JPMorgan Equity Premium Income ETF

JEPI

Market cap $41B

When it comes to popular income-oriented ETFs, it's tough to top the value proposition and passive-income generation potential of the Schwab U.S.

Exchange-traded funds (ETFs) have become a go-to for investors seeking straightforward ways to build wealth without the hassle of picking individual stocks. JPMorgan Chase (NYSE:JPM), one of the largest financial institutions globally, stands out in this space with its lineup of ETFs designed for income generation. These funds offer low costs, broad exposure, and reliable payouts, making them solid choices for anyone aiming to create a steady stream of passive income.

Many investors in 2025 need dependable passive income, and one outstanding way to achieve this is to invest in exchange-traded funds (ETFs).

Dividend exchange-traded funds have become a popular way to own a diverse set of stocks while generating steady, passive income.

JPMorgan Equity Premium Income ETF (JEPI) has underperformed expectations as growth stocks outpaced value, widening the gap this year. JEPI successfully avoided significant downside volatility, with a smaller drawdown compared to broader S&P 500 funds like GPIX during market declines. However, in bull markets, capturing upside volatility is critical, and GPIX demonstrated stronger performance by participating more fully in market rebounds.

Covered call ETFs like JEPI, JEPQ, ULTY, and XYLD have done well in the past few years, attracting billions of dollars in assets as investors embraced their high dividends.  JEPI, the biggest covered call ETF, has attracted over $41 billion in assets, thanks to its 8.

Even as the market seems to be shrugging off global trade concerns, there remains a level of uncertainty given economic ups and downs, job market red flags, and concerns over whether the global economy will start to slow down in 2026 as tariff concerns start to really show their effects.

I primarily invest in individual stocks. However, I've started to add more exchange-traded funds (ETFs) to my portfolio.

It's an unfortunate truth that far too many people will have to navigate the potential shortfall of Social Security, which is expected to begin as early as 2032.

JPMorgan Equity Premium Income ETF offers a blend of U.S. large-cap stocks and income from a covered call option overlay strategy. JEPI's defensively-oriented portfolio, featuring top technology names, delivers an attractive 8.4% yield with monthly distributions for income-focused investors. Covered call strategy and defensive portfolio posture could have value in a more volatile market which could transpire if the Fed were to slow the rate cut trajectory.