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02-08

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JEPQ Continues To Deliver Outsized Returns

02-08

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JEPQ: More Underperformance Ahead

2023-08-13

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@产业经济观察:CPI为什么会出现两年来首次负增长，CPI负增长意味着什么？

2023-06-27

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JEPI Or JEPQ: A Better ETF To Own For Monthly Income

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但过去一年多，相比国内的CPI数据，人们都更关注美国的CPI数据。由于美国通货膨胀严重，美联储从去年以来连续十一次加息，将联邦基准利率上调至5.25%-5.5%之间。美国的加息，导致了全球美元回流，带来了美元荒，使得非美元货币大幅贬值，部分发展中国家经济甚至都被带崩。 如今美国CPI已经回落到3%的水平，距离美联储理想的CPI目标2%近在咫尺。美联储的加息进程大概率已经结束了，即使还要加息，也只会再小幅加息一次。 人类的悲欢并不相通，在美国人担心通货膨胀的时候，中国人却在担心通货紧缩。美国怕太高的通货膨胀率加重了老百姓的生活成本，中国则担心太低的通货膨胀率影响经济增长。通货紧缩会导致人们推迟消费和投资，降低对未来收入的预期，变得悲观起来。 一、PPI从去年10月起就开始负增长 事实上，在7月CPI两年来首次负增长之前，作为CPI的先行指标，PPI（生产者物价指数，全称工业生产者出厂价格指数）从去年十月开始，一直同比负增长了。 价格水平的波动首先表现在生产领域，然后通过产业链向下游产业扩散，最后波及消费品。 PPI的变化会影响CPI的变化。当PPI上升时，企业的成本上升，企业会将这些成本转嫁给消费者，导致CPI上升。当PPI下降时，企业的成本下降，企业也会在市场竞争中降低消费品价格，导致CPI下降。 从数据上看，7月份，全国居民消费价格指数（CPI）同比下降0.3%，但环比由上月下降0.2%转为上涨0.2%；全国工业生产者出厂价格指数（PPI）同比下降4.4%，降幅比上月收窄1个百分点。 也就是说虽然7月份CPI首次转负，但环比上看CPI和PPI数据都有所好转。这也反映","listText":"这一两周7月份的经济数据纷纷出炉。最受关注的是中国CPI两年来首次负增长。7月份，中国消费者价格指数（CPI）同比下降0.3%，这是2021年3月以来首次负增长。实际上，从去年开始国内CPI数据就一直在走低。 但过去一年多，相比国内的CPI数据，人们都更关注美国的CPI数据。由于美国通货膨胀严重，美联储从去年以来连续十一次加息，将联邦基准利率上调至5.25%-5.5%之间。美国的加息，导致了全球美元回流，带来了美元荒，使得非美元货币大幅贬值，部分发展中国家经济甚至都被带崩。 如今美国CPI已经回落到3%的水平，距离美联储理想的CPI目标2%近在咫尺。美联储的加息进程大概率已经结束了，即使还要加息，也只会再小幅加息一次。 人类的悲欢并不相通，在美国人担心通货膨胀的时候，中国人却在担心通货紧缩。美国怕太高的通货膨胀率加重了老百姓的生活成本，中国则担心太低的通货膨胀率影响经济增长。通货紧缩会导致人们推迟消费和投资，降低对未来收入的预期，变得悲观起来。 一、PPI从去年10月起就开始负增长 事实上，在7月CPI两年来首次负增长之前，作为CPI的先行指标，PPI（生产者物价指数，全称工业生产者出厂价格指数）从去年十月开始，一直同比负增长了。 价格水平的波动首先表现在生产领域，然后通过产业链向下游产业扩散，最后波及消费品。 PPI的变化会影响CPI的变化。当PPI上升时，企业的成本上升，企业会将这些成本转嫁给消费者，导致CPI上升。当PPI下降时，企业的成本下降，企业也会在市场竞争中降低消费品价格，导致CPI下降。 从数据上看，7月份，全国居民消费价格指数（CPI）同比下降0.3%，但环比由上月下降0.2%转为上涨0.2%；全国工业生产者出厂价格指数（PPI）同比下降4.4%，降幅比上月收窄1个百分点。 也就是说虽然7月份CPI首次转负，但环比上看CPI和PPI数据都有所好转。这也反映","text":"这一两周7月份的经济数据纷纷出炉。最受关注的是中国CPI两年来首次负增长。7月份，中国消费者价格指数（CPI）同比下降0.3%，这是2021年3月以来首次负增长。实际上，从去年开始国内CPI数据就一直在走低。 但过去一年多，相比国内的CPI数据，人们都更关注美国的CPI数据。由于美国通货膨胀严重，美联储从去年以来连续十一次加息，将联邦基准利率上调至5.25%-5.5%之间。美国的加息，导致了全球美元回流，带来了美元荒，使得非美元货币大幅贬值，部分发展中国家经济甚至都被带崩。 如今美国CPI已经回落到3%的水平，距离美联储理想的CPI目标2%近在咫尺。美联储的加息进程大概率已经结束了，即使还要加息，也只会再小幅加息一次。 人类的悲欢并不相通，在美国人担心通货膨胀的时候，中国人却在担心通货紧缩。美国怕太高的通货膨胀率加重了老百姓的生活成本，中国则担心太低的通货膨胀率影响经济增长。通货紧缩会导致人们推迟消费和投资，降低对未来收入的预期，变得悲观起来。 一、PPI从去年10月起就开始负增长 事实上，在7月CPI两年来首次负增长之前，作为CPI的先行指标，PPI（生产者物价指数，全称工业生产者出厂价格指数）从去年十月开始，一直同比负增长了。 价格水平的波动首先表现在生产领域，然后通过产业链向下游产业扩散，最后波及消费品。 PPI的变化会影响CPI的变化。当PPI上升时，企业的成本上升，企业会将这些成本转嫁给消费者，导致CPI上升。当PPI下降时，企业的成本下降，企业也会在市场竞争中降低消费品价格，导致CPI下降。 从数据上看，7月份，全国居民消费价格指数（CPI）同比下降0.3%，但环比由上月下降0.2%转为上涨0.2%；全国工业生产者出厂价格指数（PPI）同比下降4.4%，降幅比上月收窄1个百分点。 也就是说虽然7月份CPI首次转负，但环比上看CPI和PPI数据都有所好转。这也反映","images":[{"img":"https://static.tigerbbs.com/5d8e502b583f416b8a5b932e183bdd4d"},{"img":"https://static.tigerbbs.com/910188ab1343440e886a657fd09e4c7f"},{"img":"https://static.tigerbbs.com/fb394f5796884a5f92357609fc7d4595"}],"top":1,"highlighted":1,"essential":2,"paper":2,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/208074542538776","isVote":1,"tweetType":1,"viewCount":0,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":4,"langContent":"CN","totalScore":0},"isVote":1,"tweetType":1,"viewCount":461,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"CN","totalScore":0},{"id":191854526615824,"gmtCreate":1687848648665,"gmtModify":1687848937788,"author":{"id":"3555886599332864","authorId":"3555886599332864","name":"bubert","avatar":"https://static.tigerbbs.com/d1ca0b4bbc419dd30f882f568e89b44e","crmLevel":3,"crmLevelSwitch":0,"followedFlag":false,"authorIdStr":"3555886599332864","idStr":"3555886599332864"},"themes":[],"htmlText":"这篇文章不错，转发给大家看看","listText":"这篇文章不错，转发给大家看看","text":"这篇文章不错，转发给大家看看","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/191854526615824","repostId":"2343097735","repostType":2,"isVote":1,"tweetType":1,"viewCount":679,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"CN","totalScore":0}],"hots":[{"id":271672906297480,"gmtCreate":1707373719266,"gmtModify":1707374901379,"author":{"id":"3555886599332864","authorId":"3555886599332864","name":"bubert","avatar":"https://static.tigerbbs.com/d1ca0b4bbc419dd30f882f568e89b44e","crmLevel":3,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3555886599332864","authorIdStr":"3555886599332864"},"themes":[],"htmlText":"这篇文章不错，转发给大家看看","listText":"这篇文章不错，转发给大家看看","text":"这篇文章不错，转发给大家看看","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/271672906297480","repostId":"2382261495","repostType":2,"repost":{"id":"2382261495","pubTimestamp":1699511509,"share":"https://www.laohu8.com/m/news/2382261495?lang=&edition=full","pubTime":"2023-11-09 14:31","market":"us","language":"en","title":"JEPQ Continues To Deliver Outsized Returns","url":"https://stock-news.laohu8.com/highlight/detail?id=2382261495","media":"seekingalpha","summary":"JPMorgan Nasdaq Equity Premium Income ETF continues to outperform other covered call funds as it's having a great year.JEPQ holds big tech stocks like Microsoft, Apple, Amazon, and Nvidia, which have ","content":"<html><body><ul><li>JPMorgan Nasdaq Equity Premium Income ETF continues to outperform other covered call funds as it's having a great year.</li><li>JEPQ holds big tech stocks like Microsoft, Apple, Amazon, and Nvidia, which have been outperforming the market.</li><li>JEPQ is actively managed, selling options slightly out of the money and adjusting its position on a weekly basis.</li><li>There is room for caution as FAANG+ stocks are not exactly value plays and they are already up so much this year.</li></ul><figure><picture> <img height=\"822px\" loading=\"lazy\" sizes=\"(max-width: 768px) calc(100vw - 36px), (max-width: 1024px) calc(100vw - 132px), (max-width: 1200px) calc(66.6vw - 72px), 600px\" src=\"https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1435014643/image_1435014643.jpg?io=getty-c-w750\" srcset=\"https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1435014643/image_1435014643.jpg?io=getty-c-w1536 1536w, https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1435014643/image_1435014643.jpg?io=getty-c-w1280 1280w, https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1435014643/image_1435014643.jpg?io=getty-c-w1080 1080w, https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1435014643/image_1435014643.jpg?io=getty-c-w750 750w, https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1435014643/image_1435014643.jpg?io=getty-c-w640 640w, https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1435014643/image_1435014643.jpg?io=getty-c-w480 480w, https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1435014643/image_1435014643.jpg?io=getty-c-w320 320w, https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1435014643/image_1435014643.jpg?io=getty-c-w240 240w\" width=\"1536px\"/> </picture><figcaption> <p>David Gyung</p></figcaption></figure><p>The last time I covered JPMorgan Nasdaq Equity Premium Income ETF (<span>NASDAQ:JEPQ</span>) several months ago (3 Reasons JEPQ Is Different From JEPI) I talked about how this fund is fundamentally different from JPMorgan's other popular fund JPMorgan<span> Equity Premium Income ETF (</span>JEPI<span>) and how investors could expect vastly different results from the two funds because at the time there was a belief that JEPQ is just a tech version of JEPI when in fact this wasn't the case. When you look at the year-to-date performance of two funds, you can clearly see that these funds are not interchangeable and they are vastly different funds that are built differently and will perform differently.</span></p> <figure><img height=\"366\" loading=\"lazy\" src=\"https://static.seekingalpha.com/uploads/2023/11/8/saupload_8c3c44135dded8a6108d2f626362c1f8.png\" width=\"635\"/><figcaption>Data by YCharts</figcaption></figure><p>Having said that, JEPQ has proved to be one of the top performers of the year so far in its class. It outperformed not only JEPI but<span> a majority of well-known covered call funds out there. One could simply say that JEPQ outperformed JEPI because Nasdaq outperformed S&amp;P 500 in general but that doesn't explain how JEPQ also outperformed many other covered call funds including <a href=\"https://laohu8.com/S/EFFE\">Global X</a> NASDAQ 100 Covered Call ETF (</span>QYLD<span>) and First Trust Nasdaq BuyWrite Income ETF (</span>FTQI<span>) which are also Nasdaq based.</span></p> <figure><img height=\"366\" loading=\"lazy\" src=\"https://static.seekingalpha.com/uploads/2023/11/8/saupload_f0f74e9cc8e1b697dd9f3d8d5d725b1d.png\" width=\"635\"/><figcaption>Data by YCharts</figcaption></figure><p>This fund's strength comes from a few places. First, it holds big tech stocks that pretty much hold the market together such as Microsoft (MSFT), Apple (AAPL), Amazon (AMZN) and Nvidia (NVDA). These stocks have been outperforming the overall markets not just this year but for more than a decade. One thing that truly sets this fund apart from JEPI is that JEPI mostly holds low-beta stocks which tend to underperform markets during wild bull runs (and outperform during bear markets or when things get volatile) but JEPQ isn't concerned about this at all. JEPQ mainly holds the biggest tech companies that represent Nasdaq most of which are highly profitable and posting solid growth. A vast majority of these companies enjoy strong margins, solid cash flows, low debt levels and balance sheets that prove strength.</p> <figure contenteditable=\"false\"><picture> <img contenteditable=\"false\" loading=\"lazy\" src=\"https://static.seekingalpha.com/uploads/2023/11/8/978670-16994757111720767.png\"/> </picture><figcaption><p>Top 10 Holdings <span>(Seeking Alpha)</span></p></figcaption></figure><p>Second, JEPQ is actively managed and it sells options about 2% out of money. This might feel like not a big difference but it matters over time. Selling options 2% above the current price can generate additional upside as compared to selling options right at the money by about 1.5% per month (not full 2% because you collect slightly less premium). This might not seem much but the difference can total up to 18% annualized without compounding and 19.6% with compounding.</p> <p>Third, the fund is actively managed which can help a fund when done correctly (or hurt a fund when done incorrectly). Active management can make a big difference at times to a covered call fund even though the process seems very simple and straightforward (buy shares &amp; write calls against them). The first part where you initiate the covered call position is the simplest part but then comes the management. What do you do if your stocks drop and calls you wrote lose most of their value? Do you roll down for additional premiums? What happens if your stocks suddenly have a rally and the options you wrote are not in the money? Do you buy them back? Do you roll them out for additional upside while giving up some of the premiums you've collected? These are decisions a fund has to make if it's actively managed.</p> <p>For example funds like QYLD and Global X S&amp;P 500 Covered Call ETF (XYLD) are not actively managed. They use the exact same process every month no matter what. They write at-the-money calls exactly 1 month out and hold it until the end of the month no matter what the market does. For example, market could drop -5% overnight and those calls could lose most of their value which would provide an opportunity to buy them back and roll them down but the fund doesn't do it. Similarly the market could rise 5% overnight and those options would lose most of their time-value which would mean that the max profit potential is already received since upside is capped but the fund doesn't adjust its position either. JEPQ adjusts its position on weekly basis and rolls many of its option contracts which can give it an edge if done correctly. If a covered call reaches its full profit within its first week, there is very little value in holding the position for a whole month where there will be no additional upside but you still have the downside risk.</p> <p>Earlier this year, one of the issues that affected most covered call funds was low volatility and declining VIX which caused many funds to reduce their distributions significantly because IV (implied volatility) is bread and butter of these funds and how they generate income. As IV dropped throughout the year, many covered call funds like XYLD saw their yields drop from 12% to 8%. JEPQ also saw its dividend yield drop but less so than others and the fund currently yields about 11-12% which is close to 1% per month. One reason is that the fund trades options on tech stocks so they tend to have a higher volatility than the overall market. For example, currently the 30-day rolling volatility for S&amp;P 500 ETF (SPY) is 13.96% while it is 18.29% for Invesco QQQ ETF (QQQ). The difference may not look like much but it can translate into 30-40% higher yields when selling covered calls.</p> <figure><img height=\"366\" loading=\"lazy\" src=\"https://static.seekingalpha.com/uploads/2023/11/8/saupload_2765fc09a17755262c6ee87f55a33c2d.png\" width=\"635\"/><figcaption>Data by YCharts</figcaption></figure><p>One could say that JPMorgan's (JPM) covered call funds have been wildly successful and gained a huge followership. On a related news, Goldman Sachs (GS) recently launched its own version of these funds. These funds are Goldman Sachs Nasdaq-100 Core Premium Income ETF (GPIQ) and Goldman Sachs S&amp;P 500 Core Premium Income ETF (GPIX). We will see if these funds will also see a similar success story or not but the fact that other investment banks are also joining the game shows that covered call funds are going to be here to stay and they won't be just a fad as investors are going to be looking to generate high yield distributions fir income. Still, not all covered call funds are created equal and there will be winners and losers in this space just as every space.</p> <p>Having said that, JEPQ relies heavily on FAANG+ stocks and the fund's success depends on these stocks. These stocks created outsized returns in the last decade as well as the last year but there is no guarantee that this will continue. In fact, we can say that this is probably the most expensive these stocks have been in a long time with their P/Es ranging from 25 to 112.</p> <figure><img height=\"366\" loading=\"lazy\" src=\"https://static.seekingalpha.com/uploads/2023/11/8/saupload_ce8eb1f3c2c751971f7e46ddccf61422.png\" width=\"635\"/><figcaption>Data by YCharts</figcaption></figure><div></div> <p>While JEPQ doesn't rely on these stocks rallying in order to generate a yield (as it sells covered calls for that), it still assumes the risk of these stocks suffering from a sharp drop, correction or even a bear market. Investors should be cautious and know what they are putting their money into before investing in this fund. If they are looking for \"value\" stocks, or low beta stocks, this is probably not the best fund for them.</p></body></html>","source":"seekingalpha","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>JEPQ Continues To Deliver Outsized Returns</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nJEPQ Continues To Deliver Outsized Returns\n</h2>\n\n<h4 class=\"meta\">\n\n\n2023-11-09 14:31 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4649592-jepq-continues-to-deliver-outsized-returns><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>JPMorgan Nasdaq Equity Premium Income ETF continues to outperform other covered call funds as it's having a great year.JEPQ holds big tech stocks like Microsoft, Apple, Amazon, and Nvidia, which have ...</p>\n\n<a href=\"https://seekingalpha.com/article/4649592-jepq-continues-to-deliver-outsized-returns\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1435014643/image_1435014643.jpg","relate_stocks":{"SH":"标普500反向ETF","IVV":"标普500指数ETF","IE00BJJMRX11.SGD":"Janus Henderson Balanced A Acc SGD","LU0079474960.USD":"联博美国增长基金A","OEF":"标普100指数ETF-iShares","QLD":"纳指两倍做多ETF","FTQI":"First Trust NASDAQ BuyWrite Income ETF","GS":"高盛","LU0310799852.SGD":"FTIF - Templeton Global Equity Income A MDIS SGD","QYLD":"纳斯达克100 Covered Call ETF-Global X","QQQ":"纳指100ETF","GPIQ":"GOLDMAN SACHS NASDAQ 100 CORE PREMIUM INCOME ETF","XYLD":"Global X S&P 500 Covered Call ETF","SPY":"标普500ETF","FDN":"First Trust Dow Jones Internet I","BK4532":"文艺复兴科技持仓","GPIX":"GOLDMAN SACHS S&P 500 CORE PREMIUM INCOME ETF",".IXIC":"NASDAQ Composite","SQQQ":"纳指三倍做空ETF",".SPX":"S&P 500 Index","PSQ":"纳指反向ETF","OEX":"标普100","SDS":"两倍做空标普500ETF","AMZN":"亚马逊","BK4534":"瑞士信贷持仓","JEPI":"JPMorgan Equity Premium Income ETF","NVDA":"英伟达","TQQQ":"纳指三倍做多ETF","BK4127":"投资银行业与经纪业","SPXU":"三倍做空标普500ETF","BK4533":"AQR资本管理(全球第二大对冲基金)","QID":"纳指两倍做空ETF","JEPQ":"J.P. MORGAN NASDAQ EQUITY PREMIUM INCOME ETF","JPM":"摩根大通","SSO":"两倍做多标普500ETF","MSFT":"微软","AAPL":"苹果","LU0211327993.USD":"TEMPLETON GLOBAL EQUITY INCOME \"A\" (USD) ACC","LU0130103400.USD":"Natixis Harris Associates Global Equity RA USD","LU0354030511.USD":"ALLSPRING  U.S. LARGE CAP GROWTH \"I\" (USD) ACC","IE00BJTD4N35.SGD":"Neuberger Berman US Long Short Equity A1  Acc SGD-H","LU0354030438.USD":"富国美国大盘成长基金Cl A Acc","LU0256863811.USD":"ALLIANZ US EQUITY \"A\" INC","LU0211331839.USD":"FRANKLIN MUTUAL GLB DISCOVERY \"A\" (USD) ACC","UPRO":"三倍做多标普500ETF"},"source_url":"https://seekingalpha.com/article/4649592-jepq-continues-to-deliver-outsized-returns","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"2382261495","content_text":"JPMorgan Nasdaq Equity Premium Income ETF continues to outperform other covered call funds as it's having a great year.JEPQ holds big tech stocks like Microsoft, Apple, Amazon, and Nvidia, which have been outperforming the market.JEPQ is actively managed, selling options slightly out of the money and adjusting its position on a weekly basis.There is room for caution as FAANG+ stocks are not exactly value plays and they are already up so much this year.   David GyungThe last time I covered JPMorgan Nasdaq Equity Premium Income ETF (NASDAQ:JEPQ) several months ago (3 Reasons JEPQ Is Different From JEPI) I talked about how this fund is fundamentally different from JPMorgan's other popular fund JPMorgan Equity Premium Income ETF (JEPI) and how investors could expect vastly different results from the two funds because at the time there was a belief that JEPQ is just a tech version of JEPI when in fact this wasn't the case. When you look at the year-to-date performance of two funds, you can clearly see that these funds are not interchangeable and they are vastly different funds that are built differently and will perform differently. Data by YChartsHaving said that, JEPQ has proved to be one of the top performers of the year so far in its class. It outperformed not only JEPI but a majority of well-known covered call funds out there. One could simply say that JEPQ outperformed JEPI because Nasdaq outperformed S&P 500 in general but that doesn't explain how JEPQ also outperformed many other covered call funds including Global X NASDAQ 100 Covered Call ETF (QYLD) and First Trust Nasdaq BuyWrite Income ETF (FTQI) which are also Nasdaq based. Data by YChartsThis fund's strength comes from a few places. First, it holds big tech stocks that pretty much hold the market together such as Microsoft (MSFT), Apple (AAPL), Amazon (AMZN) and Nvidia (NVDA). These stocks have been outperforming the overall markets not just this year but for more than a decade. One thing that truly sets this fund apart from JEPI is that JEPI mostly holds low-beta stocks which tend to underperform markets during wild bull runs (and outperform during bear markets or when things get volatile) but JEPQ isn't concerned about this at all. JEPQ mainly holds the biggest tech companies that represent Nasdaq most of which are highly profitable and posting solid growth. A vast majority of these companies enjoy strong margins, solid cash flows, low debt levels and balance sheets that prove strength.   Top 10 Holdings (Seeking Alpha)Second, JEPQ is actively managed and it sells options about 2% out of money. This might feel like not a big difference but it matters over time. Selling options 2% above the current price can generate additional upside as compared to selling options right at the money by about 1.5% per month (not full 2% because you collect slightly less premium). This might not seem much but the difference can total up to 18% annualized without compounding and 19.6% with compounding. Third, the fund is actively managed which can help a fund when done correctly (or hurt a fund when done incorrectly). Active management can make a big difference at times to a covered call fund even though the process seems very simple and straightforward (buy shares & write calls against them). The first part where you initiate the covered call position is the simplest part but then comes the management. What do you do if your stocks drop and calls you wrote lose most of their value? Do you roll down for additional premiums? What happens if your stocks suddenly have a rally and the options you wrote are not in the money? Do you buy them back? Do you roll them out for additional upside while giving up some of the premiums you've collected? These are decisions a fund has to make if it's actively managed. For example funds like QYLD and Global X S&P 500 Covered Call ETF (XYLD) are not actively managed. They use the exact same process every month no matter what. They write at-the-money calls exactly 1 month out and hold it until the end of the month no matter what the market does. For example, market could drop -5% overnight and those calls could lose most of their value which would provide an opportunity to buy them back and roll them down but the fund doesn't do it. Similarly the market could rise 5% overnight and those options would lose most of their time-value which would mean that the max profit potential is already received since upside is capped but the fund doesn't adjust its position either. JEPQ adjusts its position on weekly basis and rolls many of its option contracts which can give it an edge if done correctly. If a covered call reaches its full profit within its first week, there is very little value in holding the position for a whole month where there will be no additional upside but you still have the downside risk. Earlier this year, one of the issues that affected most covered call funds was low volatility and declining VIX which caused many funds to reduce their distributions significantly because IV (implied volatility) is bread and butter of these funds and how they generate income. As IV dropped throughout the year, many covered call funds like XYLD saw their yields drop from 12% to 8%. JEPQ also saw its dividend yield drop but less so than others and the fund currently yields about 11-12% which is close to 1% per month. One reason is that the fund trades options on tech stocks so they tend to have a higher volatility than the overall market. For example, currently the 30-day rolling volatility for S&P 500 ETF (SPY) is 13.96% while it is 18.29% for Invesco QQQ ETF (QQQ). The difference may not look like much but it can translate into 30-40% higher yields when selling covered calls. Data by YChartsOne could say that JPMorgan's (JPM) covered call funds have been wildly successful and gained a huge followership. On a related news, Goldman Sachs (GS) recently launched its own version of these funds. These funds are Goldman Sachs Nasdaq-100 Core Premium Income ETF (GPIQ) and Goldman Sachs S&P 500 Core Premium Income ETF (GPIX). We will see if these funds will also see a similar success story or not but the fact that other investment banks are also joining the game shows that covered call funds are going to be here to stay and they won't be just a fad as investors are going to be looking to generate high yield distributions fir income. Still, not all covered call funds are created equal and there will be winners and losers in this space just as every space. Having said that, JEPQ relies heavily on FAANG+ stocks and the fund's success depends on these stocks. These stocks created outsized returns in the last decade as well as the last year but there is no guarantee that this will continue. In fact, we can say that this is probably the most expensive these stocks have been in a long time with their P/Es ranging from 25 to 112. Data by YCharts While JEPQ doesn't rely on these stocks rallying in order to generate a yield (as it sells covered calls for that), it still assumes the risk of these stocks suffering from a sharp drop, correction or even a bear market. Investors should be cautious and know what they are putting their money into before investing in this fund. If they are looking for \"value\" stocks, or low beta stocks, this is probably not the best fund for them.","news_type":1},"isVote":1,"tweetType":1,"viewCount":92,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"CN","totalScore":0},{"id":271707576787184,"gmtCreate":1707372746466,"gmtModify":1707374884782,"author":{"id":"3555886599332864","authorId":"3555886599332864","name":"bubert","avatar":"https://static.tigerbbs.com/d1ca0b4bbc419dd30f882f568e89b44e","crmLevel":3,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3555886599332864","authorIdStr":"3555886599332864"},"themes":[],"htmlText":"这篇文章不错，转发给大家看看","listText":"这篇文章不错，转发给大家看看","text":"这篇文章不错，转发给大家看看","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/271707576787184","repostId":"2403047308","repostType":2,"repost":{"id":"2403047308","pubTimestamp":1705341739,"share":"https://www.laohu8.com/m/news/2403047308?lang=&edition=full","pubTime":"2024-01-16 02:02","market":"us","language":"en","title":"JEPQ: More Underperformance Ahead","url":"https://stock-news.laohu8.com/highlight/detail?id=2403047308","media":"seekingalpha","summary":"Covered call ETFs have gained popularity for their ability to provide equity upside and regular income.The JPMorgan Nasdaq Equity Premium Income ETF (JEPQ) is a popular covered call fund that has coll","content":"<html><body><ul><li>Covered call ETFs have gained popularity for their ability to provide equity upside and regular income.</li><li>The JPMorgan Nasdaq Equity Premium Income ETF (JEPQ) is a popular covered call fund that has collected nearly $9 billion in assets.</li><li>However, now is not the right time to own JEPQ because it is likely to underperform in a bull market.</li></ul><p><figure><picture><img height=\"960px\" loading=\"lazy\" sizes=\"(max-width: 768px) calc(100vw - 36px), (max-width: 1024px) calc(100vw - 132px), (max-width: 1200px) calc(66.6vw - 72px), 600px\" src=\"https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1503371245/image_1503371245.jpg?io=getty-c-w750\" srcset=\"https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1503371245/image_1503371245.jpg?io=getty-c-w1536 1536w, https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1503371245/image_1503371245.jpg?io=getty-c-w1280 1280w, https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1503371245/image_1503371245.jpg?io=getty-c-w1080 1080w, https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1503371245/image_1503371245.jpg?io=getty-c-w750 750w, https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1503371245/image_1503371245.jpg?io=getty-c-w640 640w, https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1503371245/image_1503371245.jpg?io=getty-c-w480 480w, https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1503371245/image_1503371245.jpg?io=getty-c-w320 320w, https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1503371245/image_1503371245.jpg?io=getty-c-w240 240w\" width=\"1536px\"/></picture><figcaption><p>MicroStockHub</p></figcaption></figure></p> <p>Covered call ETFs have become very popular in recent times as investors attempt to capture the best of both worlds - equity upside and regular income. The formula is simple enough, and it can work quite nicely. However, there is a time and a place<span> for such things, and it is my view that time has passed for now.</span></p> <p>One of the behemoths in this space is the <strong>JPMorgan Nasdaq Equity Premium Income ETF</strong> (<span>NASDAQ:JEPQ</span>), a wildly popular version of a covered call fund that's collected nearly $9 billion assets in less than two years. In this article, we'll take a look at the fund, and why I think you're better off just owning equities for the time being.</p> <h2>What is JEPQ?</h2> <p>In short, JEPQ is an ETF that is managed by J.P. Morgan Investment Management that invests in publicly-traded equities. It<span> does so through common stocks and options, the combination of which it uses to create a covered call portfolio on Nasdaq-100 stocks, and indeed, that is the benchmark the fund uses.</span></p> <p>The idea is to create current income while maintaining at least some potential upside from capital appreciation. To do this, the fund is very actively managed through both the Nasdaq-100 securities it owns as well as the call options it sells against those equities. For those unfamiliar with the strategy, it's very simple. The fund owns a stock and then sells call options against that position, generating income in the process. The tradeoff for that income generation is that the fund is limiting its upside as it is essentially selling the rights to that upside when it takes the premium for calls.</p> <p>You can read about how these funds work here, but basically, you sell the rights to your upside in exchange for income, which also serves to reduce cost basis and volatility. This is a great strategy in certain markets, especially down and sideways markets, because there's no upside to give up. In these markets, covered call ETFs are outstanding and generally would be expected to outperform benchmark equity indices.</p> <p>However, it is my view that 2024 is going to see new highs in the equity markets, and likely by a significant margin over prior highs. If I'm right, a covered call ETF is almost certain to <em>underperform</em>. You can make your own judgment on that, but for me, the time to own this fund was 2022 and the first half of 2023, not right now.</p> <p>Let's take a look at the holdings to get an idea of what the fund actually owns.</p> <p><figure contenteditable=\"false\"><picture><img contenteditable=\"false\" loading=\"lazy\" src=\"https://static.seekingalpha.com/uploads/2024/1/15/5847171-17053167161515002.png\"/></picture><figcaption><p>Seeking Alpha</p></figcaption></figure></p> <p>Given this is a Nasdaq-focused fund, you see the usual suspects there from mega-cap tech. This is a non-diversified fund, so if it's hundreds of stocks in a fund that you're after, it's best to move on from this one. However, despite the fact that JEPQ doesn't own very many stocks and is tech-focused, its volatility is actually <em>lower</em> than that of the S&amp;P 500.</p> <p><figure contenteditable=\"false\"><picture><span><img contenteditable=\"false\" loading=\"lazy\" src=\"https://static.seekingalpha.com/uploads/2024/1/15/5847171-17053167162976325.png\"/></span></picture><figcaption><p>Seeking Alpha</p></figcaption></figure></p> <p>This is one of the benefits of a covered call strategy; the income you generate from selling options also serves to limit volatility. For context, the Nasdaq ETF (QQQ) has 17.7% annualized volatility, which is more directly comparable to JEPQ. The fact that JEPQ is ~660bps better than QQQ shows the benefits of this strategy as it relates to volatility.</p> <p>Of course, the other benefit that is likely more attractive to investors is the distributions, which we can see below.</p> <p><figure contenteditable=\"false\"><picture><span><img contenteditable=\"false\" loading=\"lazy\" src=\"https://static.seekingalpha.com/uploads/2024/1/15/5847171-17053167162745905.jpg\"/></span></picture><figcaption><p>Seeking Alpha</p></figcaption></figure></p> <p>The distributions are paid monthly, which is terrific and much more desirable than the standard quarterly schedule. They do change every month, however, as the amount of options income the fund can generate is somewhat out of its control. Options pricing changes through the day every day, meaning there are times when selling options is more favorable and vice versa.</p> <p>We are in a time of very low options premiums given the volatility index (VIX) is just 13. That's very low, bull market territory and in my view, this kind of environment is exactly the wrong time to be selling options. The reason is because the premium generated is very low compared to when the VIX is 16 or 18 or 20, so selling the upside to your equities can be thought of as being on sale, or cheaper than normal. We want to buy when things are on sale, not sell them.</p> <h2>Underperformance in action</h2> <p>I want to reiterate that this fund is a very strong choice if you're in the market for a covered call fund. It's well managed and the strategy works based upon the constraints the fund has. What I'm saying is that the environment we're in is wrong for this kind of fund, irrespective of how well constructed it is.</p> <p>Below we have the price chart of JEPQ - which does not include dividends, so total returns are better than the below - and I see a chart that needs a bit of rest before continuing higher.</p> <p><figure contenteditable=\"false\"><picture><span><img contenteditable=\"false\" loading=\"lazy\" src=\"https://static.seekingalpha.com/uploads/2024/1/15/5847171-1705316716358795.png\"/></span></picture><figcaption><p>StockCharts</p></figcaption></figure></p> <p>The reason I say this is because the negative divergence that is forming between the November high and the current high is accompanied by a much lower peak in momentum, via the PPO. What this means is that momentum is not confirming price highs, which is generally a warning sign that the trend is about to slow or change. In this case, the trend is higher, so I'd be on the lookout for some selling to digest this most recent up move as it looks to me the bulls are getting tired.</p> <p>Finally, below are returns through the end of 2023 for JEPQ against the index it tracks, and this is exactly what I mean by giving up the upside during a bull market.</p> <p><figure contenteditable=\"false\"><picture><span><img contenteditable=\"false\" loading=\"lazy\" src=\"https://static.seekingalpha.com/uploads/2024/1/15/5847171-17053167163857596.png\"/></span></picture><figcaption><p>Fund website</p></figcaption></figure></p> <div></div> <p>I'm sure anyone that held JEPQ through 2023 was happy with their returns. However, simply holding the Nasdaq-100 would have yielded much better returns. It is my view that this bull market is far from done, and I believe when 2024 returns are tallied, JEPQ will come out on the wrong end once again.</p></body></html>","source":"seekingalpha","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>JEPQ: More Underperformance Ahead</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nJEPQ: More Underperformance Ahead\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-01-16 02:02 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4662929-jepq-more-underperformance-ahead><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Covered call ETFs have gained popularity for their ability to provide equity upside and regular income.The JPMorgan Nasdaq Equity Premium Income ETF (JEPQ) is a popular covered call fund that has ...</p>\n\n<a href=\"https://seekingalpha.com/article/4662929-jepq-more-underperformance-ahead\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1503371245/image_1503371245.jpg","relate_stocks":{"QQQ":"纳指100ETF","QID":"纳指两倍做空ETF","PSQ":"纳指反向ETF","TQQQ":"纳指三倍做多ETF","BK4593":"纳斯达克ETF",".IXIC":"NASDAQ Composite","BK4585":"ETF&股票定投概念","FDN":"First Trust Dow Jones Internet I","BK4561":"索罗斯持仓","BK4534":"瑞士信贷持仓","SQQQ":"纳指三倍做空ETF","BK4550":"红杉资本持仓","BK4581":"高盛持仓","BK4588":"碎股","JEPQ":"J.P. MORGAN NASDAQ EQUITY PREMIUM INCOME ETF","QLD":"纳指两倍做多ETF"},"source_url":"https://seekingalpha.com/article/4662929-jepq-more-underperformance-ahead","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"2403047308","content_text":"Covered call ETFs have gained popularity for their ability to provide equity upside and regular income.The JPMorgan Nasdaq Equity Premium Income ETF (JEPQ) is a popular covered call fund that has collected nearly $9 billion in assets.However, now is not the right time to own JEPQ because it is likely to underperform in a bull market.MicroStockHub Covered call ETFs have become very popular in recent times as investors attempt to capture the best of both worlds - equity upside and regular income. The formula is simple enough, and it can work quite nicely. However, there is a time and a place for such things, and it is my view that time has passed for now. One of the behemoths in this space is the JPMorgan Nasdaq Equity Premium Income ETF (NASDAQ:JEPQ), a wildly popular version of a covered call fund that's collected nearly $9 billion assets in less than two years. In this article, we'll take a look at the fund, and why I think you're better off just owning equities for the time being. What is JEPQ? In short, JEPQ is an ETF that is managed by J.P. Morgan Investment Management that invests in publicly-traded equities. It does so through common stocks and options, the combination of which it uses to create a covered call portfolio on Nasdaq-100 stocks, and indeed, that is the benchmark the fund uses. The idea is to create current income while maintaining at least some potential upside from capital appreciation. To do this, the fund is very actively managed through both the Nasdaq-100 securities it owns as well as the call options it sells against those equities. For those unfamiliar with the strategy, it's very simple. The fund owns a stock and then sells call options against that position, generating income in the process. The tradeoff for that income generation is that the fund is limiting its upside as it is essentially selling the rights to that upside when it takes the premium for calls. You can read about how these funds work here, but basically, you sell the rights to your upside in exchange for income, which also serves to reduce cost basis and volatility. This is a great strategy in certain markets, especially down and sideways markets, because there's no upside to give up. In these markets, covered call ETFs are outstanding and generally would be expected to outperform benchmark equity indices. However, it is my view that 2024 is going to see new highs in the equity markets, and likely by a significant margin over prior highs. If I'm right, a covered call ETF is almost certain to underperform. You can make your own judgment on that, but for me, the time to own this fund was 2022 and the first half of 2023, not right now. Let's take a look at the holdings to get an idea of what the fund actually owns. Seeking Alpha Given this is a Nasdaq-focused fund, you see the usual suspects there from mega-cap tech. This is a non-diversified fund, so if it's hundreds of stocks in a fund that you're after, it's best to move on from this one. However, despite the fact that JEPQ doesn't own very many stocks and is tech-focused, its volatility is actually lower than that of the S&P 500. Seeking Alpha This is one of the benefits of a covered call strategy; the income you generate from selling options also serves to limit volatility. For context, the Nasdaq ETF (QQQ) has 17.7% annualized volatility, which is more directly comparable to JEPQ. The fact that JEPQ is ~660bps better than QQQ shows the benefits of this strategy as it relates to volatility. Of course, the other benefit that is likely more attractive to investors is the distributions, which we can see below. Seeking Alpha The distributions are paid monthly, which is terrific and much more desirable than the standard quarterly schedule. They do change every month, however, as the amount of options income the fund can generate is somewhat out of its control. Options pricing changes through the day every day, meaning there are times when selling options is more favorable and vice versa. We are in a time of very low options premiums given the volatility index (VIX) is just 13. That's very low, bull market territory and in my view, this kind of environment is exactly the wrong time to be selling options. The reason is because the premium generated is very low compared to when the VIX is 16 or 18 or 20, so selling the upside to your equities can be thought of as being on sale, or cheaper than normal. We want to buy when things are on sale, not sell them. Underperformance in action I want to reiterate that this fund is a very strong choice if you're in the market for a covered call fund. It's well managed and the strategy works based upon the constraints the fund has. What I'm saying is that the environment we're in is wrong for this kind of fund, irrespective of how well constructed it is. Below we have the price chart of JEPQ - which does not include dividends, so total returns are better than the below - and I see a chart that needs a bit of rest before continuing higher. StockCharts The reason I say this is because the negative divergence that is forming between the November high and the current high is accompanied by a much lower peak in momentum, via the PPO. What this means is that momentum is not confirming price highs, which is generally a warning sign that the trend is about to slow or change. In this case, the trend is higher, so I'd be on the lookout for some selling to digest this most recent up move as it looks to me the bulls are getting tired. Finally, below are returns through the end of 2023 for JEPQ against the index it tracks, and this is exactly what I mean by giving up the upside during a bull market. Fund website  I'm sure anyone that held JEPQ through 2023 was happy with their returns. However, simply holding the Nasdaq-100 would have yielded much better returns. It is my view that this bull market is far from done, and I believe when 2024 returns are tallied, JEPQ will come out on the wrong end once again.","news_type":1},"isVote":1,"tweetType":1,"viewCount":105,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"CN","totalScore":0},{"id":208338920513640,"gmtCreate":1691887601312,"gmtModify":1691890179922,"author":{"id":"3555886599332864","authorId":"3555886599332864","name":"bubert","avatar":"https://static.tigerbbs.com/d1ca0b4bbc419dd30f882f568e89b44e","crmLevel":3,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3555886599332864","authorIdStr":"3555886599332864"},"themes":[],"htmlText":"这篇文章不错，转发给大家看看","listText":"这篇文章不错，转发给大家看看","text":"这篇文章不错，转发给大家看看","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/208338920513640","repostId":"208074542538776","repostType":1,"repost":{"id":208074542538776,"gmtCreate":1691823859419,"gmtModify":1691824174999,"author":{"id":"10000000000010622","authorId":"10000000000010622","name":"产业经济观察","avatar":"https://static.tigerbbs.com/b5dc2c3a1e74a21f05f7908306a00003","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false,"idStr":"10000000000010622","authorIdStr":"10000000000010622"},"themes":[],"title":"CPI为什么会出现两年来首次负增长，CPI负增长意味着什么？","htmlText":"这一两周7月份的经济数据纷纷出炉。最受关注的是中国CPI两年来首次负增长。7月份，中国消费者价格指数（CPI）同比下降0.3%，这是2021年3月以来首次负增长。实际上，从去年开始国内CPI数据就一直在走低。 但过去一年多，相比国内的CPI数据，人们都更关注美国的CPI数据。由于美国通货膨胀严重，美联储从去年以来连续十一次加息，将联邦基准利率上调至5.25%-5.5%之间。美国的加息，导致了全球美元回流，带来了美元荒，使得非美元货币大幅贬值，部分发展中国家经济甚至都被带崩。 如今美国CPI已经回落到3%的水平，距离美联储理想的CPI目标2%近在咫尺。美联储的加息进程大概率已经结束了，即使还要加息，也只会再小幅加息一次。 人类的悲欢并不相通，在美国人担心通货膨胀的时候，中国人却在担心通货紧缩。美国怕太高的通货膨胀率加重了老百姓的生活成本，中国则担心太低的通货膨胀率影响经济增长。通货紧缩会导致人们推迟消费和投资，降低对未来收入的预期，变得悲观起来。 一、PPI从去年10月起就开始负增长 事实上，在7月CPI两年来首次负增长之前，作为CPI的先行指标，PPI（生产者物价指数，全称工业生产者出厂价格指数）从去年十月开始，一直同比负增长了。 价格水平的波动首先表现在生产领域，然后通过产业链向下游产业扩散，最后波及消费品。 PPI的变化会影响CPI的变化。当PPI上升时，企业的成本上升，企业会将这些成本转嫁给消费者，导致CPI上升。当PPI下降时，企业的成本下降，企业也会在市场竞争中降低消费品价格，导致CPI下降。 从数据上看，7月份，全国居民消费价格指数（CPI）同比下降0.3%，但环比由上月下降0.2%转为上涨0.2%；全国工业生产者出厂价格指数（PPI）同比下降4.4%，降幅比上月收窄1个百分点。 也就是说虽然7月份CPI首次转负，但环比上看CPI和PPI数据都有所好转。这也反映","listText":"这一两周7月份的经济数据纷纷出炉。最受关注的是中国CPI两年来首次负增长。7月份，中国消费者价格指数（CPI）同比下降0.3%，这是2021年3月以来首次负增长。实际上，从去年开始国内CPI数据就一直在走低。 但过去一年多，相比国内的CPI数据，人们都更关注美国的CPI数据。由于美国通货膨胀严重，美联储从去年以来连续十一次加息，将联邦基准利率上调至5.25%-5.5%之间。美国的加息，导致了全球美元回流，带来了美元荒，使得非美元货币大幅贬值，部分发展中国家经济甚至都被带崩。 如今美国CPI已经回落到3%的水平，距离美联储理想的CPI目标2%近在咫尺。美联储的加息进程大概率已经结束了，即使还要加息，也只会再小幅加息一次。 人类的悲欢并不相通，在美国人担心通货膨胀的时候，中国人却在担心通货紧缩。美国怕太高的通货膨胀率加重了老百姓的生活成本，中国则担心太低的通货膨胀率影响经济增长。通货紧缩会导致人们推迟消费和投资，降低对未来收入的预期，变得悲观起来。 一、PPI从去年10月起就开始负增长 事实上，在7月CPI两年来首次负增长之前，作为CPI的先行指标，PPI（生产者物价指数，全称工业生产者出厂价格指数）从去年十月开始，一直同比负增长了。 价格水平的波动首先表现在生产领域，然后通过产业链向下游产业扩散，最后波及消费品。 PPI的变化会影响CPI的变化。当PPI上升时，企业的成本上升，企业会将这些成本转嫁给消费者，导致CPI上升。当PPI下降时，企业的成本下降，企业也会在市场竞争中降低消费品价格，导致CPI下降。 从数据上看，7月份，全国居民消费价格指数（CPI）同比下降0.3%，但环比由上月下降0.2%转为上涨0.2%；全国工业生产者出厂价格指数（PPI）同比下降4.4%，降幅比上月收窄1个百分点。 也就是说虽然7月份CPI首次转负，但环比上看CPI和PPI数据都有所好转。这也反映","text":"这一两周7月份的经济数据纷纷出炉。最受关注的是中国CPI两年来首次负增长。7月份，中国消费者价格指数（CPI）同比下降0.3%，这是2021年3月以来首次负增长。实际上，从去年开始国内CPI数据就一直在走低。 但过去一年多，相比国内的CPI数据，人们都更关注美国的CPI数据。由于美国通货膨胀严重，美联储从去年以来连续十一次加息，将联邦基准利率上调至5.25%-5.5%之间。美国的加息，导致了全球美元回流，带来了美元荒，使得非美元货币大幅贬值，部分发展中国家经济甚至都被带崩。 如今美国CPI已经回落到3%的水平，距离美联储理想的CPI目标2%近在咫尺。美联储的加息进程大概率已经结束了，即使还要加息，也只会再小幅加息一次。 人类的悲欢并不相通，在美国人担心通货膨胀的时候，中国人却在担心通货紧缩。美国怕太高的通货膨胀率加重了老百姓的生活成本，中国则担心太低的通货膨胀率影响经济增长。通货紧缩会导致人们推迟消费和投资，降低对未来收入的预期，变得悲观起来。 一、PPI从去年10月起就开始负增长 事实上，在7月CPI两年来首次负增长之前，作为CPI的先行指标，PPI（生产者物价指数，全称工业生产者出厂价格指数）从去年十月开始，一直同比负增长了。 价格水平的波动首先表现在生产领域，然后通过产业链向下游产业扩散，最后波及消费品。 PPI的变化会影响CPI的变化。当PPI上升时，企业的成本上升，企业会将这些成本转嫁给消费者，导致CPI上升。当PPI下降时，企业的成本下降，企业也会在市场竞争中降低消费品价格，导致CPI下降。 从数据上看，7月份，全国居民消费价格指数（CPI）同比下降0.3%，但环比由上月下降0.2%转为上涨0.2%；全国工业生产者出厂价格指数（PPI）同比下降4.4%，降幅比上月收窄1个百分点。 也就是说虽然7月份CPI首次转负，但环比上看CPI和PPI数据都有所好转。这也反映","images":[{"img":"https://static.tigerbbs.com/5d8e502b583f416b8a5b932e183bdd4d"},{"img":"https://static.tigerbbs.com/910188ab1343440e886a657fd09e4c7f"},{"img":"https://static.tigerbbs.com/fb394f5796884a5f92357609fc7d4595"}],"top":1,"highlighted":1,"essential":2,"paper":2,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/208074542538776","isVote":1,"tweetType":1,"viewCount":0,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":4,"langContent":"CN","totalScore":0},"isVote":1,"tweetType":1,"viewCount":461,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"CN","totalScore":0},{"id":191854526615824,"gmtCreate":1687848648665,"gmtModify":1687848937788,"author":{"id":"3555886599332864","authorId":"3555886599332864","name":"bubert","avatar":"https://static.tigerbbs.com/d1ca0b4bbc419dd30f882f568e89b44e","crmLevel":3,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3555886599332864","authorIdStr":"3555886599332864"},"themes":[],"htmlText":"这篇文章不错，转发给大家看看","listText":"这篇文章不错，转发给大家看看","text":"这篇文章不错，转发给大家看看","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/191854526615824","repostId":"2343097735","repostType":2,"repost":{"id":"2343097735","pubTimestamp":1686839700,"share":"https://www.laohu8.com/m/news/2343097735?lang=&edition=full","pubTime":"2023-06-15 22:35","market":"us","language":"en","title":"JEPI Or JEPQ: A Better ETF To Own For Monthly Income","url":"https://stock-news.laohu8.com/highlight/detail?id=2343097735","media":"seekingalpha","summary":"hamzaturkkol When it comes to Income ETFs, the most popular has to be the JPMorgan Equity Premium Income ETF  which has hit the ground running in May 2020 when the fund was launched. Since the launch of JEPI, we have seen a number of other income focused ETFs hit the market due to the JEPI's popularity. One of those income focused ETF is a sister fund, also launched by JPMorgan. That fund is the JPMorgan Nasdaq Equity Premium Income ETF . The two ETFs have a lot of similarities, which we will detail out in today's article, but how those strategies are implemented are different for the two funds. Do You Prefer JEPI or JEPQ?","content":"<html><body><p><figure><picture> <img height=\"1020px\" loading=\"lazy\" sizes=\"(max-width: 768px) calc(100vw - 36px), (max-width: 1024px) calc(100vw - 132px), (max-width: 1200px) calc(66.6vw - 72px), 600px\" src=\"https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1396139907/image_1396139907.jpg?io=getty-c-w750\" srcset=\"https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1396139907/image_1396139907.jpg?io=getty-c-w1536 1536w, https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1396139907/image_1396139907.jpg?io=getty-c-w1280 1280w, https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1396139907/image_1396139907.jpg?io=getty-c-w1080 1080w, https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1396139907/image_1396139907.jpg?io=getty-c-w750 750w, https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1396139907/image_1396139907.jpg?io=getty-c-w640 640w, https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1396139907/image_1396139907.jpg?io=getty-c-w480 480w, https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1396139907/image_1396139907.jpg?io=getty-c-w320 320w, https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1396139907/image_1396139907.jpg?io=getty-c-w240 240w\" width=\"1536px\"/> </picture><figcaption> <p>hamzaturkkol</p></figcaption></figure></p> <p>When it comes to Income ETFs, the most popular has to be the <a href=\"https://laohu8.com/S/JEPI\">JPMorgan Equity Premium Income ETF</a> (<span>NYSEARCA:JEPI</span>) which has hit the ground running in May 2020 when the fund was launched.</p> <p>Since the launch of JEPI, we<span> have seen a number of other income focused ETFs hit the market due to the JEPI's popularity. One of those income focused ETF is a sister fund, also launched by JPMorgan. That fund is the JPMorgan Nasdaq Equity Premium Income ETF (</span><span>NASDAQ:JEPQ</span><span>).</span></p> <p>The two ETFs have a lot of similarities, which we will detail out in today's article, but how those strategies are implemented are different for the two funds.</p> <h2>Do You Prefer JEPI or JEPQ?</h2> <h4><strong>JPMorgan Equity Premium Income ETF (JEPI)</strong></h4> <p>As I stated a second ago, JEPI is an income focused ETF, after all it has 'Income\" in its title. The fund<span> was launched in May 2020 and has gained a lot of notoriety from income investors.</span></p> <p>The ETF is less focused on share price appreciation, although they like that, but the top priority is generating high amounts of income.</p> <p><figure contenteditable=\"false\"><span><img contenteditable=\"true\" loading=\"lazy\" src=\"https://static.seekingalpha.com/uploads/2023/6/14/5764111-1686785601575823.png\" wt-ignore-input=\"true\"/></span><figcaption><p><span>JEPI</span></p></figcaption></figure></p> <p>JEPI has a very high distribution yield above 11%, but over the past 12 months, you can see that the share price is actually down 4%.</p> <p><figure contenteditable=\"false\"><span><img contenteditable=\"true\" loading=\"lazy\" src=\"https://static.seekingalpha.com/uploads/2023/6/14/5764111-16867857175352533.png\" wt-ignore-input=\"true\"/></span><figcaption><p><span>Seeking Alpha</span></p></figcaption></figure></p> <p>JEPI is an actively managed ETF, meaning the portfolio managers buy and sell in and out of positions on a regular basis. Actively managed ETFs tend to have high expense ratios tied to them, but that is not necessarily the case for JEPI. JEPI has an expense ratio of 0.35%, which is not terrible by any means for being an actively managed ETF.</p> <p>So how might JEPI generate such a high distribution yield you might ask.</p> <p>As a dividend investor, you are aware that the dividend yield has an inverse relationship to the share price. As a share price goes up, a dividend yield goes down and vice versa. Well we just saw JEPI's share price has been relatively flat over the past 12 months and yet they have a double digit distribution yield.</p> <p>Here is how JEPI is constructed to pay such a large distribution. The managers take a two pronged approach:</p> <ol> <li>Invest in low beta, high-quality stocks within the S&amp;P 500</li> <li>Sell call options via Equity Linked Notes, or ELNs</li> </ol> <p>Dividends from the equities they own combined with the option premium they earn is what makes up the income they pay out to investors. The majority of the distribution comes from the option premiums they earn as the equities they invest in do not necessarily need to be dividend paying stocks.</p> <p>Let's have a look at the top 10 holdings within the JEPI portfolio:</p> <p><figure contenteditable=\"false\"><span><img contenteditable=\"true\" loading=\"lazy\" src=\"https://static.seekingalpha.com/uploads/2023/6/14/5764111-16867860427596662.png\" wt-ignore-input=\"true\"/></span><figcaption><p><span>JEPI</span></p></figcaption></figure></p> <p>The top position is actually <a href=\"https://laohu8.com/S/ADBE\">Adobe</a> (ADBE), but as you can see the exposure rate is pretty low across the board with all 10 positions every close to one another. In total, JEPI has 138 total positions and the top 10 positions make up only 15% of the entire fund.</p> <p>When it comes to selecting positions within the portfolio, the managers focus more on low beta stocks, which tend to be more mature companies that are less volatile. The turnover ratio is high, which means there is a lot of trading in and out of the fund.</p> <p>In terms of sector exposure, here is a breakdown based on the holdings within the ETF:</p> <p><figure contenteditable=\"false\"><span><img contenteditable=\"true\" loading=\"lazy\" src=\"https://static.seekingalpha.com/uploads/2023/6/14/5764111-16867861126322982.png\" wt-ignore-input=\"true\"/></span><figcaption><p><span>Seeking Alpha</span></p></figcaption></figure></p> <p>So now that we understand that JEPI owns both stocks and sells call options for premium, let's look at the ETFs TOTAL return now over the past 12 months, since that will tell a more complete picture.</p> <p><figure contenteditable=\"false\"><span><img contenteditable=\"true\" loading=\"lazy\" src=\"https://static.seekingalpha.com/uploads/2023/6/14/5764111-16867862152509255.png\" wt-ignore-input=\"true\"/></span><figcaption><p><span></span><span></span>YCharts</p></figcaption></figure></p> <p>The share price has fallen 4% as we saw earlier, but when you include the distribution, the ETF has a 12-month total return of nearly 9% and over the past three years, essentially since JEPIs inception, the ETF has gone toe to toe with the S&amp;P 500 with a total return of 41%</p> <p><figure contenteditable=\"false\"><span><img contenteditable=\"true\" loading=\"lazy\" src=\"https://static.seekingalpha.com/uploads/2023/6/14/5764111-16867862260028503.png\" wt-ignore-input=\"true\"/></span><figcaption><p><span></span><span></span>YCharts</p></figcaption></figure></p> <p>One last thing to mention before turning our attention to JEPQ, and something a lot of investors really like about JEPI is not only the high distribution yield above 11%, but that the fund pays out its distribution every month. Now given the nature of the ETF, the payout will not be consistent in any month, so it will fluctuate based on performance of the call writing strategy.</p> <h4><strong>JPMorgan Nasdaq Equity Premium Income ETF (JEPQ)</strong></h4> <p>JEPQ is the little sibling to JEPI having been founded just a year ago in May 2022. The idea behind the ETF is exactly the same in terms of generating income for investors and looking for some capital appreciation, but although the strategies are similar, the approach is different.</p> <p>Looking here you can see the investment process when it comes to JEPQ. JPMorgan utilizes 40+ years of data to select high-quality Nasdaq-related stocks and then they sell 1-month out of the money call options to generate income.</p> <p><figure contenteditable=\"false\"><span><img contenteditable=\"true\" loading=\"lazy\" src=\"https://static.seekingalpha.com/uploads/2023/6/14/5764111-16867945304924424.png\" wt-ignore-input=\"true\"/></span><figcaption><p><span>JEPQ</span></p></figcaption></figure></p> <p>If you are unfamiliar with selling call options, you are essentially selling the option for the buyer to purchase the underlying stock at an agreed upon strike price. Every option contract has an expiration date. If the underlying security does not reach the strike price, the option seller, JEPQ in this example, keeps the premium as 100% gain. If the underlying stock rises above the strike, they must sell that stock at the strike price, so the upside has a cap.</p> <p>By doing this, similar to JEPI, the fund receives large amounts of premium, which helps them pay such a large distribution. The distribution yield for JEPQ is currently 11.9%, even HIGHER than that of JEPI. The distribution is also paid out on a monthly basis.</p> <p>As you can see on this chart, JEPQ, in terms of share price, is roughly flat over the past year.</p> <p><figure contenteditable=\"false\"><span><img contenteditable=\"true\" loading=\"lazy\" src=\"https://static.seekingalpha.com/uploads/2023/6/14/5764111-16867947457127595.png\" wt-ignore-input=\"true\"/></span><figcaption><p><span>Seeking Alpha</span></p></figcaption></figure></p> <p>The ETF also comes with an expense ratio of 0.35%, the same as JEPI.</p> <p>JEPQ takes the same approach in terms of selling options and owning securities. However, unlike JEPI, low beta is not a focus for JEPQ and instead, these portfolio managers are focused more on Nasdaq, technology based stocks. Looking at the top 10 holdings and sector breakdown below, you will see JEPQ has much more exposure to the top holdings and the technology sector whereas JEPI was more diversified.</p> <p><figure contenteditable=\"false\"><span><img contenteditable=\"true\" loading=\"lazy\" src=\"https://static.seekingalpha.com/uploads/2023/6/14/5764111-1686794871704673.png\" wt-ignore-input=\"true\"/></span><figcaption><p><span>JEPQ</span></p></figcaption></figure></p> <p>JEPQ has only 87 total positions within the fund and the top 10 positions make up 56% of the entire fund.</p> <p>In terms of sector exposure, here is a breakdown based on the holdings within the ETF:</p> <p><figure contenteditable=\"false\"><span><img contenteditable=\"true\" loading=\"lazy\" src=\"https://static.seekingalpha.com/uploads/2023/6/14/5764111-16867949569518514.png\" wt-ignore-input=\"true\"/></span><figcaption><p><span>Seeking Alpha</span></p></figcaption></figure></p> <p>Now let’s look at how JEPQ has performed in terms of total return over the past 12-months, which is essentially the life of the fund.</p> <p><figure contenteditable=\"false\"><span><img contenteditable=\"true\" loading=\"lazy\" src=\"https://static.seekingalpha.com/uploads/2023/6/14/5764111-16867949834637315.png\" wt-ignore-input=\"true\"/></span><figcaption><p><span></span><span></span>YCharts</p></figcaption></figure></p> <p>JEPQ has a total return of 15.3%, far exceeding that of JEPI, which makes sense given that Technology has largely pushed the market higher for much of that period on its own.</p> <h2>Pros &amp; Cons of Both ETFs</h2> <p>When it comes to income focused ETFs like JEPI and JEPQ, they are not for all investors. The income is nice, but the capital appreciation can be muted and wither away over time, which is a risk with these types of ETFs.</p> <p>In addition, during a bull market, when you invest in an ETF that utilizes selling call options, there is limited upside. As I explained above, when a share price jumps above a strike price, the option seller's gain is capped at the strike price and then they are required to sell shares at a lower price than the new market rate.</p> <p>On the flip side, when share prices are stagnant or falling, the capital amount will fall, but the ETF will be able to generate high amounts of premium income to help offset any equity losses.</p> <p>Understanding the true nature of these ETFs, knowing that investors take a position in either of these primarily for the income and not for much in terms of capital appreciation. Retired investors living off their dividend income can find the likes of JEPI and JEPQ quite useful.</p> <p>I like the actual positions that both JEPI and JEPQ invest in, whereas there are some income focused ETFs that focus more on the option selling, without having the stocks to fall back on.</p> <h2>So which is the better buy?</h2> <p>Determining which of these ETFs is the better buy really comes down to preference.</p> <ul> <li>The expense fees are the same</li> <li>The capital appreciation is roughly the same</li> <li>The distribution yields are not too far apart</li> <li>The strategies are roughly the same</li> </ul> <p>The real difference comes down to how the strategies are implemented. JEPI focuses more on taking a diversified approach and investing in low beta stocks. JEPQ on the other hand is more top heavy in terms of top 10 positions and the technology sector overall.</p> <p>I do not think there is any RIGHT or WRONG answer but it is important to understand how both ETFs operate before investing.</p> <p>Moving forward, there are some concerns with JEPQ given how overvalued many analysts believe big technology names are at the moment. This could add pressure to the actual holdings of the ETF.</p> <div></div> <p>Based on the elevated valuations both in the technology sector and the S&amp;P 500 overall, I believe there could be some near-term pressure for the market, as such, I would rate both of these ETFs a hold at the moment.</p></body></html>","source":"seekingalpha","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>JEPI Or JEPQ: A Better ETF To Own For Monthly Income</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nJEPI Or JEPQ: A Better ETF To Own For Monthly Income\n</h2>\n\n<h4 class=\"meta\">\n\n\n2023-06-15 22:35 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4611654-would-you-rather-own-jepi-or-jepq-for-monthly-income><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>hamzaturkkol When it comes to Income ETFs, the most popular has to be the JPMorgan Equity Premium Income ETF (NYSEARCA:JEPI) which has hit the ground running in May 2020 when the fund was launched. ...</p>\n\n<a href=\"https://seekingalpha.com/article/4611654-would-you-rather-own-jepi-or-jepq-for-monthly-income\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1396139907/image_1396139907.jpg","relate_stocks":{"BK4567":"ESG概念","BK4585":"ETF&股票定投概念","BK4534":"瑞士信贷持仓","LU0234570918.USD":"高盛全球核心股票组合Acc Close","LU0170899867.USD":"EASTSPRING INVESTMENTS WORLD VALUE EQUITY  \"A\" (USD) ACC","BK4533":"AQR资本管理(全球第二大对冲基金)","LU2023251221.USD":"ALLIANZ GLOBAL SUSTAINABILITY \"AM\" (USD) INC","BK4566":"资本集团","LU0082616367.USD":"摩根大通美国科技A（dist）","LU0719512351.SGD":"JPMorgan Funds - US Technology A (acc) SGD","LU1623119135.USD":"Natixis Mirova Global Sustainable Equity R-NPF/A USD","JEPI":"JPMorgan Equity Premium Income ETF","LU1712237335.SGD":"Natixis Mirova Global Sustainable Equity H-R-NPF/A SGD","LU0061474960.USD":"天利环球焦点基金AU Acc","BK4527":"明星科技股","JEPQ":"J.P. 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Since the launch of JEPI, we have seen a number of other income focused ETFs hit the market due to the JEPI's popularity. One of those income focused ETF is a sister fund, also launched by JPMorgan. That fund is the JPMorgan Nasdaq Equity Premium Income ETF (NASDAQ:JEPQ). The two ETFs have a lot of similarities, which we will detail out in today's article, but how those strategies are implemented are different for the two funds. Do You Prefer JEPI or JEPQ? JPMorgan Equity Premium Income ETF (JEPI) As I stated a second ago, JEPI is an income focused ETF, after all it has 'Income\" in its title. The fund was launched in May 2020 and has gained a lot of notoriety from income investors. The ETF is less focused on share price appreciation, although they like that, but the top priority is generating high amounts of income. JEPI JEPI has a very high distribution yield above 11%, but over the past 12 months, you can see that the share price is actually down 4%. Seeking Alpha JEPI is an actively managed ETF, meaning the portfolio managers buy and sell in and out of positions on a regular basis. Actively managed ETFs tend to have high expense ratios tied to them, but that is not necessarily the case for JEPI. JEPI has an expense ratio of 0.35%, which is not terrible by any means for being an actively managed ETF. So how might JEPI generate such a high distribution yield you might ask. As a dividend investor, you are aware that the dividend yield has an inverse relationship to the share price. As a share price goes up, a dividend yield goes down and vice versa. Well we just saw JEPI's share price has been relatively flat over the past 12 months and yet they have a double digit distribution yield. Here is how JEPI is constructed to pay such a large distribution. The managers take a two pronged approach:  Invest in low beta, high-quality stocks within the S&P 500 Sell call options via Equity Linked Notes, or ELNs  Dividends from the equities they own combined with the option premium they earn is what makes up the income they pay out to investors. The majority of the distribution comes from the option premiums they earn as the equities they invest in do not necessarily need to be dividend paying stocks. Let's have a look at the top 10 holdings within the JEPI portfolio: JEPI The top position is actually Adobe (ADBE), but as you can see the exposure rate is pretty low across the board with all 10 positions every close to one another. In total, JEPI has 138 total positions and the top 10 positions make up only 15% of the entire fund. When it comes to selecting positions within the portfolio, the managers focus more on low beta stocks, which tend to be more mature companies that are less volatile. The turnover ratio is high, which means there is a lot of trading in and out of the fund. In terms of sector exposure, here is a breakdown based on the holdings within the ETF: Seeking Alpha So now that we understand that JEPI owns both stocks and sells call options for premium, let's look at the ETFs TOTAL return now over the past 12 months, since that will tell a more complete picture. YCharts The share price has fallen 4% as we saw earlier, but when you include the distribution, the ETF has a 12-month total return of nearly 9% and over the past three years, essentially since JEPIs inception, the ETF has gone toe to toe with the S&P 500 with a total return of 41% YCharts One last thing to mention before turning our attention to JEPQ, and something a lot of investors really like about JEPI is not only the high distribution yield above 11%, but that the fund pays out its distribution every month. Now given the nature of the ETF, the payout will not be consistent in any month, so it will fluctuate based on performance of the call writing strategy. JPMorgan Nasdaq Equity Premium Income ETF (JEPQ) JEPQ is the little sibling to JEPI having been founded just a year ago in May 2022. The idea behind the ETF is exactly the same in terms of generating income for investors and looking for some capital appreciation, but although the strategies are similar, the approach is different. Looking here you can see the investment process when it comes to JEPQ. JPMorgan utilizes 40+ years of data to select high-quality Nasdaq-related stocks and then they sell 1-month out of the money call options to generate income. JEPQ If you are unfamiliar with selling call options, you are essentially selling the option for the buyer to purchase the underlying stock at an agreed upon strike price. Every option contract has an expiration date. If the underlying security does not reach the strike price, the option seller, JEPQ in this example, keeps the premium as 100% gain. If the underlying stock rises above the strike, they must sell that stock at the strike price, so the upside has a cap. By doing this, similar to JEPI, the fund receives large amounts of premium, which helps them pay such a large distribution. The distribution yield for JEPQ is currently 11.9%, even HIGHER than that of JEPI. The distribution is also paid out on a monthly basis. As you can see on this chart, JEPQ, in terms of share price, is roughly flat over the past year. Seeking Alpha The ETF also comes with an expense ratio of 0.35%, the same as JEPI. JEPQ takes the same approach in terms of selling options and owning securities. However, unlike JEPI, low beta is not a focus for JEPQ and instead, these portfolio managers are focused more on Nasdaq, technology based stocks. Looking at the top 10 holdings and sector breakdown below, you will see JEPQ has much more exposure to the top holdings and the technology sector whereas JEPI was more diversified. JEPQ JEPQ has only 87 total positions within the fund and the top 10 positions make up 56% of the entire fund. In terms of sector exposure, here is a breakdown based on the holdings within the ETF: Seeking Alpha Now let’s look at how JEPQ has performed in terms of total return over the past 12-months, which is essentially the life of the fund. YCharts JEPQ has a total return of 15.3%, far exceeding that of JEPI, which makes sense given that Technology has largely pushed the market higher for much of that period on its own. Pros & Cons of Both ETFs When it comes to income focused ETFs like JEPI and JEPQ, they are not for all investors. The income is nice, but the capital appreciation can be muted and wither away over time, which is a risk with these types of ETFs. In addition, during a bull market, when you invest in an ETF that utilizes selling call options, there is limited upside. As I explained above, when a share price jumps above a strike price, the option seller's gain is capped at the strike price and then they are required to sell shares at a lower price than the new market rate. On the flip side, when share prices are stagnant or falling, the capital amount will fall, but the ETF will be able to generate high amounts of premium income to help offset any equity losses. Understanding the true nature of these ETFs, knowing that investors take a position in either of these primarily for the income and not for much in terms of capital appreciation. Retired investors living off their dividend income can find the likes of JEPI and JEPQ quite useful. I like the actual positions that both JEPI and JEPQ invest in, whereas there are some income focused ETFs that focus more on the option selling, without having the stocks to fall back on. So which is the better buy? Determining which of these ETFs is the better buy really comes down to preference.  The expense fees are the same The capital appreciation is roughly the same The distribution yields are not too far apart The strategies are roughly the same  The real difference comes down to how the strategies are implemented. JEPI focuses more on taking a diversified approach and investing in low beta stocks. JEPQ on the other hand is more top heavy in terms of top 10 positions and the technology sector overall. I do not think there is any RIGHT or WRONG answer but it is important to understand how both ETFs operate before investing. Moving forward, there are some concerns with JEPQ given how overvalued many analysts believe big technology names are at the moment. This could add pressure to the actual holdings of the ETF.  Based on the elevated valuations both in the technology sector and the S&P 500 overall, I believe there could be some near-term pressure for the market, as such, I would rate both of these ETFs a hold at the moment.","news_type":1},"isVote":1,"tweetType":1,"viewCount":679,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"CN","totalScore":0}],"lives":[]}