for those investors who are seeking high growth, JEPI may not be suitable as Covered Call Strategy may limit its upside potential. Wall Street Analysts are bullish on JEPI with a Buy rating, Target price of USD 66.57, an upside potential of 15%. Is JEPI a safe haven ETF in volatile markets? To me it is as I seek consistent premium income with lower volatility. @Daily_Discussion @TigerStars @Tiger_comments @TigerClub @CaptainTiger @MillionaireTiger @TigerTradingNotes