JPMorgan Nasdaq Equity Premium Income ETF

JEPQ

Market cap $30.5B

For those who adopt a dividend strategy, having a “thermometer” with which to measure the real performance of our stocks is an immense advantage. This thermometer is NAV, a simple line on a graph that anyone can observe and understand without the need for calculations or interpretations. If it grows over the years, it means that the security earned its distributions: if it goes down, it means that it paid them at the expense of NAV.

A high-yield exchange traded fund (ETF) such as the JPMorgan Nasdaq Equity Premium Income ETF (NASDAQ:JEPQ) will undoubtedly attract many passive income collectors.

The Goldman Sachs Nasdaq-100 Premium Income ETF (GPIQ) is having a good year, with inflows rising and its stock jumping to a record high. It peaked at $52.80 on Friday, up sharply from the all-time low of $31.54.

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.

I up-grade the JPMorgan Nasdaq Equity Premium Income ETF to strong buy due to its tech-heavy, magnificent 7-focused portfolio and robust income strategy. JEPQ benefits from a favorable macro backdrop: strong U.S. GDP growth, falling interest rates, and record Data Center deals boosting tech sector earnings potential. High volatility (which is to be expected amid a likely strong Q3 earnings season in tech) will benefit JEPQ's option writing strategy. The ETF's fund flows are widely positive.

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

It's October, and ETFs are closing in on the $1 trillion mark for net inflows in 2025 (We have $997 billion as of October 9). This is a monumental achievement given this milestone was first crossed in a calendar year only last December.

The JPMorgan Nasdaq Equity Premium Income ETF (JEPQ) offers a more attractive return/risk profile than the Invesco QQQ Trust ETF (QQQ) for two key reasons. First, the October effect could heighten volatility, favoring covered-call strategies like JEPQ, and potentially pressuring QQQ's price performance. Second, JEPQ's yield spread over QQQ remains well above its historical average.

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.

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.