JEPI ETF

In 2025, we can expect more market fluctuations compared to 2024, as the S&P 500 seems overpriced due to its high PE ratio. For a safer investment option, you might look at the JPMorgan Equity Premium Income ETF, which focuses on large-cap stocks and uses a covered call strategy to provide an 8% yield. JEPI has a balanced approach to its top holdings and generates income, making it a good addition for income-focused investors alongside JEPQ in 2025.

TORONTO, December 31, 2024 (GLOBE NEWSWIRE) -- J. P. Morgan Asset Management (JPMAM)* has announced the final cash distributions for December 2024 for the JPMorgan ETFs listed below.

JEPI is a more cautious ETF compared to SPY because it has less investment in high-risk tech stocks and more in equity-linked notes, which perform better in weak or stable markets. The Federal Reserve's prediction of slower rate cuts in 2025 negatively affects long-term tech growth stocks, making JEPI's lower exposure to them a positive aspect. Additionally, SPY's heavy focus on technology increases the risk of a market correction due to the Fed's rate decisions, which makes JEPI's investment in equity-linked notes advantageous.

In this thesis, I assess the JPMorgan Equity Premium Income ETF by looking at its goals of generating income, increasing capital, and reducing volatility. Although JEPI offers high returns, I show that the origin of these returns is not what it seems. JEPI has faced considerable losses in its equity investments, resulting in poor performance when compared to its benchmark.

JEPI provides a good return from a varied collection of large tech companies. Despite this, it has significantly lagged behind the S&P 500 this year. We explain why it is likely to perform much better in 2025.

The JPMorgan Equity Premium Income ETF employs a covered call strategy that generates income for its investors. However, this approach has not performed well compared to the overall stock market in the last two years. Considering the high valuations and economic uncertainty, JEPI might be a good choice for 2025 to help protect against possible market declines.

The JPMorgan Equity Premium Income ETF (JEPI) has been performing well this year, benefiting from the strong gains in American stocks. Its total return stands at 17.7%, which is less than the S&P 500 index's increase of 26% and the 19% rise of the Schwab US Dividend Equity (SCHD).

I enjoy gathering passive income. The more I earn, the less I have to depend on working to pay my bills.

By combining JEPI and CTA ETFs, you can create a hedge fund portfolio that yields 10% and has historically provided double-digit returns while being 85% less volatile than the S&P. The covered call strategy of JEPI and the trend-following method of CTA, which includes different asset classes, make this one of the best low-cost hedge fund options available. Since CTA started, the JEPI and CTA combination has only lost 13% of the market's downturn during falling markets, with an average return of +0.6% in down months for US stocks.