Latest news with #JEPQ
Yahoo
23-05-2025
- Business
- Yahoo
Record ETF Launches Drive Active Fund Growth in 2025
The global exchange-traded fund industry launched 847 new products in the first four months of 2025, setting a new record that surpassed the previous high of 563 launches recorded in the same period in 2022, according to research and consultancy firm ETFGI. The launch pace shows fund companies are racing to meet investor demand for new strategies, while active ETFs pull in billions as investors seek professional management over index-tracking. The 847 new ETF launches were distributed across regions, with the United States leading at 319 products, followed by Asia Pacific excluding Japan at 270 and Europe at 116, according to the ETFGI report. After accounting for 179 closures, the industry recorded a net increase of 668 products. A total of 266 providers contributed to these new listings across 35 exchanges globally, according to ETFGI. Meanwhile, 179 closures were reported from 71 providers across 20 exchanges during the same period. Among the newly launched products, 415 were active ETFs, while 286 were index equity ETFs and 52 were index fixed-income ETFs, according to ETFGI data. iShares led with 31 new listings, followed by Global X with 24 launches. Active ETFs continued their growth trajectory, with assets reaching a record $1.3 trillion at the end of April, according to ETFGI's Active ETF Industry Landscape Insights Report. These funds attracted $32.2 billion in net inflows during April alone. The JPMorgan Nasdaq Equity Premium Income ETF (JEPQ) recorded the largest individual net inflow of $1.7 billion in April, according to ETFGI. Other top performers included the Dimensional International Value ETF (DFIV) with $970.3 million, the Capital Group Dividend Value ETF (CGDV) with $845.1 million and the Avantis US Large Cap Value ETF (AVLV) with $799.2 million in monthly inflows. Year-to-date net inflows through April into actively managed ETFs reached $176.8 billion, according to the report. This marks 61 consecutive months of net inflows into active strategies, reflecting the sustained investor demand. Equity-focused actively managed ETFs led inflows with $22.5 billion during April, bringing year-to-date equity inflows to $96.2 billion, according to ETFGI. Fixed-income active ETFs also saw strong demand with $7.3 billion in April | © Copyright 2025 All rights reserved
Yahoo
15-05-2025
- Business
- Yahoo
What's Behind the Surge in Options Income ETFs?
Income-hungry investors have been piling into ETFs that use options to deliver juicy dividends. We've seen a surge in launches of these products recently, as providers employ innovative strategies to package derivatives within the ETF structure to meet rising investor demand. In addition to offering high yields, these strategies generally help reduce portfolio volatility. However, investors should remember that there's no free lunch in investing. These products tend to perform best in sideways markets and often underperform during strong bull runs. That said, they can provide some downside protection when stocks fall. Roni Israelov, Senior Quantitative Researcher at Citadel, refers to these strategies as a 'Devil's Bargain.' His research shows that trading options to generate income can undermine long-term investment returns. Our own analysis of the most popular derivatives-backed ETFs also suggests that investors may be leaving significant returns on the table in their pursuit of high income. Nevertheless, these products have attracted substantial inflows this year, as market volatility has shaken investor confidence. The JPMorgan Equity Premium Income ETF JEPI uses proprietary research to select around 130 stocks and writes S&P 500 Index call options to generate income. Its top holdings include NVIDIA (NVDA), Microsoft MSFT, and Meta META. JEPI and its sister fund, the JPMorgan Nasdaq Equity Premium Income ETF JEPQ, are among the top asset gatherers this year. The Amplify CWP Enhanced Dividend Income ETF DIVO aims to deliver high income from both dividends and covered calls. Its managers focus on high-quality large-cap companies with a history of dividend growth and write covered calls on individual stocks. While DIVO has outperformed JEPI, both have significantly lagged the S&P 500 over the long term. JEPQ and the Global X Nasdaq 100 Covered Call ETF QYLD continue to underperform the Nasdaq 100 ETF QQQ. To learn more about these ETFs, please watch the short video above. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Global X Nasdaq 100 Covered Call ETF (QYLD): ETF Research Reports Amplify CWP Enhanced Dividend Income ETF (DIVO): ETF Research Reports JPMorgan Equity Premium Income ETF (JEPI): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report JPMorgan Nasdaq Equity Premium Income ETF (JEPQ): ETF Research Reports This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
06-05-2025
- Business
- Yahoo
JEPQ Joins the Big Leagues as Options Income ETFs Surge
The JPMorgan Nasdaq Equity Premium Income ETF (JEPQ) just cracked the top 10 ETF inflows list, pulling in $5.7 billion in new money year to date. Its sister fund, the JPMorgan Equity Premium Income ETF (JEPI), has added another $3.5 billion over the same period. That's no small feat. JEPQ & JEPI Income Strategies Just three years after launching, JEPQ now manages more than $24 billion in assets. JEPI, which launched in 2020, has ballooned to nearly $39 billion. Together, the two anchor a rapidly growing category of exchange-traded funds using options overlay strategies to generate income. These strategies typically involve selling call options on top of a portfolio of stocks, a tactic known as covered call writing. In exchange for giving up some upside, the funds collect option premiums that can be distributed to investors as income. JEPI takes a slightly more complex approach, using equity-linked notes (ELNs) to replicate a covered call strategy on the S&P 500. ELNs are debt instruments whose returns are tied to the performance of an underlying strategy; in this case, an S&P 500 covered call approach. JEPI allocates up to 20% of its portfolio to ELNs, while the rest is invested in a basket of low-volatility, value-oriented U.S. stocks. ESG criteria may also play a role in stock selection. This hybrid approach has delivered stronger returns than more mechanical strategies like the one used by the Global X S&P 500 Covered Call ETF (XYLD). Since launching in 2020, JEPI has returned approximately 70%, compared to 56% for XYLD over the same period. For comparison, JEPI's performance has been in line with the iShares MSCI USA Min Vol Factor ETF (USMV) but trails the SPDR S&P 500 ETF Trust (SPY), which gained 107% in that timeframe. Lower Volatility, Higher Yields JEPI has delivered on its low-volatility promise, with a standard deviation of around 11.5% over the past year—the lowest among the ETFs mentioned. JEPQ applies the same concept to a different corner of the market, drawing most of its holdings from the Nasdaq-100. It also uses ELNs to replicate a Nasdaq-based covered call strategy, distributing the income monthly. Like JEPI, it aims to offer high yield and reduced volatility relative to its benchmark. So far, the strategy has worked. Since its 2022 launch, JEPQ has returned 44%, more than double the 20% return of the Global X Nasdaq 100 Covered Call ETF (QYLD). Still, it lags the 57% gain for the Invesco QQQ Trust (QQQ), which tracks the Nasdaq-100 without any options overlay. In terms of volatility, JEPQ lands somewhere in the middle: It posted a 17.8% standard deviation over the past year, compared to 22.8% for QQQ and 16.5% for QYLD.
Yahoo
19-04-2025
- Business
- Yahoo
Frugal Dreamer With $100K Eyes $5K In Passive Income, Says 'There Are Countries You Could Live Off From It' — Reddit Debates Strategy
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Financial independence doesn't always require a fortune but rather a smart strategy. With the right dividend portfolio, even modest savings can generate enough passive income to fund a comfortable lifestyle in low-cost regions. The secret is balancing yield, safety, and smart spending. One Redditor, grappling with this exact scenario of needing a certain passive income per month from dividends, shared his concerns with a community of investors on the online discussion board. He asked the community for advice on which assets to invest his $100,000 in order to generate $5,000 per month, beat inflation, and preserve capital. He also mentioned that he wants to bypass dividend yield traps. Don't Miss:Inspired by Uber and Airbnb – Deloitte's fastest-growing software company is transforming 7 billion smartphones into income-generating assets – 'I would consider [real estate investment trusts] like [Realty Income Corporation (NYSE: O)] right now, or [NNN REIT (NYSE: NNN)] with yield exactly 5% after [withholding tax]. But what else? I know it may sound silly to some of you but there are countries where you could live off from it over a nice quarter,' he wrote. Now, let's dive into the advice he received from Reddit's dividend community on how to make this dream a reality. Where to Invest $100,000 to Generate $5,000 in Passive Income Per Month? Reddit Jumps With Suggestions Consider Higher-Yield Plays Like Dividend ETFs, REITs, and BDCs While the poster mentioned he doesn't want to invest in high-yield traps, many Redditors recommended several dividend ETFs, real estate investment trusts, and business development companies that generate a higher yield but are seen as safe by them. 'What about [JPMorgan Equity Premium Income ETF (NYSE: JEPI)] and [JPMorgan Nasdaq Equity Premium Income ETF (NASDAQ: JEPQ)]? They yield 8% to 10% before taxes,' a commenter suggested. Trending: Warren Buffett once said, "If you don't find a way to make money while you sleep, you will work until you die." Suggesting business development companies, this Redditor recommended an investment strategy: '8% rule with [business development companies]. Invest in [business development companies] that yield more than 8%, use 8% for you, and reinvest anything above that to make sure your income keeps growing.' Advising the investor to avoid O for the moment, this user mentioned T-bills, an ETF, and a few real estate investment trusts: 'I would avoid buying O right now. Their prospects are not too great compared to some other [real estate investment trusts]. I would either take a safe course with T-bills boosted by a smaller allocation to JEPQ, or diversify into five to ten strong [real estate investment trusts] with good future prospects. [VICI Properties (NYSE: VICI)], [W. P. Carey (NYSE: WPC)], [Alexandria Real Estate Equities (NYSE: ARE)], [REX American Resources Corporation (NYSE: REX)], to name a few.' 'I might accumulate some more, honestly, for a few months till a bottom is hit, then sell to buy more [Schwab U.S. Dividend Equity ETF (NYSE: SCHD)], [Ares Capital Corporation (NASDAQ: ARCC)], [Berkshire Hathaway (NYSE: BRK-B)],' another comment Treasury Bills and Short-Term Bonds to the Portfolio Several commenters emphasized ultra-safe income plays, particularly Treasury bills and short-term bond ETFs like iShares 0-3 Month Treasury Bond ETF (NYSE:SGOV). 'SGOV is a type of investment called an ETF, which stands for exchange-traded fund. Think of it like a basket that holds lots of tiny pieces of investments, and you can buy a piece of that basket. SGOV is special because it invests in something called U.S. Treasury bills (also called T-bills). These are like short-term loans that people give to the U.S. government. In return, the government promises to pay the money back soon, with a little bit of extra money added (called interest). The 'dividend' varies based on how much those interest bonds are paying,' a commenter detailed. 'T-bill and chill, no brainer,' a Redditor wrote. Another user recommended SGOV, mentioning it will generate around $4,100 in income per year: 'SGOV will give $4,100 a year currently.' Read Next: With Point, you can Deloitte's fastest-growing software company partners with Amazon, Walmart & Target – Image: Shutterstock Send To MSN: 0 This article Frugal Dreamer With $100K Eyes $5K In Passive Income, Says 'There Are Countries You Could Live Off From It' — Reddit Debates Strategy originally appeared on Sign in to access your portfolio
Yahoo
11-04-2025
- Business
- Yahoo
JPMorgan First-Quarter ETF Assets Jump 39% on JEPI, JEPQ Inflows
JPMorgan Chase & Co. (JPM), the sixth-largest ETF issuer, said first-quarter assets in its exchange-traded fund business jumped 39% as inflows surged into its biggest funds, including JEPI and JEPQ. ETF assets under management rose to $239.9 billion from $172.6 billion in the prior year's first quarter, according to New York-based JPMorgan, the biggest U.S. bank. That growth was fueled in part by the company's ETFs, which pulled in $19.1 billion in flows, a 30% jump from the year-earlier period. ETF issuers like JPMorgan and BlackRock Inc. (BLK) benefitted as investors plowed $296 billion into ETFs during the first quarter, even as markets dropped, with the S&P 500's 4.6% decline marking its worst first quarter in three years. BlackRock, whose iShares is the world's largest ETF issuer, reported $107 billion in total net inflows into ETFs for the quarter. JPMorgan is focused on active ETFs, with six of its seven first-quarter launches in that category. Assets in its active business surged 58% to $177.2 billion, and inflows nearly doubled to $18.4 billion. The company doesn't offer the passive, major index-tracking ETFs its rivals rely on to bring in big inflows, instead opting for more specalized, income-generating funds like the $38 billion JPMorgan Equity Premium Income ETF (JEPI). Those funds carry higher management fees than passive funds. "Q1 has been favorable for active management" in equities and fixed income, Travis Spence, J.P. Morgan Asset Management's global head of ETFs, said in an emailed statement. In equities, the company has "focused on re-evaluating our fundamental views at the company level of post-election changes to earnings momentum, including the recent tariff tantrum, and in fixed income, where both rates and credit spreads are moving." JEPI, which invests in large-cap stocks and equity-linked notes to generate income, pulled in $2.8 billion in the quarter. JPMorgan's second-largest fund, the $29.9 billion JPMorgan Ultra-Short Income ETF (JPST), pulled in $3.4 billion, while the $22.8 billion JPMorgan Nasdaq Equity Premium Income ETF (JEPQ) took in $4 billion. Source: fund flows data CEO Jamie Dimon struck a cautious tone in the company's earnings release, as the global economy confronts 'considerable turbulence (including geopolitics).' He enumerated economic positives like tax reform and deregulation alongside 'potential negatives of tariffs and 'trade wars,' ongoing sticky inflation, high fiscal deficits and still rather high asset prices and volatility.' 'As always, we hope for the best but prepare the firm for a wide range of scenarios.'Permalink | © Copyright 2025 All rights reserved
