JPMorgan Equity Premium Income ETF

JEPI

Market cap $44.4B

Amplify CWP Enhanced Dividend Income ETF and JPMorgan Equity Premium Income ETF are compared as high-yield, option-writing ETFs for income-focused investors seeking high-yields. DIVO outperformed JEPI and SPY in one year chart, returning 19.67% versus JEPI's 9.19% and SPY's 16.45%. Both funds' performance is driven more by stock selection than call-writing, offering limited downside protection in sell-offs.

Covered call equity ETFs have above-average yields and benefit from rising stock prices and bull markets. There are lots of covered call ETFs in the market, with different characteristics and focusing on different markets. A quick rundown of four particularly strong ETFs in this niche follows. ETFs include two focusing on quality U.S. equities, international equities, and tech.

Throughout 2025, some of the most popular income products in the market weren't traditional dividend funds.

After spending years on the clock and building up your nest egg, you want to step into the retirement you deserve.

CDs offer fixed income up to maturity, and some banks let you lock in high interest rates for multiple years.

For the first time in several years, dividend ETFs are outperforming the S&P 500. Their tilts toward value and quality have been key, and we could still be in the early stages of a sustained rebound for dividend ETFs.

Traditional dividend stocks have long been the go-to for income investors. However, covered call ETFs have emerged as a compelling alternative, generating income through options premiums rather than waiting for quarterly dividends.

JPMorgan Equity Premium Income ETF is upgraded from Sell to Hold, reflecting an improved economic outlook and a more favorable environment for its options-based strategy. JEPI targets 7-9% annual income, primarily through selling out-of-the-money call options, and has consistently met this distribution goal since inception. JEPI's conservative, defensive portfolio lags both the S&P 500 and aggressive peers like GPIX and SPYI, especially during strong market rallies.

The promise sounds almost too good: invest your nest egg in JPMorgan Equity Premium Income ETF (NYSEARCA:JEPI), collect 8.21% in monthly distributions, and live comfortably off the income.

The income looks irresistible, but the math tells a different story. A hidden risk could quietly erode long-term wealth. Why retirees may be better off skipping - or at the very least strictly limiting - exposure to this popular strategy.