#options-overlay

#options-overlay

And this actively managed fund is a bit different than your average dividend ETF. JEPI takes a dual approach to generating income. It invests in large-cap stocks with low volatility. And it also sells options. Plus, its fund managers use proprietary research to identify over-and undervalued stocks with attractive risk/return profiles. Additionally, JEPI is heavily invested in the information technology sector, which has been growing with the artificial intelligence (AI) movement.

The JPMorgan Equity Premium Income ETF is managed by the highly experienced and professional managers at JPMorgan. It is one of the many monthly dividend ETFs with a juicy yield of 8.25%. It is an actively managed fund that employs a two-step strategy. It invests in stocks using a bottom-up fundamental research process and ranks stocks based on volatility, risk/return profile, and value. The fund manager identifies the top stocks and invests in them. For the second part of the strategy, it uses an options overlay to sell out-of-money call options on the S&P 500 index. The premium generated through the call options allows JEPI to maintain a high yield.