2022 been a very challenging year for income-hungry investors who earlier relied on bonds. Some ETFs that use options to hedge against market losses and pay juicy dividends have been quite popular with investors.
The JPMorgan Equity Premium Income ETF
JEPI
aims to construct a diversified, low volatility portfolio of about 125 stocks. It generates additional income by writing out-of-the-money S&P 500 Index call options.
The actively managed ETF currently has an attractive 12-month rolling dividend yield of about 10%. Exxon Mobil
XOM
AbbVie
ABBV
are among its top holdings.
The Amplify CWP Enhanced Dividend Income ETF
DIVO
also aims to provide high income from both dividends and covered calls. Its managers pick about 25 high-quality large-cap companies with a history of dividend growth, and then write covered calls on individual stocks for extra income.
DIVO’s current distribution rate is close to 5%. UnitedHealth Group
UNH
and McDonald’s
MCD
are its top holdings.
Both these products have significantly outperformed the broader market this year and taken in a lot of cash. To learn more about these ETFs, please watch the short video above.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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