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Why I hold JEPQ - VXN, USD & cash flow

📊 Why I $JEPQ (-0,38%) hold - VXN, USD & cash flow

Briefly my thoughts on JEPQ (Nasdaq Equity Premium Income ETF):

1️⃣ VXN = key to distribution

JEPQ does not live from the Nasdaq itself, but from the Nasdaq 100 volatility (VXN).

If the VXN rises, option premiums become more expensive → higher distributions.

Quiet tech phases = weaker months, but no structural problem.

(Insert VXN chart here)

2️⃣ Distribution ≠ Yield

JEPQ is not a classic dividend ETFbut monetizes volatility.

High distributions are mainly made in nervous / sideways markets.

In strong tech bull markets, price gains are capped.

🔵 JEPQ thrives on precisely these movements

VXN > 22
→ Very good option premiums
→ High distributions (e.g. May/June 2025)
VXN 18-20 (now!)
→ Decent, but no peak distributions
VXN < 16
→ weak premiums
→ distributions like Feb 2025

3️⃣ Don't forget the currency (USD / EUR)

JEPQ distributes in USD distributions.

The following applies to us EUR investors:

weak euro → more € in the account
strong euro → same USD amount feels smaller

👉 Volatility and exchange rate determine the real cash flow.

Unfortunately, we euro investors are currently in the red, but the currency pair can turn around again. In the base currency, things are going exactly as they should

✅ Why I hold JEPQ

Income component alternative to bonds :-) not a growth ETF
Profits from tech volatility
Complements JEPI (VIX) very well
No timing, just let it run

At a current price of approx. 23,02 € my 1,866 shares have a market value of around 42.955 €

The result: the "double leverage"

The combination of the higher dividend yield and the tax advantage results in a huge difference:

The cash flow advantage: per year 1,254.66 more net cash available.
Monthly effect: That's 104.55 € extra per month that will be reinvested in my portfolio (World/S&P 500) through the tax savings alone.
Effective tax rate:I pay on the JEPQ distributions only approx. 18,46 % taxes on the JEPQ distributions, while the bond is fully taxed at 26.375%.

Jp's management is extracting a decent premium for us from the vola of the VXN, as a comparison of the VXN with the distribution history shows.

The real victory of this investment lies in the total return and this takes a little time :-)

In any case, the distribution in February rocks again

@Dividendenopi alternative to bonds for you?

36 Comentários

DeepQuality@DeepQuality

$WINC outperforms every CC ETF available in Germany by far and is clearly better actively managed.

But hey, at least not the garbage from GlobalX

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Beleggen M.@fund_whisperer_1682

@DeepQuality And that’s how it is ! 📈

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Yieldrology@Yield-Ahead

I find it enviable that you continue to represent your investment case for this ETF so consistently in the community.

I myself have now given up discussing the sense of covered call ETFs and their role in the portfolio here.

The recurring statements that the $WINC ETF is "better" than the JPM ETFs don't help anyone either.

The discussion here lags miles behind that of American and, above all, Canadian income investors.

Unfortunately, there are hardly any investors at Getquin who really pursue income strategies or take them seriously. As an aside, the Ben Felix video is also only a very narrow view of things... that of a growth investor.

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AI sagt@GoDividend

@Yield-Ahead The fact that more and more products are becoming available in Germany alone means that this type of system will continue to be discussed, and that's a good thing

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Yieldrology@Yield-Ahead

@GoDividend Yes. You're right. Invesco will soon be launching its own NASDAQ 100 CC ETF. That's an awesome thing too, US ticker QQA. Here is the UCITS registration

https://www.leinummer.de/leicert/254900O6L8HVCFOFJZ38/

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AI sagt@GoDividend

@Yield-Ahead keep up to date.
The methodology for these etfs is always different

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Yieldrology@Yield-Ahead

@GoDividend That is the point. Different management. Different result. The US counterpart is very promising, has mastered the rise after Liberation Day better than $JEPQ

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Susanne M.@Jogilein

Hey, I have the JEPQ, JGPI and the WINC and I think the WINC performs much better.

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SanSebastian@WarrenamBuffet

@Jogilein I also have the $WINC but it is not really comparable as the $JEPQ tracks the nasdaq and the $WINC tracks the MSCI World.

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AI sagt@GoDividend

@Jogilein The iShares World Equity High Income (WINC, IE000KJPDY61) is technically a very exciting counterpart to your J.P. Morgan setup.
While your JEPQ/JEPG relies on a combination of stock selection and ELNs (Equity Linked Notes), BlackRock (iShares) uses a hybrid construction with WINC.
Here are the three things that WINC does fundamentally differently:
1. the "Futures & Cash" model (The Engine).
This is the biggest technical difference:
JEPG/JEPQ: Invest physically in a basket of stocks and use ELNs to collect the option premiums.
WINC (IE000KJPDY61):
Invests in global equities but also uses S&P 500 futures and holds a portion in cash/money market instruments. He generates the high return by selling call options on the S&P 500.
What does that mean for you? The WINC is more dependent on how the volatility in the US market (S&P 500) develops, even if it holds global equities. Your JEPG is broader and more "traditional" in its stock selection.

Possibly also interesting 😅

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AI sagt@GoDividend

@Jogilein But basically I was more interested in what the etf actually does. It's always just a cover call and that's no good - in my opinion it's good, but not as a growth etf

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Dividendenopi👴@Dividendenopi

Thanks for mentioning it, it's interesting in principle and I'm also looking at it, but it's out of the question at the moment. My US share is maxed out at just over 30%. I'm currently looking more closely at the CCs from Neos, and I find $QQQI very exciting, among other things

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Solitair@Solitair

@Dividendenopi Do you know a German broker where you can buy it?

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AI sagt@GoDividend

@Dividendenopi more expensive, newer, interesting
If he also manages to preserve capital like JP Morgan, he will certainly become interesting

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Dividendenopi👴@Dividendenopi

@Solitair is basically difficult I think, I've asked my savings bank about it. They can selectively activate individual securities for individual trading. But I don't have any results yet. There are supposed to be neobrokers who enable trading. I think I once read about XTB and Firsttrade

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Dividendenopi👴@Dividendenopi

@GoDividend The TER is not without its drawbacks. I like the strategy of not having a capped potential for upsides and also the tax optimization. As I said, I'm in the process of familiarizing myself more deeply. Have at least done a lot better than the classic CC, for example $QYLE

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AI sagt@GoDividend

@Dividendenopi The one mentioned is definitely out 😅

Please let me know if the savings bank has done anything for you. The topic is and remains interesting as an alternative to bonds

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Solitair@Solitair

@Dividendenopi I am currently at break-even or slightly in the black with the $QYLE and would like to replace it. The Neos would be an alternative, but if it's not available in Germany, it will probably end up with the $WINC.

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Oleg@ScorpionfromBW

I don't think your savings bank will be able to pull anything out of a hat. This ETF is not USITS compliant, and I doubt that NEOS intends to register it in Europe. But you never know. I would also be interested, but apart from opening an account with a foreign broker, I have no other choice at the moment. And you can also do the tax yourself.

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Susanne M.@Jogilein

@Dividendenopi I also find it exciting, but as far as I know it is not approved in Europe and therefore not tradable

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Peter@Beeferking76

@Dividendenopi hold many of the Neos ETFs
Together with TappAlpha $TSPY $TDAQ and GoldmanSachs $GPIX $GPIQ, they are the best ETF managers for me.
Possible via Swissquote, but more expensive than the usual neobrokers, form the basis for my Income PF

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Oleg@ScorpionfromBW

@Beeferking76 Why don't you do it via IB, if you don't mind me asking? It's several times cheaper than Swissquote.

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Ver todas as 8 restantes respostas

Stulle 🥪@Stullen-Portfolio

Hasn't "game over" already been declared for this? ⛔🚱

https://getqu.in/qoHDPU/

And [subsequently added]:
https://hartmutwalz.de/covered-call-etfs/

Greetings
🥪

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AI sagt@GoDividend

@Stullen-Portfolio for asset accumulation is the heading

But what if you don't use a certain amount to build up your assets but as income?

Everyone has a different asset structure and not everyone is exclusively concerned with growth

Wealth needs more than just 1 table leg

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Stulle 🥪@Stullen-Portfolio

@GoDividend
As long as the table doesn't wobble: ✅

FunFact: a table with three legs NEVER wobbles! ✌️...but it's also kind of weird. 🤷😉😂

Greetings
🥪

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Peter@Beeferking76

@Stullen-Portfolio yes, if I were 25 I would see it the same way, but I don't have time for Growth anymore, so Income Strategy simply fits better. Everyone has to know for themselves... ✌️

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Stulle 🥪@Stullen-Portfolio

@Beeferking76
At least everyone decides for themselves, I agree with you. However, the "knowledge" about such investing should be objective or at least more objective -> the use and benefit of "knowledge" is then often subjective...🤷

But yes: your money, your decision. ✅
...and as long as you're happy, everything is great ✌️✅

Greetings
🥪

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Peter@Beeferking76

@Stullen-Portfolio for my children PFs everything goes into accumulating ETFs, they have enough time horizon. For me, I see < 10 years, so I just want to concentrate on income strategies (after I lost a lot of money in biotech gambles between 2011-2019 - my personal lesson 😬)

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