Investors seeking monthly income and a high yield could consider investing in the JPMorgan Equity Premium Income ETF (AMEX:JEPI). The ETF reduces gives investors access to a diversified portfolio of stocks and bonds, with a focus on high-yielding equities. JEPI was the 8th most popular ETF of 2022, and its 12% yield, paid monthly, has created a firestorm of investor interest.
Last year may have been painful for investors, but it has created multiple opportunities to capture double digit yields without overdoing it. JEPI is one such opportunity, offering investors a high-yielding ETF with low volatility. That makes JEPI attractive for income investors looking for a steady stream of passive income.
JEPI is not the only ETF that offers high yields and low volatility. In fact, the PowerShares High Yield Equity Dividend Achievers ETF (NASDAQ:PEY) is another popular option for investors looking for steady income. PEY is designed to track the performance of a select group of high dividend paying stocks, with a focus on companies with a history of increasing their dividends over time.
These are two of the most popular exchange-traded funds for investors looking for passive income. However, both JEPI and PEY have their own strengths and weaknesses. JEPI has a higher yield and lower volatility, while PEY has a longer track record of dividend growth.
If you love income and hate volatility, JEPI is hard to ignore. But if you want to maximize long-term income and total returns, JEPI should be part of a diversified portfolio. The key is to find the right balance between yield and total return, and to be mindful of the risks.
While no one knows for sure if a recession is in the cards for 2023, it's never a bad idea to add some defensiveness to your portfolio. The JEPI ETF seems like the best of both worlds, offering a 12% dividend yield and downside protection in a bear market.
In conclusion, JEPI and PEY are both strong options for investors seeking passive income. Ultimately, the decision comes down to individual preferences and risk tolerance. If you're looking for higher yield and lower volatility, JEPI is the better choice. But if you want a longer track record of dividend growth, PEY is worth considering. Either way, both ETFs are solid investments that can help you build a diversified portfolio that generates steady income.