Latest news with #JPMorganEquityPremiumIncomeETF
Mint
6 days ago
- Business
- Mint
New Buffett-inspired ETF holds Berkshire and Apple. It aims for 15% yield.
An income-oriented fund keyed off Warren Buffett's equity portfolio at Berkshire Hathaway has attracted nearly $250 million and has delivered a 15% distribution rate to investors since its inception in March. The VistaShares Target 15 Berkshire Select Income exchange-traded fund holds 21 stocks. It puts 10% of its assets in Berkshire's Class B shares, and invests in 20 stocks held in Berkshire's equity portfolio. It also uses an options strategy, mainly the writing of call options, to generate income. Its ticker symbol is OMAH, a reference to the Berkshire's headquarters in Omaha, Neb. 'Berkshire clearly has a broad investor base and Warren Buffett is the best investor ever," says VistaShares CEO Adam Patti. 'Berkshire doesn't pay a dividend on its stock. We felt there was an opportunity to mirror the holdings and provide a 15% target" annual yield. Distributions are paid monthly. The ETF, which finished Monday at $19.15, is one of many that use the sale, or writing, of call options to augment income. Probably the most prominent is the $40 billion JPMorgan Equity Premium Income ETF (JEPI), which has a current yield of 11%. Given the income orientation, the Berkshire ETF may be better suited to tax-free accounts such as IRAs and 401(k)s. The VistaShares Berkshire fund, like others that use call writing, limit their upside by selling the calls but the income can be substantial. 'Any income strategy will not keep up in an aggressive bull market" due options, Patti says. It should do best relative to a buy and hold strategy in a flattish market due to the option income. The option strategy won't protect investors in a downturn, but the income will offset any stock-price declines in a bear market. The Berkshire ETF is about flat based on its total return since its inception in early March. The Berkshire index of 21 stocks that it tracks has fallen about 4% and that has been offset by the income from the option strategy. It has produced income in line with its 15% annualized ETF rebalances quarterly with the most recent occurring in May. The largest four holdings as of Friday were Apple (10.2%), Berkshire B shares (9.8%), American Express (8.4%), and Coca-Cola (6.2%). Bigger Berkshire equity investments get a larger weighting in the ETF. The fund isn't for investors seeking significant capital gains on Berkshire's stocks. 'The No. 1 goal is to hit 15% and the second goal is to maximize capital appreciation," Patti says. 'We want as much upside as possible but not to the detriment of hitting the 15%." VistaShares also has filed for a group of new active-traded ETFs that will invest in the publicly disclosed holding of three other notable investors: Bill Ackman, Stan Druckenmiller, and Michael Burry. Those funds could hit the market by Labor Day, as well as a new Berkshire ETF that will invest in the same 21 stocks as the existing one but refrain from writing call options. The Ackman, Druckenmiller, and Burry-themed ETFs will come in two forms: a plain vanilla fund that will just hold their stocks and one using their stocks plus a call-writing strategy. Write to Andrew Bary at
Yahoo
14-06-2025
- Business
- Yahoo
I'm Seeking High-Yield Investments -- Can You Recommend Durable Stocks or ETFs That Yield 8% or More?
Ares Capital is an outstanding business development company with an ultra-high dividend yield. The JPMorgan Equity Premium Income ETF boosts its income by writing call options on the S&P 500. The Alerian MLP ETF owns high-yield master limited partnership (MLP) stocks. 10 stocks we like better than Ares Capital › As always, The Motley Fool cannot and does not provide personalized investing or financial advice. This information is for informational and educational purposes only and is not a substitute for professional financial advice. Always seek the guidance of a qualified financial advisor for any questions regarding your personal financial situation. If you'd like to submit your question for feedback, you can do so here. Go big or go home: That's a common mentality in business and sports. It's also a mindset shared by some income investors. A recent Reddit user asked about durable stocks or exchange-traded funds (ETFs) that offer dividend yields of 8% or more. That's a lofty threshold that eliminates many great dividend stocks and funds from contention. However, I can think of three ideas that income investors wanting ultra-high yields might consider. Looking for high yield 8%+byu/PomegranatePlus6526 individends Ares Capital (NASDAQ: ARCC) pays an exceptionally juicy forward dividend yield of 8.59%. What's more, the company has either maintained or grown its dividend for 63 consecutive quarters (nearly 16 years). How can Ares Capital pay such great dividends? First, it's a business development company (BDC). BDCs are required to return at least 90% of profits to shareholders as dividends to be exempt from federal income taxes. Second, Ares Capital is a truly extraordinary BDC. The company ranks as the largest publicly traded BDC. It has delivered the highest regular dividend growth of any externally managed BDC with a market cap of over $800 million that's traded publicly for the last 10 years. Ares Capital has generated the highest net asset value per share growth among this group. And it's provided the highest stock-based total returns among its peers, too. Middle-market businesses with annual revenue of between $10 million and $1 billion have been increasingly turning to BDCs for raising capital in recent years. This trend seems likely to continue. I think Ares Capital will be one of the biggest beneficiaries as the private capital market grows. If you want turbocharged income, the JPMorgan Equity Premium Income ETF (NYSEMKT: JEPI) could be right up your alley. This ETF pays a mouthwatering 30-day SEC yield of 11.38%. The SEC yield, by the way, is the net investment income earned over a 30-day period on an annualized basis. As you can guess from its name, this ETF is managed by JPMorgan Chase. The fund invests in stocks based on fundamental research. It boosts income by writing out-of-the-money call options on the S&P 500 (SNPINDEX: ^GSPC). The JPMorgan Equity Premium Income ETF currently owns 126 stocks. Its holdings include top-tier names such as Visa, Mastercard, Meta Platforms, Microsoft, and Amazon. This ETF has only been available since May 2020, so some investors might be skeptical about its durability. However, its portfolio managers have between 10 and 38 years in the financial services industry. Morningstar awarded the fund four out of five stars. I think the JPMorgan Equity Premium Income ETF could be a great pick for income investors. The Alerian MLP ETF (NYSEMKT: AMLP) is another good pick for investors seeking high income. This ETF's yield of 8.03% barely tops 8%, but it still clears the bar right now. Over the last 12 months, the fund's yield was 7.94%. This ETF is managed by SS&C ALPS Advisors, an investment company that focuses on income and alternative growth strategies. The Alerian MLP ETF attempts to track the Alerian MLP Infrastructure Index, which invests in energy infrastructure master limited partnerships (MLPs). The fund currently owns positions in 13 stocks. Its top holdings include MPLX LP, Energy Transfer LP, Enterprise Products Partners, Western Midstream Partners LP, and Sunoco LP. These five stocks together make up nearly 60% of the ETF's total portfolio. One downside with this ETF is its relatively high annual expense ratio of 0.85%. However, a positive with investing in the Alerian MLP ETF versus directly buying the MLP stocks it owns is that you can avoid the tax hassles associated with investing in MLPs. Before you buy stock in Ares Capital, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Ares Capital wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $655,255!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $888,780!* Now, it's worth noting Stock Advisor's total average return is 999% — a market-crushing outperformance compared to 174% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 JPMorgan Chase is an advertising partner of Motley Fool Money. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Keith Speights has positions in Amazon, Ares Capital, Energy Transfer, Enterprise Products Partners, Mastercard, Meta Platforms, and Microsoft. The Motley Fool has positions in and recommends Amazon, JPMorgan Chase, Mastercard, Meta Platforms, Microsoft, and Visa. The Motley Fool recommends Enterprise Products Partners and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. I'm Seeking High-Yield Investments -- Can You Recommend Durable Stocks or ETFs That Yield 8% or More? was originally published by The Motley Fool
Yahoo
10-06-2025
- Business
- Yahoo
Portfolio Construction Has Never Been This Hard: Reiner
JPMorgan Investment Management head of US equity derivatives, Hamilton Reiner, says portfolio construction has become difficult in the current market. The JPMorgan Equity Premium Income ETF (ticker: JEPI) is the largest active ETF by assets. Reiner speaks with Scarlet Fu, Katie Greifeld, and Eric Balchunas on "Bloomberg ETF IQ."
Yahoo
15-05-2025
- Business
- Yahoo
What's Behind the Surge in Options Income ETFs?
Income-hungry investors have been piling into ETFs that use options to deliver juicy dividends. We've seen a surge in launches of these products recently, as providers employ innovative strategies to package derivatives within the ETF structure to meet rising investor demand. In addition to offering high yields, these strategies generally help reduce portfolio volatility. However, investors should remember that there's no free lunch in investing. These products tend to perform best in sideways markets and often underperform during strong bull runs. That said, they can provide some downside protection when stocks fall. Roni Israelov, Senior Quantitative Researcher at Citadel, refers to these strategies as a 'Devil's Bargain.' His research shows that trading options to generate income can undermine long-term investment returns. Our own analysis of the most popular derivatives-backed ETFs also suggests that investors may be leaving significant returns on the table in their pursuit of high income. Nevertheless, these products have attracted substantial inflows this year, as market volatility has shaken investor confidence. The JPMorgan Equity Premium Income ETF JEPI uses proprietary research to select around 130 stocks and writes S&P 500 Index call options to generate income. Its top holdings include NVIDIA (NVDA), Microsoft MSFT, and Meta META. JEPI and its sister fund, the JPMorgan Nasdaq Equity Premium Income ETF JEPQ, are among the top asset gatherers this year. The Amplify CWP Enhanced Dividend Income ETF DIVO aims to deliver high income from both dividends and covered calls. Its managers focus on high-quality large-cap companies with a history of dividend growth and write covered calls on individual stocks. While DIVO has outperformed JEPI, both have significantly lagged the S&P 500 over the long term. JEPQ and the Global X Nasdaq 100 Covered Call ETF QYLD continue to underperform the Nasdaq 100 ETF QQQ. To learn more about these ETFs, please watch the short video above. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Global X Nasdaq 100 Covered Call ETF (QYLD): ETF Research Reports Amplify CWP Enhanced Dividend Income ETF (DIVO): ETF Research Reports JPMorgan Equity Premium Income ETF (JEPI): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report JPMorgan Nasdaq Equity Premium Income ETF (JEPQ): ETF Research Reports This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
14-05-2025
- Business
- Yahoo
1 No-Brainer Dividend Index Fund to Buy Right Now for Less Than $500 -- and Another Dividend Fund Yielding 11%
You can invest in individual dividend-paying stocks, but opting for a dividend-focused ETF makes it easier. The Schwab U.S. Dividend Equity ETF has a solid track record and a respectable yield. The relatively new, and actively managed, JPMorgan Equity Premium Income ETF has performed well. 10 stocks we like better than Schwab U.S. Dividend Equity ETF › Two of the best things in the investment world are index funds and dividend-paying stocks. So an even better thing, arguably, would be a dividend-focused index fund. Here's a look at a well-regarded index exchange-traded fund (ETF) that recently boasted a yield of 4%. (ETFs are funds that trade like stocks, making it easy to get in and out of them.) I'll also offer for your consideration a more aggressive income-oriented ETF that recently sported a dividend yield of 11%. Check them out and see whether either or both would be a good fit for your portfolio. You can invest in either with less than $500 -- or with more. Dividend-paying stocks used to be thought of by many people as mainly suitable for grandparents -- but that's increasingly not the case as more investors wake up to their appeal. Consider these eye-opening numbers. Dividend-Paying Status Average Annual Total Return, 1973-2024 Dividend growers and initiators 10.24% Dividend payers 9.20% No change in dividend policy 6.75% Dividend non-payers 4.31% Dividend shrinkers and eliminators (0.89%) Equal-weighted S&P 500 index 7.65% Data source: Ned Davis Research and Hartford Funds. You can, of course, study the universe of stocks and carefully choose promising dividend-paying stocks for your portfolio. But you might instead make it easy on yourself by just investing in a good fund that does that work for you. The Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD) is a compelling pick for multiple reasons. Let's start with its expense ratio (annual fee), which is just 0.06%. That means you'll only pay $6 a year for every $10,000 you have invested in the fund. The ETF tracks the Dow Jones U.S. Dividend 100 Index -- which encompasses 100 stocks with track records of paying dividends for at least 10 years and which also appear financially healthy. That last part, based on factors such as cash flow to total debt and return on equity, is important, because companies that aren't financially healthy may at some point need to reduce their dividends. Here's how the fund has performed in the past. Period Average annual gain Past 3 years 4.58% Past 5 years 12.76% Past 10 years 10.47% Since inception (Oct. 20, 2011) 12.19% Source: as of May 8, 2025. Pretty good, right? Note, though, that the next five or 10 years might feature lower (or higher) returns. The S&P 500 has averaged annual total returns of close to 10% (ignoring inflation) over long periods, and the past few years have featured higher-than-average returns. Another thing to like about the fund is its relatively hefty dividend yield, recently 4%. Plunk $10,000 into this ETF and you can expect somewhere around $400 in dividends over the course of the next year. As the companies in the Dow Jones U.S. Dividend 100 Index grow over time, many of them will be increasing their dividends, so you can generally expect to collect more in dividend income from year to year. So what's in this ETF? Here are its top 10 holdings as of May 8. Stock Weight in ETF Recent yield Coca-Cola 4.47% 2.8% Verizon Communications 4.43% 6.2% Altria Group 4.42% 6.7% ConocoPhillips 4.27% 3.6% Lockheed Martin 4.25% 2.8% Home Depot 4.06% 2.5% Cisco Systems 4.03% 2.8% Chevron 3.89% 5.0% AbbVie 3.84% 3.5% Amgen 3.77% 3.5% Source: and Figures as of May 8, 2025. These 10 holdings together make up about 41% of the ETF's value. About 20% of its assets are in consumer defensive stocks, 19% in energy stocks, and nearly 15% in healthcare stocks. If you're looking for much more income from your investments, you might want to take a look at the JPMorgan Equity Premium Income ETF (NYSEMKT: JEPI). It's fairly new, with an inception date of May 20, 2020, and it has drawn a lot of interest with its dividend yield, recently 7.8% (on a 12-month rolling basis). As you might be starting to suspect, the JPMorgan Equity Premium Income ETF is not a standard dividend ETF. It claims to be the world's largest actively managed ETF (as opposed to being an index fund, or index ETF), and here's how it describes itself: Designed to provide current income while maintaining prospects for capital appreciation. Generates income through a combination of selling options and investing in U.S. large cap stocks, seeking to deliver a monthly income stream from associated option premiums and stock dividends. Seeks to deliver a significant portion of the returns associated with the S&P 500 Index with less volatility, in addition to monthly income. So what's its strategy? Well, it holds lots of stocks (recently around 113) chosen by its managers. On top of that, it uses equity-linked notes and covered calls (a kind of option) to add to its performance. Take a closer look at this ETF if it interests you. Understand that its performance can vary along with the economic environment. Its expense ratio is 0.35%, costing you $35 annually per $10,000 invested in the fund. Whether you take the more straightforward route of investing for dividend income or you park some money in the JPMorgan ETF, be sure that you are saving and investing for retirement. Before you buy stock in Schwab U.S. Dividend Equity ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Schwab U.S. Dividend Equity ETF wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $598,613!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $753,878!* Now, it's worth noting Stock Advisor's total average return is 922% — a market-crushing outperformance compared to 169% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 12, 2025 Selena Maranjian has positions in AbbVie, Altria Group, Amgen, Schwab U.S. Dividend Equity ETF, and Verizon Communications. The Motley Fool has positions in and recommends AbbVie, Amgen, Chevron, Cisco Systems, and Home Depot. The Motley Fool recommends Lockheed Martin and Verizon Communications. The Motley Fool has a disclosure policy. 1 No-Brainer Dividend Index Fund to Buy Right Now for Less Than $500 -- and Another Dividend Fund Yielding 11% was originally published by The Motley Fool
