Key Factors & Analysis#
Strategy & Risk Profile#
ETF | Strategy | Yield | Risk Level | Key Risks |
---|
JEPI | Covered calls on S&P 500 | 7-9% | Moderate | Capped upside, market volatility |
JEPQ | Covered calls on Nasdaq-100 | 9-11% | High | Tech sector swings, derivatives risk |
SPYI | S&P 500 options strategies | 10-12% | Moderate | Higher fees, execution risk |
DIV | Global high-dividend stocks | 7-8% | Moderate-High | Capital erosion, interest rate sensitivity |
Risk vs. Reward#
- Least Risky: JEPI (S&P 500 stability + structured income)
- Moderate-High Risk: DIV (global diversification but capital decay)
- Highest Risk: JEPQ (tech volatility + options complexity)
ETF | Bull Market | Bear/Sideways Market |
---|
JEPI | Underperforms (capped gains) | Excels (premium income) |
JEPQ | Partial upside (tech growth) | Strong income (Nasdaq premiums) |
SPYI | Limited growth | Performs well (options income) |
DIV | Lags (value stock drag) | Struggles (dividend cuts) |
Liquidity & Costs#
- JEPI: High liquidity ($30B+ AUM), 0.35% expense ratio
- JEPQ: Moderate liquidity ($5B AUM), 0.35% expense ratio
- SPYI: Low liquidity ($400M AUM), 0.68% expense ratio
- DIV: Moderate liquidity ($700M AUM), 0.45% expense ratio
Recommendations#
๐ก๏ธ Best Balance of Yield & Risk: JEPI#
- Why: Combines S&P 500 stability with reliable ~8% yield. Minimal capital erosion risk.
๐ Global Diversification Pick: DIV#
- Why: 7-8% yield with international exposure, but pair with growth ETFs to offset decay.
๐ Aggressive Tech Income: JEPQ#
- Why: High yield (~10%) for risk-tolerant investors betting on Nasdaq resilience.
โ ๏ธ SPYI Consideration:#
- Verify strategy details and fees. Higher yield comes with execution risk.
Final Takeaway#
For Most Investors: Prioritize JEPI for stability and income. Use DIV sparingly for global exposure, and limit JEPQ to <5% of portfolios. Always monitor interest rates and sector trends.