"If you can handle some amount of risk, the JPMorgan Equity Premium Income ETF is a worthwhile choice. It aims to deliver steady income while providing exposure to some of the best blue-chip stocks with little volatility. JEPI is known for a two-part strategy where it builds a portfolio of top stocks using a risk-adjusted system. Second, it writes out-of-the-money call options on the S&P 500 index and generates a premium. This premium allows it to maintain a high yield."
"The fund has about $41 billion in assets under management, and while many may assume it leans on the high-dividend stocks, it generates passive income through the premium generated on options calls. It does hold defensive stocks, but the majority of its income stream is from writing out-of-the-money call options. JEPI has a dividend yield of 7.24% and an expense ratio of 0.35%. It has managed to offer investors a bond-like return along with equity-like gains at low volatility."
ETFs provide beginners with instant diversification, low expense ratios, and a wide range of investment choices with potential for passive income and capital appreciation. JEPI aims to deliver steady income and low volatility by combining a portfolio of top stocks selected via a risk-adjusted system with writing out-of-the-money call options on the S&P 500 to generate option premiums. JEPI has about $41 billion AUM, a 7.24% dividend yield, and a 0.35% expense ratio. The fund holds 123 stocks, largest allocations to information technology (14.9%), health care (12.4%), and industrials (11.8%), with top holdings including Alphabet, Microsoft, AbbVie, Johnson & Johnson, Nvidia, and Amazon; its three-year and five-year cumulative returns are 34.30% and 67.96% respectively.
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