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What do you think of holding JEPI?

2 Posts
2 Users
Posts: 7
Topic starter
Active Member
Joined: 3 years ago

What are your thoughts on holding JEPI, or a similar type fund, instead of or in addition to bond funds?  It hasn't been around that long but it has shown to outperform in flat or declining markets which is what many think we will be dealing with for the next few years.  It does this partially by writing calls as part of its investment strategy.  By doing this it limits the upside, but also the downside.  Isn't that what we look for from our bond allocation but could a fund like this do it better or at least similarly while providing additional diversification?  The expense ratio is higher than index funds but lower than other actively managed funds which it is.  I'm currently 100% equities (VTSAX) but plan to switch to 70/30 when I retire in 2-3 years so I am looking for options other than putting that 30% all into bond funds.  Thanks. 

1 Reply
Posts: 349
Joined: 8 years ago

Not recommended. It's not a substitute for bonds. The yield is pumped up by selling covered calls. It's still mostly equity beta.