JEPQ ETF Explained // JPMorgan Nasdaq Equity Premium Income ETF

JEPQ ETF Explained // JPMorgan Nasdaq Equity Premium Income ETF
Is JEPQ, the JPMorgan Nasdaq Equity Premium Income ETF, a good buy?
I used to help financial advisors build portfolios for their clients and this is EXACTLY the kind of question I’d often get from them. Here’s my take on JEPQ:
In a nutshell, JEPQ is a covered call ETF on the NASDAQ 100. There are some slight differences, which I’ll cover later, but for simplicity sake that’s what it is.
Covered call ETFs generally have 2 components.
They usually buy stocks that track an underlying index, and then sell call options on them to generate income. When the underlying stocks are really volatile, like they are in the NASDAQ 100, the income can be really high. And that’s the main appeal of covered call ETFs.
There’s just one problem. Investing in JEPQ without considering the MANY ways it can go wrong, is like taking a loan from a mobster without considering the many ways it can go wrong. That juicy income payment comes with a hefty price.

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