NEW YORK, Aug. 19, 2025 /PRNewswire/ -- J.P. Morgan Asset Management today announced the launch of the JPMorgan Equity and Options ETF (JOYT) on the Cboe BZX Exchange. JOYT represents a strategic expansion of the Firm's innovative Equity Premium Income Suite, catering to clients seeking total return or already utilizing the JPMorgan Equity Premium Income ETF (JEPI) and the JPMorgan Nasdaq Equity Premium Income ETF (JEPQ). Fund expands the firm's category-leading Equity Premium Income Suite The fund will int ...

Core Viewpoint - The JPMorgan Equity Premium Income ETF (JEPI) and JPMorgan Nasdaq Equity Premium Income ETF (JEPQ) are attracting investors due to their high trailing-12-month dividend yields of 8.2% and 11.2%, respectively, and their provision of monthly income, appealing to passive income investors [1][19]. Group 1: ETF Structure and Strategy - Both ETFs invest up to 80% of net assets in equities, with JEPI focusing on S&P 500 stocks and JEPQ on Nasdaq-100 stocks, not specifically selecting stocks for their dividend yield [3][4]. - The remaining 20% of net assets are allocated to equity-linked notes (ELNs), which involve selling call options on the respective indexes, generating income through premiums collected [4][6]. - The strategy aims to provide sufficient income for distributions through a combination of premiums from ELNs and dividend income from stock holdings, with limited upside and downside [6][19]. Group 2: Performance Analysis - The ETFs are designed to demonstrate lower volatility than their respective indexes, with the monthly standard deviation for JEPI at 3.1% compared to 4.7% for the S&P 500, and for JEPQ at 4.2% compared to 5.7% for the Nasdaq-100 [20]. - Historical performance shows that the strategy is effective in generating positive returns during moderate market conditions, while limiting losses during significant market declines [16][19]. - Both ETFs have exhibited high R^2 values, indicating a strong correlation with their benchmark indexes, and have lower maximum monthly drawdowns compared to the indexes [14][20]. Group 3: Investor Implications - Despite the ETFs underperforming relative to the indexes, which had average monthly gains of 1.5% for the S&P 500 and 1.8% for the Nasdaq, they provide lower volatility returns and substantial dividends, making them suitable for passive income generation [18][19]. - The three most significant monthly drawdowns for JEPI are -6.4%, -4.2%, and -4.1%, while for JEPQ, they are -8.7%, -6.8%, and -6.6%, indicating a more stable performance during downturns [20].

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