My $100,000 Dividend Portfolio Decision — JEPI, SPYI, Or XYLD
Portfolio Pulse from Austin Hankwitz
The article discusses the performance of three covered call ETFs: JEPI, SPYI, and XYLD, in 2024. SPYI has outperformed with a 16.5% total return and an 8.9% yield, benefiting from out-of-the-money call strategies and favorable tax treatment. JEPI and XYLD have lower returns and yields, with JEPI offering lower volatility but higher tax implications. The author has chosen SPYI as a core holding in their income-focused portfolio.
October 15, 2024 | 3:52 pm
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POSITIVE IMPACT
SPYI achieved a 16.5% total return in 2024, outperforming JEPI and XYLD. It benefits from out-of-the-money call strategies and favorable tax treatment.
SPYI's strategy and tax efficiency have led to superior performance, making it a preferred choice for income-focused investors.
CONFIDENCE 95
IMPORTANCE 80
RELEVANCE 90
NEUTRAL IMPACT
JEPI delivered a 13.3% total return in 2024, capturing 58% of the S&P 500's return. It offers lower volatility but higher tax implications due to its use of ELNs.
JEPI's performance is moderate with a focus on lower volatility, but its tax treatment is less favorable compared to competitors, impacting net income.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEUTRAL IMPACT
XYLD delivered a 13.0% total return in 2024, capturing 57% of the S&P 500's return. It uses at-the-money call strategies, limiting upside potential.
XYLD's at-the-money call strategy limits its upside, resulting in underperformance compared to SPYI, despite favorable tax treatment.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80