JEPI ETF Review - Is JEPI a Good Investment? скачать в хорошем качестве

JEPI ETF Review - Is JEPI a Good Investment?

JEPI is a covered call ETF for the S&P 500 Index designed to mitigate volatility and generate income. I review it here. // TIMESTAMPS: 00:00 - What Is JEPI and How Does It Work? 01:32 - JEPI vs. DIVO 03:04 - Is JEPI a Good Investment? // SUMMARY: JEPI is an income ETF from J.P. Morgan. It’s called the JPMorgan Equity Premium Income ETF. In a nutshell, JEPI is holding a basket of low-volatility stocks selected from the S&P 500 Index (the largest 500 U.S. companies), on which it sells covered call options to generate income. This fund launched in mid-2020 and has quickly amassed over $3.5 billion in assets. It has an expense ratio of 0.35%. JEPI selects stocks based on ESG criteria, valuation metrics (think value stocks that pay dividends), and low volatility. The fund’s stated objective is to match the performance of its benchmark index, the S&P 500, with lower volatility and greater yield. If the fund were able to achieve that objective (it hasn’t), it would be pretty great for a retiree. Part of JEPI’s high yield comes from the dividends of the stocks it holds. The other part comes from writing call options on those stocks. Just like with DIVO, I understand the desire to assemble a low-volatility basket of stocks that JEPI aims to hold, but we would still expect stock picking to underperform the market over the long term. We can also just buy a low-vol and/or value fund at a lower cost. As I’ve noted elsewhere, covered call funds like this are inarguably only appropriate for the investor who actually needs and uses that regular income from the dividends and option premiums. That situation does not apply to me, and if you’re reading this, it very likely does not apply to you. If you’re just planning on reinvesting the fund’s distributions, it doesn’t make much sense to buy JEPI, especially in a taxable account where you’re taxed on those distributions. If you want ESG, Value, or dividends, you can target those directly while paying lower fees. If you’re bullish on the S&P 500, buy a low-cost index fund like VOO from Vanguard and call it a day. I showed above how that has still been more efficient than JEPI historically, at least so far in its short lifespan. Remember too that covered calls here are capping the upside potential if the index rallies. Read the blog post here: https://www.optimizedportfolio.com/jepi/ #dividends #dividendinvesting #incomeinvesting // INVEST ► M1 Finance: https://optimizedportfolio.com/go/m1 ► My comprehensive review of M1 Finance: https://www.optimizedportfolio.com/m1... ► Get my dividend portfolio: https://www.optimizedportfolio.com/m1... ► Lazy Portfolios: https://www.optimizedportfolio.com/la... ► Beginners’ reference guide (updated regularly): https://www.optimizedportfolio.com/be... ► Webull (for stock traders; get 2 free stocks): https://act.webull.com/kol-us/share.h... // SOCIAL ► Website: https://www.optimizedportfolio.com/ ► Patreon:   / optimizedportfolio   ► Facebook:   / optimizedportfolio   ► Instagram:   / optimizedportfolio   ► Twitter:   / optimizedport   ► Support my channel by shopping on Amazon (free for you): https://amzn.to/2TLCgCc I appreciate all the support! Disclaimer: While I love diving into investing-related data and playing around with backtests, I am not a certified expert. I am not a financial advisor, portfolio manager, or accountant. The information presented is not financial advice, investing advice, or tax advice; it is for entertainment purposes only. Investment products discussed are for illustrative purposes only. It is not a recommendation to buy, sell, or transact in any of the products mentioned. I try my best to provide accurate information, but I can’t guarantee 100% accuracy. Do your own due diligence. Past performance does not guarantee future returns. Investing in the stock market - especially with leverage - is risky. Read my lengthier disclaimer here: https://www.optimizedportfolio.com/te... Disclosure: Some of the links above are referral links. At no additional cost to you, if you choose to make a purchase or sign up for a service after clicking through those links, I may receive a small commission. This allows me to continue producing high-quality content on this channel and pays for the occasional cup of coffee. I have first-hand experience with every product or service I recommend, and I recommend them because I genuinely believe they are useful.