The JPMorgan Nasdaq Equity Premium Income ETF offers a buying opportunity due to the recent tech stock sell-off, providing potential for long-term capital growth and income from covered call strategies. This ETF is heavily invested in leading U.S. tech companies, including the 'magnificent 7' stocks with Apple, Microsoft, and Nvidia making up nearly half of the ETF's top ten investments. JEPQ generates monthly dividend income through a call writing strategy, making it attractive for income-focused investors. The yield has most recently surged to ~12%.
With Liberation Day tariffs troubling the global markets and the potential for things to escalate in the coming weeks and months, investors nearing retirement may wish to make small changes to their portfolio to be better prepared for a storm that could span the rest of the year.
2025 has been a challenging year for investors so far. The S&P 500 (^GSPC -5.97%) and Nasdaq Composite (^IXIC -5.82%) have declined 3.5% and 8.7%, respectively, as of this writing as concerns about the Trump administration's current and promised tariffs, sticky inflation, and elevated interest rates drove many investors away from macroeconomically sensitive stocks.
QQQI and JEPQ are both top Nasdaq 100-based high-income funds. Which is the better buy? JEPQ's strong stability, lower cost, and scalability make it a solid option for those seeking safe income. QQQI, however, appears to offer more true appreciation potential, while still offering an attractive-looking yield. We prefer QQQI for most investors.
JEPQ offers a high dividend yield of 10.9% through an option strategy, making it a resilient choice in volatile markets despite its capped upside potential. The fund's underlying strategy mimics the Nasdaq-100 Index, with significant exposure to tech, consumer discretionary, and communication services sectors. Market uncertainty and potential tech sector growth, particularly in AI, position JEPQ to outperform traditional ETFs like QQQ and QQQM.
In this article, I answer the question, "Should I buy QQQ or JEPQ?" Both funds track an index primarily made of tech stocks and carry significant volatility, with one of the two incurring losses YTD. The answer relies on investors' outlook of markets, which I see as mixed for various reasons.
This article upgrades my rating on the JPMorgan Nasdaq Equity Premium Income ETF to a strong buy (vs. my earlier buy rating). Since my last writing, QQQ volatility has surged to the 96th percentile rank of the past year. This indicates that the fear sentiment has gone too extreme for NASDAQ stocks, where JEPQ selects its holding.
JPMorgan Nasdaq Equity Premium Income ETF is a high-yield tech investment, ideal for total return and income investors, especially during volatile markets. JEPQ outperforms during downturns and sideways markets due to its covered call strategy, generating substantial income and boosting total returns. Elevated market volatility benefits the Fund by increasing option premiums, potentially leading to higher dividends and making it a strong income-generating investment.
The JPMorgan Nasdaq Equity Premium Income (JEPQ) ETF is doing relatively well this year in terms of inflows and total returns. It has brought in over $3.5 billion in total inflows as investors continued looking for its yield.
Realty Income's post-earnings selloff presents a buying opportunity. Its 5.6% yield is attractive despite conservative 2025 guidance and higher interest expenses impacting growth projections. The company's 32-year dividend growth streak and 98.7% occupancy rate highlight its stability. Combining Realty Income with JEPQ offers a balanced portfolio with monthly dividends, reduced volatility, and enhanced total returns, making it a strategic investment.
JEPQ is a well-constructed, diversified ETF using innovative options strategies, offering consistent income and solid returns, closely tracking the Nasdaq-100 index. JEPQ has delivered nearly 50% total returns since inception, outperforming the Nasdaq-100 in down markets and providing substantive monthly payouts. With a conservative strategy of selling ELNs, JEPQ is less volatile and well-positioned for challenging market conditions, capturing most Nasdaq-100 gains.
Tesla's stock has dropped over 40% from its peak, suggesting caution and a potential opportunity to overweight Nasdaq 100 later. I recommend JPMorgan Nasdaq Equity Premium Income ETF due to its covered-call strategy, outperforming QQQ with higher income returns amid elevated volatility. JEPQ benefits from selling options in a high-volatility environment, offering a rising dividend yield near 10%, making it a favorable entry point.