"Whether you're just walking into the world of investing or getting closer to retirement, generating a powerful stream of regular income is a key goal for any investor. To do this, many turn to dividend paying stocks. Dividends are regular payments some companies make out of their profits. But you can also invest in dividend-paying ETFs. These are professionally managed funds that can invest in hundreds or even thousands of dividend paying ETFs."
"The JPMorgan Equity Premium Income ETF (JEPI) is a bit different from standard dividend paying ETFs. Part of its income strategy involves investing in high-quality large caps stocks. But it also derives income from selling options. This strategy may offer steady cash flow, while potentially providing a certain degree of downside protection in volatile markets. The fund managers aim to build a diversified, low volatility equity portfolio through a proprietary research process that's designed to find over and undervalued stocks with impressive risk/return profiles."
"And it also offers an impressive yield of 8.37%. Among its top holdings are magnificent seven members like Nvidia ( NASDAQ:NVDA), Alphabet ( NASDAQ:GOOGL) and Microsoft ( NASDAQ:MSFT). It holds $41.32 billion in net assets, indicating wide popularity in the fund. However, its expense ratio is a bit on the high side of 0.35%. This is likely because the fund is actively managed."
Dividends are regular payments companies make from profits. Dividend-paying ETFs are professionally managed funds that can hold hundreds or thousands of dividend-paying stocks. The JPMorgan Equity Premium Income ETF (JEPI) combines high-quality large-cap stock investments with income from selling options to generate steady monthly cash flow and potential downside protection. JEPI managers use a proprietary research process to build a diversified, low-volatility equity portfolio targeting over- and undervalued stocks with attractive risk/return profiles. JEPI yields 8.37%, holds major tech names and $41.32 billion in net assets, and has a 0.35% expense ratio reflecting active management. The SPDR S&P Dividend ETF (SDY) is designed to track the S&P High Yield Dividend Aristocrats Index.
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