18 Things You Should Know About JEPI BEFORE You Buy...
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- Опубликовано: 1 июл 2024
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00:00 - My Most Widely Requested ETF Video
00:33 - New module released [Valuation Course]
01:37 - #18
02:53 - #17
03:25 - #16
04:41 - #15
05:19 - #14
05:50 - #13
06:22 - #12
07:00 - #11
07:37 - #10
08:37 - #9
10:02 - #8
10:42 - #7
11:18 - #6
12:07 - #5
13:40 - #4
14:55 - #3
15:44 - #2
17:36 - #1
18:26 - vs. QYLD
DISCLAIMER
This is entertainment only, not investment advice. All opinions expressed are my own. Any stocks or ETFs mentioned may be owned or taken a position within the next 48 hours. Neither the information nor any opinion expressed it so be construed as a solicitation to buy or sell a security of personalized investment, tax, or legal advice. This is prepared for informational purposes only. It does not address specific investment objectives, or the financial situation and the particular needs of any person who may receive this report. The information herein was obtained from various sources. Dividend Growth Machine LLC does not guarantee the accuracy or completeness of the information provided by third parties. The information in this report is given as of the date indicated and is believed to be reliable. Dividend Growth Machine LLC assumes no obligation to update this information or to advise on further developments relating to it.
![How to beat the S&P 500... by doing nothing [1935-2022]](/img/1.gif)
With the way the market is moving, we'll mostly hold for longer than 2025 to realize profit gain, I think a video on "How to profit from the present market" will be more effective, I mean I've heard of people making up to 250K within few months and I'd like to know how.
It’s precisely at times like these that investors need to be on guard against the next certainty. You don’t have to act on every forecast, hence i will suggest you get yourself a financial-advisor that can provide you with entry and exit points on the shares/ETF you focus on.
The 1% Millionaires stay rich by staying off high interest debts and investing passively. Personally i made my first million from having investments that spreads across stocks, etfs, coins and bonds.What i can say to early investors is diversification and solid management..at this point I'm actually grateful for my advisor Colleen Janie Towe. it's been great.
@@LionTowercoporation Please can you leave the info of your investment advisor here? I’m in dire need for one.
Do your due diligence and opt for one that has tactics to help your portfolio continue consistent and steady growth. "Colleen Janie Towe" is accountable for the success of my portfolio, and I believe she has the qualifications and expertise to accomplish your objectives.
Thanks for your guidance . I will search on her site online and do my due diligence. If She seem proficient. I write her an email and scheduled a phone call.
A lot of folks have been going on about a January rally and said mutual funds [ETF] stocks that would be experiencing significant growth these festive season, any idea which stocks/mutual funds this may be?
@@tatianastarcic True, we’re only just an information away from amassing wealth, I know a lot of folks that made fortunes from the Dotcom crash as well as the 08’ crash and I’ve been looking into similar opportunities in this present market, could this coach that guides yo help?
@@tatianastarcic thank you so much for this tip! Finding your coach was a breeze and I was really impressed with all the research I did on her credentials before scheduling a call. It's clear from her résumé that she's extremely knowledgeable and skilled, and I'm so excited to have the chance to talk to her!
There are a lot of strategies to make a tongue-wetting profit that the average Joe don't know. Personally, the financial market for me seems the only way forward with my long time horizon (accrued roughly $457k in gains since Mid 2021 ) but if you don’t have that fortune of time it’s a tough market out there almost nowhere feels safe!
If you’ve got patience I believe it’s a great time to invest… I’m no expert but as Warren buffet said he’s seen this happen a number of times throughout his life
I've known I had wanted to start investing for a few months but just haven't been brave enough to start due to the market so far this year. I have $60k I want to transfer into an S&S ISA but it's hard to bite the bullet and do it. $457 is a huge milestone, Please what's your strategy? I will love to have an insight
I began with a fiduciary portfolio advisor by the name *MARTHA ALONSO HARA* . She’s verifiable and her works ethics is in accordance with the US investment act of 1940. Her approach is transparent allowing total ownership and control over my portfolio with fees very reasonable in comparison with my investment income. Also, She covers things like investment insurance, ensuring retirement is well funded, and discussing tax advantages and ways to have a volatility buffer for investment risk. many things like that.
Word of the day: fiduciary. do not talk to anyone who is not a fiduciary to you, who explains everything.
*MARTHA ALONSO HARA* really seems to know her stuff. I looked her up on the web using her full name and found her page, read through her resume, educational background, and qualifications and it was really impressive. She is a fiduciary who will act in my best interest. So, I'll book a session with her
two legends Nathan Winklepleck and Gary Joe Wilde.
@mackenzie fventes You are right especially older Yt pros. used to see Graham's video promoting him. It's been a while, don't know why he does not own a video channel like others.
@@sakhalittle9206 Lol. I am one of them. Not a pro though not even close to that... Started last year and in all honesty, wish I had known about him earlier.
I've watched sooo many videos trying to understand JEPI the best way I can and I can say this is the best one I watched. So clearly explained. Thank you
Glad it helped!
1. JEPI sells out-of-the-money calls. This means that ALL the gains are not given away. 2. The ELNs are based on the S&P 500 index. Thus, JEPI does not ever lose holdings when the covered call goes against it. JEPI is 15% of my portfolio; I'm retired (early) and live off dividends.
What else is in your portfolio? Also congrats on the early retirement!
How often you withdraw dividens?
Agree, the video maker is wrong about comparing JEPI to QYLD, they are different animals.
@skipkapur1, if you are withdrawing dividends, does that mean that withdrawal is hurting you like the video says?
if you sell covered calls so far out of the money that your stock never gets called away, your returns will be so low us treasuries would be a better investment. which means jepi is not selling calls that far out of the money and they will get hit from time to time. they will either have their stock called away, or they will have to roll the options which is expensive
This is a video I was waiting for. Thanks for the information.
My pleasure!
I already own this, but this overview is so appreciated. Thank you!
You have helped me stay the course toward my financial goals. It is so tempting to change strategies or try and time the market. But long term investing in simply investing in the market and having a high savings rate will get me to my retirement goal. It's that simple. You helped me to see that. Thanks
Great summary. Easier to understand that reading the prospectus.
I'd love to see a video on BST!
Me too ..using jepi with schd and bst …..cannot think of anything better …growth and high income and bst is long term gains.
Very good job young man. Subscribed!
Great video I actually learned something thanks for the info
Nice explanation of pros/cons. Well done
Is now a good time to invest in stocks? I know everyone says stocks are cheap, but how long will it take for us to recover?. The fact that others in my field make six figures each piece. Obviously, there are strategies to be used in this market, but these strategies are not available to the average person, so am better off putting my money elsewhere. I am fully aware of the expense of working more to get more money.
The top experts, however, have access to confidential information and data that is not made available to the broader public. Being knowledgeable enough to use them successfully is quite another. Big returns, not changing stochastics, are the key. Rewards and risks must be balanced. To reach your aim, pick the right size and turn your edge as often as necessary.
I concur; I've been in frequent communication with an investing advisor for more than 17 months. I definitely remember needing inspiration to keep my business running after a protracted divorce. I researched licensing consultants, sometimes known as portfolio coaches by some.
@@AnthonyHart34 I require suggestions on how to restore my portfolio and create more effective strategies in light of the huge declines. Where can I locate this instructor?
@@aaronbritzly3154 My advisor "sharon lee casey" , is a highly respected financial consultant in the industry. For further information or to connect with her, a simple online search with her name will suffice. I wish you every success in your endeavors
@@AnthonyHart34 I can see why She is so busy; her career and outstanding qualifications are Fascinating! So I immediately copied Sharon's complete name and pasted it into my browser.
investing requires good experience and knowledge to carry out a good and successful trade, I have lost a lot trying to trade all by myself May I ask which investments are good??>>>>
I understand your concerns, my friend. I recommend exploring passive index fund investing and expanding your knowledge in this area. Personally, I experienced both successes and challenges when initially seeking a reliable passive income......,
how do I get in touch with this consultant that assist??>>>>
STEPHANIE KOPP MEEKS, that's whom i work with look her
Thanks for these recommendations.....,,,
One of the best videos I have seen on covered ETFs. As you say other content producers suggest you can take the 12-15% yield on QYLD and retire on $250,000. You covered the technicalities as clearly as possible in a short video.
He makes a completely ridiculous comparison of JEPI with QYLD (the worst). Pretty dumb.
Love this format of the 18 key points to know. Thanks!
Glad you liked it; thanks for the comment!
I invested in jepi. It's held up pretty well in 2022, I also own Divo, i like it better than jepi. check it out, it's a covered call etf invests in high quality dividend stocks. 5 stars from Morningstar. It's performed extremely well this year.
Wow .. Great job in this evaluation .. you sir just earned and new sub! .. Thank you!
Hey Nathan, I've been following your channel is 2020! Always love your explanations and insight. I have question unrelated; what program are you using to make the presentations? Thank you.
Thank you for the great content. Would you consider doing a video on DIVO? Thank you.
Awesome video. Thanks 👍
excellent analysis! thanks
Thanks for making this. As insightful as expected!
Glad you found it helpful!
Excellent breakdown. I wasn’t sure if I wanted to sink some money into JEPI before I watched this video. I’m still not 100% certain this is an investment for me, but you have helped allay some of my uncertainty.
Time in the market is better than timing the markets. One of my favorite quote from Ken Fisher. This has been one of the reason people don't make it in financial markets, cos they don't understand time. You get in on time, you would make profits other than buying the hype and later losing out.
I agree with you but this requires technical know how, consistency and experiences.
@@danalves47 You're correct, reason why I work with a financial advisor. Risk management, early entry and exits points, access to own stocks which is isn't available to the general public, these are few of many advantages. My life has changed and my approach to financial market better with lot of profits.
@@matteoantonio4644 Do you mind sharing info about your advisor, I'm new to financial markets and would need guidance.
@@borilam293 Sheila Maureen Oneill is my financial advisor, I met her during a conference in new york, she's one of the best out there. She would do well to guide you.
Just look up her full name online and read about her on her page.
Fantastic overview. Thanks a lot
Thanks, Roman!
Great and detailed Analysis 👍
Excellent, extremely lucid and helpful commentary.
Glad it was helpful!
Thanks for the informative video Nathan!
My pleasure, Tim!
Great video Nathan!
Thank you!
Just came across this video and I do find it informative. Would you be doing a comparison video with JEPQ?
Awesome, thorough video. Best I've seen on JEPI
Glad you liked it!
Excellent video🥇🥇 I have a few shares of JEPI, but didn’t understand it until now.
I’m glad it was helpful, Robert!
Great video! Would you consider making a video on a similar ETF; DIVO (Amplify CWP Enhanced Dividend Income)? Thank you!
Very happy with video, explains alot
Glad to hear that!
Well done, thank you
Very helpful, thank you!
Glad it was helpful!
Good video. Best one I've seen about JEPI. Do you have the same opinion of JEPQ?
JEPIX may be a good indicator of long term performance for JEPI. Seems pretty flat but the high yield will probably make it worth it.
I hold 4000 shares of JEPI in a retirement account. The monthly dividend has served to subsidize a huge portion of my RMDs. I am strengthening my position in Jepq to prepare for when Tech stocks rise again. You were adamant about not spending the income however I have not sold off any shares and done just fine spending the income
New to your channel. My main man Mr. Mannarino is always pushing this ETF.
Very good analysis
Thanks, Peter!
I love all these videos. I love stocks, and I love hearing about all these different strategies. Nathan has so many super interesting ideas.
But I have a problem with wanting to try all these different strategies making my portfolio just a chaotic mess.
I've become interested in international exposure, factor investing, coffee can type strategies, looking at dividend yields, shareholder yields, etc , etc, etc. I try to keep my experimentation to 10% of my overall portfolio value in order to not completely mess myself up, but it's not easy, lol.
LOL you should see my portfolio 😆
Nathan, great video, thanks. In a world of low interest rates (last 6 months excluded, which I don't view as long term sustainable, given the amount of debt out there), what do you think of using JEPI or other high yield, short duration investment vehicles as bond proxies? Even though T-Bonds are "risk free", then ~6 - 10% upside seems to more than compensate for that risk, thoughts?
Depends on time horizon. I’d think for a more moderate time like 3-5 years, it could be useful for that. Less than 3 years, I’d think cash or short duration USTs are still ideal. JEPI will lose with a downturn, just not as much.
Great coverage. SCHD is by far my favorite. JEPI close second. Can’t wait to see how JEPQ performs after this bear market relents.
Interesting so many people talking about JEPQ. I've never even heard of it until today!
@@NathanWinklepleckCFA can you please review it like you just did Jepi, I'm sure everyone would appreciate it. Thank you
Thank you for your suggestions. What about sister fund JEPQ? Any advice.
That was a great over view Nathan. You confirmed much of my own research with some different sources which is a confidence builder of course. For me personally, I am utilizing JEPI as a bond alternative. I was very impressed in how it performed, especially in this recent bear market in bonds, versus even the treasuries. My feeling is that it is also a great boost to utilize for building an income stream to enhance your rate of reinvest into lower dividend yielding vehicles that I intend to buy and hold, such as Apple and Microsoft. I see it as kind of “front-loading” my income to offset the lower dividends I receive in positions such as Apple, Microsoft and UNH. Throw in DIVO (another covered call ETF I would love to see you review btw) and SCHD and you have the foundation for a strong Dividend base around which you could build a few individual stocks when great value opportunities allow to build up your DGR and Yield. Thanks again sir!
😎
I am thinking exactly about this: using JEPI's income to reinvest into more growth type stocks.
Good selections.
Great video. Thank you. What is the difference in JEPI & JEPQ?
Brad … there are numerous videos on that and your broker research tap will tell you ….if you cannot figure something so basic as this out ..maybe you should not be investing….jepi leans towards sp500 stocks …jepq …to nasdac stocks
Very thorough and helpful! Thank you!
I would love for you to review CLM and CRF possibly with comparisons to JEPI.
Nathan, amazing video. Your thoughts on the completely changed underlying portfolio, including Adobe, Microsoft, and Amazon at the top, and the significantly decreased dividend (Currently 36 cents vs 60 cents only eight months ago, with SEC yield down to 7.7%)?
Absolutely love the videos Nathan, also love the book that you wrote and I highly recommend it to others. Quick question though, why would you invest into a tax deferred account with Jepi if most if not all of the people investing into it are looking to use the income now to pay bills etc... Sorry If I missed something but I'm genuinely curious. Thanks!
The after-tax return chart should show it all. Your returns are basically 100% taxable; that presents a massive tax headwind and reduced your returns significantly. Far better to have tax inefficient investments in an IRA and a tax efficient investment-like a VTI or VIG or SCHD-in an after-tax account. Make sense or no?
@@NathanWinklepleckCFA Yeah I understand that part I just don't understand why you'd invest into those entities in a tax deferred account when you can't utilize the dividends from it until age 59 1/2. I can see doing it when you're close to that age but not if you're young. I'm just confused on that part.
Good presentation.
Thanks for a great video. Only I miss is how you see it as part of an overall portfolio, which allocation and how long would be the period of time before switching based on market conditions. Thanks!
I certainly don't see it as appropriate for 100% of anyone's portfolio, but specific allocations depends on the situation and needs of each person. I'd suggest looking in your area for a Certified Financial Planner to help you build a portfolio. Some will do it for a flat fee (i.e.: $99/month or something) just to give you some help setting things up and maybe saving you some taxes or whatever. It's worth it, imo for a decision that important. You don't have to have them manage your investments; just give you some specific advice, which I can't do.
Great analysis. Jepi is great for income and I think occasionally you have to re-invest the dividends and not continuously spend the money as you said. My mom has been in it for over a year and loves the income.
but that mean you lose your principal? I thought JEPI was principal + Dividends
I'd be curious to hear your thoughts on DIVO.
Nice an very informative Video. Whats your Opinion on JEPQ?
There is a comment from Blue Sky that may help here. I don't know much about JEPQ yet (haven't even looked it up). Blue Sky comment below: "Brad … there are numerous videos on that and your broker research tap will tell you ….if you cannot figure something so basic as this out ..maybe you should not be investing….jepi leans towards sp500 stocks …jepq …to nasdac stocks"
Excellent video. I cannot seem to find any people who are using high dividend ETFs, such as JEPI, and using an aggressive weekly dollar cost averaging model to continuously buy new shares. This will of course compound the dividend, and then by reinvesting the dividends, compound further (of course with ebbs and flows depending on market conditions). Have you ever done an analysis on such a model? For reference, I currently do this with SPY and sell covered calls against the shares. Thank you, just subscribed and shared this with my investing circle.
One more thing. I am aware that something like SPY will appreciate much more over the long term. But my analysis is pointing to great growth once the monthly dividend cash flow REALLY starts to compound. Plus, the volatility smoothing appeals to me. Would love to hear your thoughts based on all your experience.
Very Interesting Nathan. I probably need to listen to this once more....but does the decreased loss in down markets makes me wonder if it would be suitable to use for part of my "cash" that I hold in my IRA?
It is an interesting cash alternative, though I wouldn't think it appropriate for "needs"... I still think cash/USTs/high yield savings/iBonds via UST are ideal for that.
First video of yours that I've come across, and I've gotta say it was awesome. Love the no BS objective tone of your videos and the way you cover all of the information. Tough to find stuff like that on youtube that doesn't have a bunch of fluff and bad motives.
After some of the research I've done so far it seems like JEPI would be better geared towards someone that is retiring soon or is in retirement and is more focused on wealth preservation and having that good income stream. Something like SCHD would be better for a younger person like myself (23) who is looking for long term growth and capturing and reinvesting that decent payout rate. I'm thinking a good mix of VOO and SCHD would be good for my ROTH as of now. Thoughts?
Thanks for the great content!
I think you’re on it 💯! Might look at VTI instead of VOO if you want some small/mid exposure and even lower turnover, but very similar to SP500
I was with you until near the ending when you compared it against qyld. Qyld writes at the money covered calls on 100% of the portfolio, so they will constantly erode. Jepi writes out of the money covered calls on a PORTION of the portfolio. Big difference.
Exactly. Completely unfair comparison. Apples and oranges. He picks the worst ETF and compared JEPI with it. JEPI has a completely different investment strategy.
JEPI is currently my largest holding at about 5%. Very happy with the performance so far but I understand it won't always perform this well. The ELNs are nothing to fear imo. They are only 20% of the fund and split between multiple lenders.
A full explanation of counterparties would be helpful for those that are unfamiliar with this term and function.
I have JEPI, good income holding.
Excellent video and analysis. I think I’ll stick with VTI. Can’t beat the market.
Often spoken about, but not exactly an investment fitting for my portfolio... this is a great channel and I am enjoying the content!
Glad you enjoy it!
Hi Nathan, great video. JEPI sounds very interesting. It sounds similar to Hamilton's HYLD (on the TSX), which writes covered calls and 1.25x leverage, to attempt to get similar returns as the SP500 with around 14% yield. JEPI does seem safer because of the lower volatility, and apparently does not use leverage. What I am *very* curious about is if you are able to model at what rate JEPI needs to be reinvested to retain its value. My immediate gut says half of the yield would have to go back in, leaving someone about 5-7% useable yield if the goal is for the nominal value to not go down.
JEPI is up 11% since inception. Technically you could have spent all the yield since 2020. That being said, I reinvest what I don’t need. Retired 4/22.
Hi Nathan! I was was one of your subscribers requesting this video so thanks! A couple of points, first my understanding is that JEPI is the ETF version of an older mutual fund called JEPIX that goes back to 2018 so you have some more performance data to consider. Second, I am not sure QYLD is a fair comparison with JEPI since it is not known where JEPI writes it’s covered calls. Confirming where JEPI writes its calls would go a long way to adding confidence in its performance. I have a mix of JEPI and SCHD in my dividend income portfolio and have been very happy compared to the overall market.
There was a recent interview, about 2-3 months back, where the fund manager said they are slightly out of the money. i think that is a good thing, in terms of being able to maintain the NAV.
I would add QYLD writes its calls systematically monthly on its (I believe) entire portfolio. Blindly writing calls on an entire portfolio can lead to turnover and value loss. JEPI and JEPQ writes its calls a significantly smaller ratio. Being actively managed allows for strategic calls and hopefully less turnover in stocks.
They write calls that are 2-5% OTM based on volatility. Per interview with Hamilton Reiner.
Great video, glad I came across your channel. Your voice kind of reminds me of the channel You Suck at Cooking. Just need to wang-jangle your portfolio and add some pepperpepperpepper and you've got some tasty tendies.
Nathan, as usual, a very didactical and well done video. The success of JEPI launch has a + connotation for us. It's likely to remain open for a long time. This is important for long term investing. Time will tell if the results hold over time, just too new to see that yet. And there is no base index that can help us to gauge its performance. I see JEPI as an component of my portfolio which includes typical growth ETFs as VOO, QQQ, MTUM as well as more traditional dividend funds such as SCHD. Again thanks.
i looked at MTUM since i had never heard of it and found it interest but then i saw it has a YTD NAV return of -2.16%, when the market has been rallying like crazy this year. Then I looked at the holdings and it made more sense. Still an interesting ETF though.
What do you think about a strategy that just sells put credit spreads out of the money? I have heard with the correct probabilities that can be a very consistent strategy. Thoughts?
Very informative. Can you please review JEPQ?
What are some examples of taxable vs non-taxable accounts for monthly withdrawals? Or is the general strategy to just reinvest the earnings? Thanks!
I have been dollar cost avging into jepi and am well over the performance of the s&p.
I'm considering using it as a short-term cash holding vehicle. Thank you for this video.
Are you saving for anything, in particular w/ cash?
@@NathanWinklepleckCFA, nothing in particular. Just bearish and would rather preserve capital right now. I think we have yet to see a full capitulation of the broader equities markets. We've never had sustained inflation over 5% that didn't require a true recession to correct it, and the equities markets typically lag the inflation correction in their recovery.
In the meantime, I'm selling cash-secured puts to collect premium whenever volatility spikes, but VIX volatility has been largely absent the past few weeks.
Another great video that is very informative, transparent and honest! I will however not be adding this to my portfolio as nothing comes close to the long-term income potential of blue chip dividend growth stocks!!!
You need to extend your look back in history further than 20 years.
You’ll need a lot more money invested if you’re planning on living off dividend income. I see a couple of these other RUclips gurus with 7 figure portfolios earning under $100K a year. I think a mix of both is best. Just my 2 cents.
It's at 11% now, but of course it depends on the overall market. Best time to buy
Thanks man
You're welcome!
First time here. Thanks for the detailed video. I am a bit confused about the “don’t spend the income”portion of this video. Does that mean that I have to do dividend reinvestment to be able to get the full return? In that case, how will I live in retirement?
Watch it again, he said,
'Don't steadily withdraw 12%'
He didn't say don't take the returns.
I like the high dividend yield aspect of it…
High quality clip - well done. The only place I might suggest improving a little is the part you discussed why taking 12% month after month will not be enough to sustain the principle. Another way to illustrate differently is to first reserve the principle, and see how much of "dividends" can one afford taking out. My 2 cents.
I thought the entire point of this product is that we can take 12% (1% per month) and the holdings also track the S&P..or have i misunderstood? If taking the headline 12% per year out means my holdings go down in value ... its pointless.
Would be curious to see a review of OAIE.
Solid content 👌. Would jepi be better than government bonds?
Thanks! It depends on your goals. If you want higher returns, then probably. If you want downside protection in a recession or safety of principal, then Treasuries are the ticket.
Hi there, confused about point #2 - I am assuming you should DRIP the distributions however eventually everyone will need to spend the value. Are you implying that the capital will depreciate over time ? Sorry I am not clear on this point.
Just look at SDIV performance in the past 24 months; if it is too good to be true, it is :)
PS: very good breakdown of JEPI!
In Canada GIC's 10 years, 5% compound or regular is available. Easy no risk retirement if you can put in $1MM cash.
Thanks!
Would you make a video on how ELNs work? Can an average investor use ELNs as a way to earn more income? I know many investors use covered calls options strategies to generate more income for their Portfolios.
I like the video but am confused about your qyld example where you say it has declined 75% since inception, isn't it only down around 33%? how do you get your number? my chart shows $25 in 2014 and now sitting at around $17.
Total Return vs Price Return: - the Fund appears to have a Positive Total Return, and the Price Return only seems in jeopardy IF an investor is taking-out ALL of the Income Distribution
[ ] If a portion (say, half) of the Income was Re-Invested and Only some (again, say half) is Spent . . . Would that not keep the Holding from wasting away?
JEPI is great for the dividend alone. I have discovered selling covered calls on JEPI itself can amplify the already high dividend. In addition, for a small premium I protect against a large downside by purchasing out of the money puts. Thanks for the video, keep up your excellent work!
I really wish I understood anything you said. Sounds like you're onto something, so I'll look up the terms 😅
Great analysis. Would have loved to see a comparison to SCHD instead of VIG. SCHD is only down -0.44% YTD vs -1.57% for JEPI. There’s no thesis or data supporting holding JEPI over SCHD for the equivalent amount of “income” being distributed. No capped upside for SCHD and a foundation of dividend growth. No debt instruments involved. 600% less in management fees. Add in the favorable tax treatment of its dividends and it really isn’t close.
My preference would also be for SCHD between that and JEPI. But I do think JEPI provides some interesting diversification for someone who would like to diversify against a bear market or a sideways market.
@@NathanWinklepleckCFA it definitely isn’t a bad fund for those purposes and the lower volatility and high income could provide more “sleep well at night” feelings when most investors are feeling max pain. A comfortably-held JEPI is certainly much better than a panic-sold SPY in a bear market. The data shows most retail investors don’t behave in such a way to see the true long term returns of the market. Maybe funds like JEPI could help improve those numbers.
I think the only covered calls options ETF that has been around for years is QQQX and it seems to perform well for years. The rest are so new and unpredictable.
Interesting. I'll check that one out.
Divo has a lower yield and a higher expense ratio.. but they also seem to have an even lower drawdown, and capture more capital appreciation.. their stock selection also has an emphasis on dividend growth which i like long term.. torn between the two but I'm leaning towards divo
Divo is good choice, but you can have SCHD, JEPI and Divo in your retirement portfolio
Would like to know more about stocks and your classes would yo build pass income and retirement for me and my family thanks very much bro
Could you rephrase this? I am having trouble understanding.
To your point of holding JEPI when you believe the market will be flat or decrease in value, I think that is the best time to hold JEPI. In addition to that observation, I would say when the market collapses or you believe the market is mostly undervalued, then sell JEPI and buy a S&P 500 index or Nasdaq 100 index fund. This way you are not timing the market. You are only having an opinion of the overall valuation of the market.
Can you recommend international dividend funds for high dividend that are not pegged to dollars in case of dollar collapse? Pretty close to retirement.
One thing I don't like about SCHD (one of my favorite core ETF's) is that if you're holding a large position and you want to sell covered calls against it in a sideways or even bear market, the options premiums are pretty much garbage, even ATM, meaning that you assume a much higher risk of your underlying being called away in an unexpected market upswing, while not collecting enough premium to justify that risk.
JEPI seems like it would be a great holding to pair with a core fund like SCHD, since it does the call writing for you, with much higher premiums collected, minimal risk, and a very attractive expense ratio when considering what you're getting for the money.
Exactly I like to take the dividends from JEPI and reinvest some back into Jepi and some into s c h d along with a little growth. Like SCH X. I feel like that's a well-rounded approach with jepi and has been working for me this year.
@@leecarignan7714 that seems like a very sound strategy.
Hi guys, would you know how I can get schd and JEPI in UK? My understanding is these are us only etf.. Any other alternatives in case?
@@leecarignan7714 Doing the same however, I'm investing in SCHD and DGRO.
even if you are selling covered calls on a volatile stock like tsla if you don't want your stock to get called away you will have to sell so far otm you might be better off just buying us treasuries. jepi risks their stocks being called away or rolling. obviously they are rolling which can get expensive. if the market blasts higher jepi could be hurt. they will not be able to roll forever and their stocks could be called away. then they will be stuck with buying back the stocks at scary prices, risking a big drawdown if the market then falls. covered call writing is not that easy
It's in my Roth, but I have a small amount relative to my portfolio. I maxed out Roth contributions earlier in the year and I've used the JEPI monthly distributions towards equities that were underpriced in October and November. In 2024 I'll buy a small position in JEPQ, but I'll keep it as a very small percentage like cash so like 1-2% and the small monthly distributions
I'll hold in the sweep account, currently yielding 5% and when the core funds experience market swings like we did this October and November then I'll buy from that amount. Since most of my core funds have little to no dividend yield this has allowed me to get a little bit of a lower return yet invest and get at better value (I had lump sum contributed earlier in the year).
As long as it's small, I doubt it makes much of a difference, so whatever floats your boat. Just want to be sure everyone understands the underlying here.
Good in volatile sideways market
Sorry if I missed it in an earlier comment, but do your JEPI returns include the distribution or make any assumption about distribution reinvestment? I’ve had an investment in JEPI since February 2022 and while it is down on price about 4.75%, the distributions actually result in a positive total return this year.
It's reinvested dividends.
Regarding point #5; Is that chart with JEPI, VIG, QYLD, and the S&P Index Fund taking into account total return (all dividends reinvested across all funds), or simple price performance (ex-dividend)?
Total return all dividends reinvested.