From Yahoo Finance: 2025-05-05 08:00:00

The JPMorgan Nasdaq Equity Premium Income ETF (JEPQ) has pulled in $5.7 billion in new money year to date, landing it in the top 10 ETF inflows list. Its sister fund, the JPMorgan Equity Premium Income ETF (JEPI), added $3.5 billion over the same period, totaling $24 billion and $39 billion in assets, respectively.

These funds use options overlay strategies to generate income by selling call options on top of a portfolio of stocks, known as covered call writing. JEPI uses equity-linked notes (ELNs) to replicate a covered call strategy on the S&P 500, aiming for high yield and reduced volatility.

JEPI has delivered strong returns, outperforming mechanical strategies like the Global X S&P 500 Covered Call ETF (XYLD) and the iShares MSCI USA Min Vol Factor ETF (USMV). JEPQ, focusing on the Nasdaq-100, has returned 44% since its 2022 launch, outperforming the Global X Nasdaq 100 Covered Call ETF (QYLD).

Both JEPI and JEPQ have effectively executed their options strategies, providing income and reduced volatility, but they may limit upside potential in a rising market. JEPQ aims to offer high yield and reduced volatility by replicating a Nasdaq-based covered call strategy, delivering a 44% return since its launch in 2022.

Read more: JEPQ Joins the Big Leagues as Options Income ETFs Surge