JPMorgan introduced two new ETFs, ROCY and ROCQ, designed to reduce the tax burden on income for investors holding shares in taxable accounts. Unlike JEPI, which generates mostly ordinary income taxable annually, these new funds focus on return-of-capital distributions that defer taxes until shares are sold, potentially as capital gains. The new ETFs have a more concentrated portfolio in mega-cap tech stocks and are still building a full distribution track record. They offer a tax-aware option for investors facing high ordinary income taxes on JEPI payouts, especially in taxable brokerage accounts, while JEPI remains preferable in tax-advantaged accounts like IRAs or 401(k)s.
JPMorgan's JEPI ETF has seen its monthly payouts decrease throughout 2026 despite the S&P 500 rallying strongly. JEPI's strategy of selling option premiums on low-volatility stocks limits upside gains, making it underperform in a calm, rising market....
Covered-call ETFs offering 8%+ yields generate mostly non-qualified income taxed at ordinary rates in taxable accounts, reducing net returns. Holding four specific ETFs—SPYI, JEPI, JEPQ, and DIVO—in a Roth IRA shields investors from these taxes, pres...
