Latest news with #JPMorganNasdaqEquityPremiumIncomeETF
Yahoo
29-07-2025
- Business
- Yahoo
U.S. covered call funds attract record inflows as investors seek yield
By Patturaja Murugaboopathy (Reuters) -U.S. covered call funds are drawing robust inflows this year as investors search for higher returns and protection from broader market volatility because of continued tariff risks and geopolitical tensions. According to Morningstar data, U.S. derivative income funds, primarily made up of covered call strategies, attracted a record $31.5 billion in the first half of this year. Till the middle of this month, they secured another $2.5 billion, lifting the total net assets to a record $145 billion, the data showed. Covered call funds generate income by owning stocks and selling call options on them, collecting premiums in return. In choppy markets, like the current one clouded by macroeconomic uncertainty, these options often expire unused, allowing the fund to retain the premium as stock prices typically don't rise enough to trigger a sale. While gains are capped if markets rise sharply, the consistent income stream remains appealing. The JPMorgan Equity Premium Income ETF has offered a 12-month trailing yield of 8.25%, while the JPMorgan Nasdaq Equity Premium Income ETF and the Global X Nasdaq 100 Covered Call ETF yielded 11.5% and 13.9%, respectively, well above the 10-year U.S. Treasury yield of 4.4%. Chad Harmer, founder and chief investment officer of Harmer Wealth Management, said covered call funds have also become more accessible through low-fee ETFs and 401(k) plans. A 401(k) is a U.S. workplace retirement plan that lets individuals invest pre-tax income and continue managing those assets into retirement. The biggest demand is coming from retirees and conservative allocators, as these funds on average pay more than bonds and rise on concerns that broader equity markets may struggle to keep recent gains. "We believe that the substantial rally in recent weeks has already priced in a lot of potential good news, and that investors should prepare for potential market volatility in the weeks ahead,' said Mark Haefele, chief investment officer at UBS Global Wealth Management. Barry Martin, portfolio manager at Shelton Capital Management, said investors are embracing covered call funds not just for cash flow generation, but also to manage portfolio volatility. "It's a powerful shift in how we approach yield and risk management. This year, with the increased volatility, it is especially a good market to sell calls in." (Reporting By Patturaja Murugaboopathy in Bengaluru; editing by Shankar Ramakrishnan and Jan Harvey) 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
Reuters
29-07-2025
- Business
- Reuters
U.S. covered call funds attract record inflows as investors seek yield
July 29 (Reuters) - U.S. covered call funds are drawing robust inflows this year as investors search for higher returns and protection from broader market volatility because of continued tariff risks and geopolitical tensions. According to Morningstar data, U.S. derivative income funds, primarily made up of covered call strategies, attracted a record $31.5 billion in the first half of this year. Till the middle of this month, they secured another $2.5 billion, lifting the total net assets to a record $145 billion, the data showed. Covered call funds generate income by owning stocks and selling call options on them, collecting premiums in return. In choppy markets, like the current one clouded by macroeconomic uncertainty, these options often expire unused, allowing the fund to retain the premium as stock prices typically don't rise enough to trigger a sale. While gains are capped if markets rise sharply, the consistent income stream remains appealing. The JPMorgan Equity Premium Income ETF has offered a 12-month trailing yield of 8.25%, while the JPMorgan Nasdaq Equity Premium Income ETF (JEPQ.O), opens new tab and the Global X Nasdaq 100 Covered Call ETF (QYLD.O), opens new tab yielded 11.5% and 13.9%, respectively, well above the 10-year U.S. Treasury yield of 4.4%. Chad Harmer, founder and chief investment officer of Harmer Wealth Management, said covered call funds have also become more accessible through low-fee ETFs and 401(k) plans. A 401(k) is a U.S. workplace retirement plan that lets individuals invest pre-tax income and continue managing those assets into retirement. The biggest demand is coming from retirees and conservative allocators, as these funds on average pay more than bonds and rise on concerns that broader equity markets may struggle to keep recent gains. "We believe that the substantial rally in recent weeks has already priced in a lot of potential good news, and that investors should prepare for potential market volatility in the weeks ahead,' said Mark Haefele, chief investment officer at UBS Global Wealth Management. Barry Martin, portfolio manager at Shelton Capital Management, said investors are embracing covered call funds not just for cash flow generation, but also to manage portfolio volatility. "It's a powerful shift in how we approach yield and risk management. This year, with the increased volatility, it is especially a good market to sell calls in."
Yahoo
03-06-2025
- Business
- Yahoo
2 ETFs I Plan to Buy in June to Increase My Passive Income
ETFs can make it easy to invest in different passive income strategies. The Vanguard Total Bond Market ETF provides broad exposure to high-quality bonds. The JPMorgan Nasdaq Equity Premium ETF generates income from writing call options. 10 stocks we like better than Vanguard Total Bond Market ETF › My long-term financial goal is to generate enough passive income to cover my basic living expenses. Once I reach my target, I won't have to work to pay my bills. I also won't have to sell stock during retirement to fund my financial needs. My strategy is pretty simple. I invest in income-generating assets each month as a march toward my passive income target. Exchange-traded funds (ETFs) are among the many vehicles I use on my journey to financial independence. Two that I plan to buy more of this June are Vanguard Total Bond Market ETF (NASDAQ: BND) and JPMorgan Nasdaq Equity Premium Income ETF (NASDAQ: JEPQ). Here's why I'm using these two ETFs to increase my passive income. Investing in bonds is one of the lowest-risk ways to generate passive income. However, it takes more work to manage a bond portfolio than stocks. You need to learn about bond ratings, building a bond ladder, and other factors that can affect returns. In the process of doing just that, I've found that investing in bond ETFs is the best way to gain exposure to the bond market and the fixed income they can generate. One of my go-to bond ETFs is the Vanguard Total Bond Market ETF. The ETF provides broad exposure to taxable investment-grade U.S. dollar-denominated bonds. It holds bonds issued by the U.S. government, government agencies, U.S. corporations, and foreign companies and countries that issue bonds in U.S. dollars. This ETF currently holds nearly 11,350 bonds. Nearly 69% of those bonds are from the U.S. government or government agencies. Meanwhile, about 18% have A-rated credit or higher, while the remaining 13% are BBB-rated bonds. These are all higher-quality bonds with a relatively low risk of default. Because they have an average yield to maturity of 4.5% and an average effective maturity of 8.2 years, this ETF should provide a fairly stable stream of interest payments. It distributes the income it receives to investors each month. The Vanguard Total Bond Market ETF provides investors with broad exposure to high-quality bonds for a very reasonable price, given its ultra-low 0.03% expense ratio. That enables investors like me to keep more of the interest income produced by the bonds it holds. Writing covered calls is another strategy that many investors use to generate passive income. This technique can be very lucrative. However, it requires fairly active portfolio management. An easier way to collect options income is to invest in the JPMorgan Nasdaq Equity Premium Income ETF. The fund's management team writes out-of-the-money call options -- that is, those above the current price -- on the Nasdaq-100 Index. That strategy enables the ETF to generate income and distribute it to investors each month. It can be a very lucrative strategy: As that chart shows, the fund has a higher income yield than several other asset classes, including U.S. government bonds and riskier -- and higher-yielding -- junk bonds. The yield shown is an annualization of its last distribution payment, which was higher due to market volatility in the period. Over the past 12 months, the fund's yield is a little lower at 10.4%, which is still very lucrative. The options premium income the fund generates will rise and fall based on volatility and market pricing. However, it's an attractive place to potentially earn an outsized income stream. In addition to the passive income, the fund provides equity market exposure. It holds a portfolio of stocks selected by combining an applied data science approach to fundamental research. It aims to construct a portfolio that will produce less volatile returns than the Nasdaq-100 while still providing investors with upside potential. I like this ETF because it delivers a lucrative income stream and higher appreciation potential, which should help grow the value of my portfolio over the long term. I like to use ETFs to add more sources of passive income to my portfolio. I routinely buy more of these ETFs, which helps increase my passive income. This month, I'm buying more shares of Vanguard Total Bond Market ETF and JPMorgan Nasdaq Equity Premium Income ETF because they make it super easy to collect passive income from bonds and options. Before you buy stock in Vanguard Total Bond Market ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Vanguard Total Bond Market 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 $651,049!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $828,224!* Now, it's worth noting Stock Advisor's total average return is 979% — a market-crushing outperformance compared to 171% 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 June 2, 2025 Matt DiLallo has positions in JPMorgan Nasdaq Equity Premium Income ETF and Vanguard Total Bond Market ETF. The Motley Fool has positions in and recommends Vanguard Total Bond Market ETF. The Motley Fool has a disclosure policy. 2 ETFs I Plan to Buy in June to Increase My Passive Income was originally published by The Motley Fool Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
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
30-04-2025
- Business
- Yahoo
51-Year-Old Making $4,970 a Month In Dividends Shares His Top 6 Stocks, Aims To 'Create Generational Wealth For Kids And Their Families'
Dividend stocks are gaining ground as investors scramble to safeguard their portfolios amid the ongoing US-China trade war. Jared Hoff, a senior portfolio manager at Federated Hermes, said while talking to The Wall Street Journal that dividend stocks are seeing a surge in demand, reversing the trend of the past couple of years when demand for risk-averse investments was low. 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? . A few days ago, a dividend investor shared his income report and holdings on r/Dividends — a community of income investors with over 700,000 followers. The portfolio details shared by the investor showed his monthly dividend income was roughly $4,973. The investor said he had about $1.2 million in cash equivalents, like certificates of deposit and money market funds, with paid-off house and cars. The investor, who plans to retire in three years, said he had 'ignored' dividend stocks until recently but began shifting into income-generating investments following the recent market pullback. "I don't want to lose the growth aspect of my portfolio as I want to see it continue to grow," he wrote. "We plan to use the nearly $5000 monthly dividend income as of today and reinvest the dividends for the next 8.5 years." Trending: The secret weapon in billionaire investor portfolios that you almost certainly don't own yet. The investor said his portfolio was down about 12.5% in 2025 as of the time of his post. He sold tech equities where he had already secured "huge" gains to pile into dividend stocks. "We have five kids aged 17-23 and the goal was to create generational wealth for them and their future families," he added. JPMorgan Nasdaq Equity Premium Income ETF JPMorgan Nasdaq Equity Premium Income ETF (NASDAQ:JEPQ) is a high-yield covered call ETF that distributes monthly dividend income. The ETF invests in Nasdaq companies and generates extra income by selling call options. NEOS S&P 500 High Income ETF The NEOS S&P 500 High Income ETF (CBOE: SPYI) is a high-yield covered call ETF that pays monthly dividend income. It invests in some of the top S&P 500 companies and generates extra income by selling call options on stocks, generating extra premium income for shareholders. SPYI has a distribution rate of more than 12%. Vanguard Total Bond Market Index Fund ETF Vanguard Total Bond Market Index Fund ETF (NASDAQ:BND) was among the top bond ETFs in the portfolio. The fund provides exposure to the investment-grade U.S. dollar-denominated bond market and pays Broadcom (NASDAQ:AVGO) has a dividend yield of about 1.2%. The stock is down 17% this year amid broader market volatility and tariffs on semiconductors. Earlier this month, Oppenheimer called Broadcom one of its top picks in the semiconductor space. JPMorgan Chase JPMorgan Chase (NYSE:JPM) has a dividend yield of 2.3%. The banking giant's shares are up 8% over the past six months. Recently, JPMorgan reported first-quarter earnings that beat Wall Street estimates. Revenue rose 9.7% year over year in the period. Home Depot Home Depot (NYSE:HD) has a dividend yield of 2.5%. The stock is down 8% this year. The company's CEO, Edward Decker, was among the CEOs of major retailers who met with President Donald Trump earlier this month to discuss the impact of tariffs on their companies. Read Next:Inspired by Uber and Airbnb – Deloitte's fastest-growing software company is transforming 7 billion smartphones into income-generating assets – Image: Shutterstock Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? APPLE (AAPL): Free Stock Analysis Report TESLA (TSLA): Free Stock Analysis Report This article 51-Year-Old Making $4,970 a Month In Dividends Shares His Top 6 Stocks, Aims To 'Create Generational Wealth For Kids And Their Families' originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved.
