Thanks, the more I hear about JEPI the more I like it. A 6% annual yield plus some growth is not bad at all. I hope the ETF and others like it do well for many decades. When I get ready for my income portfolio phase JEPI will be considered.
Jepi is not a safe dividend generator. They use a third party to buy the call options. Thats a part of the problem. The major problem is the covered calls generated 85 percent of the dividend payout. The covered calls ELN grouping of the covered calls is not transparent at all what the third party is doing in the ELN covered calls they run all the call options and JP Morgan puts no guidance into what this third party is placing in the call option ELN packages. When it goes sideways the ELN call options will require JP Morgan to tender , sell those stocks to the ELN option calls . This will easily drag down the assets in the JEPI holdings 40 percent. It will be a very big surprise to holders that don’t understand the underlying 85 percent of the dividends can go poof and also take an easy giant chunk of the portfolio to satisfy backwards ELN call option . Don’t even consider JEPI until you understand the dividends are not what is making the 11 percent return.
It's criminal this video doesn't have a million views. I've been researching cc etf's for the last few months and this is the only one that explains otm v atm volatility. Really nice job, TY!
If you look closely at the thumbnail, it is not Victorya's quote, but a clip from Bill Ackman. So this video is a reply to the claim that it is failing.
For all these covered call etfs, what happens if the equity holdings appreciate higher than the excercise price, and the covered call options have to be bought back at a higher price. Can you comment on how this would affect the dividend payouts and how the etfs handle this scenario.
The covered calls provide 85 percent of the JEPI dividend paybacks. There was is a 21 percent profit annually combining the dividends and the call options in JEPI last year. So if the underlying dividends are the usual S&P 500 average dividend of 1.85% then the call options added 19 percent to the fund before their outrageous taxes. Then the tax problem is around 11 to 12 percent on this funds call options funds, the call options are not long term qualified thus the fund losses half of the total call options returns before distribution to taxes. The call options are not run by JP Morgan at all, they farm this out to a firm buying ELN packages of the call options. Sounds like the twenty percent options will eat the fund when the call option go upside down with the S&P 500 goes down you lose the underlying stock . It looks to me like you could easily loose have the investors money when the calls are called to the funds disadvantage. I learned how it works and now I would not touch it with a ten foot pole.
You would lose out on the upside but the total value of the fund would remain the same. If you 100$ in stock or 100$ in cash, you still have 100$ of value. Covered call ETFs that write CCs at the money on 100% of the portfolio are, in my opinion, unwise over the long term.
I think they both seem to do well at different times. So far in 2023, JEPI seems to be doing better than DIVO. Last year in 2022, I think DIVO did better than JEPI. I believe this is because the market has been bullish so far in 2023, but the market was bearish in 2022.
I have been enjoying your videos. However, I do have one question. on most of the thumb nails for you videos you state a monthly income. What are you basing that number on? I.E- for this video it says $1,277 monthly income.
Although SCHD is only like 10 years old it tracks the Dow Jones Dividend Index. Lots of times it does better than it. Back tracking the DJUSDIV will give you a history of past performance.
I don’t mind the yield fluctuations, the underperformance is more of a concern Aug 2022 to Aug 2023, 12m you are small capital loss but ahead with total return thanks to the dividend.
Great explanation. But if you know this fluctuation in dividend pay, why are you keep saying that JEPI’s yield is 11%+ in all your videos prior to this video? Are you advertising them?
Got to mention that if the underlying price of JEPI were to drop, and the dividends stayed steady, the dividend yield would increase. I love JEPI and am long. I plan on holding JEPI till I retire...hopefully with thousands of shares. #fingerscrossed
Disagree with your ATM vs OTM analysis. ATM always does better especially if the market corrects (Down) or trades sideways, as is the current market environment. (Traders can always roll up to the next strike if called away.)Also, some of these funds haven't been around long enough to determine which one is better performance.
The distribution of the option premium is called simply a "distribution", not a "dividend yield" as you state in the video. "Yield" refers to the annualized rate, not the distribution itself. Get your nomenclature right. Dividends are much different. They are paid from a company's earnings.
If you are using those divs to live off of, it seems like you would prefer a more consistent dividend yield instead of having capital appreciation potential. If I plan to live off the dividends, I dont intend on selling my shares anyway. As long as the dividend is about the same, why would I worry about the price per share at all?
I think you provide good advice, but I do have a question. Why ae those of your generation, (or even younger investors), looking at income at all? They should be looking at growth. As you stated in one of your recent videos, there basically is a tradeoff between growth and income. And while I think you have identified some excellent ETFs, such as DIVO, that do a good job balancing the two. These seem more suited for people like me, who are retired, and do need a regular income. I would have imagined that I would see tons of YTbrs explaining about funds like FCNTX, but nope, what I keep watching are those focused on JEPI, QYLD etc. That basically give up their growth potential just to superior income. (I have both, but both are my biggest NAV losers) Just curious on your input here.
I am 29 myself, and I feel like it depends on the RUclips channel. I see a lot of videos on RUclips about QQQ. QQQ is a growth ETF, and it is probably the most popular growth ETF. I have honestly never heard of FCNTX, but it is mutual fund, and I am more interested in ETFs. I feel like both growth ETFs and dividend ETFs serve their purposes. I see a lot of RUclips videos about SCHD, and it is probably the most popular dividend ETF. QQQ is currently doing a lot better than SCHD in 2023. In 2022, I feel like SCHD did better than SCHD. Growth ETFs seem to do better in bull markets, and dividend ETFs seem to do better in bear markets.
Also, I think it might be risk tolerance. Some people might see growth ETFs as riskier and more volatile than dividend ETFs. As a result, they might opt for dividend ETFs, because they see them as safer picks.
You need to get out of those covered call ETFs and hurry. The ELN call options run by a third party for JP Morgan for this fund add twenty percent one year, the next year when the call options go against the fund it will lose at least forty percent of it’s value. Run Forest run. Just saying Warren Buffet just put 170 billion into treasuries. He only does that when he thinks stocks are way over priced. Then he waits for them to crash. Then in he comes to save what ever company he wants and it won’t be this ETF.
If you dig into the ETF JEPI they got 85 percent of the distribution in the last year from the call options and only 2 percent from the underlying stock dividends. It’s a trap the ELN’s are like CDO’s of the call options bundled. The call options provided like 19 percent of the dividends returned to the JEPI holders, but were taxed so high they drug the total return down to its 11 percent range. My opinion run away from JEPI as fast as you can. The call options will get called and the underlying stocks will have to be sold when the call options go the other way against the fund. RUNAWAY QUICK from covered call ETFs. Just saying Warren Buffet just put around 170 billion into treasuries. He is getting ready for the next market recession to swoop in and buy just these kind of companies underlying this fund when their stocks tank. He bought OXY at $11.00 . Just saying, learn from Warren he knows what he’s doing has been my experience.
Very good explanation of at money vs out of money. One could use the higher dividends of xyld and qyld by investing it in a growth etf and build an asset. Jepi-Jepq provide a good relative balance by allowing some growth. Anyway thanks!
Buenas, podria hablar sobre algunos ETF de bonos? para NO residentes de EE.UU. entiendo que no se retiene impuesto sobre los cupones de los bonos, tal vez nos sea mas eficiente. Gracias.
I really dislike your thumbnails. They are so misleading, clickbait stupid, and never about the actual topic. You’d probably have higher average views with a more boring approach to thumbnails. It is unfortunate because you do seem to have a good grasp of finance and securities. So to rely on gimmicks for long term channel growth seems counter and off-brand. Nevermind your disclaimer at the bottom of an abnormally long info section that is unseen on mobile and streaming platforms without a number of presses and scrolling. That only exist for RUclips terms and agreement, as opposed to ensuring that users aren’t fooled. I have passed over majority of your videos for this reason and will continue to do so. There are better ways to have fun with finance while still maintaining the integrity and educational value of the topics at large. Financial wizard of RUclips or financial Loki, which is it?
As always, a thorough easy to follow explanation even an old guy like me can understand. Thanks
I own Jepi , Jepq & Qyld. I am retired & buy shares of these ETFs every month. I am fine with the varying premiums.
Smart.
One of the best investment folks on RUclips
Love viktoryia and her sign offs 😂
Beauty AND brains. Thank you for the good analysis and breakdown, I'm going to get my paws on some Jepi next week.
Thanks, the more I hear about JEPI the more I like it. A 6% annual yield plus some growth is not bad at all. I hope the ETF and others like it do well for many decades. When I get ready for my income portfolio phase JEPI will be considered.
Jepi is not a safe dividend generator. They use a third party to buy the call options. Thats a part of the problem. The major problem is the covered calls generated 85 percent of the dividend payout. The covered calls ELN grouping of the covered calls is not transparent at all what the third party is doing in the ELN covered calls they run all the call options and JP Morgan puts no guidance into what this third party is placing in the call option ELN packages. When it goes sideways the ELN call options will require JP Morgan to tender , sell those stocks to the ELN option calls . This will easily drag down the assets in the JEPI holdings 40 percent. It will be a very big surprise to holders that don’t understand the underlying 85 percent of the dividends can go poof and also take an easy giant chunk of the portfolio to satisfy backwards ELN call option . Don’t even consider JEPI until you understand the dividends are not what is making the 11 percent return.
It's criminal this video doesn't have a million views. I've been researching cc etf's for the last few months and this is the only one that explains otm v atm volatility. Really nice job, TY!
Great video and clear explanations! Thank you!
Thank you! Glad you enjoyed it!
Nice job. What happens when the market crashes??
love how you explained 👏
Ugh, thought this channel was better than clickbait titles. "JEPI FAILING"...no, that is not representative of the video's conclusion at all...
What?? Jepi is killing SCHD right now lol
Thanks. I’m definitely noticing the clickbate tittle 1:30 into video. Disappointed
If you look closely at the thumbnail, it is not Victorya's quote, but a clip from Bill Ackman. So this video is a reply to the claim that it is failing.
You realize that’s not real tweet from Bill Ackman right. That’s also Clickbait.
Excellent JEPI explanation. Fluctuating monthly dividends are a given depending on the VIX.
HOw do you account for the taxes though? JEPI only has about 20% of its dividends as qualified dividends
Where in writing can you find that JEPI and JEPQ are an out of the money covered call strategy.
For all these covered call etfs, what happens if the equity holdings appreciate higher than the excercise price, and the covered call options have to be bought back at a higher price. Can you comment on how this would affect the dividend payouts and how the etfs handle this scenario.
The covered calls provide 85 percent of the JEPI dividend paybacks. There was is a 21 percent profit annually combining the dividends and the call options in JEPI last year. So if the underlying dividends are the usual S&P 500 average dividend of 1.85% then the call options added 19 percent to the fund before their outrageous taxes. Then the tax problem is around 11 to 12 percent on this funds call options funds, the call options are not long term qualified thus the fund losses half of the total call options returns before distribution to taxes. The call options are not run by JP Morgan at all, they farm this out to a firm buying ELN packages of the call options. Sounds like the twenty percent options will eat the fund when the call option go upside down with the S&P 500 goes down you lose the underlying stock . It looks to me like you could easily loose have the investors money when the calls are called to the funds disadvantage. I learned how it works and now I would not touch it with a ten foot pole.
You would lose out on the upside but the total value of the fund would remain the same.
If you 100$ in stock or 100$ in cash, you still have 100$ of value.
Covered call ETFs that write CCs at the money on 100% of the portfolio are, in my opinion, unwise over the long term.
Like to hear discussion on YieldMax funds
What would be the impact of buying equal value of JEPY & QYLD for same time?
Hi Viktoriya,.....are you planning to do a video on JEPY? Would love to hear your feedback. Thx
Just looked this one up. Wtf? 60%?
I noticed you did a vid about DIVO 5 months ago. I like JEPI, but like DIVO a little better since it’s more price appreciation focused than JEPI.
Yeah, I was hoping she would discuss Divo, even compare it to Jepi.
I think they both seem to do well at different times. So far in 2023, JEPI seems to be doing better than DIVO. Last year in 2022, I think DIVO did better than JEPI. I believe this is because the market has been bullish so far in 2023, but the market was bearish in 2022.
I have been enjoying your videos. However, I do have one question. on most of the thumb nails for you videos you state a monthly income. What are you basing that number on? I.E- for this video it says $1,277 monthly income.
I still think SPYI is superior, no W2 with friendly tax strategy, consistent divi, and growth.
What analysis software/website is she using?
Jepi belongs in every retirees portfolio.
Although SCHD is only like 10 years old it tracks the Dow Jones Dividend Index. Lots of times it does better than it. Back tracking the DJUSDIV will give you a history of past performance.
I don’t mind the yield fluctuations, the underperformance is more of a concern Aug 2022 to Aug 2023, 12m you are small capital loss but ahead with total return thanks to the dividend.
What does the $1196 mean?
You are correct - great video
What about holding this in an inherited IRA that had to be cashed out in 5 years?
Great explanation. But if you know this fluctuation in dividend pay, why are you keep saying that JEPI’s yield is 11%+ in all your videos prior to this video? Are you advertising them?
Isn't this like spyi or spyg which one only sells cc on half their positions? I can't remember you did a video a while ago.
Thank you... I finally understand...
What do you think about enb?
Got to mention that if the underlying price of JEPI were to drop, and the dividends stayed steady, the dividend yield would increase. I love JEPI and am long. I plan on holding JEPI till I retire...hopefully with thousands of shares. #fingerscrossed
Is it a good idea to sell OTM covered call on JEPI?
It’s 2% OTM typically. Can go to 5% if super high volatility.
Excellent presentation!
How come you don’t consider BST…it will be great if you can do a review on that as well
Great explanation
Disagree with your ATM vs OTM analysis. ATM always does better especially if the market corrects (Down) or trades sideways, as is the current market environment. (Traders can always roll up to the next strike if called away.)Also, some of these funds haven't been around long enough to determine which one is better performance.
They are all great ETFs but timing is everything.
Viktoriya you are very instructive yet hilarious, millions of thanks
The distribution of the option premium is called simply a "distribution", not a "dividend yield" as you state in the video. "Yield" refers to the annualized rate, not the distribution itself. Get your nomenclature right. Dividends are much different. They are paid from a company's earnings.
Thanks for the useful videos! What are your thoughts on SDIV?
Please change the title of video. The name jepi failing mean you discouraged investor to invest in jepi...
Thank you !
Great explanation, thank you!
If you are using those divs to live off of, it seems like you would prefer a more consistent dividend yield instead of having capital appreciation potential. If I plan to live off the dividends, I dont intend on selling my shares anyway. As long as the dividend is about the same, why would I worry about the price per share at all?
Because you can lose your investment capital over time like QYLD which is a dog. JEPI is a much safer bet with capital appreciation.
I think you provide good advice, but I do have a question. Why ae those of your generation, (or even younger investors), looking at income at all? They should be looking at growth. As you stated in one of your recent videos, there basically is a tradeoff between growth and income. And while I think you have identified some excellent ETFs, such as DIVO, that do a good job balancing the two. These seem more suited for people like me, who are retired, and do need a regular income. I would have imagined that I would see tons of YTbrs explaining about funds like FCNTX, but nope, what I keep watching are those focused on JEPI, QYLD etc. That basically give up their growth potential just to superior income. (I have both, but both are my biggest NAV losers)
Just curious on your input here.
I am 29 myself, and I feel like it depends on the RUclips channel. I see a lot of videos on RUclips about QQQ. QQQ is a growth ETF, and it is probably the most popular growth ETF. I have honestly never heard of FCNTX, but it is mutual fund, and I am more interested in ETFs. I feel like both growth ETFs and dividend ETFs serve their purposes. I see a lot of RUclips videos about SCHD, and it is probably the most popular dividend ETF. QQQ is currently doing a lot better than SCHD in 2023. In 2022, I feel like SCHD did better than SCHD. Growth ETFs seem to do better in bull markets, and dividend ETFs seem to do better in bear markets.
Also, I think it might be risk tolerance. Some people might see growth ETFs as riskier and more volatile than dividend ETFs. As a result, they might opt for dividend ETFs, because they see them as safer picks.
Plus, I think there are some ETFs that provide growth and income. I think JEPQ does this. I also think QYLG and TYLG do this.
Because they don't want to work 😅
@@IntenseInvestor I agree but on the other hand, who doesn’t want to be able to retire early? 🤷🏽♂️
😊 ty
Great video,I own all those etfs in my portfolio
You need to get out of those covered call ETFs and hurry. The ELN call options run by a third party for JP Morgan for this fund add twenty percent one year, the next year when the call options go against the fund it will lose at least forty percent of it’s value. Run Forest run. Just saying Warren Buffet just put 170 billion into treasuries. He only does that when he thinks stocks are way over priced. Then he waits for them to crash. Then in he comes to save what ever company he wants and it won’t be this ETF.
It's a small portion of my portfolio,I use my covered call etf dividends to buy blue chip stocks
meanwhile it's 6 months later and JEPI is at ATH.
Very good explanation!👍
JEPI counting on 85 percent of its profits from the covered calls is like the CDO with the ELN running the covered calls . No thank you no to JEPI.
Gypi
JEPI doesn't reveal much how it uses covered call option strategy except using ELNs.
If you dig into the ETF JEPI they got 85 percent of the distribution in the last year from the call options and only 2 percent from the underlying stock dividends. It’s a trap the ELN’s are like CDO’s of the call options bundled. The call options provided like 19 percent of the dividends returned to the JEPI holders, but were taxed so high they drug the total return down to its 11 percent range. My opinion run away from JEPI as fast as you can. The call options will get called and the underlying stocks will have to be sold when the call options go the other way against the fund. RUNAWAY QUICK from covered call ETFs. Just saying Warren Buffet just put around 170 billion into treasuries. He is getting ready for the next market recession to swoop in and buy just these kind of companies underlying this fund when their stocks tank. He bought OXY at $11.00 . Just saying, learn from Warren he knows what he’s doing has been my experience.
Distribution
Hey do you have any young or new etfs with potential for growth? like 10-15 dollars? So we can get in early? please
Very good explanation of at money vs out of money. One could use the higher dividends of xyld and qyld by investing it in a growth etf and build an asset. Jepi-Jepq provide a good relative balance by allowing some growth. Anyway thanks!
oh no, I put a lot on JEPI
Not to worry. Dividends will go back up again.
And you made the correct decision
Please, no music. Otherwise, great video.
Music was actually quite pleasant. Classical music and financial research complement each other well.
I like the music the way it is....
@@shannonquinn8687 Shannon, different people like different kind of music; it is very subjective.
@@jazzbeau507nobody asked you to state the obvious
@@FullChamber You are very charming.
Buenas, podria hablar sobre algunos ETF de bonos? para NO residentes de EE.UU. entiendo que no se retiene impuesto sobre los cupones de los bonos, tal vez nos sea mas eficiente. Gracias.
Ride tha wave
second
I'd eat it
JEPI is garbage, it's down when SPY is up, it's down even more when SPY is down, getting into JEPI basd on this video was one of my worst decisions
I really dislike your thumbnails. They are so misleading, clickbait stupid, and never about the actual topic.
You’d probably have higher average views with a more boring approach to thumbnails. It is unfortunate because you do seem to have a good grasp of finance and securities. So to rely on gimmicks for long term channel growth seems counter and off-brand.
Nevermind your disclaimer at the bottom of an abnormally long info section that is unseen on mobile and streaming platforms without a number of presses and scrolling. That only exist for RUclips terms and agreement, as opposed to ensuring that users aren’t fooled.
I have passed over majority of your videos for this reason and will continue to do so. There are better ways to have fun with finance while still maintaining the integrity and educational value of the topics at large.
Financial wizard of RUclips or financial Loki, which is it?
Your principle amount will disappear if you hold covered call etfs long term.
Not true with JEPI. Your capital will actually appreciate over time .