Discover JEPQ ETF: Unlocking a 9% Monthly Dividend Yield for Investors with Diverse Needs

Money | July 14, 2024, 5:14 p.m.

The JPMorgan Equity Premium Income ETF (JEPI) is a popular choice for retirees and income-seeking investors, known for its generous monthly income. Recently, the JPMorgan Nasdaq Equity Premium Income ETF (JEPQ) has caught the attention of investors looking for a similar strategy but based on the Nasdaq. JEPQ follows a similar approach to JEPI but focuses on the Nasdaq 100 index, utilizing exchange-traded notes (ELNs) to generate monthly income. While JEPI targets lower volatility and stable income, JEPQ aims to capture higher volatility stocks, potentially leading to higher yields. However, investors need to be aware of the potential downsides, including variable monthly income and increased volatility during bear markets. Overall, JEPQ is well-suited for Roth IRA investors seeking a high-yield, retirement-focused strategy, providing an alternative to traditional S&P 500 or 60-40 portfolios.