Bonds Used to Be the Income Answer for Retirees. Then Came the Covered-Call ETF That Pays Over 7%.
View original at finance.yahoo.comBonds Used to Be the Income Answer for Retirees. Then Came the Covered-Call ETF That Pays Over 7%…
What we drew from this source
The claims Via News extracted from this document. We point to the source; we don't replace it.
The premiums earned from selling options mathematically reduce the cost basis of each stock accordingly
60% confidenceLow pandemic-era interest rates severely impacted retirees who rely on fixed-income investments for their retirement nest eggs
60% confidenceYieldMax created an entire catalog of covered call ETFs with variations on the income model for both single stocks and portfolios, using volatility as a crucial component, featuring double-digit yields and monthly or weekly payouts
60% confidenceJEPI has $45.61 billion in total assets under management
60% confidenceThe covered call ETF strategy for income generation was initially introduced by Invesco in 2007
60% confidenceJEPI holds a portfolio of 120 to 130 low-volatility S&P 500 dividend stocks
60% confidenceJEPI's strategy is predicated on slow stock volatilities, with the majority of ELNs expiring worthless, generating extra income beyond intrinsic stock appreciation
60% confidenceThe unnamed analyst who called NVIDIA in 2010 named a new top 10 stock list and JPMorgan Equity Premium Income ETF was not one of them
60% confidence30-year mortgage rates started at 3.75% and fell to 3.0% by summer 2020 following central bank rate cuts
60% confidence15% of JEPI assets are used to package calls into Equity Linked Notes that serve as synthetic out-of-the-money calls against the full portfolio
60% confidenceJEPI sells near-term out-of-the-money calls and focuses on stocks that are not overly volatile, unlike some competitors such as YieldMax
60% confidenceJEPI has delivered 8.38% annualized returns over 5 years
60% confidenceThe JP Morgan name does not necessarily mean JEPI is suitable for all investors
60% confidenceJEPI generates an 8.29% yield through monthly payouts backed by Equity Linked Notes
60% confidenceJEPI regularly advertises on Fox Business News and MSNBC
60% confidence
Cited in these Via News reports
- Bond Yields Surge in US, UK, and Japan Simultaneously as Fed Enters Leaderless Transition →
- Fed Chair Limbo and US-Iran War Shock Drive Global Sovereign Bond Surge →
- Fed's 8-4 Rate Vote Sends Shockwaves Through Global Bond Markets as Iran War Keeps Inflation Hot →
- Fed's Waller Revives Rate Hike Talk as 30-Year Treasury Hits 5.11%, Triggering Global Bond Selloff →
- Global Bond Selloff Pushes 30-Year Treasury Yields Toward Two-Decade Highs →
- Global Bond Selloff Pushes US 30-Year Yield Past 5%, Forcing Corporate Debt Repricing Worldwide →
- U.S. 30-Year Treasury Yields Hit 5% as $39 Trillion Debt Reshapes Global Investment →
- US and UK Bond Markets Flash Fiscal Warning as 30-Year Treasury Yields Top 5% →
- Warsh Confirmed as Fed Chair; Markets Price 50% Hike as Global Debt Selloff Spreads →
- Warsh Inherits $6.7 Trillion Fed Balance Sheet as G7 Watches Global Debt Selloff →