Money market funds currently offer yields around 3.5%, closely matching headline inflation, resulting in near-zero real returns for investors. Despite this, a record $8.44 trillion remains parked in these funds due to their safety and liquidity. To improve returns without losing cash-like qualities, investors can consider a four-step ladder approach: AAA-rated CLOs for modest real yield, BBB-B CLO tranches for higher coupons with added credit risk, tax-exempt municipal income funds for tax advantages, and equity income ETFs for growth with some risk. Each option involves trade-offs in risk and tax treatment, so allocation should depend on individual risk tolerance, tax status, and emergency cash needs.
Retirees relying on the JPMorgan Equity Premium Income ETF (JEPI) for monthly income may face tax challenges due to a $12,000 senior deduction phase-out starting at $150,000 modified adjusted gross income (MAGI). JEPI's distributions are mostly ordin...
The NEOS S&P 500 High Income ETF (SPYI) offers a headline yield near 12%, but about 95% of its payouts this year are return of capital, meaning investors are getting back their own principal rather than income. SPYI charges a high 0.68% fee compared ...
The JPMorgan Equity Premium Income ETF (JEPI) is underperforming in 2026 with a 5.72% return compared to the S&P 500's 11.83%, due to its defensive stock selection and call option strategy that limits upside in a tech-driven market rally. Competing E...
