S&P 500 Monthly 7% Yield Play

Trying to find a way to reduce volatility while receiving an attractive dividend yield? It's an age old pursuit for income investors, some of whom use options to help them achieve that end. We recently covered the Global X NASDAQ 100 Covered Call ETF (QYLD) in one of our articles. This article will focus on S&P-500-based covered call funds, which seek to enhance yield and/or lessen volatility via covered calls.

The JPMorgan Equity Premium Income ETF (JEPI) "Seeks current income while maintaining prospects for capital appreciation. The fund seeks to provide the majority of the returns associated with its primary benchmark, the Standard & Poor's 500 Total Return Index, while exposing investors to less risk through lower volatility and still offering incremental income. Under normal circumstances, the fund invests at least 80% of its assets in equity securities. It may also invest in other equity securities not included in the S&P 500 Index. The fund "generates income through a combination of selling options and investing in U.S. large cap stocks, seeking to deliver a monthly income stream from associated option premiums and stock dividends."

Source: Seeking Alpha

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