JPMorgan Nasdaq Equity Premium Income ETFNASDAQ: JEPQ

The iShares Preferred and Income Securities ETF uses a portfolio of "preferred stocks" to generate steady income. The JPMorgan Nasdaq Equity Premium Income ETF uses options strategies to create an income stream.

At first glance, JEPQ offers investors the 'perfect' investment vehicle - Nasdaq 100 exposure with a much higher yield than the index. However, whether you're buying JEPQ for income OR total returns, it appears as though there are much better options available. The fund is more well-constructed than other covered call funds, which is something.

The Investment Committee gives you their top stocks to watch for the second half.

Historical data shows that JEPQ has demonstrated lower drawdowns compared to the broader market during market downturns. I don't consider such past performance as a coincidence. The use of options and the underlying screening method are structurally sound approaches, in my view.

JPMorgan Equity Premium Income ETF, JEPI, is a beloved high-yield monthly dividend ETF, and JPMorgan has an even higher-yielding version called JPMorgan Nasdaq Equity Premium Income ETF, JEPQ. JEPQ uses the Nasdaq as its base, offering higher income but more volatility than JEPI. JEPQ is designed for maximum income with similar volatility as the S&P, but investors need to be aware of potential downsides and tax implications.

Investors are still seeking equity exposure for income even as interest rates rise, turn to ETFs like JEPQ and GPIQ. JEPQ uses ELNs for income, while GPIQ writes call options, providing higher yield and a more understood strategy. GPIQ edges out JEPQ in income generation, but both ETFs lag behind benchmark QQQ in performance.

JPMorgan Nasdaq Equity Premium Income ETF and Global X NASDAQ 100 Covered Call ETF offer high-income yields from mega-cap tech stocks, providing diversification into the AI boom without sacrificing income. Both ETFs employ covered call strategies on the NASDAQ 100 index. We compare them side by side and explain why only one is worth buying.

ETFs are great for generating passive income. The JPMorgan Nasdaq Equity Premium Income ETF offers a high-yielding monthly payout that fluctuates with market volatility.

JPMorgan's Nasdaq Equity Premium Income ETF offers high monthly income through a combination of selling options and investing in large-cap US companies. The fund aims to mimic the Nasdaq 100's returns with less volatility and has a current dividend yield of 8.8%. JEPQ's option writing strategy allows it to generate higher income during periods of market uncertainty and volatility, making it an attractive investment for income-focused investors.