JEPI

JPMorgan Equity Premium Income ETF (JEPI) is an exchange-traded fund designed to provide current income with potential for capital appreciation through a portfolio of large-cap U.S. equities combined with income-generating strategies. 

The ETF is managed by J.P. Morgan Asset Management and trades under the ticker JEPI on NYSE Arca. Classified as a U.S. equity ETF, JEPI aims to deliver monthly income while reducing volatility relative to the broader equity market. 

To achieve this objective, the fund employs an active strategy that combines active stock selection with the use of derivative instruments, primarily options, to generate additional income.

JEPI’s portfolio consists primarily of U.S. large-cap stocks, selected for quality, stability, and financial strength, along with exposure to Equity-Linked Notes (ELNs) used to implement option-based income strategies linked to equity indices.

Diversification and sector exposure

JEPI provides diversified exposure to the U.S. equity market, with an emphasis on mature, lower-volatility companies. Sector allocation includes companies operating in areas such as:

• Information technology.

• Health care.

• Consumer discretionary and consumer staples.

• Financials.

• Industrials.

• Energy.

The fund’s approach seeks to balance broad sector exposure with income generation, resulting in performance characteristics that may differ from traditional index-tracking ETFs.

Structure and costs

Shares of JEPI are traded on the secondary market, while creation and redemption of shares are carried out by authorized participants, a mechanism that helps keep the ETF’s market price close to its net asset value (NAV).

The fund carries a higher expense ratio than traditional passive ETFs, reflecting its active management approach, and does not charge a performance fee. JEPI has a single share class and trades exclusively under the ticker JEPI.

History and evolution of the ETF

The JPMorgan Equity Premium Income ETF was launched in 2020, amid growing demand for income-oriented investment strategies in a low-interest-rate environment and periods of increased equity market volatility.

Since its inception, JEPI has gained widespread adoption among investors seeking consistent income combined with lower relative volatility, while maintaining a disciplined focus on its income-focused strategy.

Between 2020 and 2024, the ETF reflected multiple phases of the U.S. equity market, including periods of heightened volatility and shifts in monetary policy, establishing itself as a prominent income-focused equity ETF.