JPMorgan Nasdaq Equity Premium (JEPQ) YTD inflows hit $3.8B

September 06, 2023 05:20 AM PDT | By Invezz

JPMorgan Nasdaq Equity Premium (JEPQ) YTD inflows hit $3.8B — Image source: Invezz

JPMorgan Nasdaq Equity Premium still having inflows

The JEPQ ETF is one of the newest and most popular funds in the industry. Its goal is to track the biggest technology companies in the United States and take part in their growth. At the same time, the fund aims to provide investors with an attractive yield.

JP Morgan launched the fund after the success of its JEPI ETF, which I wrote about here. It allocates 80% to companies in the Nasdaq 100 index. The remaining 20% is allocated to equity-linked notes (ELNs) by selling call options with exposure to the index.

By having this combination, the fund aims to benefit from their historical outperformance while providing some income. As such, while Invesco QQQ has a dividend yield of less than 2%, JEPQ fund has a yield of 11.39%. Most importantly, the fund pays its distributions every month.

It seems like investors are loving JEPQ as the amount of inflows has continued rising. Data shows that the fund now manages over $5.2 billion in assets. Its inflows peaked at $770.7 million in July this year.

In all, the fund has added over $3.8 billion this year, signaling that demand remains significantly high.

JEPQ is not alone as other similar actively managed funds are also seeing robust growth. JEPI has added over $11 billion this year, bringing its total assets to over $29 billion. Similarly, the JPMorgan Income ETF has seen inflows of over $322 million, bringing the total to over $600 million.

JEPQ stock forecast

I believe that Invesco QQQ and QQQM are two of the best funds to invest in, thanks to their long-term performance. As I recommended in this report, investors in these funds should consider allocating some cash to JEPQ. Similarly, SPY investors should invest in JEPQ.

On the daily chart, we see that the shares have been in a strong bullish trend in the past few months. It has soared above the 50-day and 100-day moving averages and the ascending trendline shown in red.

Now, the stock is attempting to move above its all-time high. I suspect that it will soon clear this barrier as buyers target the key resistance at $50. A break above this level will see it soar to the next resistance at $60.

The post JPMorgan Nasdaq Equity Premium (JEPQ) YTD inflows hit $3.8B appeared first on Invezz.

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