JP Morgan Debuts Nasdaq 100 Based Income ETF

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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