Covered Call ETFs

Let’s see together how we can build a STABLE and HIGH passive income every month through our investments.

I am talking about the now legendary… Covered Call ETFs!

Dividend lovers, get ready!

Covered Call ETFs are funds that pay dividends of up to 12% per year!

And the best part? They pay EVERY MONTH!
They don’t wait until the end of the year to distribute profits. On the contrary — they send fresh cash every single month straight to our accounts.

That’s why more and more investors around the world are turning to them, seeking a strong and steady stream of income — even in tough market conditions.

I will focus on the practical side of the investment: how to choose the right Covered Call ETF for you, and how to actually invest in it.

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COVERED CALL ETFs

Covered Call ETFs are essentially “baskets of stocks” that combine two key investment strategies to deliver high passive income.

On one hand, they hold the underlying stocks, and on the other, they sell call options on those same stocks.
This is why they’re called “covered” — because the ETF already owns the shares on which it sells the call options, reducing the risk significantly.

The crucial point is this: regardless of what happens to the stock prices, the ETF still earns monthly premiums from selling those call options.
In other words, the Covered Call ETF keeps pocketing money every month, no matter what happens in the market.

This steady income — along with relatively limited risk — has attracted millions of investors to these products.

They’ve become especially popular among income-seeking investors who want high yields even in uncertain environments.
Because in times of volatility, many investors want to lock in consistent cash flow without taking on excessive risk.

And the numbers speak for themselves:
In less than two years, total Assets Under Management for Covered Call ETFs have soared from $44.5 billion to $75 billion!
This shows how investors worldwide are increasingly using these products to boost their returns — especially during times of uncertainty.

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“Okay, but which Covered Call ETF should we choose?”

Obviously, everyone should do their own research before investing.
But in my opinion, the two best options in this space are JEPQ.EU and JEPG.EU.
Let’s take a closer look.

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JEPQ vs JEPG

I will start strong with JEPQ.EU — an ETF from JP Morgan that invests in the Nasdaq 100, meaning the largest U.S. tech companies.

Its dividend yield reaches 10.4% per year, paid monthly, making it ideal for those who want steady cash flow.

The ETF’s top 10 holdings include giants like **Nvidia , Microsoft , Apple , Alphabet , Amazon , and Meta **.
It’s entirely focused on U.S. equities, mainly in tech and communications.

This means it moves more sharply with market swings — both up and down — but thanks to that volatility, the option premiums it collects are higher, leading to stronger payouts.

So, JEPQ.EU is ideal for investors who can tolerate higher volatility, typical of the tech sector.
That same volatility, however, translates into higher monthly income through generous option premiums.

For anyone who prioritizes passive income (for instance, those nearing retirement or looking to supplement their monthly salary), JEPQ.EU is an excellent choice.

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JEPG.EU

On the other hand, JEPG.EU, also from JP Morgan, invests in a global stock portfolio, following the MSCI World Index.

This provides broad geographic diversification — across Europe, the U.S., Asia, and emerging markets.

Its dividend yield is lower, around 7% annually, but that’s balanced by greater stability.

The ETF’s holdings are more balanced, covering healthcare, industry, consumer goods, and energy.
Its top 10 holdings represent a smaller percentage of total assets — showing how diversified it really is.

This ETF is perfect for more conservative investors who don’t want to rely too heavily on one sector or region.

If your priority is capital stability rather than maximum yield — but you still want monthly income — then JEPG.EU is for you.

Both ETFs have the same management fee (around 0.35%), so the choice between them depends purely on your investment goals.

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CONCLUSION

In summary, Covered Call ETFs are an excellent investment option if:

(A) You’re nearing the end of your investment journey and prefer downside protection over potential high future growth.
(B) You’re mainly focused on generating high and stable passive income.
(C) You believe markets may decline but still want to collect income even in bad years.

If you fall into any of these categories, then Covered Call ETFs are, in my opinion, one of the best possible tools to generate a high, passive, monthly income.

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