Anyone care to give the pros and cons of JEPI. I currently have about 5% of my investment portfolio in this and have had it for a few months. Its a covered call ETF and set to be the top actively managed ETF due to the influx of people jumping on this. My rough understanding is this etf invests primarily in top 100 companies across all sectors. " Every stock in the fund is capped at 2%, while sectors are capped at 17.5%."
Correct me if Im wrong but this would be a good play for a downward market, a side ways market, and a slow moving upward market. The only downside is gains are capped if the stocks rise too quickly. It pays a monthly dividend and the yield is about 11% due to option premiums and individual stock dividends. That is my rudimentary understanding of it. The reason I ask is I am wanting to significantly increase my exposure as high as 25% or even more but want to do some more due diligence first. Here is one of the articles that I quoted above. Someone convince me this is the wrong play and there is a serious risk to this type of investment.
https://finance.yahoo.com/news/jp-morgan-jepi-soars-set-223000668.html