Smart Money Turns to JEPQ for Income and Calm in a Volatile Market
Key Points
Initiated a new stake of 83,771 shares in JEPQ, valued at $4.56 million
Trade represented a 4.0% increase relative to 13F reportable assets under management as of June 30, 2025
Post-trade holding: 83,771 shares valued at $4.56 million, or 4.0% of fund AUM
JEPQ becomes the fund’s 2nd-largest holding following the trade
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On October 8, 2025, Sheets Smith Investment Management disclosed a new position in J.P. Morgan Exchange-Traded Fund Trust - JPMorgan Nasdaq Equity Premium Income ETF (NASDAQ:JEPQ), acquiring 83,771 shares in an estimated $4.56 million trade.
What happened
According to a filing with the Securities and Exchange Commission dated October 8, 2025, Sheets Smith Investment Management initiated a new position in J.P. Morgan Exchange-Traded Fund Trust - JPMorgan Nasdaq Equity Premium Income ETF (NASDAQ:JEPQ). The fund reported holding 83,771 shares, valued at $4.56 million. This marks the fund’s first reported ownership of the ETF.
What else to know
This new position now represents 4.0% of Sheets Smith Investment Management’s reportable assets under management.
Top holdings after the filing:
- VCSH: $8.05 million (7.1% of AUM)
- JEPQ: $4.56 million (4.0% of AUM)
- VCIT: $3.26 million (2.9% of AUM)
- CRS: $2.88 million (2.5% of AUM)
- NVDA: $2.84 million (2.5% of AUM)
As of October 7, 2025, shares were priced at $57.32, up 6.0% over the past year and outperforming the S&P 500 by 0.9 percentage points
JEPQ’s indicated dividend yield is 10.4% as of October 8, 2025; the fund is 1.5% below its 52-week high as of October 7, 2025
Sheets Smith Investment Management reported $113.90 million in 13F assets across 71 positions for the period ended June 30, 2025.
Company overview
| Metric | Value |
|---|---|
| AUM | 30.71 B |
| Price (as of market close October 7, 2025) | $57.32 |
| Dividend yield | 10.4% |
| One-year total return | 6.0% |
Company snapshot
JPMorgan Nasdaq Equity Premium Income ETF (JEPQ) is a large-scale, income-focused ETF with a market capitalization of $31.11 billion as of October 8, 2025. The fund employs an active options-based strategy to enhance yield while maintaining exposure to leading Nasdaq-100 equities.
Investment strategy focuses on generating income and capital appreciation by actively managing a portfolio of equity securities, primarily those in the Nasdaq-100 Index, and selling call options through equity-linked notes (ELNs).
The portfolio composition reflects the Nasdaq-100 benchmark, with additional income generated from option premiums. It is structured as a non-diversified exchange-traded fund focused on income generation.
Foolish take
Sheets Smith's new position in the JPMorgan Nasdaq Equity Premium Income ETF (JEPQ) signals a growing appetite among managers for income-focused equity exposure. JEPQ blends Nasdaq-100 stocks with an options overlay that converts volatility into cash flow. For investors navigating an uncertain rate path, the fund's double-digit yield offers a cushion against a uneven market climate.
JEPQ allows investors to stay in the tech-heavy part of Nasdaq while collecting option premiums that generate monthly income rather than chasing high growth names directly. This structure can appeal to investors prioritizing steady returns over full participation in market rallies. The trade off is that when stocks surge, its capped upside may limit gains. However, that is a fair exchange for steadier returns in a shifting market landscape.
JEPQ has steadily gained tractions among portfolio managers who value consistent cash flow over chasing every market rally. Its blend of equity exposure and options income gives it power in a world where both growth and yield are hard to find simultaneously. Should markets stay volatile, JEPQ's steady strategy could prove less of a shield and more a path to long term compound growth.
Glossary
Exchange-Traded Fund (ETF): An investment fund traded on stock exchanges, holding a basket of assets like stocks or bonds.
Assets Under Management (AUM): The total market value of investments that a fund or firm manages on behalf of clients.
13F Report: A quarterly filing by institutional investment managers disclosing their equity holdings to the SEC.
Dividend Yield: Annual dividends paid by a fund or stock divided by its current price, expressed as a percentage.
Equity-Linked Notes (ELNs): Structured financial products combining fixed-income and equity features, often used to generate income through options.
Call Options: Financial contracts giving the buyer the right to purchase an asset at a set price within a specific period.
Option Premiums: The income received by selling options contracts, often used to enhance yield in investment strategies.
Non-diversified Fund: A fund that invests in a limited number of securities or sectors, increasing potential risk and reward.
Income-Focused ETF: An ETF designed primarily to generate regular income, often through dividends or option strategies.
Active Management: An investment approach where managers make specific buy and sell decisions to outperform the market or benchmark.
Benchmark: A standard, usually an index, against which the performance of a security or fund is measured.
Total Return: The investment's price change plus all dividends and distributions, assuming those payouts are reinvested.
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Eric Trie has positions in Nvidia. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.
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