June 2023 numbers released on portfoliovisualizer.com for JEPI and JEPQ -- even with fat dividends reinvested, they got smoked by benchmarks SPY and QQQ in the first 6 months of 2023. Who knows the future?
Posted Jul 2, 2023, 12:56 PM UTC
142
Lol…comparing a covered call etf to the etf. I am not fan of CC ETFs, but this is one terrible comparison.
12
Plus, everybody should know that covered call strategies cap your up side and work best in sideways markets. The first six months of 2023 are a perfect illustration of that. An even crazier illustration compared to the indices is TSLY versus TSLA. Like 70% return on a covered call TSLY strategy versus 140% in the stock.
3
TSLY is showing almost the same percentage gain YTD as TSLA. But its also currently yielding a 60% dividend. Seems like a winner to me... at this point.
1
TSLY is up 36% YTD plus the 30% dividend so ~65-70% total. TSLA is up 160% YTD as of today.
1
When will people learn that dividends don't work like savings account interest?
Your number of shares are compounding not the value of them.
7
Never, people who figure it out stop posting about it, and you get 3 new people to replace them.
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People fell in love with these funds because they outperformed in a bear market and assumed they will just always outperform.
5
Context matters. I’m not a fan of JEPI at all, but they’re basically just owning the underlying benchmark while selling covered calls via ELN. Of course the benchmark will outperform when you look at a short period of time with a large and steady upward trend, it’s to be expected when you have covered calls - their exact purpose is to mitigate against risk by capping gains.
4
What about JEPI don’t you like? Just doesn’t fit your personal goals or do you take issue with the fund’s fundamentals?
3
Limited growth. I have ≈30 years left of viable work in me, and over the course of 30 years I don't believe Jepi to be nearly as successful as VTI/VOO.
It works if you're nearing/in retirement and you just want stable income.
2
100% agreed but it could be a nice backup emergency fund which is what I’m highly considering using it for. Have a core cash fund plus Jepi as reserve cash fund that is entirely separate from retirement and personal investing portfolios.
1
You mean an emergency fund for your emergency fund? Or just your emergency fund? It's your call if the former, but extremely unwise if the latter.
1
Not looking for income since I’m still young. Would rather be fully invested in VOO or a dividend ETF. I’m actually 100% in VTI/VOO in retirement accounts, with a brokerage account of 50/50 SCHD/VYM, which is meant to bridge the gap of early retirement before I can access Roth + 401k. The only place JEPI would fit would be in that regular brokerage, but approx. 80% of the dividends are taxed as ordinary income.
Not a fan of ELNs either because they introduce counterparty risk. It’s a smaller part of their portfolio, but it still relies on the solvency of the banks that write those notes (which as recent events have proven is not the best idea).
2
Counterparty risk with ETNs is a real consideration, but we're overreacting a bit with the banking comment. JPM isn't using regional banks for JEPI/Q/X.
They use Flex options from the OCC, which means that their counterparty is the OCC itself. They're all cleared centrally.
They aren't buying shady Swiss bank UBS/CS ETNs. Flex options are designed custom for JEPI by the OCC. You can see that in their holdings, the ETNs are marked "JPH#######".
2
80 percent of the portfolio is UNCOVERED. 20 percent is invested into the ELN.
1
I buy JEPI and JEPQ for income. Growth is secondary.
4
As a retired person, I love to have JEPI/Q for consistent monthly income with stable prices. I generate over $7,000 monthly from these two funds, and that's exactly why I own these funds. If you are young and growing your capital without needing monthly income, they are wrong choices. Btw, if you want to show JEPI/Q's under-performace to SPY/QQQ's, you can equally show SPY/QQQ's under-performance to SSO/QLD's during the bull market.
4
Love my JEPI and JEPQ. I’m at $6198 dividends this month. Hope to catch up to you.
1
So, in other words, JEPI and JEPQ are behaving just as they were intended to behave. Thanks for verifying.
2
SPY & QQQ vs income ETF's? Really OP? You're comparing two completely different things. When you're are at retirement age, you will also be looking at funds like JEPI/JEPQ, that provide income vs growth.
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1
Cherry picker!! Get him boys
1
You ever wonder where the “95% of active management underperformance” data is sourced from? Bottom to top
1
Watermelon vs Banana gif
1
Why not just own both and higher %% based off your point in life circumstances?
1
True ...But this is totally irrelevant ...the Jeps are income funds and it was never intended that they be compared to benchmarks..their sole purpose in life is to create income with some modest growth as they do not use option strategy on all of the portfolio.
They are performing perfectly .
1
lol
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Classic booglehead post
1
Yea who knows your future in the Stockmarket with dumb comparisons like this.
1
Here is a longer time frame of JEPI and VOO
https://www.portfoliovisualizer.com/backtest-portfolio#analysisResults
1
Not a QYLD fan but it beats the QQQ.
https://www.portfoliovisualizer.com/backtest-portfolio#analysisResults
1
People aren’t buying JEPI/JEPQ because they’re growth stocks; they’re buying them for the steady income and reliable 5% growth annually. I see a lot of people mix them with VTI/VOO or SPY.
1
Not a JEPI or JEPQ stan by any means, but using any six month period of performance to argue for or against any investment is a good way to get laughed out of this sub.
Laughed as soon as I saw the image.
But this is exactly what people do in support of JEPI/JEPQ...
Ok. They’re wrong too. Odd defense.
Fwiw, past performance is not indicative of future results, over any period. I like JEPI’s strategy in sideways markets, so I own some, like I like SCHD’s approach for the long term, so I own some.
*not guaranteed, not indicative
Plus, it shows a profound lack of understanding of how covered call strategies work. The fund managers will tell you that they cap up side in a strong bull market.