CMS Invests
Technology Investor, Options Trader, Finance at Kalshi
For building wealth during working years, the plain Nasdaq 100 ETF beats covered-call income funds like JEPQ. Since JEPQ's May 3, 2022 inception, QQQ returned 126.9% versus JEPQ's 85.1% including payouts, so $10k grew to $22,690 versus $18,510. These funds give the illusion of huge dividends while underperforming and generating bigger fees for Wall Street, capping wealth growth between ages 20 and 65. They can be useful in retirement for stable income that beats money markets, bonds and CDs. … Show more
SPYI, QQQI, JEPQ, JEPI and QDVO are tier-one income ETFs, pairing high yields with minimal NAV decay and solid records. NEOS' SPYI yields about 10-12% with very stable NAV, using a tax-efficient options strategy that keeps more upside than covered calls; QQQI applies it to the Nasdaq-100 for 13-15%. JPMorgan's JEPQ yields 8-10% via ELNs and JEPI 7-9% with a defensive tilt, while Amplify's QDVO yields 9-11% from growth stocks plus options income. x.com x.com x.com x.com x.com x.comÂ
JEPI and JEPQ carry a structural weakness: rigid, formulaic rules make them execute enormous option rolls at predictable times each month, a problem once funds reach tens of billions. @KrisAbdelmessih explains that covered call funds behave more like partial equity exposure, and that many still underperform appropriate lower-beta benchmarks over long periods because of execution friction and structural inefficiencies. x.com x.comÂ
JEPQ, Canadian Natural Resources, Canadian Pacific Kansas City, Coca-Cola and VICI Properties combine high yield with dividend growth in a simple, diversified income portfolio yielding about 6.17%. JEPQ gives Nasdaq exposure with monthly dividends, Canadian Natural is an energy leader and Canadian Pacific Kansas City a literal railroad monopoly, while Coca-Cola and VICI offer super-predictable cash flows from soda and Las Vegas real estate. x.comÂ
Schwab US Dividend Equity, JPMorgan Nasdaq Equity Premium Income, Vanguard S&P 500 and NEOS S&P 500 High Income together deliver monthly cash flow without selling shares, while SCHD and VOO add growth. The four-ETF portfolio produces almost $48,000 a year of passive income, with a goal of $80,000 by 2028. It is one piece of a wider portfolio, with rental real estate handling growth and tax efficiency. x.com x.com x.comÂ
JPMorgan Nasdaq Equity Premium Income ETF trades away upside for its monthly income. Its synthetic covered-call structure caps participation in the biggest up days, exactly where Nasdaq returns are concentrated, so its income math looks clean only until compared with simply holding QQQ over the same period. x.comÂ
Long-dated Treasuries now pay enough to beat gambling on leverage: a 30-year Treasury at 5.60% turns $5 million into $280,000 a year, about $23,333 a month, for 30 years without touching a stock or watching a chart. x.comÂ
JPMorgan is the only bank worth adding to a portfolio, mainly because of its CEO, and it just delivered a great quarter. x.comÂ
Verizon is attractive as a source of passive dividend income. At a roughly $0.69 quarterly dividend, 10,000 shares would pay about $6,900 every three months, or about $27,600 a year. x.comÂ
The NEOS S&P 500 High Income ETF suits investors who want cash income over capital appreciation. $400,000 in it could generate about $4,200 a month in distributions, versus about $347 a month from the Vanguard S&P 500 ETF. Both may deliver a similar total return of around 12%, one through more income and the other through more price appreciation. Critics such as @Budgetdog_ note the payout comes from a covered-call strategy that caps upside and may partly return capital. x.com x.comÂ