Baris Özer
The JPMorgan Equity Premium Income ETF (NYSEARCA: JEW) is in a rare company in the exchange-traded fund industry, offering a double-digit dividend yield and nearly $20 billion in assets under management.
Specifically, JEPI, which has been around for the better After two and a half years, it offers investors a dividend yield of 11.54%, well above many other major funds.
JEPI is an actively managed exchange-traded fund that generates income by selling options on large-cap US stocks. The fund launched in May 2020 and has generated lifetime returns of 10.2%. So far in 2023, the fund has risen 1.1%though it’s down 9% over the past 12 months.
Investors have poured $18.79 billion into the ETF since its inception less than three years ago. During that same time period, JEPI has accumulated more capital than the two major dividend exchange-traded funds available to investors.
The Vanguard Dividend Appreciation ETF (NYSEARCA:VIG), which is the highest dividend ETF, has raised $9.93 billion since the launch of JEPI. The fund also offers a dividend yield of 1.92%. At the same time, the Vanguard High Dividend Yield Index (VYM) ETF, which is the second largest fund, has returned $14.28 billion since the launch of JEPI and has a dividend yield of 2.97%.
From a split-yield perspective, JEPI also dwarfs the Schwab US Dividend Equity ETF (NYSEARCA:SCHD), iShares Core Dividend Growth ETF (DGRO), SPDR S&P Dividend ETF (SDY), and iShares Select Dividend ETF (NASDAQ:DVY).
SCHD offers investors a dividend yield of 3.35%, DGRO provides a dividend yield of 2.30%, SDY offers a dividend yield of 2.51%, and DVY offers a dividend yield of 3.35% .
Dividend data is per etfdb.com.
Seeking Alpha contributor David Alton Clark lists JEPI as his top high-yield income option for 2023.
