JP Morgan Debuts Nasdaq 100 Based Income ETF

The bank is replicating its popular 'JEPI' fund to track the tech-heavy index.

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Reviewed by: Dan Mika
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Edited by: Dan Mika

J.P. Morgan Asset Management is copying the structure of its most popular U.S. equity ETF in a new fund using the Nasdaq-100 as a benchmark. 

The JPMorgan Nasdaq Equity Premium Income ETF (JEPQ) debuted on the Nasdaq Wednesday with an expense ratio of 0.35%. 

JEPQ is an income-seeking fund that actively manages a portfolio of stocks in the Nasdaq-100, along with a mix of equity-linked notes, and that sells call options against the index. The goal is to produce similar returns to the tech-heavy index but with lower volatility and some revenue. 

The strategy is fundamentally the same as the $8.9 billion JPMorgan Equity Premium Income ETF (JEPI), which applies the methodology to companies in the S&P 500. Both funds share Hamilton Reiner, J.P. Morgan’s head of U.S. equity derivatives, as their portfolio manager. 

 

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Dan Mika is a reporter for etf.com. He has previously covered business for the Ames Tribune and Cedar Rapids Gazette in Iowa, and BizWest Media in Fort Collins, Colorado. Dan holds a bachelor's degree in journalism from Truman State University.