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J.P. Morgan Equity Premium Income ETF (JEPI)
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Why I Continue Piling Into These 2 High-Yielding ETFs for Passive Income
The Motley Foolยท 2025-08-19 08:11
Core Insights - The article emphasizes the importance of building a portfolio of income-generating investments to achieve financial independence through passive income Group 1: Investment Strategies - The company invests in various income-generating assets, particularly focusing on exchange-traded funds (ETFs) like the Schwab U.S. Dividend Equity ETF (SCHD) and the J.P. Morgan Equity Premium Income ETF (JEPI) to enhance income potential [2][13] - SCHD targets reliable, dividend-paying stocks with an average yield of 3.8% and an 8.4% annualized dividend growth over five years, as per the Dow Jones U.S. Dividend 100 Index [5][9] - JEPI employs an options strategy by writing out-of-the-money call options on the S&P 500 Index, generating an income yield of 8.1% over the last 12 months [10][11] Group 2: Performance Metrics - The Schwab U.S. Dividend Equity ETF has consistently rewarded investors with increasing cash distributions, demonstrating its ability to generate growing passive income [6] - The JPMorgan Equity Premium Income ETF has delivered an average annualized return of 11.5% since its inception in May 2020, showcasing its potential for capital appreciation alongside income generation [12] Group 3: Portfolio Composition - The combination of SCHD and JEPI allows for diversification in income sources, with SCHD providing a passive stream of growing dividends and JEPI generating income through options [13]