Hey I have a question . This etf is new but I’m wondering how will it perform if the market goes down . I know that you will get more divided since it’s a covered call but will it go to zero overtime ?
Thanks for the comment. I don’t think these ETFs will go to zero barring some major disaster. These ETFs receive money from debt obligations as equity linked notes. Their holdings are separate and not like a conventional covered call ETF. If the market goes down, this ETF will likely go down as well as there is still risk tied to the companies it holds. The equity linked notes income will make up slightly for it, but in a major downtown, I would expect this ETF to suffer too - maybe not as much though.
@ I currently hold 100 shares of jepq and I’m waiting for a down turn to add more . I think the divided will be worth while . But not willing to buy more now since is technically at all time high
To say when the S&P is up 10%, JEPI is up 7% is misinformation. Right now 12-3-24, the S&P is up 32% for the year, and JEPI is up 12%. I have no idea where you get the 10 vs 7 from. Please explain.
This is simply an expected average, JEPI is designed capture a portion of the returns of the S&P, not exactly all of it. I was using 10% vs 7% as an example.
Great video
Hey I have a question . This etf is new but I’m wondering how will it perform if the market goes down . I know that you will get more divided since it’s a covered call but will it go to zero overtime ?
Thanks for the comment. I don’t think these ETFs will go to zero barring some major disaster. These ETFs receive money from debt obligations as equity linked notes. Their holdings are separate and not like a conventional covered call ETF.
If the market goes down, this ETF will likely go down as well as there is still risk tied to the companies it holds. The equity linked notes income will make up slightly for it, but in a major downtown, I would expect this ETF to suffer too - maybe not as much though.
@ I currently hold 100 shares of jepq and I’m waiting for a down turn to add more . I think the divided will be worth while . But not willing to buy more now since is technically at all time high
To say when the S&P is up 10%, JEPI is up 7% is misinformation. Right now 12-3-24, the S&P is up 32% for the year, and JEPI is up 12%. I have no idea where you get the 10 vs 7 from. Please explain.
This is simply an expected average, JEPI is designed capture a portion of the returns of the S&P, not exactly all of it. I was using 10% vs 7% as an example.