That’s where JEPG, the JPM Global Equity Premium Income Active UCITS ETF, comes in. Designed to deliver consistenti ncome and some capital growth from a defensive, globally diversified equity portfolio, this actively managed ETF blends expert stock selection, dividends and options premiums to offer an attractive total return. The goal is simple: above-average income, lower volatility, and a smoother ride when markets get rough.

JEPG is Redefining Investment to Manage Concentration Risk and Optimize Global Equity Portfolio

JEPG’s managers tap into the fundamental research of an experienced team of 90+ analysts, covering 2,500+ stocks worldwide, to build a lower volatility, higher quality and more defensive global equity portfolio. 

Many of these companies are high quality, household names. They tend to have strong balance sheets, stable cash flows, and enduring customer demand – making them well-positioned to weather different market conditions.

A purposefully low beta solution, JEPG holds just under 250 stocks compared to the 1500+ in its reference benchmark, the MSCI World Index. Unlike its benchmark, JEPG is well diversified across holdings, with its largest position only at around 2%, helping to avoid the concentrated portfolio risk posed by the index’s current heavy bias towards US technology stocks. This strategy isn’t about chasing the latest market fads. Instead, the aim is to provide higher quality, dependable equity exposure that can act as a ballast in your portfolio. That’s why JEPG tilts toward defensive sectors, such as utilities and consumer staples – because people will always need goods and services from these companies even when the economy stumbles – and away from more cyclical sectors, such as media, automobiles, and technology. 

And, while the MSCI World leans heavily on the US market and its tech titans, JEPG spreads risk more evenly. In particular, JEPG provides greater exposure outside the Magnificent 7 stocks, and has a greater weighting towards Japan and major European economies.

Generating Income Consistently by Selling Call Options and Equity Holdings

Income is at the heart of this strategy. JEPG’s yield comes from two sources: dividends from high-quality stocks, and premiums earned through a disciplined options overlay.

While options can sound complex, the approach is straightforward: by agreeing to sell its equity holdings for a set price within a set period, the ETF earns a steady flow of ‘premiums’ – immediate income paid for the right to exercise that option – which supplements the income from dividends.

By selling call options on its equity holdings, JEPG earns extra income in exchange for capping some upside.

However, because of JEPG’s lower volatility portfolio characteristics, which mean that it should fall less in down markets, JEPG doesn’t necessarily need to keep pace with a rising market to offer an attractive total return.

This strategy really comes into its own when markets are volatile. Higher volatility means larger price swings, so investors are prepared to pay more for the option because they believe there’s more chance of making a decent profit on their trade – generating even more income for the fund to distribute.

Investors can choose to receive this income monthly or reinvest it to build long-term returns through compounding.

JEPG’s Report Card since launch

Since inception in November 2023, JEPG has generated a healthy 14.4% annualised return, net of fees, compared to 16.3% from the MSCI World Index. The equity portfolio has also generated high levels of income from options premiums and stock dividends, with a trailing 12-month yield of 7.4% (all data as of end March 2025).

JEPG’s performance reflects its design. A lower exposure to soaring tech stocks last year—an outcome of our focus on lower volatility, more defensive companies—means upside has been more muted than the index since launch, but JEPG’s more resilient performance in the market turbulence of the first quarter of 2025, combined with its lower volatility profile, has resulted in a Sharpe ratio of 1.0, which is the same as the MSCI World Index.

As we continue to see the steady compounding of our blue-chip equity stocks and the consistent stream of monthly income, we are confident in JEPG’s ability to deliver enhanced risk-adjusted returns over a full up and down market cycle.

JEPG’s approach has certainly come into its own so, far in 2025, providing investors with a lower-volatility experience and better downside protection compared to the MSCI World Index as stock markets have wobbled. The MSCI World is down 1.8% year to date (as of 31 March), but JEPG has outperformed by 11.1%, helped by strong stock selection, a more balanced approach to regions and sectors, and steady income generation. Overall, JEPG’s Report Card since launch has been impressive:

JEPG Makes a Versatile Addition to Any Equity Portfolio

JEPG’s defensive equity portfolio and total return approach allows it to perform a variety of roles in a portfolio.

For income-seekers, JEPG’s 7%-9% income goal offers an attractive alternative to fixed income—one that avoids locking into a specific rate or maturity. Or for investors who are concerned about market concentration risk, JEPG’s deliberately less concentrated portfolio could help diversify away from tech-heavy investments while offering a more conservative equity portfolio.

Similarly, for investors who are nervous about investing in equities today, JEPG’s lower beta approach can reduce overall risk while still capturing a portion of the upside.

What’s next for JEPG?

JEPG can offer attractive options for investors, regardless of how market conditions develop from here:

1. If market performance expands beyond big tech, JEPG’s diversified, higher-quality portfolio should be poised to benefit.
2. If markets continue to sell off, higher volatility may lead to higher income, while the lower beta portfolio should cushion the blow. 
3. In a choppy, but rangebound market, JEPG may still provide a healthy total return with that options-powered income stream providing the kicker.

JEPG isn’t just a lower beta global equity fund – it’s designed from the ground up to do something different. By blending dividends with income from options premiums, JEPG delivers a reliable yield and the opportunity to earn attractive total returns over the market cycle.