What You May Have Missed This Week...
JEPI vs. JEPQ, under-the-radar 5-star ETFs and how about that bitcoin ETF?
In addition to the regular posts here on Substack, I also publish ETF research and notes over on my blog, ETF Focus on TheStreet.
In case you wanted to catch up on the latest research above and beyond what you’re reading here, this is a quick list of some of the most recent articles from the blog!
JEPI vs JEPQ: Which High-Yield ETF Is Better For Retirement Income?
According to the ETF Central screener, the most popular actively managed ETF in terms of assets under management, or AUM as of June 19 is the JPMorgan Equity Premium Income ETF (JEPI). Since its launch in May 2020, JEPI has become wildly favorable among income and dividend investors, having accrued a massive $26.8 billion in assets under management. JEPI's lesser-known cousin is the JPMorgan Nasdaq Equity Premium Income ETF (JEPQ), which employs a similar strategy but tracks a much different underlying portfolio of stocks. Here’s how I would pick between the two if I was looking for an equity holding to plan for retirement income.
COWZ & DGRW: Two 5-Star Morningstar Rated ETFs On My Watchlist
Personally, I'm of the opinion that looking outside the box can uncover some unique, highly effective ETFs that may have escaped the attention of investors. One of my favorite ways to find these ETFs, is by checking for the ones with the highest Morningstar rating. The best ETFs have Morningstar ratings of 5-stars, signaling that on a risk-adjusted basis, they have outperformed the overwhelming majority of their category peers over various time periods. Here's a look at two on my watchlist: the Pacer US Cash Cows 100 ETF (COWZ) and the WisdomTree US Quality Dividend Growth ETF (DGRW).
BlackRock Bitcoin ETF Filing: Is This The One That Finally Gets Approved By The SEC?
Many ETF issuers have tried. VanEck, Invesco, Valkyrie and ARK are among the ETF players that have filed to launch spot bitcoin ETFs. All have been rejected by the SEC. But the whole landscape changed last week when BlackRock, the world's largest asset manager, filed to launch its own bitcoin ETF. There have been more than 30 different bitcoin ETF filings going back a few years and none of them have made it to market. The two big questions now are...
Does BlackRock know something that the rest of the market doesn't?
Would BlackRock be able to jump the line in terms of who would get approved first?
AI vs. AI: 2 ETF Strategies For Adding Artificial Intelligence To Your Portfolio
With the emergence of ChatGPT over the past 6 months as a way for virtually anybody to harness the power of artificial intelligence, investors have been piling back into tech and growth stocks in 2023. The Nasdaq 100 (QQQ) is up more than 35% year-to-date and has easily become THE trade of the year. Naturally, the begs the question of how ETF investors can jump on the trend. Issuers are usually pretty quick to get products to market once a new trend hits. We saw it with blockchain. We saw it with work-from-home. We saw it with hyperinflation. And we’re now seeing it with artificial intelligence.
QYLG: Why I Like This Covered Call ETF Yielding Above 5% Better Than QYLD
The term "there is no free lunch in investing" has never been better encapsulated than by covered call ETFs. One of my favorite ETFs to watch in this space is the Global X NASDAQ 100 Covered Call ETF (QYLD). I did a deep dive on this ETF previously and noted that despite its double-digit yield, it's been a disappointment historically. Sure, income investors may love it, but for the rest of us looking for long-term compounding QYLD probably isn't a great idea. Recently, I discovered that QYLD had a lesser-known cousin, the Global X Nasdaq 100 Covered Call & Growth ETF (QYLG).
QRMI: Is This Defensive Income ETF Yielding 12% a Better Alternative to NUSI?
After a dismal 2022 that saw NUSI fall by around -28%, I think it's worth looking at some ETF alternatives to NUSI that also utilize the net-credit options collar strategy. One ETF that stands out in particular to me is the Global X Nasdaq 100 Risk Managed Income ETF (QRMI), which is more or less a direct competitor to NUSI. So far, it's been substantially less popular, having only accrued around $10 million in assets under management, or AUM compared to NUSI's $443 million in AUM. Let's compare both ETFs and see which one is the better buy.
DUHP: High Profitability Stocks Are A Must-Have In This Market
After investors finally started to pay attention to fundamentals again in 2022, they've returned to old habits in 2023. With the U.S. economy demonstrating surprising resilience and investors getting overly giddy about the potential of AI, tech stocks have roared back to life. For the time being, investors don't seem particularly concerned about inflation, high interest rates, a housing market downturn or the potential for recession in the coming quarters. They're interested in swinging for the fences in an attempt to capture maximum returns. That's not going to last though.