Introduction

The JPMorgan Equity Premium Income ETF (JEPI) stands out as a unique high-yield ETF option. Unlike traditional dividend stock funds, JEPI has about 100 well-known stocks in its portfolio, such as AbbVie and Visa.

What makes JEPI different is that it also uses covered calls – options that are sold to earn a premium – to enhance the dividends from those stocks.

This results in JEPI offering a yield more than six times that of the S&P 500.Covered call options usually involve selling options that are "out of the money," making them beneficial if the market sees a significant rise.

Conclusion

While this strategy can limit potential gains if the market surges, JEPI has shown to be less affected by market downturns in 2022 due to this unique approach.