JPMorgan Launches Innovative Income Solution: JEPQ | ETF Trends

J.P. Morgan Asset Management launched the firm’s first ETF to invest primarily in the equity securities of large-cap companies listed on The Nasdaq Stock Market.

The JPMorgan Nasdaq Equity Premium Income ETF (JEPQ), the firm’s first fund to list on the Nasdaq, is an active equity ETF that seeks to deliver an attractive distributable yield while also delivering a significant portion of the returns associated with the fund’s primary benchmark, the Nasdaq-100 Index, with less volatility, according to a statement from the firm.

JEPQ was built for investors that are seeking income while also owning companies that provide exposure to Nasdaq’s innovative marketplace,” Bryon Lake, Global Head of ETF Solutions at J.P. Morgan Asset Management, says in a statement. “This strategy benefits from the intentionality of an active manager while being delivered through the ETF technology.” 

JEPQ comprises a portfolio of equity securities of large-cap companies included in the Nasdaq-100 Index and will incorporate an options strategy to generate income while lowering the volatility of the overall portfolio. 

According to the firm, this management style aims to deliver returns, offer incremental income, and better manage risk within portfolios as investors navigate today’s rising rate and inflationary environment.

“Investors are looking for yield, which is proving particularly challenging given the current economic backdrop. JEPQ is an innovative income solution which employs our differentiated options overlay strategy,” Hamilton Reiner, Portfolio Manager and Head of U.S. Equity Derivatives at J.P. Morgan Asset Management, says in a statement. 

“Leveraging our differentiated alpha engine, JEPQ is an active solution for investors looking to drive portfolio allocations while maximizing risk-adjusted expected returns,” Reiner adds.

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