Got $10,000? This Super-High-Yield Dividend ETF Could Turn It Into Over $1,000 of Passive Income Each Year.

Core Insights - The JPMorgan Nasdaq Equity Premium Income ETF (JEPQ) offers a high monthly income stream, with a current yield of 11.5% as of November 30 [3][9] - Covered call ETFs, like JEPQ, can provide yields of 10% or higher, appealing to income-focused investors [2] - JEPQ utilizes equity-linked notes (ELNs) instead of traditional stocks, which introduces unique risks but allows for high yields [6][7] Investment Mechanics - JEPQ generates income by writing call options against its holdings, which can lead to significant income from a modest investment [4][12] - A $10,000 investment in JEPQ could potentially yield over $1,000 annually based on historical distributions [12] - Monthly distributions have varied, with a total income of over $6 per share generated in the past year, averaging about $0.50 per share monthly [11][12] Market Context - The ETF's performance is closely tied to the volatility of the Nasdaq-100 index, which tends to be higher, thus supporting its elevated income potential [8] - The fund's structure allows for monthly payouts, making it attractive for investors seeking regular income [8] Considerations - While JEPQ offers high yields, it comes with trade-offs, including capped upside potential and variability in yields based on market conditions [14][15][16] - Investors should be aware of the risks associated with ELNs, particularly counterparty risk, which could affect the value of the investment [7]