JPMorgan's income-generating ETF using covered call options on S&P 500 stocks. Designed for investors seeking high monthly income with lower volatility.
JEPI (JPMorgan Equity Premium Income ETF) combines two strategies to generate high income:
JEPI holds ~100 low-volatility S&P 500 stocks selected for defensive characteristics and dividend income.
JEPI sells equity-linked notes (ELNs) that generate option premium income. This is similar to a covered call strategy.
JEPI sacrifices some upside potential for income. In strong bull markets, JEPI will underperform SPY. But in flat or declining markets, the income provides a cushion.
| Feature | JEPI | SCHD |
|---|---|---|
| Dividend Yield | ~7.5% | ~3.5% |
| Expense Ratio | 0.35% | 0.06% |
| Distribution Frequency | Monthly | Quarterly |
| Growth Potential | Limited (capped upside) | Full upside |
| Income Source | Options premium + dividends | Dividends only |
| Typical Use | Current income focus | Dividend growth focus |
JEPI is available on Hatch, Stake, Sharesies, and Interactive Brokers. All provide access to US-listed ETFs.
Deposit NZD and convert to USD. JEPI trades around US$55-60 per share.
Search for "JEPI" and place your order. Dividends are paid monthly, typically around the 5th of each month.
With a 7.5% yield, a $10,000 USD investment in JEPI would generate approximately $62.50/month in dividends (before tax). That's real income deposited to your account every month.
US withholding tax of 15% applies to JEPI dividends (with W-8BEN form). The remaining 85% is yours to keep or pay NZ tax on.
Above $50,000 NZD in foreign investments, FIF rules apply. JEPI's high yield may make FDR method favorable vs CV in some years.
Compare platforms for buying JEPI from New Zealand