Latest news with #JPMorganEquityPremiumIncomeETF
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
14-05-2025
- Business
- Yahoo
1 No-Brainer Dividend Index Fund to Buy Right Now for Less Than $500 -- and Another Dividend Fund Yielding 11%
You can invest in individual dividend-paying stocks, but opting for a dividend-focused ETF makes it easier. The Schwab U.S. Dividend Equity ETF has a solid track record and a respectable yield. The relatively new, and actively managed, JPMorgan Equity Premium Income ETF has performed well. 10 stocks we like better than Schwab U.S. Dividend Equity ETF › Two of the best things in the investment world are index funds and dividend-paying stocks. So an even better thing, arguably, would be a dividend-focused index fund. Here's a look at a well-regarded index exchange-traded fund (ETF) that recently boasted a yield of 4%. (ETFs are funds that trade like stocks, making it easy to get in and out of them.) I'll also offer for your consideration a more aggressive income-oriented ETF that recently sported a dividend yield of 11%. Check them out and see whether either or both would be a good fit for your portfolio. You can invest in either with less than $500 -- or with more. Dividend-paying stocks used to be thought of by many people as mainly suitable for grandparents -- but that's increasingly not the case as more investors wake up to their appeal. Consider these eye-opening numbers. Dividend-Paying Status Average Annual Total Return, 1973-2024 Dividend growers and initiators 10.24% Dividend payers 9.20% No change in dividend policy 6.75% Dividend non-payers 4.31% Dividend shrinkers and eliminators (0.89%) Equal-weighted S&P 500 index 7.65% Data source: Ned Davis Research and Hartford Funds. You can, of course, study the universe of stocks and carefully choose promising dividend-paying stocks for your portfolio. But you might instead make it easy on yourself by just investing in a good fund that does that work for you. The Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD) is a compelling pick for multiple reasons. Let's start with its expense ratio (annual fee), which is just 0.06%. That means you'll only pay $6 a year for every $10,000 you have invested in the fund. The ETF tracks the Dow Jones U.S. Dividend 100 Index -- which encompasses 100 stocks with track records of paying dividends for at least 10 years and which also appear financially healthy. That last part, based on factors such as cash flow to total debt and return on equity, is important, because companies that aren't financially healthy may at some point need to reduce their dividends. Here's how the fund has performed in the past. Period Average annual gain Past 3 years 4.58% Past 5 years 12.76% Past 10 years 10.47% Since inception (Oct. 20, 2011) 12.19% Source: as of May 8, 2025. Pretty good, right? Note, though, that the next five or 10 years might feature lower (or higher) returns. The S&P 500 has averaged annual total returns of close to 10% (ignoring inflation) over long periods, and the past few years have featured higher-than-average returns. Another thing to like about the fund is its relatively hefty dividend yield, recently 4%. Plunk $10,000 into this ETF and you can expect somewhere around $400 in dividends over the course of the next year. As the companies in the Dow Jones U.S. Dividend 100 Index grow over time, many of them will be increasing their dividends, so you can generally expect to collect more in dividend income from year to year. So what's in this ETF? Here are its top 10 holdings as of May 8. Stock Weight in ETF Recent yield Coca-Cola 4.47% 2.8% Verizon Communications 4.43% 6.2% Altria Group 4.42% 6.7% ConocoPhillips 4.27% 3.6% Lockheed Martin 4.25% 2.8% Home Depot 4.06% 2.5% Cisco Systems 4.03% 2.8% Chevron 3.89% 5.0% AbbVie 3.84% 3.5% Amgen 3.77% 3.5% Source: and Figures as of May 8, 2025. These 10 holdings together make up about 41% of the ETF's value. About 20% of its assets are in consumer defensive stocks, 19% in energy stocks, and nearly 15% in healthcare stocks. If you're looking for much more income from your investments, you might want to take a look at the JPMorgan Equity Premium Income ETF (NYSEMKT: JEPI). It's fairly new, with an inception date of May 20, 2020, and it has drawn a lot of interest with its dividend yield, recently 7.8% (on a 12-month rolling basis). As you might be starting to suspect, the JPMorgan Equity Premium Income ETF is not a standard dividend ETF. It claims to be the world's largest actively managed ETF (as opposed to being an index fund, or index ETF), and here's how it describes itself: Designed to provide current income while maintaining prospects for capital appreciation. Generates income through a combination of selling options and investing in U.S. large cap stocks, seeking to deliver a monthly income stream from associated option premiums and stock dividends. Seeks to deliver a significant portion of the returns associated with the S&P 500 Index with less volatility, in addition to monthly income. So what's its strategy? Well, it holds lots of stocks (recently around 113) chosen by its managers. On top of that, it uses equity-linked notes and covered calls (a kind of option) to add to its performance. Take a closer look at this ETF if it interests you. Understand that its performance can vary along with the economic environment. Its expense ratio is 0.35%, costing you $35 annually per $10,000 invested in the fund. Whether you take the more straightforward route of investing for dividend income or you park some money in the JPMorgan ETF, be sure that you are saving and investing for retirement. Before you buy stock in Schwab U.S. Dividend Equity ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Schwab U.S. Dividend Equity ETF wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $598,613!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $753,878!* Now, it's worth noting Stock Advisor's total average return is 922% — a market-crushing outperformance compared to 169% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 12, 2025 Selena Maranjian has positions in AbbVie, Altria Group, Amgen, Schwab U.S. Dividend Equity ETF, and Verizon Communications. The Motley Fool has positions in and recommends AbbVie, Amgen, Chevron, Cisco Systems, and Home Depot. The Motley Fool recommends Lockheed Martin and Verizon Communications. The Motley Fool has a disclosure policy. 1 No-Brainer Dividend Index Fund to Buy Right Now for Less Than $500 -- and Another Dividend Fund Yielding 11% was originally published by The Motley Fool
CNBC
02-05-2025
- Business
- CNBC
Two JPMorgan ETFs that are providing a destination for risk-averse investors
The money manager behind two of the world's biggest actively managed exchange-traded funds sees a way for investors to stay defensive without leaving the market. Jon Maier's firm is behind the JPMorgan Equity Premium Income ETF (JEPI) and JPMorgan Ultra-Short Income ETF (JPST). They're listed as No. 1 and No. 3 in size globally in their category, according to VettaFi. The goal: give investors downside protection while generating income. "When the VIX [volatility] increases, that offers the opportunity for an increased amount of income to the investor of JEPI," the J.P. Morgan Asset Management chief ETF strategist told CNBC's "ETF Edge" this week. "Conversely ... when the volatility declines, given that the options are written out of the money, it provides some upside in the underlying portfolio." JEPI fell around 3% in April while volatility gripped the market. As of Thursday's market close, the ETF is off about 4% for the year while the S&P 500 is down almost 5%. JEPI's top holdings include Mastercard, Visa and Progressive according to JPMorgan's website as of April 30. Meanwhile, the JPMorgan Ultra-Short Income Fund focuses on fixed income instead of U.S. equity. The fund is virtually flat so far this year. "It provides a ballast in your portfolio [and] stability for those investors that are looking to protect principle," Maier said. ETF Action's Mike Akins notes these ETFs are satisfying an important investment need in the market. "This category is where people are hiding out to weather the storm," the firm's founding partner said on the show. According to J.P. Morgan Asset Management, the JPMorgan Ultra-Short Income Fund had the second-highest volume among active U.S. fixed income ETFs between April 3 and 10 — which marked the year's most volatile weekly span on Wall Street.
CNBC
02-05-2025
- Business
- CNBC
Two JPMorgan ETFs that are providing a destination for risk-adverse investors
The money manager behind two of the world's biggest actively managed exchange-traded funds sees a way for investors to stay defensive without leaving the market. Jon Maier helps run the JPMorgan Equity Premium Income ETF (JEPI) and JPMorgan Ultra-Short Income ETF (JPST). They're listed as No. 1 and No. 3 in size globally in their category, according to VettaFi. The goal: give investors downside protection while generating income. "When the VIX [volatility] increases, that offers the opportunity for an increased amount of income to the investor of JEPI," the J.P. Morgan Asset Management chief ETF strategist told CNBC's "ETF Edge" this week. "Conversely ... when the volatility declines, given that the options are written out of the money, it provides some upside in the underlying portfolio." JEPI fell around 3% in April while volatility gripped the market. As of Thursday's market close, the ETF is off about 4% for the year while the S&P 500 is down almost 5%. JEPI's top holdings include Mastercard, Visa and Progressive according to JPMorgan's website as of April 30. Meanwhile, the JPMorgan Ultra-Short Income Fund focuses on fixed income instead of U.S. equity. The fund is virtually flat so far this year. "It provides a ballast in your portfolio [and] stability for those investors that are looking to protect principle," Maier said. ETF Action's Mike Akins notes these ETFs are satisfying an important investment need in the market. "This category is where people are hiding out to weather the storm," the firm's founding partner said on the show. According to J.P. Morgan Asset Management, the JPMorgan Ultra-Short Income Fund had the second-highest volume among active U.S. fixed income ETFs between April 3 and 10 — which marked the year's most volatile weekly span on Wall Street.
Yahoo
01-05-2025
- Business
- Yahoo
40-Year-Old Making $4K a Month in Dividends Reveals His Top 8 Stocks — 'We Don't Wear Fancy Clothes or Spend Money on Impressing Others'
Investors are turning to dividend stocks to guard their portfolios against market volatility amid trade wars and recession risks. Data from S&P Global shows that from Dec. 29, 1989, through the end of February, the S&P 500 Dividend Aristocrats outperformed the S&P 500 in 66.67% of the months when the broader index posted a loss. A few days ago, a dividend investor shared his income report and investing journey on r/Dividends, a Reddit community with over 700,000 followers. The portfolio screenshots shared by the investor on the social platform showed his monthly dividend income was roughly $3,960. The investor, around 40, said he started investing at the age of 20. Don't Miss: 'Scrolling To UBI' — Deloitte's #1 fastest-growing software company allows users to earn money on their phones. Can you guess how many retire with a $5,000,000 nest egg? . "At the time I never took it seriously and just putting in like 20-50$ a month," he said. "I 'seriously' started at around 23-24 when I was putting in approx, 300$ on average (that was a huge for me back then), and now averaging at around 2-2.5k per month." The investor said while it's difficult to see his portfolio suffering declines amid the current market environment, he's playing the "long game" and believes stocks will eventually go in a positive territory. The investor said he's never been a "big spender" and has expenses of about €700 a month. He lives in Europe where cost of living is not "that high," he wrote. "Other than that we have two old cars (20 and 15 years) – included in above expenses. We don't wear fancy clothes or spend money on impressing others (this can cost you a fortune)," he added. Trending: It's no wonder Jeff Bezos holds over $250 million in art — Let's take a look at some of the key dividend stocks in his portfolio. Schwab U.S. Dividend Equity ETF Schwab U.S. Dividend Equity ETF (NYSE:SCHD) tracks the Dow Jones U.S. Dividend 100 Index and provides exposure to some of the top dividend stocks trading in the U.S., including Verizon (NYSE:VZ), Coca-Cola (NYSE:KO), ConocoPhillips (NYSE:COP), Lockheed Martin (NYSE:LMT) and Chevron (NYSE:CVX). JPMorgan Equity Premium Income ETF JPMorgan Equity Premium Income ETF (NYSE:JEPI) makes money by investing in some of the most notable large-cap U.S. stocks and selling call options. Ares Capital Ares Capital (NASDAQ:ARCC), a business development company, was one of the top stocks in the investor's portfolio. He earned $1,920 in annual dividends from the stock. Public Storage Public Storage (NYSE:PSA) is a California-based REIT that operates self-storage facilities. The stock has a dividend yield of 4.1%. BofA Securities recently upgraded the stock to Buy from Neutral and raised its price target to $368 from $ S&P 500 ETF Trust With a 1.2% dividend yield, SPDR S&P 500 ETF Trust (NYSE:SPY) provides investors exposure to the broader US market. The investor made $1,218 in annual dividends from his investment in the fund. Altria Group Altria Group (NYSE:MO) has a dividend yield of about 7%. The tobacco giant accounted for about $800 in annual dividend income for the investor, according to the screenshots he shared on the social media platform. PepsiCo Inc Beverage giant Pepsi (NASDAQ:PEP) has increased its dividends for over 50 consecutive years. The company recently reported first-quarter earnings that missed Wall Street estimates while revenue beat expectations. The stock yields 4%. Johnson & Johnson Johnson & Johnson (NYSE:JNJ) is one of the most reliable dividend stocks, having raised its payouts for 63 consecutive years. The stock is up 8% so far this year. The company recently flagged a $400 million hit related to President Donald Trump's tariffs. Read Next:Inspired by Uber and Airbnb – Deloitte's fastest-growing software company is transforming 7 billion smartphones into income-generating assets – Image: Shutterstock UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? APPLE (AAPL): Free Stock Analysis Report TESLA (TSLA): Free Stock Analysis Report This article 40-Year-Old Making $4K a Month in Dividends Reveals His Top 8 Stocks — 'We Don't Wear Fancy Clothes or Spend Money on Impressing Others' originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Sign in to access your portfolio
