What is J.P. Morgan Asset Management JEPI Equity Premium Income ETF?
J.P. Morgan Asset Management's JEPI Equity Premium Income ETF is an actively managed fund that invests in S&P 500 stocks with low-volatility and value characteristics. The fund aims to provide investors with exposure to the returns associated with the S&P 500 while seeking to reduce investment risk through the use of defensive equity strategies.
JEPI uses a covered call strategy to generate income for investors by selling call options on the stocks in the portfolio. This strategy attempts to capture the equity risk premium while seeking to minimize potential losses by using options to limit upside participation.
The fund's portfolio managers have over 60 years of combined experience investing in equities and equity derivatives. As of August 2, 2023, JEPI is the largest actively managed ETF by assets, with over $28 billion in assets under management.
According to performance data, JEPI has been successful in meeting its investment objectives, achieving strong returns while providing a lower level of risk compared to the broader market. With its defensive equity strategies and focus on generating income, JEPI may be a suitable option for investors seeking potentially higher yields and a less risky way to gain exposure to the equity market.
Frequently Asked Questions about j.p. morgan asset management jepi equity premium income etf
The JPMorgan Equity Premium Income ETF (JEPI) is an actively managed fund that generates income by selling options on U.S. large cap stocks. The fund invests in S&P 500 stocks that exhibit low-volatility and value characteristics, and sells options on those stocks to generate additional income.
JEPI is an actively-managed fund that invests in large-cap US stocks and equity-linked notes (ELNs). It seeks to provide similar returns as the S&P 500 Index with lower volatility and monthly income.
About JPMorgan Income ETF
(JPMIM or the adviser) believes have high potential to produce income and have low correlations to each other in order to manage risk. It has broad flexibility to invest in a wide variety of debt securities and instruments of any maturity.
Top 10 Holdings
- Amazon.com Inc. 1.60%
- Adobe Inc. 1.60%
- Microsoft Corp. 1.57%
- Progressive Corp. 1.57%
- Jpmorgan Us Govt Mmkt Fund Im Shares (Restricted) 1.55%
- Mastercard Inc Class A. 1.55%
- Intuit Inc. 1.48%
- AbbVie Inc. 1.47%
JEPI is a conservative equity solution comprised of two fundamental building blocks: a defensive equity portfolio of U.S. large cap stocks and a disciplined options overlay.
Here's how it works: We use fundamental bottom-up research to build a higher-quality, lower-beta portfolio of U.S. large cap equities with less volatile earnings and share prices. We then sell index options against that long-only portfolio and use the premiums to generate income.
JEPI is an actively-managed fund which seeks to generate income by investing in US stocks which have low volatility and which appear undervalued, and through investments in equity-linked notes which provide the economic exposure of the US stock market and written (sold) call options.
J.P. Morgan ETF List
| Name | Ticker | Total 3-Year Return (%) |
|---|
| JPMorgan Ultra-Short Income ETF | JPST | 1.60 |
| JPMorgan Ultra-Short Municipal Inc ETF | JMST | 0.84 |
| JPMorgan US Momentum Factor ETF | JMOM | 6.94 |
| JPMorgan US Quality Factor ETF | JQUA | 11.70 |
The largest JPMorgan Chase ETF is the JPMorgan Equity Premium Income ETF JEPI with $29.05B in assets. In the last trailing year, the best-performing JPMorgan Chase ETF was JEPQ at 21.61%. The most recent ETF launched in the JPMorgan Chase space was the JPMorgan U.S. Tech Leaders ETF JTEK on 10/04/23.
JEPI is an actively-managed fund which seeks to generate income by investing in US stocks which have low volatility and which appear undervalued, and through investments in equity-linked notes which provide the economic exposure of the US stock market and written (sold) call options.
JEPI is a conservative equity solution comprised of two fundamental building blocks: a defensive equity portfolio of U.S. large cap stocks and a disciplined options overlay.
JEPI produces high income
Instead of focusing on total returns (which are capped with a covered call strategy), they love looking at high distribution yields. Bonus if the distribution is paid on a monthly basis.
317 ETFs
| Ticker/Name | Segment | % Allocation |
|---|
| XLFFinancial Select Sector SPDR Fund | Equity: U.S. Financials | 9.19% |
| IYFiShares U.S. Financials ETF | Equity: U.S. Financials | 9.13% |
| KBWBInvesco KBW Bank ETF | Equity: U.S. Banks | 8.50% |
| FTXOFirst Trust Nasdaq Bank ETF | Equity: U.S. Banks | 8.43% |
Two of the most popular ETFs include index funds based on the Standard & Poor's 500 index and the Nasdaq 100 index, which contain high-quality businesses listed on American exchanges: Vanguard S&P 500 ETF (VOO), with an expense ratio of 0.03 percent. Invesco QQQ Trust (QQQ), with an expense ratio of 0.20 percent.
100 Highest 5 Year ETF Returns
| Symbol | Name | 5-Year Return |
|---|
| PSI | Invesco Semiconductors ETF | 21.52% |
| TAN | Invesco Solar ETF | 20.63% |
| FTXL | First Trust Nasdaq Semiconductor ETF | 20.06% |
| TQQQ | ProShares UltraPro QQQ | 19.65% |
JPMorgan Equity Premium Income ETF.
