I don't think QYLD and JEPI is doing the same strategy. QYLD is an "at the money " and JEPI is an "out of money" strategy . Totally different when you talk about growth and income😊
Thanks for watching and for the comment. Sure, we simplified JEPI and certainly did not mean to imply the fund is managed exactly the same. But do you not agree that the same general limitations of the strategy apply? JEPI tilts a little more towards growth than income compared to QYLD, but the same principal applies - It will protect on the downside and cost you on the upside. If every year is like 2022, JEPI will be great. If every year is like the last year, not so much. Over the last 12 months total return for JEPI is +9% and even Vanguard's basic 60/40 fund VBIAX is +12.5%. You run into the same issues, though perhaps less than QYLD.
I just don't think the clients income today needs are considered. Recommend something else that produces the same after tax money ... because jepi saved me in 2022/2023...idk about the other funds. And I'll never touch a crap bond over it.
Hello, thanks for watching and for the comment. The alternative is just total return investing and selling assets as needed. The other funds we showed, QYLD for example, have the same philosophy as JEPI, they just have longer history. You can see the long term cost of this strategy compared to a total return approach. Also worth noting since you mentioned after-tax returns. JEPI, and other covered call funds, are relatively tax inefficient because of their high turnover and since the derivative income is taxed as income, not qualified dividends. Owning and selling appreciated stock leaves you with qualified dividends and long term capital gains which creates a much lower tax liability.
I don't think QYLD and JEPI is doing the same strategy. QYLD is an "at the money " and JEPI is an "out of money" strategy . Totally different when you talk about growth and income😊
Thanks for watching and for the comment. Sure, we simplified JEPI and certainly did not mean to imply the fund is managed exactly the same. But do you not agree that the same general limitations of the strategy apply?
JEPI tilts a little more towards growth than income compared to QYLD, but the same principal applies - It will protect on the downside and cost you on the upside.
If every year is like 2022, JEPI will be great.
If every year is like the last year, not so much. Over the last 12 months total return for JEPI is +9% and even Vanguard's basic 60/40 fund VBIAX is +12.5%. You run into the same issues, though perhaps less than QYLD.
I just don't think the clients income today needs are considered. Recommend something else that produces the same after tax money ... because jepi saved me in 2022/2023...idk about the other funds. And I'll never touch a crap bond over it.
Hello, thanks for watching and for the comment.
The alternative is just total return investing and selling assets as needed.
The other funds we showed, QYLD for example, have the same philosophy as JEPI, they just have longer history. You can see the long term cost of this strategy compared to a total return approach.
Also worth noting since you mentioned after-tax returns. JEPI, and other covered call funds, are relatively tax inefficient because of their high turnover and since the derivative income is taxed as income, not qualified dividends.
Owning and selling appreciated stock leaves you with qualified dividends and long term capital gains which creates a much lower tax liability.