Why Everyone Is Talking About JEPI, JEPQ and SPYI in 2025!

About this Video

• Video Title: Why Everyone Is Talking About JEPI, JEPQ and SPYI in 2025!
• Channel: Permission To Be Wealthy
• Speakers: Stephanie
• Duration: 00:21:53

Introduction

This video compares three popular covered call ETFs (JEPI, JEPQ, and SPYI) focusing on their yields and after-tax returns. The speaker emphasizes the importance of considering tax implications when choosing an income ETF, highlighting the difference between qualified and non-qualified dividends. The video analyzes the ETFs' performance in bear, bull, and sideways market scenarios.

Key Takeaways

• Covered Call ETFs Explained: Covered call ETFs generate income by selling call options on the underlying assets, distributing the premiums to shareholders.
• JEPI, JEPQ, and SPYI Comparison: The video compares the yields, expense ratios, and risk profiles of JEPI (large-cap equities), JEPQ (NASDAQ 100 growth stocks), and SPYI (S&P 500 with a unique option strategy).
• Tax Implications of Dividends: The video stresses the significant impact of taxes on investment returns, differentiating between qualified (lower tax rates) and non-qualified dividends (higher tax rates). A significant portion of the income from covered call ETFs is often non-qualified.
• After-Tax Yield Analysis: A hypothetical scenario demonstrates how after-tax yields can differ significantly from headline yields, impacting the actual return on investment. SPYI emerges as the potential winner in this specific scenario after accounting for taxes.
• Market Performance Comparison: The video analyzes how the three ETFs perform in different market conditions (bear, bull, sideways), showing the trade-offs between high income and capital appreciation.