What most people don't know about JEPI
Рет қаралды 19,495
4 ай бұрынEveryone is talking about JEPI, few are talking about holding JP Morgan's Equity Premium Income ETF is a bad idea. That's because 80% of the "income" being generated by this active investment strategy comes from selling covered calls. They're not covered calls, they're equity linked notes ELNs, people will say. Correct. JEPI's fund managers don't log into Robinhood and sell covered calls all day. An ETF with $32 billion in assets needs to do things differently which is why they use ELNs to generate income which is actually a play on volatility. When we understand how covered calls work - they cap returns on the upside - then it's intuitive why JEPI's total return cannot outperform the market in the long term, and the JEPI ETF prospectus tells us that. People who argue that short-term investors can hold it for income are missing the point - this asset's total return is less than simply holding a broad market ETF. If you want income, don't look for instant gratification. A dividend growth ETF or strategy like SCHD allows investors an initial lower yield, but will quickly grow to exceed JEPI's yield in the long term. Don't invest in things you don't understand, and with JEPI there's only one sure thing - the fund managers (who have no real incentive to maximize total return as they explicitly tell you) are laughing all the way to the bank.
RESEARCH PIECES USED IN THIS VIDEO:
1. Is SCHD the Best Dividend ETF?
• Is SCHD the Best Divid...
2. Judging the Two Biggest Dividend ETFs
• Judging the Two Bigges...
3. Why Trading Options is a Horrible Idea
• Why Trading Options is...
4. Quantigence - A Dividend Growth Investing Strategy
www.nanalyze.com/dividend-gro...
CHAPTERS:
00:55 Introducing the JEPI ETF
02:34 JP Morgan's JEPI cash cow
04:18 Why JEPI is so popular
04:57 Understanding covered calls
07:43 Covered call strategies underperform
09:31 Covered call takeaways
10:53 Where JEPI's yield comes from
12:45 Explaining how JEPI works
15:11 A better covered call strategy
ABOUT US:
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Read all the Nanalyze Premium articles you'd like for free! Sign up for a 30-day trial of our monthly subscription with no strings attached: www.nanalyze.com/subscription...
DISCLAIMER: Our content is intended to be used and must be used for informational purposes only. It is very important to do your own analysis before making any investment based on your own personal circumstances. You should take independent financial advice from a professional in connection with, along with independently researching and verifying, any information contained within our KZfaq videos or on our website, whether for the purpose of making an investment or otherwise.
#etfs
#etfstobuy
#dividendgrowth
#dividendetfs
#schd
$schd
#coveredcalls
#coveredcall
#optionstrategy
@Nanalyze 4 ай бұрын
Be sure to subscribe here to learn how to become a better investor: 👇 kzfaq.info
@Antandthegrasshopper 4 ай бұрын
I've 17% in JEPI/JEPQ and living off the monthly dividends in early retirement. Rest in Voo...I'm happy!
@Nanalyze 4 ай бұрын
What did you think about the conclusions raised in the video regarding one of your holdings?
@Antandthegrasshopper 4 ай бұрын
@@Nanalyze I recognize that it’ll not have the upside like other etfs. I also noticed yesterday JEPI was down -.53% and SCHD -1.53% so it’s 1/3 less volatile . Right now I need cash flow, which JEPI provides without huge investment and without selling. Probably once I turn 59.5 I’ll move the money in SCHD like funds to get qualified dividends as I’ll be able to use my IRA income to supplement. I consider JEPI as just one tool in the toolbox.
@Nanalyze 4 ай бұрын
You cannot look at a one-day return and start making assumptions about volatility. That's not how vol is calculated. You need historical data to calculate vol properly. JEPI is not a tool we'd consider having in our toolbox, though we have noticed that there are lots of tools out there that haven't a clue about what this ETF actually does. ;) If you need cash then spend cash. Or you can put $100 in JEPI and get $90 back (it's an example). Always remember, there is no free lunch.
@jackwilson8051 4 ай бұрын
I am retired & receive premiums every month. I am very happy with both of them.
@Nanalyze 4 ай бұрын
What do you think about the subpar total return you're receiving based on the ETF's stated strategy?
@JasonSmith80513 4 ай бұрын
JEPI is not going to outperform the market, that is S&P. That is not what it is for. It is a low-volatility fund that helps to limit downside. So far, it has done this very well. It should generally be held in a tax-advantaged account. It is probably not something you want a whole lot of in your long-term portfolio.
@Nanalyze 4 ай бұрын
"It is probably not something you want a whole lot of in your long-term portfolio." Precisely. We'd argue none at all since we believe market timing is speculation, not investing. As long-term investors, this is an obvious big pass. We've seen this show before, and it doesn't end well for retail investors. Thank you for the comment!
@schwingtrader6101 4 ай бұрын
@@Nanalyzeyou’re the one that doesn’t seem to understand what JEPI
@Nanalyze 4 ай бұрын
@@schwingtrader6101 You'll need to try a little bit harder around here when you comment please. Which facts presented in this piece do you disagree with?
@femo66 4 ай бұрын
@Nanalyze You are absolutely right, and i can only emphasise your warnings. I bought JEPI in May 21 at 59.76, and since than i am down 6% as of today. My S&P500 Position of the same time is up over 20%. And we are talking here DRIP on ! All i am waiting for is an exit…..If one wants to go this route JEPQ has performed much better in the same Period ! Honestly, any S&P500 ETF like VOO and SPY are a much better solution and will always beat JEPI and JEPQ……
@Nanalyze 4 ай бұрын
@@femo66 Just remember this. Short term performance comparisons mean very little. What's more edifying is to understand the strategy being used. When we do, we can easily see that based on an understanding of how these financial products work, it's impossible for JEPI to outperform at most intervals. Thank you for the comment!
@benjapolcycling 4 ай бұрын
As a person doing covered call for a long time your video is exactly what i expected to hear 100%. Covered call is a lot more complex than it sounds. Kudo 👏 👍 . Heard some other "youtuber gurus" on the same topic about these dividend etf and i was wondering what's in their mind.
@Nanalyze 4 ай бұрын
This is an excellent comment, thank you! You are so right. Anyone who has been dabbling in covered calls with a sufficient degree of experience knows what we're getting at here. It's a very tough game to play. Great to have you as a viewer, and thank you for the input! Joe P.
@unorthodocs1 4 ай бұрын
25% each in JEPI, JEPQ, VOO, QQQM. Have yet to sell a share in retirement. Share count keeps growing as I reinvest dividends I don’t spend. Pretty happy.
@Nanalyze 4 ай бұрын
Any thoughts about the concerns raised in the video?
@unorthodocs1 4 ай бұрын
@@Nanalyze JEPI has barely underperformed VOO over the last 3 years. I understand it will likely underperform. What I like in trade is that I don’t have to use a bucket strategy which in essence creates a reverse DCA situation
@Nanalyze 4 ай бұрын
A three year performance analysis means very little, and holding something that you believe will underperform makes little sense. Nonetheless, there appear to be plenty of people who ignore the concerns raised because it's a lot easier than confronting them.
@unorthodocs1 4 ай бұрын
@@Nanalyze Can make it 5 if you include JEPIX. As a retiree I could go with VOO. Problem is you need a bucket of bonds and cash to protect from sequence of events risk. This drops your CAGR. In that scenario JEPI would beat a three bucket scenario.
@Nanalyze 4 ай бұрын
Not entirely sure what you mean but carry on ;)
@justinjohnson8398 4 ай бұрын
i like the good ole "stop bicking around." many people are just speculators jumping in and out
@Nanalyze 4 ай бұрын
Precisely
@howardcrabtree1440 4 күн бұрын
Thank you so much for providing such a high volume of useful information per unit time.
@Nanalyze 4 күн бұрын
You're welcome and thank you for noticing. Too many talking heads out there.
@fendermon 4 ай бұрын
Good video. Capping upside in any investment gives me pause, and most of my largest errors in 30yrs of investing have come from chasing yeild. In fact, I have a big gapping hole in my portfolio right now where my 3m used to be. The older I get the smarter Jack Bogle seems. Thanks, and subbed.
@Nanalyze 4 ай бұрын
Thanks for the sub! Agreed that capping upside isn't intuitive for a long-term investor. We always warn our subscribers to look out for yield traps. Sounds like you learned that lesson the hard way - as most of us have at some point. -Wyatt C.
@thelifeofpablo6626 4 ай бұрын
I liked the video, thanks. It really shows that most of the comments without constructive criticism have never worked in the financial industry nor done any other research into investing beyond social media and KZfaq “analysts”.
@Nanalyze 4 ай бұрын
You're most welcome! Well said. People who want to become better investors immediately stand out clearly from those who treat investing as some sort of game. The proliferation of the latter is because many of these instant financial pundits aren't teaching people anything useful. Joe P.
@DP52001 4 ай бұрын
Wow - thank you for this video. Greatly appreciate the info and details. Are there any funds that can simply maintain the base capital amount while returning 10-ish %? SVOL? FTQI? Again - thank you for the content - your videos make a big difference!
@Nanalyze 4 ай бұрын
It's really nice to hear from people who are appreciative of our content. Thank you! We'd argue the biggest mistake income investors make is chasing yield. Focus instead on growth of those income streams. For example, our own strategy Quantigence has a universe of over 80 stocks that have - on average - an annual dividend increase of 9.6%. If you started out with a yield of 3%, you'd be closing in on 11% yield after 15 years and STILL have all those quality stocks which will have gained over the same timeframe. Delayed gratification vs instant gratification. Time flies.
@missouri6014 2 ай бұрын
You put into presentation form exactly what I have concluded but was unable to really communicate properly. Thank you.
@Nanalyze 2 ай бұрын
You're most welcome, thank you for the feedback!
@nikkinemerouf3224 4 ай бұрын
I have held JEPI and JEPQ inside of my IRA accounts since the inception of the funds. My goal as a retiree is capital preservation with modest growth while providing monthly income. So far, over the past two years, having covered call etfs (including SVOL) subsidize my monthly RMDs it allows me to let other positions in SCHD, VOO, VIG, and individual stocks continue to grow without any concern about having to liquidate any of those positions. Recently I took profits from JEPI and moved them into SVOL as the monthly dividend in the later appears to be way more stable than JEPI.
@Nanalyze 4 ай бұрын
Thank you for the comment. Everyone seems compelled to explain their own personal reasons for holding something that contains unknown risks and that cannot outperform the market based on the very nature of what it's done. That's fine, but it doesn't change the facts presented in this piece.
@robertkoehler1641 3 ай бұрын
Exactly! If I was 20 years old I would not be a big holder of JEPI. At 61 and retired I'll take my chances of losing a little growth.
@Nanalyze 3 ай бұрын
@@robertkoehler1641 People of every age should be extremely critical about where they place their money. That 8% yield is great until it stops. You are investing in a black box that you know nothing about. Nobody does, except the JPM fund managers who are laughing all the way to the bank right now. You've been warned.
@nikkinemerouf3224 3 ай бұрын
Interesting that you say that. A young man that I mentor who is 22 followed me into a position into JEPI and then we both realized that what is good for one generation may not be good for another so he sold of his positions in JEPI and JEPQ and purchased Amazon instead. @@robertkoehler1641
@leblancrealtygroup1811 2 ай бұрын
@@Nanalyze I don’t think anyone that’s buying into this is looking to beat the market. If they are then they truly don’t understand the product, but I think most do realize this. As you mentioned, there is no free lunch. They’re buying it as a income generator. I personally don’t own it, but I have no issue with those that do. Some that own it in a Roth so the tax consequences do not apply.
@robertkoehler1641 3 ай бұрын
Money in JEPI isn't for growth it's for income for someone that has grown most of their capital. You got to love these people who have only seen markets go up. When you've been in the markets 45 years let me know. The growth of markets right now is because of what? Not earnings.
@Nanalyze 3 ай бұрын
If people want to take their hard-earned money and give it away to black box fund managers at JP Morgan they can go right ahead. Here at Nanalyze, we work extremely hard for our wealth and we're not going to squander it on gimmicky investment products like JEPI.
@yourportlandlifestyle2907 2 ай бұрын
This makes complete sense to me. I have been learning about the market for a while now. I did invest in one of those types of etfs with a very small portion of my money. I sold out at a small loss. I am glad I did. I was using an investment advisor... That didn't go well. One thing I learned is how mutual funds with the fees erode the value of your holdings. Jepi and the like seem to me to be similar in the erosive effects. I have decided to be a dividend growth investor instead
@Nanalyze 2 ай бұрын
We're huge fans of rules-based dividend growth strategies. :)
@Ed-bj5eq Ай бұрын
intersting points, IMHO you should compare JEPI JEPQ etc to bonds and bond ETFs asset class, doesn't make sense to compare it with growth ETFs. Usually covered call & wheel strategies outperforms in sideway markets. Asset allocation depends on time horizon, strategy, risk and goals, plus capital gain vs dividends taxes. But I 100% agree with you on the black box ELN magic happening there 😂. I think it would be interesting to compare same class assets like JEPI vs DIVO, my guess is that could better illustrate the total return point
@Nanalyze Ай бұрын
Thank you for the comment! You are right. The thumb - SCHD vs JEPI - is largely to entice viewers. Others said that the comparison isn't so fitting and that's perhaps true, but we're also comparing two assets that people purchase for income streams so somewhat relevant comparison.
@chrisp3913 3 ай бұрын
Listening to this presentation was great. It reminded me of watching the Big Short when they explained CDOx2 and synthetic CDO’s. -overly complex. I am an active covered call user. In my simpleton process, I simply buy way out of the money calls on my long term holdings every 3-6 months. I take the premium and buy a few shares more of the same stock or use it as mad money for a start up that I would have never purchased with my core $. My reasoning is if I get called away, which has happened, I,will buy back. I do this in my Roth and Traditional IRA. It’s probably not the brightest idea but it keeps me close to my holdings.
@Nanalyze 3 ай бұрын
We get a fair number of people talking about running covered call strategies for income and if you have the time and a true understanding of the strategy, you might be able to get away with not eroding total return. For example, you probably would prefer value stocks over growth stocks since you don't want to cap your upside. You also need to have a very large book because of the 100 shares per contract requirement. Limiting the universe by having a small book puts retail investors at a disadvantage. Thank you for sharing your experiences! Joe P.
@chrisp3913 3 ай бұрын
@@Nanalyze I’m not fancy. I use 400 MSFT shares and 400 V shares and go out 35% increase per quarter. It’s a Roth account so it’s golf money. I’ve been called away once. Now sometimes I have to roll up and that also hurts overall returns
@Nanalyze 3 ай бұрын
"Golf money." Nice one! :) 🏌️
@martinguldner3990 4 ай бұрын
Dude some of the distributions of JEPI and JEPQ are qualified dividends ; I know because of holding both in a taxable brokerage account seeing both on my 1099s for 2022 and 2023. I also own Global X covered call ETFs for the Dow 30 and the Russell 2000 in both my taxable brokerage and Roth IRA. I use these covered call ETFs to earn some income without having to use so much capital and figure out strike prices for covered calls on stocks and market indexes.
@Nanalyze 4 ай бұрын
Dude. Nobody said some of them weren't. Here's our piece on dividend taxation dude: kzfaq.info/get/bejne/bbl1ecxy28qvnXU.html
@gstlb 4 ай бұрын
@@Nanalyze you’re not following your own standards for comments. Read your own warning and then read your own comment here. Very disappointing.
@Nanalyze 4 ай бұрын
@@gstlb Not sure what you're talking about here. You'll need to be a lot more clear about what you find disappointing.
@joy2come119 3 ай бұрын
He's probably referring to how condescending you come off. I'm new to investing and I enjoy content creator's on investing but I notice that on any of your comments geared toward someone explaining why they personally like jepi or them trying to cut down risk in retirement years you simply belittle their ideas and opinions. That's weird to me. You can disagree tastefully.
@Nanalyze 3 ай бұрын
@joy2come119 We've reported your feedback to Gwyneth in HR and she will move forward with the appropriate steps once she returns from her holiday in Lake Como. ✈️👜🍸
@travismartinson1813 4 ай бұрын
Jepi has worked well for me to balance out my high growth funds for barbell investing. I rebalance some of my profit into Jepi because of it's low beta. It beats bonds because it has a higher yield and is less correlated to tech. Interest rates seem to affect tech and bonds similarly.
@Nanalyze 4 ай бұрын
Comparing JEPI to bonds is apples to oranges based on the mechanics of the asset discussed in this video. As we also said, making the correlation argument doesn't work well without sufficient data.
@lisagayhart2482 3 ай бұрын
I have both . JEpi and Jepq in Roth and Schd in my brokerage.
@Nanalyze 3 ай бұрын
Any comments on what was presented in this video?
@blrwtsn 4 ай бұрын
I love the channel but ive been invested in JEPI for a year and a half and the fund has operated exactly as expected it is not for growth it is for income.
@Nanalyze 4 ай бұрын
Short term performance comparisons mean very little. The video states that. If you're not focused on total return you're missing the bigger picture. The facts stated in the video are just that. Facts. We're glad you love the channel!
@nerenahd 3 ай бұрын
I think JEPI can be used to protect your downside when markets correct. For example, from DEC-21 to OCT-22, SPY corrected 27,5% and JEPI 21,5%. SPY gave you roughly 1,5% of dividends against roughly 7,5% from JEPI. In this particular case (a moderate and relatively fast bear market), JEPI outperformed SPY by 12% in the period (dividends discounted, your NAV with JEPI was -14% and SPY -26%). Granted, bear markets are the exception. However if the investor has reasons to believe a correction is imminent, having JEPI on the portfolio is a way to cap the downside while having cash inflow at the same time. Of course, it´s impossible to know for sure when a bear market is starting, but if the investor has reasonable doubts about buying a local top (like now for example), there is an use case for JEPI.
@Nanalyze 3 ай бұрын
"If the investors has reasons to believe a correction in imminent." That might work for all the Nostradamus types out there but the truth is that 95% of professional investors can't beat a broad benchmark. Joe Retail sitting around scratching his ass on a Saturday morning thinking he's going to time the markets is a recipe for disaster. As for your short-windowed performance analysis, the video pointed out why that doesn't hold any water. If you want to cap your total return, go for it, we just think its misleading to make people think this black box investment vehicle benefits anyone except those who created it.
@nerenahd 3 ай бұрын
@@Nanalyze Dude, chill.
@Nanalyze 3 ай бұрын
@@nerenahd Dude. If you can't take the heat, don't step into the kitchen. This is a channel where professional investors are discussing various investment products. Expect people to be critical.
@nerenahd 3 ай бұрын
@@NanalyzeBro, I´m sorry, I didn´t see the disclaimer that only professional investors were allowed to express their views in the comment section. I´ll keep that in mind. What a guy. 🤣
@Nanalyze 3 ай бұрын
You'll need some thicker skin around here, that's for sure. ;)
@Sayilswtor 4 ай бұрын
Yup, it's mostly for retired people who want income now
@Nanalyze 4 ай бұрын
That's not what the video concluded.
@Othello379 4 ай бұрын
Hello! It was a while ago that you made an update on the Illumina stock. If it suits you, I would be happy if you put the stock on your list for coming analysis/updates. Cheers! 😊
@Nanalyze 4 ай бұрын
Hello! You are correct, but only on this channel. We have +2,400 written research pieces that cover a lot more than the videos we produce. Here's our latest piece on Illumina: www.nanalyze.com/2023/11/time-to-dump-illumina-stock/
@patman4917 3 ай бұрын
Get JEPQ if you are so worried about JEPI
@Nanalyze 3 ай бұрын
Same exact concerns apply
@jackwilson8051 4 ай бұрын
I buy JEPI for income & SCHD & SPLG ( S & P 500) for growth.
@Nanalyze 4 ай бұрын
The longer you hold JEPI, the lower your total return will be on the asset based on the nature of their strategy. Many choose to ignore that, and to each their own.
@pabloarroyo8806 Ай бұрын
Could you recommend an ETF similar to JEPI, but that meets your expectations? Thanks
@Nanalyze Ай бұрын
We don't recommend anything. We simply help people make smarter investment decisions. We have 100s of videos and 1000s of articles which talk about assets we hold or like.
@juliovilla5246 4 ай бұрын
New sub, can you make an analysis on rex shares FEPI . Thanks
@Nanalyze 4 ай бұрын
Looks like they have under $100 million AUM? Far too small to consider covering. Also looks like the write covered calls o (checks notes) the largest tech companies out there? After what we concluded in this video, that sounds like a horrible idea. Thank you for the sub!
@chimchu3232 4 ай бұрын
What if you hold 20% in JEPI or QQQX instead of holding bonds? higher yield with possible upside, and they perform better in a bear market than SPY or QQQ. Just curious, I understand you are sacrificing growth by holding these, but you'd also sacrifice growth holding bonds, right?
@Nanalyze 4 ай бұрын
Where do you get "possible upside" from based on their stated strategy? So when the equties market returns 6.6% since inception (inflation adjusted) you're worried about paper losses during the downturns? Trying to understand the logic here.
@chimchu3232 4 ай бұрын
@Nanalyze no, I'm not worried about paper losses, I'm just curious as to how jepi would perform compared to bonds instead of stocks. People generally hold a percentage of bonds in their portfolio to reduce volatility, wouldn't jepi provide a higher return while also reducing volatility? It's just a question that came to mind, I don't hold jepi. Or would you say bonds are a total waste of time and go all in on schd or the dividend stocks within it?
@Nanalyze 4 ай бұрын
This video wasn't about bonds, it was about JEPI. We can do apples and oranges comparisons all day. We're here to discuss the facts presented in the video because that's what we just spent an entire day researching.
@chimchu3232 4 ай бұрын
@@Nanalyze fair enough, thanks for the time and info
@Nanalyze 4 ай бұрын
@@chimchu3232 Would also add that we choose to avoid fixed income in general because it's fixed. Our dividend growth portfolio has income that increases every year to handily offset inflation. That aside, there's a case to be made for holding bonds for sure, and maybe we'll look at that in a future video. Your question is a good one. Joe P.
@mricrowe 2 ай бұрын
I don't own JEPI or any CC funds, but the constant comparisons with the SP500 and commitment to total returns above all else (not only here but everywhere) seem strange to me. Is there no role for anything other than SPY or QQQ or anything that is highly likely to beat those in anyone's portfolio? Even SCHD has and seems destined to underperform over the long term. For retirees who have built a healthy nest egg and don't need "more", but instead seek wealth preservation and a stable enough income stream, could JEPI or bonds or anything else ever be a sensible choice? JEPI may still fail to meet investor goals, but it seems knowing the goals actually matters if we're going to evaluate anything.
@Nanalyze 2 ай бұрын
This is precisely why we developed our dividend growth strategy which is covered here: kzfaq.info/get/bejne/oNhojM-Gydu4dGg.html
@jefferywinchester5830 3 ай бұрын
What if your goal isn't to outperform but rather to supplement your bonds?
@Nanalyze 3 ай бұрын
If you're looking for a place where people discuss how to underperform the market then this isn't it. Some people seem hell bent on giving their money to JPM fund managers who run a gimmicky black box investment product. We're not in that camp.
@quackwilliams5933 4 ай бұрын
I have 1% in JEPQ just to offset some volatility of my very tech heavy portfolio (10% in each of $NVDA/MSFT/GOOGL/AMZN/TSLA along with some TAN/ARKG/SCHD). Is this stupid?
@furtsmagee1513 4 ай бұрын
Arkg is stupid
@Nanalyze 4 ай бұрын
To become a good investor, you'll eventually need to say, "this is my allocation and here are the reasons why I decided to invest using this allocation" and say that with conviction. That's what we do here at Nanalyze - we help people become better investors. That's a question we'd love to answer on our Discord server because it's a conversation, not a single answer.
@Nanalyze 4 ай бұрын
@furtsmagee1513 Please add a bit more color on why you think Aunt Cathie's ETFs aren't worth the time of day ;)
@OffGridandOutdoors Ай бұрын
JEPI sounds like a Fixed Index Annuity.
@Nanalyze Ай бұрын
Not familiar with those
@OffGridandOutdoors Ай бұрын
@@Nanalyze well I'm not a huge fan of FIAs and ur video here has caused me to write Off JEPI ... So thx
@Nanalyze Ай бұрын
We're glad you found the video useful!
@vizfact Ай бұрын
There's space for both income investing and growth investing. It's silly to be married to one idea. One asset pays periodically, one asset pays when you sell. It's wise to do both. JEPI has it's place. Not as a core position, but as an income position. Archaic styles of investing will have you archaic in age before you can benefit from the returns. Mix it up and don't be naive.
@Nanalyze Ай бұрын
It's a unpredictable income asset until it isn't. Anyone investing in a black box investment product being pushed by an investment bank thinking they are getting a free lunch is very naive.
@vizfact Ай бұрын
@@Nanalyze The fees they charge are the price of the lunch along with the capped upside. Furthermore, all investments carry risks. I just watched one of your uploads about holding a stock through bankruptcy. No one is safe in this market. It's all risk. JEPI happens to provide returns. Returns actually matter. I'd rather have some returns than just a good holding alone. I appreciate your style of investing and education. But let's not be so linear. There's space for flexibility and certainly space for monthly returns.
@vizfact Ай бұрын
@@Nanalyze THEY'RE ALL UNPREDICTABLE with differing variables associated with the probability of favorable outcomes! What stock market do you trade/invest?
@Nanalyze Ай бұрын
@@vizfact If you are naive enough to think that a high-fee black box investment product will somehow provide superior income streams over time then you will get the performance you deserve. Saying "it's all risk" shows that you aren't able to discern between levels of risk. "JEPI happens to provide returns." What sort of a statement is that? You are not addressing any of the points in the video except making the same sort of mistakes we see people make all the time that the video warns about. Carry on though. Don't say you weren't warned.
@vizfact Ай бұрын
@@Nanalyze I trade & invest. Each type of instrument and style demands different perspectives. Monthly income pays monthly bills. I'm holding my long term spots like SCHD, but I need income (JEPI) and Alpha (trading). My portfolio consists of long term holdings and monthlies. We gotta have income. I'm no noobie (20+ Year VET), so I understand where you're coming from. These days, it's not a bad idea to be grey as opposed to pure black & white.
@erandeser5830 4 ай бұрын
?????
@Nanalyze 4 ай бұрын
?????
@richardthorne2804 3 ай бұрын
I took early retirement 6 years ago and own individual growth dividend stocks (30 stocks/ETFs) such as PG, MCD, JNJ, IBM, HD, PEP etc and write strategic covered calls meaning long dated covered calls and OTM and at safe strike prices. I also do the same on the indexes IWM, SPY, RSP and DIA. I generate $72K in dividends and made $63K in selling options last year. I will likely only make $45K with options this year. The best part is i have a total return perspective and NEVER have to sell shares to live my lifestyle. Its a blessing.
@Nanalyze 3 ай бұрын
That's great to hear, but we strongly advise retail investors to stay away from the options game as most will lose. To make nearly as much as you're making in dividends means you're likely taking on too much risk. Let's not insinuate that most investors can do that because they can't and will return less over the long run.
@richardthorne2804 3 ай бұрын
@@Nanalyze No wrong. My beta is .65 and I have been retired for 6 years and have been selling covered calls strategically on my long term dividend portfolio for years and it works. I get dividend increases every year (dividend kings and aristocrats). And you probably don't understand options that well based on your comment. I DON'T buy options I sell them. People that buy options lose not those that sell options. My portfolio size is relatively large at $1.7 million.
@Nanalyze 3 ай бұрын
@@richardthorne2804 Yes, we know you're selling options. Obviously. That's great to hear, but we strongly advise retail investors to stay away from the options game as most will lose. Let's not insinuate that most investors can do that because they can't and will return less over the long run.
@Nanalyze 3 ай бұрын
Kings and aristocrats are the way to go. That's where 60% of our assets can be found.
@richardthorne2804 3 ай бұрын
@@Nanalyze If you are young and working and in the accumulation phase I 100% agree no need to sell covered calls. However, if you are retired you need income selling options on quality blue chip dividend stocks is the best strategy imho. But I'm not a fan of the 4% rule and selling shares to pay the bills. Lost decades could happen. I recommend a book called Walk Toward Wealth by Kevin Simpson.
@javierarbona2913 Ай бұрын
Your analysis of JEPI is very superficial to sustain your conclusions. JEPI performs as advertised as evident during high vol periods, sideways markets and down markets. JEPI is not meant to beat the SPX but surely beats a 60/40 or 80/20 portfolio which is what many people hold. As to the turnover you cite - you fail to mention that turnover is due to weekly trading of the ELNs and not the trading of equities in the portfolio. Further as to the counterparty risk of the ELNs, if you look deeper you'd notice that JEPI manages that risk by spreading out the ELNs amongst large global financial institutions. Look no further than Morningstar's Bronze Rating and 4 Star designation (but maybe Morningstar doesn't know anything 😂).
@Nanalyze Ай бұрын
You know what's superficial? The description of how this black box vehicle generates income. JEPI doesn't "surely beat" anything. It hasn't even traded long enough for a meaningful amount of performance data to be accrued. Morningstar slaps stars and ratings on funds like they're going out of style. These mean very little. There will always be gullible people who think there's a free lunch and the fund managers at JPM will be laughing all the way to the bank. Carry on.
@vjbhatia77 28 күн бұрын
You Keep on using this free lunch analogy, as if you think you’re saying something profound. You’re not even using the term correctly. No one who owns JEPI think they’re getting a free lunch. They know that they’re getting current income now and their gains are capped, but their losses are also mitigated to a certain extent. They prefer low beta, slow growth less volatility… your free lunch analogy obviously doesn’t describe what most people think.
@wildbill301 4 ай бұрын
Bro take a breath
@Nanalyze 4 ай бұрын
Cannot. You see man, when you breathe then no words come out. It's all about the words man! More words! MORE WORDS! Okay, we'll let Joe know it's okay to occasionally assimilate oxygen.
@vjbhatia77 28 күн бұрын
I think he means just because you can’t say something doesn’t mean you have to …especially if you only want to pontificate instead of genuinely reacting to the comments.
@shaneomack5018 3 ай бұрын
🤦🏼♂️ bruh
@Nanalyze 3 ай бұрын
If there's one thing history has taught us it's that black-box investment products offered by investment bankers always reward the buyer. Never forget that bruh.
@jackwilson8051 4 ай бұрын
This guy has no idea what is talking about.
@Nanalyze 4 ай бұрын
You'll need to put a bit more effort into your comments otherwise they'll get deleted. Our sophisticated audience demands better. What facts do you disagree with exactly?
Passive Income Investing
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