Even as the market seems to be shrugging off global trade concerns, there remains a level of uncertainty given economic ups and downs, job market red flags, and concerns over whether the global economy will start to slow down in 2026 as tariff concerns start to really show their effects.
As a result, one of the best paths forward with trying to make sure you are keeping the money flowing is to look at a high-yield ETF. Dividends are fast gaining steam thanks to the likes of Reddit and retail investors who are looking for ways to gain passive income through monthly payouts that can help boost retirement savings or even add to monthly budgets.
If you are on the hunt for such an investment, there is good news is that you have some strong options. One such compelling option is the JPMorgan Equity Premium Income ETF. (NYSE:JEPI).
The Fund
Over the past year, the dividend yield of 8.34% and $4.75 in dividends per share made it a dynamo in every sense of the word. While the fund itself is only up 5.24% year-to-date and 4.34% over the last year, the real win for JEPI owners is with the dividend.
The fund itself was launched in May 2020 and trades on the New York Stock Exchange, with a focus on US equities as the bulk of its holdings. Unlike some other ETFs that offer similarly high dividend yields, the promise of JEPI is that your downside is protected thanks to balanced sector weightings as of October 2025:
- Technology: 19.83%
- Healthcare: 13.84%
- Financial Services: 13.82%
- Industrials: 13.03%
- Consumer Cyclical: 10.78%
- Consumer Defense: 8.37%
- Communication Services: 7.70%
- Utilities: 5.16%
- Real Estate: 3.39%
- Energy: 2.21%
- Basic Materials: 1.87%
Within these sectors, JEPI offers a who’s who of names that are helping to drive overall market performance right now. NVIDIA is unsurprisingly the top dog in JEPI, holding around 1.69% of the total portfolio, and the same is true for AbbVie, which offers a similar 1.69% of the portfolio. Ultimately, no single position is dominant, and the top 10 holdings make up less than 20% of the total fund size.
Adding to these stocks, you also have names like Microsoft, Alphabet, Mastercard, Johnson & Johnson, Amazon, Visa, and Ross Stores. Needless to say, there is a solid mix of names across all sectors that are helping to drive growth in this fund while also maintaining a good balance across market downturns, thanks to such a strong sector split.
In total, you have approximately 125 stocks in the JEPI portfolio right now, managing around $40 billion in assets in total. Charging an expense ratio of 0.35%, it’s a bit higher than other index trackers, but given the dividend performance, investors haven’t voiced significant complaints over the additional cost.
JEPI Performance
Currently trading at $56.67 as of October 9, 2025, JEPI’s performance has been fairly strong over the last 12 months. Paying out around $4.78 in dividends in the last month, this means there is an 8.4% yield, with distributions arriving every month.
This means that for retirees or income-focused investors, you can count on a paycheck hitting your bank account every 30 days. The last payout, which took place on September 19, 2025, yielded a $0.36102 price point for every share owned, which wasn’t significantly different from the previous month’s price of $0.36826.
Dividend performance aside, JEPI is up around 5.24% year-to-date, reflecting its steady income growth. Over the last five years, it’s delivered approximately 11% annualized returns, which isn’t as explosive as other tech-heavy portfolios, but it’s been steadier through rough and volatile market periods.
On the plus side, you have JEPI with volatility levels that are lower than the S&P 500, which means the ride you take with this ETF is a little smoother, even if you have to give up some of the upside when the market roars ahead.
Given that it’s heavy in sectors like technology, financials, healthcare, and industrials, you get a better balance as opposed to ETFs that tend to lean more heavily into just banking, utilities, or tech. This diversification is undoubtedly part of the JEPI appeal.
The Strengths of JEPI
Ultimately, the most obvious strength here is the yield, which at over 8%, pays more than double that of funds like (NYSEARCA:VYM) and almost three times more than what you would earn from the S&P 500 on its own.
Things get even more attractive when you add in the monthly payout schedule, and it should hardly come as a surprise that JEPI has quickly become one of the most popular ETFs available today. Add in lower volatility and a covered call strategy when the markets are a bit choppy, and you get a fund that can create income even during uncertain times.
The flipside is that when the market does surge north, you don’t get all of the benefits. JEPI can lag a little, as it sells calls, which can limit the upside. This is why anyone buying JEPI should look at it for its income potential and not as a growth driver. The bottom line is that JEPI offers size, scale, and consistent monthly payouts, which is going to be more than good enough for most.
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