The Most Dangerous Dividend ETF Investors Keep Buying

The JPMorgan Equity Premium Income ETF (JEPI), a $44 billion covered call ETF, has underperformed significantly since 2023 despite continued investor inflows. While it outperformed the S&P 500 by 15 percentage points in 2022, it has returned only 34% since early 2023 compared to the S&P 500's 99% return. The fund's 8% yield is driven by option premiums rather than dividends and is dependent on market volatility, making a repeat of 2022's performance unlikely in rising markets.