Bryn Talkington JPMorgan Equity Premium Income ETF JEPI-N BUY Jun 30, 2023

Premium income but there are stocks like Amazon in it. Not one that he uses on a regular basis. Needs to look into it more before giving a recommendation.

Risks of owning a covered call ETF like JEPI is the limitation of participating in an up rally. 
For an attractive dividend, an investor gives up potential ome upside benefits and some total return over the long run. 
Covered call ETFs tend to do best in a sideways market. 
Otherwise, we think JEPI is a solid covered-call ETF considering the attractive yield and underlying holdings. 
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Gives investors exposure to US equity markets, but alongside income generation through an options overlay strategy where they sell call options out of the money call options. Yield is about 7.5%, fantastic. MER is 35 bps. 

However, if you look at the returns, you'll see better returns from the underlying markets such as the S&P 500. Great to use if you need the income. But historically, covered call trades off upside from the underlying securities.

It's a challenge going forward. He likes it for using hedging strategies which mitigates a good part of your risk. It still gives you upside potential. Gives exposure to equities with an income tilt. Markets are overvalued, but it's possible that markets can keep grinding higher. He prefers buffer ETFs, like ones that BMO offers, which offer more safety.

It whittles the S&P 500 down to about 250 names. It is a bit of a hybrid and also writes covered calls against the S&P Index. Has a very short track record in Canada and he is looking at a version that's on the TSX.

It uses a covered call strategy to insulate what we're seeing and the window for covered call is still open. The income is tax efficient.