JEPQ generates 9-11% monthly distribution
JPMorgan Nasdaq Equity Premium Income ETF holds Nasdaq-100 stocks like NVIDIA and Apple.
The ETF generates its distribution by selling call options through equity-linked notes.
These notes represent unsecured bank debt from major banks, creating counterparty credit risk.
The ETF’s 0.35% expense ratio is competitive, and it has delivered 28.5% over the past year.