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JPMorgan ETF vs. benchmark

Why is the JPMorgan ETF underperforming? $JEGP (-0.3%)
$VWRL (-1.12%)

Covered call strategy limits price gains:

The ETF cannot fully participate in strongly rising markets as the option premiums cap the price gains.

Defensive structure in a falling market does not help here:

The decline in March/April was sharp - apparently the option strategy was also unable to cushion the losses. cushion the losses.

Dividends are not visibly taken into account:

The real effect on earnings (e.g. through distributions) could be higher, but is not fully not fully priced into the share price priced into the share price.

9 Comments

KingC@RaphGM

You can't collect 8% dividends per year and expect to outperform the market. 🤷

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Banana M.@Banana_Millionaire

@RaphGM probably mean per year 😉

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KingC@RaphGM

@Banana_Millionaire yes, that's exactly what I meant 😅
Corrected, thank you!

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Nico@_Harry_

🙏🏻

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Fortunus@Quiny

@RaphGM Yes, that's exactly what $WINC is designed for. At least roughly the same performance as the market + approx. 9% distribution per year.

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Yieldrology@Yield-Ahead

Sorry, but it doesn't make the slightest bit of sense to compare this actively managed ETF with an uncapped all-world ETF. Its benchmark is perhaps (!) an MSCI World Minimum Volatilty ETF $MVOL. What do you want to achieve with your contribution?

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Orange@trader_6666

23H

@RaphGM If you look at last year's past figures, then yes. Even including dividends, $JEGP is behind the MSCI World.

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Stulle 🥪@Stullen-Portfolio

Since when do you need a rational reason for your fetish? 🤷😉

Greetings
🥪

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Oktoberfest@Oktoberfest

19H

The ETF is in USD, which has lost almost 14% in value. Where is it supposed to come from?

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