I keep track of the income-focused investments other writers recommend across the Internet. It is interesting to see what they report when one of my Dividend Hunter recommendations becomes a “hot idea” in the financial press.
Recently, at least a half dozen writers on Seeking Alpha have written (mostly positive) articles about one of these recommendations.
And I don’t blame them. Let me show you why I like it so much for generating income in my investment portfolio…
I’m talking about none other than JPMorgan Equity Premium Income ETF (JEPI). The fund launched in May 2020, and since that time, it has grown to be one of the ten largest actively managed ETFs.
I added my first covered call ETF to the Dividend Hunter portfolio in July 2020. I added JEPI a year later, in July 2021. Seeing a fund that my subscribers have owned for more than a year and a half get “discovered” by a broader audience is fun.
Covered Call ETFs use an option selling strategy (covered calls) to generate income from an underlying portfolio. Many investors use covered call trading to generate cash income from their stock portfolios. At the institutional level, such as with JEPI, the portfolio managers has access to advanced, synthetic securities that more efficiently mirror a covered call trading program. The JP Morgan website includes the below in describing its JEPI strategy…
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