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Is it safe to invest in the 10% yielding JEPQ ETF in 2025?


Published on 2025-03-22 14:01:13 - Invezz
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  • ETF is doing relatively well this year in terms of inflows and total returns. It has brought in over $3.5 billion in total inflows as investors continued looking for its yield. Its inflows in January stood at $1.

The article discusses the safety of investing in the JPMorgan Nasdaq Equity Premium Income ETF (JEPQ), which offers a high yield of around 10% as of 2025. JEPQ aims to provide monthly income by selling covered call options on the Nasdaq-100 Index while also holding stocks from this index. The ETF's strategy involves generating income through options premiums, which can be lucrative but also introduces risks due to the nature of options trading. Key points include the ETF's performance, its risk profile due to market volatility, the impact of interest rates, and the potential for capital appreciation or depreciation. The article weighs the benefits of the high yield against the risks of market downturns, concentration in tech stocks, and the complexities of options strategies. It suggests that while JEPQ can be a good addition for income-focused investors, understanding the underlying mechanics and risks is crucial before investing.

Read the Full Invezz Article at:
[ https://www.msn.com/en-us/money/top-stocks/is-it-safe-to-invest-in-the-10-yielding-jepq-etf-in-2025/ar-AA1BsaVl ]