07-21-2021, 11:44 PM
From ETFDB:
"The JPMorgan Equity Premium Income ETF (JEPI) is an actively managed fund that generates income by selling options on U.S. large cap stocks. The fund invests in S&P 500 stocks that exhibit low-volatility and value characteristics, and sells options on those stocks to generate additional income."
So this is basically a play on the fund manager being able to predict the market movements and options are heavily used to enhance the yield. Which explains the high yield and the severely fluctuating dividend. Basically the dividend is almost fully dependent on the fund manager timing his options right.
"The JPMorgan Equity Premium Income ETF (JEPI) is an actively managed fund that generates income by selling options on U.S. large cap stocks. The fund invests in S&P 500 stocks that exhibit low-volatility and value characteristics, and sells options on those stocks to generate additional income."
So this is basically a play on the fund manager being able to predict the market movements and options are heavily used to enhance the yield. Which explains the high yield and the severely fluctuating dividend. Basically the dividend is almost fully dependent on the fund manager timing his options right.