From Nasdaq: 2025-02-20 05:45:00

The JPMorgan Nasdaq Equity Premium Income ETF (NASDAQ: JEPQ) is a unique monthly income-paying ETF that aims to generate low-volatility returns and consistent monthly income for investors. With a dividend yield of 9.9%, this ETF has a history of paying good dividends, potentially turning $1,000 a month into $232,000 over a decade.

Investors can start with $10,000 in the ETF, add $1,000 monthly, and reinvest dividends. The ETF’s strategy of investing in Nasdaq stocks and selling out-of-the-money call options on the index allows it to generate income consistently. This two-pronged strategy has led to strong returns for investors.

The equity strategy of the ETF focuses on investing in Nasdaq stocks like Apple, Microsoft, and Nvidia, without relying solely on high-yield industries. The ELN strategy, selling call options on the Nasdaq-100 index, generates premiums when the market doesn’t rise significantly. This unique strategy provides a low-volatility investment option for investors.

The ETF’s strategy allows retail investors to invest in a plan that’s hard to replicate, providing access to a low-volatility investment strategy aiming to generate monthly income. While the JPMorgan Nasdaq Equity Premium Income ETF may not be one of the “10 best stocks” identified by the Motley Fool Stock Advisor team, it offers a unique investment opportunity for long-term returns.



Read more at Nasdaq: This Simple Dividend ETF Could Turn $1,000 a Month Into More Than $232,000