The Infrastructure Capital Equity Income ETF (ICAP) uses a selective covered call strategy on 30-40% of its holdings, allowing for higher yield and better net asset value growth compared to JEPI. ICAP's forward yield exceeds 10%, with stable and increasing distributions, and it has achieved over 14% share price appreciation in the past year. Despite using 10-20% leverage, ICAP manages portfolio risk to maintain a beta near 1.0, similar to the broader market. This approach provides investors with a more sustainable and stable income stream while still participating in market upside.
A retirement income portfolio targeting a 5% blended yield can be built using three ETFs: Schwab US Dividend Equity ETF, JPMorgan Equity Premium Income ETF, and Vanguard Short-Term Corporate Bond ETF. Allocating $350,000, $200,000, and $200,000 respe...
Sébastien Page, CIO at T. Rowe Price, warns that long-duration U.S. Treasuries might fail as inflation hedges if inflation exceeds market expectations, causing bond prices to fall. With inflation measures like core CPI and core PCE rising, traditiona...
The JPMorgan Equity Premium Income ETF (JEPI) offers an 8.5% distribution yield, but due to its use of equity-linked notes (ELNs), most of its income is taxed as ordinary income rather than at lower capital gains rates. For investors in the 32% feder...
