JP Morgan Income ETFs: A Comprehensive Guide

JP Morgan Income ETFs are designed to provide investors with a regular income stream, while also offering the potential for long-term growth.

These ETFs are built on the strength of JP Morgan's investment expertise, with a focus on generating consistent income through a diversified portfolio of bonds and other income-generating securities.

JP Morgan Income ETFs offer a range of strategies, including core fixed income, high yield, and alternative income, to suit different investor needs and risk tolerances.

By investing in a JP Morgan Income ETF, you can gain exposure to a diversified portfolio of income-generating securities, managed by experienced investment professionals.

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The JPMorgan Income ETF has a performance of 0.12% for the current year, which is a relatively modest gain. Its performance since inception is -6.58%, indicating a decline over the long term.

The fund's alpha, which measures its excess return relative to the market, is 0.67% over the past year. This suggests that the fund has outperformed the market slightly. In contrast, its beta, which measures its volatility relative to the market, is 1.00% over the past year, indicating that the fund's returns have been closely tied to the market's performance.

Here are some key performance metrics for the JPMorgan Income ETF:

The fund's portfolio turnover rate is 162%, which is higher than the average for the Multisector Bond category. This may result in higher expenses and lower after-tax returns.

The performance of JPMorgan Income ETF (JPIE) is a key aspect to consider. JPIE has a current year performance of 0.12%, which is a relatively modest gain.

One notable aspect of JPIE's performance is its high portfolio turnover rate of 162%, which can lead to higher expenses and lower after-tax returns. This is a significant consideration for investors.

In terms of returns, JPIE has a 1-year trailing return of 1.93%, which is a decent gain. However, its 3-year trailing return is -2.09%, indicating a decline in performance over the longer term.

Here's a summary of JPIE's performance metrics:

JPIE's performance can be compared to its peers in the Multisector Bond category, with an average return of 0.9% in January 2025. This earned JPIE a grade of B, indicating a solid performance relative to its peers.

The fund's managers have an average tenure of 3.3 years, with the longest tenure being 3.3 years. This level of experience can be beneficial for investors seeking stability and consistency in their investments.

So, let's talk about Return Trailing Ranking. This metric shows how a particular investment or fund has performed over time compared to its peers.

The JPIE Return is a key metric here, and it's worth noting that in the 1-year period, JPIE Return was 7.0%.

Looking at the 3-year period, we can see that JPIE Return was 2.5% when annualized.

One thing that's interesting is that the Category Return Low is consistently negative across all periods, ranging from -33.0% to -29.6%.

Here's a breakdown of the Rank in Category percentage for the YTD period: 94.44% and 95.39% for the two different Return Trailing Ranking tables.

Here's a summary of the Rank in Category percentage for the 1-year period: N/A for both tables.

Here's a summary of the Rank in Category percentage for the 3-year period: N/A for both tables.

Here's a summary of the Rank in Category percentage for the 5-year period: N/A for both tables.

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Here's a summary of the Rank in Category percentage for the 10-year period: N/A for both tables.

It's worth noting that the Category Return High varies across periods, ranging from 52.0% to 38.5%.

The JPIE Return is higher than the Category Return Low in all periods, which suggests that JPIE has outperformed its category peers.

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The operating fees of JPMorgan Income ETF are something to consider when investing. The fund has a portfolio turnover rate of 162%, which is higher than the average portfolio turnover of 148% for the Multisector Bond category.

This high turnover rate can result in higher expenses and lower after-tax returns. It's essential to weigh the potential benefits of the fund against these additional costs.

The fund's fees are not explicitly stated in the provided information, but we can look at the overall performance of the fund to gauge its efficiency. In January 2025, the fund returned 0.9%, earning it a grade of B.

Here's a quick rundown of the fund's management structure:

The fund has a team of three managers, with an average tenure of 3.3 years. This consistency in management could be beneficial for long-term investors.

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JEPI's holdings are subject to frequent changes due to its high portfolio turnover rate of 172%. This means the fund's management actively trades a significant portion of its holdings throughout the year.

Nvidia is the largest holding in JEPI, making up 3.43% of the fund's portfolio. Other top holdings include Amazon and Meta Platforms.

JEPI has a balanced sector allocation compared to the broader market, with significant investments in technology, financials, healthcare, and industrials. The fund's top sectors are represented in the table below:

The JPMorgan Income ETF has a trailing dividend yield of 6.08%, which is above the 5.60% category average.

This fund normally distributes its dividend income monthly, providing a regular stream of returns for investors.

The ETF's performance is a key consideration for investors seeking to maximize their returns.

Its high dividend yield suggests that it may be a good option for those seeking income-generating investments.

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However, it's essential to consider the relationship between risk and return, as well as the impact of costs and taxes on realized returns.

This means that investors should carefully evaluate the ETF's performance in the context of their overall investment goals and risk tolerance.

The fund's monthly dividend distribution can provide a regular source of income, but it's crucial to consider the long-term implications of this strategy.

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The JPMorgan Income ETF is a solid investment option, and let's take a closer look at its fund details.

The JPMorgan Income ETF has a legal name of JPMorgan Income ETF, which is a straightforward and descriptive title.

This fund is part of the JPMorgan Funds family, a well-established and reputable name in the investment world.

The JPMorgan Income ETF was launched on October 28, 2021, marking its inception as a viable investment choice.

Here's a quick rundown of the fund's details:

The fund is denominated in US dollars, which can be beneficial for investors looking to minimize currency risks.

The bond geographic breakdown is a crucial aspect of investment diversification.

The US accounts for a significant 89.61% of the bond weighting.

Non-US bonds, on the other hand, have a much lower weighting of 0.00%.

The return on US bonds has been quite volatile, ranging from a low of -151.11% to a high of 194.51%.

Non-US bonds have also experienced significant returns, but with a much narrower range of -136.75% to 90.11%.

Here's a summary of the bond geographic breakdown:

The JPIE % Rank for US bonds is 25.31%, indicating a relatively average performance. Non-US bonds, however, have a much higher JPIE % Rank of 74.97%, suggesting a stronger performance.

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The holdings of the JPMorgan Equity Premium Income ETF (JEPI) are quite interesting. As of November 2024, the top holdings in JEPI include Nvidia, Amazon, and Meta Platforms.

These companies make up a significant portion of the fund's portfolio. Nvidia holds a 3.43% stake, Amazon holds a 1.52% stake, and Meta Platforms holds a 4.23% stake.

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JEPI's portfolio turnover rate is extremely high, coming in at 172%. This means that the fund's management actively trades a significant portion of its holdings throughout the year.

Here are the top holdings in JEPI, in no particular order:

JEPI's sector allocation is more balanced compared to the broader market, with significant investments in technology, financials, healthcare, and industrials.

JEPI is a specialized ETF that has successfully met its objectives of providing high monthly income and lower volatility.

Its covered call strategy will likely underperform in a bull market where it caps potential upside returns.

This means that if the market is rising, JEPI might not keep pace with the gains of other investments.

The tax treatment of its distributions, predominantly ordinary income, makes it less tax-efficient.

It's best to hold JEPI in tax-advantaged accounts like a Roth IRA to optimize returns.

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When analyzing the performance of an investment, it's essential to consider its total return ranking. The total return ranking is a measure of how an investment has performed compared to its peers over a specific period.

In the table below, we can see the total return ranking for the JPIE investment over various periods.

We can see that over the YTD period, the JPIE investment had a return of 0.8%, ranking it 95.39% in its category. This indicates that the investment performed relatively well compared to its peers.

In the world of investment analysis, understanding concentration is key. Concentration refers to how focused an investment portfolio is on a small number of assets.

A key metric to evaluate concentration is the number of holdings in a portfolio. According to the data, JPIE has a relatively low number of holdings at 1547, ranking 38.59% in terms of number of holdings.

The net assets in the top 10 holdings is another important factor. JPIE's net assets in the top 10 holdings is a significant 413 million, ranking 85.89% in terms of net assets in the top 10.

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The weighting of top 10 holdings is also a crucial aspect of concentration analysis. JPIE's top 10 holdings account for a substantial 22.07% of its net assets.

Here's a comparison of JPIE's concentration metrics with Category Low and Category High:

These numbers give us a better understanding of JPIE's concentration and how it compares to other categories.

JEPI operates as an actively managed derivative income fund, which focuses on potentially undervalued companies within the S&P 500, emphasizing those with lower volatility and favorable ESG criteria.

This approach aims to provide investors with a dual benefit: regular income through the premiums collected from options and potential price appreciation from the underlying stocks.

JEPI might be an ideal investment for someone with a moderate risk tolerance who values immediate income over the potential for higher capital appreciation later on.

JEPI operates as an actively managed derivative income fund, which may sound complex but is quite straightforward when broken down.

It picks stocks, focusing on potentially undervalued companies within the S&P 500, emphasizing those with lower volatility and favorable environmental, social, and governance (ESG) criteria.

JEPI's strategy involves derivatives, specifically equity-linked notes (ELNs), which enable it to engage in a strategy akin to selling out-of-the-money covered calls against the S&P 500.

This approach aims to provide investors with a dual benefit: regular income through the premiums collected from these options and potential price appreciation from the underlying stocks.

JEPI may not match the S&P 500 in terms of price appreciation, but it offers a trade-off of potentially lower volatility and higher, more consistent income.

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To buy JEPI, you'll need to open your brokerage app and log into your account. This is where you'll manage your investments, so make sure you're logged in.

Search for the ETF by entering "JEPI" in the search bar, and be sure to select "stock" instead of "options" to get the correct results. This is important to avoid buying the wrong thing.

Decide how many shares to buy based on your investment objectives and portfolio allocation. This will help you determine how much of your portfolio to put into JEPI.

You can choose between a market order to buy at the current market price or a limit order to set a maximum price per share. This will ensure you get the price you want.

Submit your order by double-checking the details and confirming it, then wait for it to be executed.

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If you're considering investing in JPMorgan Equity Premium Income ETF (JEPI), it's essential to understand your investment goals and risk tolerance. JEPI is ideal for someone with a moderate risk tolerance who values immediate income over potential capital appreciation.

JEPI's monthly distributions can provide a regular income stream, which is a significant advantage for investors who need immediate income. This can be particularly beneficial for retirees or those living off their investments.

However, JEPI's low-volatility strategy and use of covered calls through ELNs can limit its upside potential, making it less attractive for growth-oriented investors who prioritize capital gains.

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