"As interest rates ease and bond rates soften to follow suit, you may be looking for ways to continue generating steady income in your investment portfolio. To that end, you may want to look at ETFs, or exchange-traded funds, which allow you to own a collection of stocks with a single investment. If you have a reasonably healthy appetite for risk, it pays to focus on high-yield ETFs that reward you with regular income."
"The JPMorgan Equity Premium Income ETF (JEPI) invests in large-cap U.S. stocks, which tend to be relatively stable businesses. But that's not the only way JEPI makes money. What JEPI also does is sell call options against its equity holdings to generate income that can be passed along to investors. The premiums those options command, along with underlying dividends, allow the fund to generate consistent income, even during periods of market turbulence."
The Federal Reserve is poised to announce a likely third consecutive interest rate cut, which can lower yields on cash instruments while easing borrowing costs for consumers. Rate cuts may reduce returns for CD investors but can provide relief for consumers carrying high-interest credit card balances. Investors seeking steady income can consider ETFs as a way to own diversified stock baskets with a single investment. High-yield ETFs can reward investors with regular distributions. The JPMorgan Equity Premium Income ETF (JEPI) invests in large-cap U.S. stocks and sells call options to generate premiums plus dividends, producing consistent, monthly income.
Read at 24/7 Wall St.
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