The JPMorgan Nasdaq Equity Premium Income ETF (JEPQ) offers retail investors a unique high-yield strategy by providing exposure to leading technology companies, including high-quality stocks like Nvidia, Apple, and Amazon.

This ETF delivers lower-volatility exposure to the Nasdaq-100 while also offering monthly income, making it an attractive option for those seeking diversification from traditional high-yield sectors.

Currently, JEPQ boasts an annualized yield of 9.6%, which is primarily generated through its strategy of writing options rather than from the low dividend yields of its top holdings.

The ETF's strategy involves selling call options, which not only generates income but also mitigates downside exposure during poor market conditions.

Since its inception in May 2022, a hypothetical $10,000 investment in JEPQ has yielded about $3,500 in income and appreciated to $11,000, resulting in a total return of 43%.

JEPQ's performance highlights its ability to limit downside risk during market declines, enhancing total returns when dividends are reinvested.

The ETF employs a two-pronged investment strategy, combining an underlying equity portfolio constructed through data science and fundamental research with a disciplined options overlay strategy.

Its active management approach allows for optimal risk-adjusted returns, adjusting allocations based on stock performance, such as favoring Oracle over underperforming stocks like Moderna.

JEPQ invests at least 80% of its assets in equities within the Nasdaq-100 index and up to 20% in equity-linked notes (ELNs) that sell call options on the index.

In comparison to traditional high-yield assets, which yield around 7% for U.S. bonds and below 4% for REITs and 10-year Treasury bonds, JEPQ stands out with its higher yield.

For instance, a $10,000 investment in JEPQ could yield approximately $990 annually, significantly outperforming the $80 from a standard Nasdaq-100 ETF like Invesco QQQ Trust.

The Nasdaq-100 Index, which JEPQ tracks, focuses on growth stocks and has notably outperformed the S&P 500, doubling its returns over the past 15 years.