The Dual Approach of JPMorgan Equity Premium Income ETF for Generating Passive Income
A dual approach to generating income
The JPMorgan Equity Premium Income ETF has a simple mandate. It aims to deliver monthly income to investors and equity market upside exposure with less volatility than the broader market. The fund holds a defensive portfolio of stocks and employs a two-part strategy.
The fund holds a defensive portfolio of stocks.
- Trane Technologies (1.7% of its net assets)
- Progressive (1.7%)
- Amazon (1.6%)
- Microsoft (1.6%)
- Mastercard (1.6%)
The second leg of the ETF's strategy is a disciplined options overlay of writing out-of-the-money call options on the S&P 500 Index.
A premium income stream
The ETF has provided investors with a trailing 12-month dividend yield of 8.5%, significantly higher than other asset classes. While the monthly income may fluctuate, investors can expect an attractive payout over the course of a year.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.