JPMorgan Equity Premium Income ETF (JEPI)

JEPI captures the total S%P using an options strategy to deliver extra yield. JEPQ does the same with the Nasdaq. This strategy has underperformed a little. He prefers the Innovator ETFs, though there's nothing wrong with JEPI or JEPQ. Right now, you will get only some downside protection in either.

Has a covered call overlay. Knew it would be bumpy. Covered calls offer protection, but not if market movements are swift. Pays a good dividend. He averaged in last April. Likes the US names it holds. Is low volatility.

Popular and fast-growing. Very actively, and transparently, managed. MER is quite low, which is important. If rapid rise in the market, you'll get only partial upside due to the covered calls. Think of it as a tool for yield, not necessarily market appreciation.

If there's been a selloff, entering a plain vanilla S&P index ETF is the best way to try to recoup your investment.

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.

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.

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.

She picked it to start the year, but it hasn't performed well in the first six months. But she will stick with it. She downsized her JEPI holding. In 2023, it was -3.5% but outpaced the S&P's -18%. YTD, it's up 5%, though lags the S&P. JEPI limits each sector weighting to 17.5%, which means half the exposure to tech compared to the S&P. If the market keeps rising with the yield from selling calls, you'll like end up 8-10%.

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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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.