JEPQ
JPMorgan Nasdaq Equity Premium Income ETF
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Advice for investing in this long call on an etf rather then a traditional stock.
I feel like I’m leaving so much money on the table. Talk some sense into me.
3rd year of maxing out my roth ira. How do my allocations look
FEPI Looking like a better JEPQ. 25% yield, solid price performance
Late to the party and new to dividend investing. Let me know what you think of my mix. I know I have overlap and probably too many, so any suggestions would be greatly appreciated. JEPI, JEPQ, JEPY, QQQY, SPLG, DIVG, SCHD and YYMI.
Is There Something Wrong with Yahoo! Finance?
Common criticism of covered call ETFs vs potential alternative?
HSA question, throw it in Jepq, reinvest in VTI?
Looking to supplement my military retirement income w/stocks,etfs
How would you invest $200k to generate $1,500 a month passively?
High Yield Monthly Dividend Stocks or Funds with High Option Volume?
Seems Fidelity doesn't add to your cost basis when you DRIP.
What place does JEPI/JEPQ hold in a world where Tbills and MUNIS start paying an acceptable coupon?
What’s a better short term investment (6-12 months), JEPI or JEPQ?
I have noticed that the same stock will be listed at different prices depending on the source. Why?
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Put your $70,000 into SPYI, QQQI & JEPQ. You will get paid free money that you could lose over and over again every month. Then you are losing someone else’s money and not yours. Then it will all just slowly keep coming back so you can continue your cycle
Yes, I wrote that I also have JEPI and JEPQ.
Thanks! Yes, I'm aware of the tax inefficiency, but I didn't want to choose an accumulation ETF and then periodically resell the shares to generate income. I preferred, even psychologically, to choose a distribution ETF. I was thinking of reinvesting any cash surplus in VWRL, which I believe distributes the least and is essentially an accumulation ETF. Other forums have advised me to allocate some dividends to supplement JEPQ and WINC, to avoid any potential NAV erosion.
Hello ! Alors oui, votre votre portefeuille est globalement solide et déjà assez prudent, surtout avec 50% en obligations / court terme. À 62 ans avec 2 000€ de revenu mensuel vous êtes dans une bonne situation ! Mon avis principal : simplifier un peu la partie actions. Plusieurs de vos ETF se recoupent (VHYL, TDIV, EUDV, VWRL, JEPI/JEPQ), trop de lignes ça complexifie le suivi sans vraiment améliorer les performances. Un ETF monde principal + une petite part income et vous allégez le reste. Sur les dividendes : ils apportent un confort psychologique réel mais sont souvent moins efficaces fiscalement que la croissance du capital selon votre pays de résidence. Une option intéressante : réinvestir une partie des dividendes dans un ETF global capitalisant tout en gardant une part distribution pour vos revenus mensuels. Pour le réinvestissement, je ferais simple : si les actions baissent → renforcer actions, si les obligations deviennent attractives → renforcer obligations, sinon → ETF monde diversifié. Et garder 1-2 ans de dépenses en liquidités c'est vraiment rassurant à la retraite, ça évite de vendre au mauvais moment. En résumé : bon portefeuille, mais je privilégierais plus de simplicité et d'optimisation fiscale plutôt que la recherche maximale de dividendes !
Forever holder of soxx. Its grown to a massive percent of total assets. I cant sell. Too much regret from selling previous stuff. Also MU, WDC and so on. I thought the cyclical stuff in tech hardware was crazy undervalued a decade ago. Anything that complex shouldn't be as cheap as it was. My investing mantra is just "there will be more demand for computers in the future." To scratch the buy sell itch i occassionally try to swing trade soxl, never holding for more than like 2 months. The rest of my account is boring stuff to offset the risk of so much semis. RSP, VXUS, JEPQ. Just stuff that tries to be different from how much exposure my account has to big computer hardware companies.
not that this is the time, but my plan is to buy JEPQ \~ around 10% a year plus appreciation.
JEPQ, JEPI, QQQI, SPYI you name it. But you will sacrifice the high yield for growth
JPMorgan funds rely on equity linked notes ELNs which are typically taxed as ordinary income, GPIQ utilizes Section 1256 index options, which benefit from **6**0/40 rule (60% long-term and 40% short-term capital gains rates). Also, a massive portion of distributions over 90% is categorized as Return of Capital (ROC**)**. This doesn't just lower the tax, it defers it entirely by reducing cost basis rather than creating an immediate tax liability. You’re applying a tax drag argument to a fund specifically engineered to avoid it through Section 1256 contracts and ROC treatment. It's not like JEPQ/JEPI.
Actually, you're wrong here GPIQ isn't taxed like those other funds. While JEPI/JEPQ get hit with high income taxes, GPIQ uses 60/40 rule where most of the profit is taxed at a much lower rate or long term capital gains. And a huge part of its payout is just Return of Capital, which means you don't even pay taxes on it right now. You're treating a tax-smart fund like a tax-heavy one.
You are not thinking about after tax yield. Dividend are taxed more than capital gains. which makes JEPI/JEPQ less attractive unless you need the monthly cash flow.
JEPQ had a fat dividend for march
Continue buying back what I sold early last month; VXUS, VOO and some JEPQ. If RKLB and ASTS dip again, buy again and sell for 10-15% profit a week later, again.
STRC beats JEPQ. Better tax treatment
TW. Each of the funds I listed write options on the S&P 500 similar to JEPI. However, unlike JEPI, their distributions are classified as Return of Capital. Similar funds that use the Nasdaq as its underlying would be QQQI, GPIQ and ROCQ (similar to JEPQ). ROCY and ROCQ are new funds from JP Morgan (the managers of JEPI) to take advantage of the ROC tax treatment that other funds employ.
If you’re cautious but still want some exposure, you could look at dividend ETFs like covered call funds from JPMorgan such as JEPI or JEPQ. They aim to generate steady income and will give up some upside in strong markets, which can suit a more defensive approach near retirement.
Protip: if you are fucking tired of buring through your gambling money buy a dividend fund like JEPI / JEPQ with it and delete the app
Food stamps is is then. Risk Free Treasury ETF (3.79%) JEPQ (10.5% Est.) **Start** $200,000 **Year 1** $207,580 $221,000 **Year 3** $223,612 $269,826 **Year 5** $240,883 $329,489
JEPQ is a lazier version of that strategy
Sold my Nike (NKE) and Shell oil (SHEL) stocks. Building a little cash reserve and just buying SCHD weekly right now. Going to move into JEPQ next.
Moved around 20% into oil etfs, and 10% into Gold, and 20% into JEPQ which pays me monthly and stays relatively stable. Rest is parked where it was.
Anyone selling Portfolio or still holding i heard it is never coming up and going to ZERO :-( MY JEPQ from 59 to 55$ 11k loss already ?????????????????ADVICE
i cannot answer that fully right now. I am doing a mental reset and need to reevaluate the market as a whole and calculate a strategy to get back in. my mind is leaning towards dividend stocks. something like: JEPI, JEPQ, QYLD, PFFD, BIZD, ARCC, TRIN, PFLT, AGNC part of this is some aggressive high yielding with more risk attached.
JEPQ. Rides tech but isn't volatile and pays about 10% annual divs monthly
I believe it's just selling covered calls on Google stock. Similar to IQQQ, QQQI, JEPQ, JEPI, etc. but focused on 1 stock instead of an ETF
If that happens again we are all screwed. I’m going to increase international like everyone else is apparently doing and keeping 30% on bonds BND, MM (until yields drop below 2.5%) and alternatives like GLD and BITC ETH GRNI JEPI JEPQ
Bro just sell covered calls, why be the gambler when you can be the casino? Im doing JEPQ I OWN 100 shares and let others gamble ,they pay me and I get to buy more jepq with the money
The 55/15/30 split is conservative but you're retired — conservative is fine. Moving CDs to intermediate bonds as they mature makes sense for yield pickup without adding real risk. JEPQ and GPIX are earning their keep in sideways markets. The only thing I'd watch is overlap between SCHD and VIG since they fish in similar dividend-growth waters.
JEPI, JEPQ sell options on Q's. Not one for one but income helps offset declines.
I'm going to try to help. After 25 years, and now gliding into retirement so needing to be conservative I finally have enough cash, mainly from not the markets, to be uber conservative. I now employ a slow and steady highly diversified multi-income approach with a goal of 15-25% annual returns. I wheel only non-tech blue chip stocks. Each target has an annualized ROI of 10%, closing early increases the return and is viewed as a gift from the Wall Street gods. The wheeling is backed by cash sitting in laddered 90 day UST's returning 3.6%. So right there I'm getting 13.6%! 30% of my funds are in JEPQ ad PEO using DRIP. That's giving me 10% compounding. Then for daily fun I have short term SPX Iron Condor strategies that are very conservative and work for me. I only swing at the easy pitches here. This is what I view as fun money and when added to the above it gets me to an annual return after taxes that gives me a consistent net after tax return of 15-20% each year. For me an annual return of 18.3% is 15% after taxes. Take $100K with 15% after tax return, that will double every five years and grow to $1m after 16.5 years. Now add to that other income generators like buying and fixing up real estate on the weekends and having a good 9-5 job with an employer match on the 401(k) and you to can retire in your early fifties. Added to the above is that I was raised to live like a peasant. This Sunday I'll be replacing the brakes on my truck for $175, it should take two hours. A garage would want $900 for the same work. Take this one act of peasantry and multiply it over the course of every day of your life and you'll save easily $1mil of your after tax dollars, and you know that when shit gets done it gets done correctly and not by some high school drop out.
My 10% position in JEPI / JEPQ is a shining star in my port.
Move your savings over to a high-yield ETF like JEPQ... Continue putting money into it let the compounding purchase new shares and forget about it. If you're young this will be more than enough to retire when you're in your '50s
JEPQ would provide 80k to 110k annually with very little exposure to downside basis loss
I bought JEPQ today at the low. Anyone have thoughts on this ETF?
If you’re holding in a non retirement account, the yields can be taxed as ordinary income. I’ve been working (slowly) on a non retirement income producing portfolio. JEPQ seems best used in IRA or 401k
Nope. These are covered call ETFs. Let's say the NASDAQ is at $100 to keep things simple. JEPQ sells a covered call at $105 and gets some income that's passed on to you. If the NASDAQ goes up to $110, the upside is capped at $105. Meanwhile, if the NASDAQ drops 50% in a year, the covered call income isn't doing much to offset those losses. The NASDAQ will be down 50% and JEPQ would be like 48%. You're trading upside for income. The downside risk is essentially the same. The best thing for these funds is a slow rise or sideways market.
yeah JEPI and JEPQ are great options
I don't own any of these, but in some cases their 1Y price performance is better than XDTE and QDTE: TSPY, GPIQ, JEPI, JEPQ, YLDE, DIVO
If you put that money into JEPQ you would be around $1.50 daily
Dude VOO is not recomemded for small hands. Just invest for JEPQ and you will get dividends average of 10,000$ to 12,000$ per year thus small amount of profit too
NAV erosion, or what I call the slow motion rug pull. PEO has been holding steady for 95 years. JEPQ has a reputation to uphold and isn't doing that with this fund.
Diversity of income streams. I'm in retirement and can't afford risk. I have 80% in JEPQ and PEO averaging 9%-10% dividends without the long term rug pull of other ETFs. The two funds give me good diversity. 20% is laddered in 90-day Treasuries. I also consistently wheel a stable of tickers that I'm not afraid to own. The reason for keeping money in USTs is so that I can trade SPX and pay for the options that get assigned when wheeling. On top of all of this I lookout for big blue-chips that get hit with solvable problems and sell puts on them when everyone else is panicking. BA door blew off? Anytime you can get BA under $200 is a gift from the gods. UNH mess last year, another gift of being able to pick up the largest insurer in the US who literally prints cash. GOOG during the left wing panic back in March of 2025? When my friends were panic buying cases of French wine I was selling in the money puts and panic buying GOOG. I average 20% annual returns.
Just invest in covered call ETFs like JEPI JEPQ GPIQ etc…..the 400k you lost would have generated close to 40k/year
JEPI and JEPQ have 8% and 9% interest. 100k is 8-9k a year in dividends without trading
A - You're a day late. When the markets dip sell puts on real companies or ETFs that you want to own. B - BC/ETH isn't real, it's pure gambling. I've been selling puts on JEPQ when it dips. Worst case I get assigned and make 10% from the dividends, best case I close out the puts early for a 15% annualized return.
I am down on JEPQ for the first time in over a year probably
Canadian banks have consistently paid out without dropping but you only get quarterly payments and the price per share has increased a lot so you wouldn’t have as many shares as JEPQ but you would get possible price appreciation like RBC which has consistently gone up steadily over its lifetime. Also, not the worst case for other Canadian banks if prices dropped as you could always buy more shares during a downturn and it will eventually come back up to even as long as you stick with the 5-6 major banks. Jepq I just saw recently but their stock price won’t appreciate much and their dividends aren’t as guaranteed although I like that it’s paid out monthly and the barrier to entry is lower at this time but much higher PE ratio but I’m not sure how much that matters long term.
I just divested JEPQ and QDVO. Strengthened my VYMI position and balanced it out with SCHY and IDVO.
My JEPQ is down today, my PEO is up. Looks like sector rotation is the answer you're seeking. As for crypto, what does that have to do with anything? Crypto is right up their with unicorn farts.
Get 2,000 worth of Stocks use the rest to gamble thank me later I suggest get 1k of Verizon 1k of JEPQ thank me in a few years champ
At this point I just wanna dump everything in JEPQ collect dividends and call it a day
Not for me, at least until I hit retirement age, and no more than 5% of my portfolio. VOO & VT are the acceleration and growth, JEPQ is a bit of coast, if you know what I mean.
Dude take 75% of that and put it into something longer term like O, or JEPQ, play with the 25%zz
buy a few thousand worth of JEPQ, CGDG, ULTY, CHPY, whatever ultra high dividend motnhly/weekly paying ETFs with minimal NAV erasure or a record of increase you research and fancy to forget about with DRIP on the side. go back to playing with a little more than you originally invested. pay off any credit cards you may have, if they are small enough or worth separating any amount from here to pay
You havent lived through an actual recession, where you would certainly not get stable income from JEPQ. Every stock market drop has resulted in short term negative dividend growth. If we get more than just a month drop like in april, youre going to regret *depending* on yields generated during a massive bull market.
I dont know about QQQI, maybe it’s too new to know, but JEPQ’s capture rate is 93-percent of the upside and 30-percent of the downside. Isnt that pretty good?
Ok so I just peeked at the fund, and I clearly shot off my prior comment too quickly. I had assumed that this was another JEPI/JEPQ clone (which are, in fact, dogshit), but looks like that was incorrect. Gonna delete the prior comment since I was speaking out of turn on this one. Do you happen to know what they’re doing under the hood? The description on their site isn’t super informative and haven’t had a chance to actually pull the deck.
JEPQ, until you've done your research
He listed QQQI, SPYI, and JEPQ. These fund have yield of 13%, 11%, and 10%. We are not talking about low yield fund with yields of 5% or 8%And in moderate bear market these dividend funds will easily have a higher total return. The growth funds he listed have an average total return of 10% so the dividend funds have a similar average total return. Yes growth funds can hit 20 occasionally but that cannot tdo that consistently and some years they loose money while dividned funds continue to pay dividends.
VTI = Total USA market VOO/SPY are both S&P500 index funds. These are not growth , they are broad market and hold both growth and value (QQQI, JEPQ, SPYI) These are covered call ETFs, they are not even dividend focused , they sell upside to produce a premium . They will over the long term almost certainly under perform their underlying index of the Nasdaq 100 and S&P500 Simply buying VTI will give you a mix of growth , value , dividend stocks
SCHD and JEPQ are gonna pop next Monday when Aaron Rodgers' financial guy pivots him over to dividend income.
I’m right there with you but without 120k. That is about the exact amount I simulated to provide a passive way of investing. I recently thought about stable ETFS that pays monthly dividends, the high yield ones are all trash like YIELDMAX. Look into FEPI, SPYI, QQQM, QQQI, JEPQ. You can download Google Gemini and apply different strategies to have growth and compounding as well monthly income. Tell it to create a table of monthly and yearly cash flow. You can do a cascade strategy to use dividends from one ETF to invest the other. There are market risks of volatility but if you hold the QQQs on will eventually grow go back up. It’s kind of addicting to fine tune strategies that don’t feel like random luck. Take your time and good luck!
Shoulda tax loss harvested in 2025 , realized, any positions you lost faith in or dont want to wait multiple quaters or years to make back current unrealized losses... this might help This is for new guys just starting out at 16 years old, up to folks my parents age, 72, who have been retired since turning 50 years old, and jerks like myself that chose to retire at 31 and spend his time on his (small, only 6 acres) private island with hound dogs, son, and wife. If you see someone posting/asking for financial help, are confused/lost, or anything else that indicates they could use a guiding light, please copy n past this for them / others to read n benefit from. PLEASE SPREAD THIS MESSAGE: ITS A LOT MORE FUN WATCHING /HELPING PEOPLE INCREASE THEIR WEALTH/PORTFOLIOS/ABILITY TO BE FINANCIALLY INDEPENDENT N RETIRE EARLY THEN GETTING TO THE TOP OF THE MOUNTAIN, LOOKING AROUND, AND REALIZING YOUR ALL ALONE. This will be the best advice you get and best to get him on path to be financially independent. Set him up with 3 or 4 Charles Schwab accts: 1 taxable brokerage, 1 ROTH IRA, 1 HYSA (currently 3.3% apy) , and free checking acct. Matched these with the FREE ($0 yearly fee) American Express Charles Schwab INVESTOR CARD that automatically deposits 1.5% his monthly spend into his new CS brokerage (do not the advise or tell him to get the platinum unless he can offset the $900 AF with a huge intro bonus, annual retention offers, travels at least 2 to 3 times a year, use all the mini credits on uber, hotel, etc the amex platinum schwab card grants holder to actually make it a smart financial decision : but I will say if it's close for the math to be a wash / slightly beneficial (aka saves him money on stuff/things/trips that HE WOULD HAVE SPEND NO MATTER WHAT, or gift him the CS platinum for bday/x-mas, then get the platinum as it allows AMEX points to be redeemed for 1.1 cents per point, aka a 125k intro bonus point offer on a CS platinum is worth guaranteed $1375 for just the bonus and then all other points acquired adds up fast in addition to the 100 credits/other benefits. Finally, in the schwab brokerage acct all you need to do is deposit some cash and buy shares of JEPQ. As many as you can, and after buying them turn on the DRIP function (aka click button that enables DRIP on for the JEPQ holdings, DRIP = Automatic reinvestment of monthly dividend JEPQ pays to instantly purchase more shares of itself.) and each month add fresh $ into acct to buy more JEPQ, use the CS INVESTOR CARD's 1.5% that's deposited straight into the brokerage acct (or if went CS platinum route, exchange his AMEX reward points for $0.011 per point, aka 10,000 points = $110... follow this advice for all of 2026 n beyond and your grandchild will be set up to become financially independent / retire when he chooses not letting money make the decisions. If he follows that advise he'll make about 10-25% on investment via dividends and underlying ETF share price adding another 10-20%, yielding 20-45% gains by 2027. If hes interested in higher risk/reward or even adding some risk mitigation (if his research indicates negitive market outlook) to buy some calls on JEPQ if positive outlook, or buy some Puts to have downward protection of shares if he thinks were headed in that direction (word from the wise, 2026 is gonna be a BANGER year for most us companies, specifically NASDAQ / SP500 of which JEPQ is comprised of, so buying puts probably not smart unless you just want a couple Put contracts with expiration dates 4-12 months in future, to offset main JEPQ shares he holding should market dip (aka if bought 500 shares going long n strong, but 5 Put options with At the money/just outside of the money with expiration dates between 6-12 months. .. itll lessen risk, but lessen amount of potential gains as they will expire OTM (out of money) and lose all value BUT if WW3 starts and markets get crushed down 15-25% those Puts will not only offset losses from share price going down, but would actually make you money on your move. If you already know all this stuff but wanna ask about more advanced plays, set ups, and opportunities (example: like how right now there is Major oppertunity in a supercycle of the oil/gas industry/companies that's going to resemble the sector gains realized in 2015 n 2016 (I booked about 300% on the plays back then, and its gonna repeat for those who hone in on specific company shares for super long maybe lifetime long holds but more importantly oppertunity in the derivatives of said companies,) just ask. Or if you wanna know how to deal with essentially just not having to pay taxes on ordinary (non-qualified) dividends legally/strategically, or even little life advise, send it over this way n let's get lots of people benefit to benefit from information/ideas/roadmaps for others to follow / join in on the ability to not have to do things you dont want to do just to pay Bill's Spread this whenever you see someone in need of help / people you want to watch be successful n actually succeed! -Cheers- "Saturn Valley"
They’re not all bad. Take a look at this comparison of QQQ vs various QQQ-derived covered call funds https://totalrealreturns.com/s/QQQ,QQQI,QDVO,KQQQ,JEPQ,GPIQ QDVO handily beats QQQ in total return with dividends reinvested
QQQ, Apple, Amazon, Intel , JNJ, kmi, msft, soun, ionq, qtbs, rgti, google, SMH, XLK, Kratos, JEPQ, Walmart, Tilray, Green Thumb, BOTZ, Ford, Duke, as well as a few other smaller positions. Currently I am dcaing monthly into qqq, rgti, ktos and xlk
In my brokerage account I would say NLR, SMH, and Coreweave. My Roth in a brokerage has WELL, JEPI, and JEPQ.
Could have made $19 off dividends with the same invested in JEPQ.
JEPQ is a trap and income investing in a Roth IRA doesnt make any sense.
Great point, the covered calls feel great now, but in a large downturn could be no fun. At some point I plan to end my JEPQ yearly investment, and go 100% VTI. But continue to let the JEPQ DRIP into bitcoin. And without too much detail, I simply believe in bitcoin long term. The world is becoming more digital and bitcoin is digital gold. It’s still young and volatile, but will stabilize as time goes on and has the potential to (continue to) be the greatest investment opportunity of the 21st century.
Absolutely true, no appreciation on sgov but about as safe as you're getting to get. I really like jepi and JEPQ as well or spyi or qqqi for similar returns. And of course everyone's favorite schd. Similar payout as sgov but with appreciation
SCHD is built to appreciate as well tho, shooting for annual returns similar to S&P with combination dividend/APP., whereas SGOV will not appreciate in value overtime. Similarily JEPI & JEPQ pay a roughly 7-12% div. With a mixed bag of equites also shooting for S&P style returns. I’m a big income generation guy so anyone who wants shoot me a DM and I’ll screenshot my portfolio of dividend ETFs for ya.
Honest truth: >5% yield + growth + doesn't devalue is the trifecta everyone wants but rarely exists, usually you pick 2 of 3, that said, here are realistic options for $1000: Covered call ETFs (my pick for your criteria): \- JEPI - \~7-8% yield, holds large cap stocks, sells covered calls for income, some growth potential but capped upside, very popular with retirees. \- JEPQ - same strategy but tech-focused, higher yield (\~9-10%), more volatile. these give you income + some growth exposure without picking individual stocks. Dividend growth (lower yield but better growth): \- SCHD - only \~3.5% yield BUT the dividend grows 10%+ annually. In 5-7 years you're effectively getting 5%+ on your original investment, better total return over time. Higher yield options (more risk): \- ARCC or MAIN (BDCs) - 8-10% yields, invest in middle-market companies, more volatile. \- ENB (Enbridge) - \~6.5% yield, pipeline company, slow grower but stable dividend. What I'd actually do with $1000: Keep it simple, one holding. \- if you need income NOW: JEPI \- if you can wait for income to grow: SCHD Don't split $1000 into 5 positions - you'll pay more in friction and complexity than it's worth. One warning: anything yielding >7-8% usually has a catch - either growth is flat, risk is higher, or the dividend isn't sustainable. If it sounds too good to be true, it probably is.
I'm totally out of Yieldmax now after dropping HOOY the second week in December, which was the last one I held. They should be called yield trap funds. I now have it all in JEPI, JEPQ, SPYI and QQQI. Smaller divies and some small growth in price too. Good luck to you in coming back.
Qyld is the one that advertises a higher yield right? They probably sell at the money calls, which give a higher yield but fuck your recovery. So CC funds cap your upside while not really doing anything to protect your downside. So in a recovery qyld will do much worse than something like JEPQ where they are selling further OTM so they can somewhat recover. Both are by far worse than just holding QQQ though, and a trap to noob retail investors and those who failed Algebra.
I’m still confused how JEPI and JEPQ get their yield besides investing in dividend payers and using ELNs
Thanks. I currently have XYLD because it is only 35% tech apposed to 54% JEPQ.
What's wrong with ETFs that sell covered calls? JEPQ, JEPI, XYLD may limit your upside growth, but they thrive in sideways market .
There are ETFs that attempt to generate income from options trading. They are run by professionals that do only that, so perhaps that may be a place to start while learning more. Examples are JEPI, JEPQ, XYLD, QYLD, DIVO, SPYI, and more, most own shares of the underlying index funds and sell options on them to generate yields higher than the index provides. Options trading requires time and research to work well, and limits the capital gains on the underlying funds in return for more monthly income. I would also consider just moving more assets to equities if you are 10 years away from retiring. But that depends on your goals and plans.
JEPQ is an ETF that sells covered calls on QQQ. That is the relationship. It provides "income" by distributing a lot of non qualified - which are just forced taxable events. Most sane people don't like paying taxes and instead prefer to defer capital gains until retirement, when their income (and marginal tax rate) is generally lower. JEPQ has underperformed QQQ by about 6% YTD and 20% since inception in 2022 due to being capped on the upside from selling covered calls. So this is super stupid if you ask me.
OP is unaware of how JEPQ and QQQ are related. And he also has no idea the distributions from JEPQ are taxed basically as ordinary income.
Do you not understand how JEPQ and QQQ are related?
>Interesting that JEPQ is actually up 6% for me and is throwing off 10% distributions. Not really considering QQQ is up almost 20% YTD.
My thought was that as long as the NAV stayed positive / slightly negative, that the distributions...even after taxes (especially on FEPI) would yield a higher return than SP500. If I were to net $24k after taxes that would be a 12% return on $200k. However, if we do go into a bear market these funds will get hammered. Think I will take the community's advice and pull out of FEPI next week (after distribution) and harvest a modest loss. Rotate out of JEPQ sometime next year. Interesting that JEPQ is actually up 6% for me and is throwing off 10% distributions.
Value index gains as folks run from big tech, resulting in a stagnant S&P. VTV looking like a good ETF right now. I can see JEPI and/or JEPQ selling more shares, folks looking for gains via monthly dividends. EX-US may see continued growth, particularly foreign value. FIVA may do well.
No. However, I’ve leaned on this year towards income index funds, (a little riskier) which have done well—SPYI, JEPQ, QQQI. Algos (modern) are finally making these types of funds much more safe and profitable (my opinion). Always do your own research but I like these.
I have too much money in ARCC already but good call. JEPQ looks interesting. Basically Thetagang started and index fund to generate cash?
Purchased SEI this morning, adding to my AI related plays. Holding BW, APLD, SEI, and NVDA. Rate cuts imminent, holding diversified ETF’s and index funds including, SPY, XLK, QQQ, JEPQ. Bring on Kevin Hassett.
I understand that there's more profitable places to park my money, but it's fun getting that dividend from JEPQ and buying more JEPQ.
Can someone less regarded than I explain why buying something like JEPQ/JEPI with margin and banking the difference is a bad idea?
Shoulda probably said JEPI. Its a high return dividend etf based of the S&P. JEPQ is based off the nasdaq and has a higher return but its all over the fucking place.