JEPQ

Jealous_Bookkeeper20

The double-digit yield isn't magic; it is just a conversion of your capital appreciation into taxable income. Here is the catch: when you buy a fund like JEPQ or NVDY, the manager sells call options against the underlying stock portfolio. They pocket the premium and distribute it to you as yield. But in exchange, they cap the upside. If NVIDIA or the Nasdaq surges 10% in a month, the fund's capital appreciation is cut short. If the market drops, however, you take almost the entire loss, cushioned only slightly by the option premium. Over time, this asymmetry leads to "NAV erosion." You get the monthly distribution, but the underlying stock pool shrinks. If you are in your wealth-accumulation phase, this is incredibly tax-inefficient because that monthly income is taxed at ordinary rates, whereas long-term capital gains compound tax-free until you sell. Comparing the time-weighted total return (with dividends reinvested) against the simple underlying index is the only way to expose the drag. Are you holding these in a taxable account or a retirement wrapper?

Jealous_Bookkeeper20

The double-digit yield isn't magic; it is just a conversion of your capital appreciation into taxable income. Here is the catch: when you buy a fund like JEPQ or NVDY, the manager sells call options against the underlying stock portfolio. They pocket the premium and distribute it to you as yield. But in exchange, they cap the upside. If NVIDIA or the Nasdaq surges 10% in a month, the fund's capital appreciation is cut short. If the market drops, however, you take almost the entire loss, cushioned only slightly by the option premium. Over time, this asymmetry leads to "NAV erosion." You get the monthly distribution,The double-digit yield isn't magic; it is just a conversion of your capital appreciation into taxable income. Here is the catch: when you buy a fund like JEPQ or NVDY, the manager sells call options against the underlying stock portfolio. They pocket the premium and distribute it to you as yield. But in exchange, they cap the upside. If NVIDIA or the Nasdaq surges 10% in a month, the fund's capital appreciation is cut short. If the market drops, however, you take almost the entire loss, cushioned only slightly by the option premium. Over time, this asymmetry leads to "NAV erosion." You get the monthly distribution, but the underlying stock pool shrinks. If you are in your wealth-accumulation phase, this is incredibly tax-inefficient because that monthly income is taxed at ordinary rates, whereas long-term capital gains compound tax-free until you sell. Comparing the time-weighted total return (with dividends reinvested) against the simple underlying index is the only way to expose the drag. Are you holding these in a taxable account or a retirement wrapper? but the underlying stock pool shrinks. If you are in your wealth-accumulation phase, this is incredibly tax-inefficient because that monthly income is taxed at ordinary rates, whereas long-term capital gains compound tax-free until you sell. Comparing the time-weighted total return (with dividends reinvested) against the simple underlying index is the only way to expose the drag. Are you holding these in a taxable account or a retirement wrapper?

RemyVonLion

Dang you're lucky son, you can live anywhere that isn't crazy expensive then and not even work. I'm from California and I really miss it, but I wouldn't move back, at least to somewhere populated and thus expensive, unless I was making at least $100k/year, which you easily could. You just need to invest in enough dividend stocks/ETFs. Now obviously my favorite is CHPY, but I get downvoted every time I mention it, probably because people are scared of something too good to be true since the NAV keeps increasing while paying $.66 per share every week. So just to be safe you should diversify into other safe but high income ones like JEPI, JEPQ, QQQI, as well as safer ones like KBWY, DIV, SCHD, and VYM. After putting enough in those to get the desired income, the rest and future income can obviously can go into long term investments and options.

siskyouthrowaway

Thank you! You clearly know what you're talking about. 😃 I see these funds like JEPQ and QQQI or NVDY and wonder: what is the catch? How can they give double-digit dividends per year? In the near future I may be interested in investing in some of these for the income potential. But I want to make sure I am making an informed decision and not getting into some Ponzi scheme.

Jealous_Bookkeeper20

To see if a fund is returning your own capital, do not look at the S-1. You want the SEC Form N-CSR (the annual and semi-annual reports) or the fund's monthly Section 19(a) notices. The Section 19(a) is the exact breakdown showing how much of the dividend came from net investment income, realized capital gains, or actual return of capital. For active covered call funds like JEPQ or QQQI, return of capital is rarely a literal Ponzi scheme, but it is often a structural yield trap. If a fund writes call options, it caps its upside. During major bull runs, the fund cannot capture the full index gain, but during downturns, it takes the full hit to the downside. If they pay out a twelve percent dividend while the NAV drops, they are slowly eating their own seed corn to maintain the yield. The only way to verify if their options strategy is actually adding value is to track its time-weighted return against the underlying index or a simple index ETF. If the time-weighted return, with all distributions reinvested, underperforms a plain buy-and-hold of QQQ over a full market cycle, the manager is not showing skill. You are just paying an expense ratio for the illusion of monthly cash flow. Are you tracking the total return of these funds against a benchmark, or are you just looking at the monthly dividend payouts?

siskyouthrowaway

But what if it's not an index fund? What if it's a fund like JEPQ or JEPA or QQQI ?

slambooy

Nope. JEPQ.

slambooy

Now put it in JEPQ and make 5,500 a month in passive dividends.

InspectorDabbit_

Because everyone is interested in stocks that can actually grow, NVDA a slow plodding mess right now But, hey, JEPI and JEPQ thank you for buying their covered calls

Frequent-Length-9966

JEPQ

shiftylarenta

JEPQ

FearlessScience3019

If you wanna gamble. Buy JEPQ. Hope you get the 10 to 11% dividend... ride it out and deal with possible share erosion

East-Razzmatazz-8131

JEPQ

Big_Wave9732

I’d have to liquidate my JEPQ shares.  Which would suck ass, they’ve been nothing but $$$ for me.  But yea, I’m seriously thinking about it. 

Spiritual_Bat7343

the JEPI/JEPQ critique people are giving you is half right and half lazy gatekeeping. half right because those funds don't really sell calls on the underlying basket, they use equity linked notes and the option overlay is closer to selling SPX index calls. that's why income is smoother but upside capture is less than rolling your own CCs on individual names. for limited capital, one to two CCs per month on a single high IV ticker you already hold can match JEPI/JEPQ yield with better tax treatment (LTCG on shares, STCG on premium vs ordinary income, plus you save the 35bps expense ratio). minimum around 2 to 3k per position. timing matters: track iv rank on names you'd be happy holding, the pattern that works is writing when iv rank above 50 and skipping below. been pulling iv rank on thetaedge alongside the underlying chart on tradingview. more work than buying JEPI but a real lever if you feel stuck.

EmbarrassedPart1256

Hence why I try to stay as far away from it as possible. I don’t invest in any “broad index” funds. The only exposure I have is through $JEPQ.

dlnqnt

I’m building an income fund along with a growth fund. JEPQ doing fine for me in the income fund and will continue to reinvest the dividend. Plan is to have enough monthly to cover life. Take a look at QQQI too as its return of capital and works differently tax wise to JEPQ. Do a back test on both since inception and they come out positive. Of course nothing like the underlying but you are trading upside for income now.

Shadowrunner138

I was honestly thinking of going 50/50 with JEPI & JEPQ so I'm basically just following the S&P with a bit of overlap in the tech sector that seems advantageous for the next few years. If yields hold I'd average about 9% between the two of them and after about $20k cost basis I'd finally start generating over $100/mo and beyond in passive income to redistribute. At this point I really just need something more serious than corporate bonds and junk bonds in terms of percentages and I'm willing to upscale a little in terms of risks as long as a "hold or die" mentality can get me through a market correction that lasts a few years, I have bond funds growing for that.

EmbarrassedPart1256

$USOI has been an absolutely stellar trade so far; I’m up 9.2% & at this rate, the drop from the ($2.85/share) dividend payment won’t even put me in the red. I’ll just load in more. For more of a penny vibe check out $IWMI; they run a covered call strategy on the Russel 2000. It’s a way to get small cap exposure & let them pay you to hold it (& it’s dipping right now). Also holding JEPQ, MLPI, & UTF FWIW. Make your capital work for you & never *”work”* another day in your life.. 🤙 Live to trade another day!

Ok-Blood4340

Specifically when it comes to covered call, return of capital, ETFs like JEPI, JEPQ, QQQI, SPYI, etc, you are not receiving a “dividend” from free cash flow, you are receiving the profits from selling the calls as a distribution or return or capital. This is a performance risk, or execution risk. Meaning, the active investors have to perform, execute correctly, and make the correct calls about market direction. If they mess up, and do not receive the expected income from the covered calls, the distribution will be cut. Only some 1-3% of the return of capital is actual dividend from free cash flow from the underlying companies. So this means, you are borrowing money, hoping the active investors don’t screw up, so you can have your capital returned to you. If they make a mistake, distribution is cut, margin doesn’t get paid back. Furthermore, when it comes to covered call ETFs, they are exposed to 100% of the downside, but cap the upside at some percentage out of the money. This means that in bull markets, the share price of the ETF does not go up as much as the underlying index (because they are selling covered calls to pay that return of capital distribution.) TLDR: Covered call ETFs are not free money hacks. If they were, everyone would do it. They are exposed to certain risks.

EmbarrassedPart1256

I see the writing on the wall, that I should stop pushing my luck after doubling down on a losing $TE position & breaking even. Total gains: $1,332, net gains: $424... Gotta work on not losing the money just to make it back. I *can* make it back but I'd rather it all go to the bottom line... In $GMEX for 1K shares. 858K shares OS, Morgan Stanley holds a position, cost to borrow is 80.55%. Robotics is hot & they could be on the verge of a breakthrough, post-RS. ***This sub could literally lock up the float...*** I'll consider averaging down every $.10 or so, or getting in for a larger chunk if/when it starts to move, just don't want to miss the move if it's overnight... Holding $IWMI, $JEPQ, $MLPI, $USOI, & $UTF as a core, FWIW. Make your capital work for you, & never sell it!

OutrageousCricket637

Been holding $JEPQ... Returning around 12%, and the stock price is up from my average purchase another 10%. Providing a decent monthly return. Also chased $NVDY... Which I have been averaging down but it is returning over 50% and my position is only down 5%, which requires a lot more attention....

pureghostt

And put 100k into JEPQ😂 get paid for life

CraftyMeet4571

Congrats to you. I went full tilt at the right time. I sold off 1/4 of my position and bought about 1M in JEPI and JEPQ to lock in some gains. Gonna ride or die on my original gamble.

EmbarrassedPart1256

https://preview.redd.it/ltsyskkmsv0h1.jpeg?width=1170&format=pjpg&auto=webp&s=b11ac4be1d58c2aa85b4a68b6558a98fc7e4f9f1 I’m staying far far away from big tech right now; all-in on small caps & dividend-paying infrastructure & feeling great about it. UTF, MLPI, USOI, with some IWMI & JEPQ to milk the big tech exposure but it’s capped in my portfolio so as not to gal it when these IPOs take a dip…

ParfaitQuick8426

Very smart. I also have the safe stuff (goog, amzn, JEPQ/I, SCHD, SPYI.) But I KNOW BITO will blow up again, in 2028-9 with the halving (like you've mentioned)

CraftyMeet4571

I turned 163k into 4M off a penny stock. I did sell a quarter of my position and bought JEPI and JEPQ. I'm still at the casino but I don't play with options.

dutch1664

Thanks for the comment, regard. I remember having a $5K account that was up 10% in a day and thinking, if I could do this every day, I'd be able to retire. That was 2016 - crazy how far you can go. Very easy to hold the volatility, I'm use to, embrace it, and use it as an opportunity. I really just buy and hold but add on dips. This was just a way to boost. I do use margin too so I'm pretty far out on the risk curve but that's just to trade around my core. RKLB is a very long term hold. No plans to sell until \~$400. Then 75% is going into JEPQ and the rest I'll hold forever.

HungerSTGF

Or put a mil into a market indexed covered call etf like JEPI/JEPQ designed for retirement income and have a solid monthly income from the dividends

existing_for_fun

I hold SPYI, QQQI, SGOV, and JEPQ I use them as collateral. Passively, they generate 10% ish annually. (Not SGOV) Anyway, I sell CSP's and aim for 1.25 - 1.75% monthly. If I AVG 15% annually on CSP's and 10% on dividends I'm a happy camper. That is BEFORE compounding.

buried_lede

For short term, you want to minimize risk and that will reduce your upside. You could get between 3-4 percent from a short term treasury etf, like SGOV.  There are also buffer etfs that protect from -some-of the downside at the cost of some of the upside. DMAXis probably the safest and you could do 8ish percent in a year. Buffer etfs are tricky as to timing when is the best time to buy and sell them. You could take more risk and buy a covered call etf like JEPQ. It won’t capture all of a downturn but it would capture a lot of it. It is up 20-something in the last year. Treasuries mm funds would be safer than all of these. Then, as one commenter mentioned, there are the sandisk calls aka the money printer. haha. 

dutch1664

The company has so much more to come. My plan is sell about 75% once we get to $250B and by JEPQ. The rest is a forever hold.

Bartimus1111

JEPQ pays 11%+. Read about it. Im several Ms in for many years.

Bartimus1111

JEPQ or QQQI..Paying 11.11 and 15.04% respectively. Reduced upside and downside, but pays every month. Taxable, but better than savings acct. Also, Schwab pays decent on their money markets. You've frozen up, bro. Do something like above.

Emotional-Power-7242

If you retire earlier then you still use the withdrawl strategy but you just withdraw 3% or 3.5%. The 4% rule is just for planning though. In reality people might withdraw a little more in up years, a little less in down years, reevaluate every 5 or 10 years, etc. I'd recommend talking to a retirement planner who charges a one time consultation fee (not an ongoing management fee). Specifically targeting dividend stocks is not really an efficient strategy. When a stock pays a 4% dividend the value drops by 4%. So whether you recieve a 4% dividend or withdraw 4% there's no difference. The only difference is that a dividend is a forced withdrawl for tax purposes. Dividends aren't bad, you shouldn't avoid them, but there's no reason to actively seek them out or buy dividend funds. Something like SCHD isn't the worst but high dividend funds like JEPQ are a terrible idea. You probably should have bonds though, and in fact the 4% rule assumes you have bonds (40% or so), and those pay plenty of dividends if you're into that. If you're 100% equities and the market crashes ajd you're relying on that income you're going back to work. If you're 60/40 with a reasonable withdrawl rate you'll be fine.

tombrady011235

I’ve been wheeling JEPQ since 2024

goebela3

Yes, JEPQ pays "dividends" that are taxed at your marginal tax rate the same rate as short term capital gains. Covered call funds ALWAYS underperform their underlying index long term and the share price adjusts down by the dividend making it identical from a total return standpoint to selling shares.

betarhoalphadelta

How old are you? That's not shitposting. I'm legit asking. Covered call investment funds have a problem in that long-term results lag the underlying. It's the nature of covered calls--you're sacrificing upside for income. That might be good if you're a retiree or near-retiree with a big portfolio and you're just getting married late. That's stupid if you're 25-30 years old and still in accumulation phase. If the latter, you're better off selling some holdings to buy the ring, and then invest whatever is left in index funds and let it ride for 30+ years. But if you're in accumulation phase, don't mess around with JEPQ.

Furshake

If you aren't going to spend the dividends then there's no point. If you are, then I would suggest splitting your income ETFs among different things. For example, I hold OVL which doesn't cap the upside, but adds risk during downturns instead. I would also rather hold a more general covered call ETF instead of one focused so heavily on tech. I think JEPQ is something like 50% tech at this point. That seems kinda crazy.

Dead_Cash_Burn

If you are not moving everything in all accounts into JEPQ. Then no. Depending on the size of your account, you can actually borrow against yourself, and your dividends go to paying your loan to yourself.

FalseListen

So why are you posting here. Just move everything to JEPQ because you’re a genius

WeAudiHere

I guess the question would be would JEPQ at 12% yield, yield higher returns than taking this chunk of change and either keeping it in USFR vs moving it to QQQ or VTI. I want a safe place to keep this as an alternative to a high yield savings knowing that I will be using it in the next 1-2 years

WeAudiHere

USFR is rolling high yield federal bonds shielded from state income tax, at a rate of 3.4% vs JEPQ almost 12%. I already hold QQQ and VTI in multiple accounts including retirement

WeAudiHere

I have a 403B, 401K, Roth and IRA in Robinhood plus this fund. JEPQ is all tech for sure, but does it really matter if I’m only holding for 1-2 years for the extra income?

idobi

I cannot give you financial advice. I would consider holding QQQI or ROCQ in a taxable account over JEPQ because of the difference in tax treatment. Especially, if I am using the money to save for something.

WeAudiHere

Basically I want to buy one ring and not have to go back and trade up, she wants a natural diamond (which I don’t agree with but whatever not my choice), and I can take the money that I have saved in USFR and just increase the amount in the next year or two. Even with tax drag I’d be making more with JEPQ than USFR

DeerComprehensive909

I'm not familiar with USFR but as a JEPQ investor, I'd encourage diversification in some growth ETFs (QQQ, VTI, VOO). Also fairly low risk but will allow you to benefit from more of the gains we've been getting lately.

Emotional-Power-7242

SCHD is sort of fine. It's basically a value fund with slightly worse methodology. Some of the wilder stuff dividend gang promotes like JEPQ is actually going to ruin people though.

Saffuran

Just do VTI/VOO, maybe with 10-20% as JEPQ for dividend/income flow to compound on top of itself.

D_Pablo67

JEPI has more value oriented stocks. JEPQ is more NASDAQ 100 and a higher yield, over 10%. I like them both and own both. You buy these for income and some appreciation, and less volatility than the index.

CornerOne238

Sorry I meant partial conversion to JEPI/JEPQ or dividend stocks.

Muy_Division

Should I max out my credit cards and buy all the JEPI and JEPQ I can get?

originalrocket

I switched from JEPQ to GXIP and am very happy.

Good_Ride_2508

This is the best Answer. JEPI is inferior than VOO/SPY both ER and the Long term ROI. Same way, JEPQ is inferior than QQQ/QQQM both ER and the Long term ROI. JEPI/JEPQ is JP Morgan's marketing ETFs for wealthy people. JEPI/JEPQ looks like winning on concept, but both are not giving any benefit compared to VOO and QQQ. Better to stay invested in VOO or SPY or QQQ index ETFs.

Calflyer

JEPQ is another option. Gxip too

Sean_VasDeferens

For me it's been delta under .20, market cap over $200b, avoid tech stocks, moneyness greater than 10%, ROI greater than 10%, dte less than 45, avoid earnings, max potential investment on any one ticker $50k. Barchart has a great paid screener where I have the above parameters plugged in. I secure the position in either USTs earning 3.66% or JEPQ earning 11%. With 3.66%+10% I'm earning 13.66, backed with my JEPQ I'm earning around 21%.

BrilliantArm5914

JP Morgan Chase has two ETFs JEPI and JEPQ that use this method of providing income.

jt1994863

Both have a lower overall return than the indexes they sell the covered calls on (SP500 for JEPI, Nasdaq100 for JEPQ) AND because it’s paid out in mostly in dividends rather than share price appreciation, it’s a forced taxable event if it’s not in a retirement account. It is not possible for them to exceed the returns of the underlying index. You are who the first comment calling out dividend seekers is referring to, because you fundamentally don’t understand the asset you are hyping up.

jediDTX

JEPi and JEPQ have been certified machines since inception.

Long_Abrocoma_8480

From what I’ve seen, high yield covered call ETFs like JEPQ can really eat into your upside potential during strong market rallies because of the calls sold. It’s cool you’re thinking about reinvesting dividends, but have you looked into how those monthly payouts affect your long-term growth compared to just holding the stocks?

RichardFlower7

How do you feel about JEPQ. Bit higher reward, albeit the upside is capped.

snkscore

JEPQ should perform better (less badly) in a bear market but I just don’t understand why anyone would prioritize dividends over total returns. JEPQ performs almost exactly the same as 75% QQQ 25% HYSA so even if someone wanted less volatility they could get it by holding less of the underlying stock to get the same results. But focusing on high yield dividends so you don’t “have to sell shares” is what I hear a lot and it sounds like those people just don’t understand what’s going on.

Various_Couple_764

JEPQ doesn't pay 1% yield it pays a 10%yeild. QQQ in comparison pays a 0.6% yield but has a lot of growth.Covered call funds like JEPQ convert growth to dividend. So you don't get much growth but you get a lot of income. QQQ in comparison has a lot of growth but the dividend is less than 1%.

Mcslapchop

Funds like JEPQ will outperform in down and flat markets. But over the long-term they will underperform the index because selling the covered call caps their upside.

snkscore

The risk is that the market goes up and JEPQ remains basically flat so you lost out on all the growth. Say JEPQ pays you a 1% dividend payment and has no price growth but in that same term QQQ is up 3%? You’re trading away your upside for lower volatility. https://totalrealreturns.com/n/JEPQ,QQQ?

SirGlass

Basically these funds offer no downside protection so when the market drops they lose value. They sell their upside for dividend so when the market rebounds they do not rebound with it Now my understanding is JEPQ does not sell all of its upside so it can go up some extent. However if you look at the returns of JEPQ and QQQM, well JEPQ has a return of 15% while QQQM 18% Now that is only since 2022 so its not a lot of data. However JEPQ does not beat its underlying index.

therealjerseytom

> I’m confused by what you mean when you said “giving up the money you’d have if you just reinvest in the nasdaq” Click the link I included. If you'd invested $10,000 back in 2022, you'd have thousands more more $$ today if you just went in on QQQ/QQQM, than if you invested in a NASDAQ covered call ETF like JEPQ. And hell that's in the best case scenario of no tax drag. If this is in a taxable account the difference would be even bigger.

nightbefore2

JEPQ inherently makes less money than the underlying of QQQ. If you're interested in making the most money, you will factually make less money with JEPQ than QQQ over time. That's the money you're giving up

therealjerseytom

The risk is you're giving up the money you'd have if you just invested in the NASDAQ 100 directly, rather than a fund that's selling options from holdings within that index. Very easy to see: https://totalrealreturns.com/s/JEPQ,QQQM Same concept with SMCY versus SMCI.

Unusual-Fortune-7380

The percentage I hold in bonds and securities is used as security for unexpected expenses (housing, healthcare, etc.). The rest is in dividend ETFs. JEPQ JEPI and WINC are practically the only ones available in Europe. I'm aware of the risk of some NAV erosion. However, they seem fairly reliable, at least for now.

TraderJRETE

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

Unusual-Fortune-7380

Yes, I wrote that I also have JEPI and JEPQ.

Unusual-Fortune-7380

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.

Sad_Gate_7099

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 !

TheBeckofKevin

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.

JuryOpposite5522

not that this is the time, but my plan is to buy JEPQ \~ around 10% a year plus appreciation.

ImAnonymous135

JEPQ, JEPI, QQQI, SPYI you name it. But you will sacrifice the high yield for growth

brute-forced

JEPQ

breakyourteethnow

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.

breakyourteethnow

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.

Perfect-Obligation60

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.

TequilaTrader

Is that better than JEPQ

TequilaTrader

JEPQ had a fat dividend for march

NineSidedBox

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.

ratchet1235

STRC beats JEPQ. Better tax treatment

Alternative-Neat1957

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.

rugby_hurries

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.

Bonzo101

Just buy JEPQ. PROFIT. 

apurimac777

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

Upstairs-Season7669

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

acap0

Nvdia, AMZN, DIS, JEPQ

StandardDot5115

JEPQ is a lazier version of that strategy

Employee28064212

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.

Scared-Signature-452

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.

Still_Entrance7968

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

West_Lavishness6689

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.

whatisdylar

JEPQ. Rides tech but isn't volatile and pays about 10% annual divs monthly

GaylrdFocker

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

Stock_Advertising718

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

Pretend-Cellist2009

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