The JPMorgan Equity Premium Income ETF (JEPI +0.43%) has become a $44 billion giant and the largest in the covered call ETF category. The fund is a relatively easy sell for income seekers too — a low-volatility, large-cap portfolio with an 8% yield that’s paid monthly. It seems to keep drawing in money regardless of its performance.
It became a Wall Street darling in 2022, when it outperformed the S&P 500 (^GSPC +0.50%) by 15 percentage points and routinely offered double-digit yields. But lately, it’s been riding on its reputation.
Since the beginning of 2023, the JPMorgan Equity Premium Income ETF has returned 34%, which significantly lags the 99% return of the Vanguard S&P 500 ETF (VOO +0.56%) over the same time. A covered call ETF isn’t likely to, or expected to, beat the U.S. stock market in a bullish rally.
But the amount of money that continues to flow into the fund suggests…
