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JPMorgan Equity Premium Income ETF (JEPI)
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JPMorgan Nasdaq Equity Premium Income ETF (JEPQ)
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JPMorgan US Equity Premium Income Active ETF (JEPI)
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JPMorgan Nasdaq Equity Premium Income Active ETF (JEPQ)
Q: The US versions of these ETFs have high yields. I am selling some of my more volatile RRSP holdings and want to move the funds into ETFs that add stability and a return of 8-10% with dividend/growth. Are these ETF's considered relatively stable. and is there a point that they should be considered less stable, for example, if interest rates rise. The Cdn equiv show no dividend. Is there a reason for this?
5i Research Answer:
The Canadian funds were only launched in October, and we would expect distributions to begin soon. They are currently very small but this should not stop distributions. We would consider them stable, up to a point. If we look at Beta, JEPQ is 0.48 and JEPI 0.27. Certainly mathematically they are less volatile than the market. JEPI has a high/low spread of 10.6% in the past 52 weeks; JEPQ 18.7%. So poor timining on a buy/sell could still see losses here, or course. But versus the average ETF and certainly vs stocks they should be less volatile overall.