Introducing ROCY and ROCQ: Equity Premium Yield ETFs

Today's investors are increasingly seeking strategies that can deliver attractive yield while maintaining meaningful equity market exposure and managing volatility. J.P. Morgan's Equity Premium Yield ETFs, ROCY and ROCQ, are designed to do exactly that. By combining an actively managed equity portfolio with a modernized options overlay, these strategies seek to deliver monthly yield with less volatility, and the potential for tax-deferred distributions, via return of capital.¹

Active equity management with a modernized options overlay

The foundation of both ROCY and ROCQ is an actively managed equity portfolio constructed using J.P. Morgan's proprietary Fundamental Data Science process. This AI-enabled process² uses a fundamental valuation framework trained on over 40 years of proprietary J.P. Morgan data and is continuously enhanced by new information on a daily basis.

The Equity Premium Yield suite is also differentiated in its innovative options overlay. ROCY and ROCQ employ 2-week short call spreads³, selling an out-of-the-money call while simultaneously purchasing a call at a higher level, laddered on a weekly basis. While investors may forgo some upside in normal markets, the purchased call allows the portfolio to capture gains when markets move sharply higher.

Designed for multiple market environments

ROCY and ROCQ are built to perform across various environments. In falling markets, the diversified total return profile seeks to buffer a portion of the downside. In sideways or gently rising markets, the weekly laddered call spreads seek to deliver market appreciation in addition to options premium. And in strongly rising markets, the call spread structure provides the ability to re-participate in large rallies. This flexibility makes the strategies suitable as yield-generation tools, conservative equity solutions, or credit replacements.

Attractive yield with the potential for tax-deferred distributions

ROCY and ROCQ seek to deliver consistent monthly yield, with the goal of having distributions classified primarily as return of capital. This structure defers taxes until the investment is sold, which may be appealing to investors who value tax deferral.¹

The industry's first comprehensive derivative income suite

With the launch of ROCY and ROCQ, J.P. Morgan became the first firm in the industry to offer a complete derivative income suite, giving investors choice across five distinct strategies. For consistent 1099⁴ investment income, JEPI and JEPQ deliver monthly distributable income. For the potential for tax deferral via return of capital, ROCY and ROCQ now provide that solution. And for investors seeking a non-distributing, total return approach, JOYT rounds out the suite.

Priced at 35 basis points and backed by the deep experience of Hamilton Reiner and team, this comprehensive suite reflects J.P. Morgan's commitment to innovation and client choice. Whether an investor's priority is income generation, tax efficiency, or total return, J.P. Morgan's derivative income suite delivers a solution tailored to their needs.