2D·

JPM Global Equity Premium ETF

Today I treated myself to the $JEGP (-0.16%) today. I'm not expecting a "high roller" in terms of price returns, but a "dividend horse" that provides a continuous cash return in my portfolio. In my opinion, the fund does exactly what it was designed for and that is to pay dividends on the MSCI World.

I like the active management, the "covered call" concept and the stock selection. I don't consider a 60% US allocation to be a cluster risk, as the Mag7 are not represented. When I look at the top positions, I identify stocks in the "value" segment. This ETF corresponds to my investment strategy and therefore fits very well into my "core portfolio". Due to the favorable USD exchange rate, the entry is currently favorable from my point of view, precisely because the EFT is moving sideways. Although the currency risk has an impact on the dividend, I see this ETF as a "buy-and-hold" and the USD exchange rate is likely to turn again.

In summary, a plow horse, not a racehorse. It works and will never win a sprint :-)

Your opinion?

43 Comments

Thomas@Thomas_1963

If you add the distributions to the "annual performance", you would probably have been better off with a call money account.
I had to realize a four-digit loss with this construct.
My need for covered call ETFs is therefore no longer there.

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Al@Vegasrobaina

@Thomas_1963 I think it is better to keep this ETF in the portfolio than to use it for short-term "annual performance". I don't have a crystal ball. It fits in with an investment strategy. "The future is not us to see" was already sung by Doris Day, and the fact that I can remember this very well says more about me than my portfolio tracker :-)

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Dividende > Zinsen@GoDividend

@Thomas_1963 Meanwhile, my total return is positive again... the thing just needs time

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Yieldrology@Yield-Ahead

@Thomas_1963 I also think that PATIENCE is absolutely essential here, and by that I mean a whole cycle. So I'm talking about years and more years. Can anyone imagine that the total return of the ETF will continue to be under water for many years? I can't.

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Nico@itZNico

@Vegasrobaina Why not the $WINC?

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Al@Vegasrobaina

@itZNico because of the low fund volume and the presence of Mag7. It is on my watchlist and I suspect it of being a "yield trap". But that's just my personal opinion. For my investment profile, it has a structurally higher risk than $JEGP, at least as far as my indicators are concerned.

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O. K. Boomer@randomdude

@Yield-Ahead It is clear how covered call ETFs work. In the long term, they will always perform worse than broad index ETFs. That is by design. That's why I don't understand the hype. With a dividend ETF, I find it understandable that you want to participate in the company's success, but here? Take an accumulating world ETF and sell units when you need money. It's more tax-efficient and brings more returns.

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Yieldrology@Yield-Ahead

@randomdude Based on my information, I think I understand CC ETFs well. My focus with this ETF is not on world performance, but on cash. With bonds, I want to get the coupons. Long term performance is usually secondary. In general, I wouldn't buy an accumulating ETF; doesn't suit me, even my NASDAQ 100 ETF pays out. Overall, I think CC ETFs make a lot of sense, as long as they are sensibly dosed in the portfolio. I suspect that I will continue to increase the proportion over the next few years and also assume that interesting products will be launched. I can point to the Canadian ETF landscape, for example, which is light years ahead.

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Al@Vegasrobaina

@randomdude"Take an accumulating world ETF and sell shares when you need money. It's more tax-efficient and brings more returns." ahem: No! That would contradict my investment strategy. So why should I do that!

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O. K. Boomer@randomdude

@Vegasrobaina Are you pursuing an investment strategy that brings you lower returns than simple other strategies? That would make me think.

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Al@Vegasrobaina

@randomdude Interesting, you don't know my investment strategy!

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View all 15 further answers

GiCi@GiCi

If it fits, I am ok with that. But double taxation with the US and the fact that analysts much smarter than me suggest that the weakening of the dollar will likely go on up to 1,25 €/USD, makes it a risky choice. My opinion obviously.

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Olli@Olli68

@GiCi 1.25 - 1.35 €/$ end of this year. 👍

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Olli@Olli68

What gives you hope that the dollar exchange rate will turn around? 🤔

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Al@Vegasrobaina

@Olli68 Strange as it may sound now: the US trade balance.

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Olli@Olli68

@Vegasrobaina Yes, that sounds really strange. 😲
Why don't you explain it to me 👍

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Al@Vegasrobaina

@Olli68 The USD exchange rate and the trade balance are two communicating vessels. No matter what DT does with its tariff policy, the dependence of the US on the rest of the world as a sales and, above all, import market is evident. I think that the dollar will certainly depreciate further (against the €). The 16-year cycle is already legendary. However, the USD devaluations were always economically justified, just like its revaluations. The DT (POTUS) is an atmospheric anomaly in the overall "buy-and-hold" strategy. That is my opinion and I am capable of learning, hence: "Maybe I am wrong, but beeing wrong is another word for getting a chance"

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GiCi@GiCi

@Vegasrobaina sure, but trade balance is just one part of the story. The other part is made of financial inflows/outflows, dedollarization process ongoing globally in central bank reserves, monetary policy and tariffs. DT has accelerated the dedollarization process and uncertainties on tariffs and his "Political Economy" are Key figures and all point at a further depreciation. Gor the time being, investing at 1,16 €/USD is not as convenient as it seems.

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Peter@Beeferking76

There are better ones, unfortunately not tradable in the EU
$SPYI $GPIX

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Al@Vegasrobaina

@Beeferking76 in how far better? What criteria do you apply?

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Peter@Beeferking76

@Vegasrobaina despite CC strategy, NAV sees no major erosion, e.g. recovery after April pullback was present

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DonaldTruck@DonaldTruck

Aren't financial products in which the word "premium" is used already speechflaged by the name? 🚩 There are other such "premium" products with "premium" in the name of "premium" DAX experts with "premium" forecasts and "premium" expertise 😅 Just wanted to link the fund afterwards. Does he really have the balls to relaunch this thing? 🤣

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Jarod@TradingHase

Don't think the poor performance + TER are worth the payouts. Personally, I wouldn't invest any money there.

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Al@Vegasrobaina

@TradingHase What do you mean by poor performance?

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Jarod@TradingHase

@Vegasrobaina Down over 6% last year and a payout of around 8% is not a good performance for me with a TER of 0.35. 🤷🏼‍♂️

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Al@Vegasrobaina

@TradingHase Which chart are you looking at? USD or EUR. Including div or excluding. If I look at the USD chart MAX including Div, then I am at a performance of TD +20%. With ex. Div still at +6%. In EUR it looks different of course, but please let me know your thoughts. I am very interested in how others than me look at the chart. I'm sure I still make a lot of mistakes and want to learn.

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Jarod@TradingHase

@Vegasrobaina I used your link and it is displayed in euros. For one year it shows minus. 🤷🏼‍♂️

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Markus@em_we

12H

Does anyone have a better alternative? In other words, cheaper, better performance and at least the same distribution.

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