{"id":470043,"date":"2026-06-10T10:38:10","date_gmt":"2026-06-10T10:38:10","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/470043\/"},"modified":"2026-06-10T10:38:10","modified_gmt":"2026-06-10T10:38:10","slug":"retirees-heres-why-hdv-makes-more-sense-than-jepi-for-your-income-portfolio","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/470043\/","title":{"rendered":"Retirees: Here’s Why HDV Makes More Sense Than JEPI for Your Income Portfolio"},"content":{"rendered":"

In 2022, the JPMorgan Equity Premium Income ETF (JEPI<\/a> +0.81%) consistently yielded well over 10% and paid multiple monthly per-share distributions of $0.50 to $0.60. In June 2026, the distribution was around $0.39 per share, and the current yield is at 8.3%. That’s what can happen when a yield is based on volatility rather than corporate performance, as the market begins to calm.<\/p>\n

If you’re in retirement, predictability is more important. If volatility spikes, the portfolio’s value is likely to be affected. You want your income backed by high-quality dividend-paying companies that can deliver consistent returns over time.<\/p>\n

That’s why the iShares Core High Dividend ETF (HDV<\/a> +0.62%) is the better choice for retirement income.<\/p>\n

\"Couple<\/p>\n

Image source: Getty Images.<\/p>\n

iShares Core High Dividend ETF<\/p>\n

The iShares Core High Dividend exchange-traded fund (ETF) tracks the Morningstar Dividend Yield Focus Index, which selects from a universe of U.S. large-cap stocks that are screened for financial health using a pair of Morningstar measures. Its portfolio includes 75 high-yielding stocks weighted by total dividends paid.<\/p>\n

\"iShares<\/p>\n

iShares Trust – iShares Core High Dividend ETF<\/p>\n

Today’s Change<\/p>\n

(0.62%) $0.17<\/p>\n

Current Price<\/p>\n

$27.54<\/p>\n

Key Data Points<\/p>\n

Day’s Range<\/p>\n

$27.34 – $27.54<\/p>\n

52wk Range<\/p>\n

$23.16 – $28.18<\/p>\n

Volume<\/p>\n

5.2K<\/p>\n

The fund’s top five holdings (based on portfolio weight) are currently:<\/p>\n

ExxonMobil: 8.2%
\nChevron: 6.3%
\nAbbVie:\u00a05.9%
\nJohnson & Johnson:\u00a05.8%
\nPhilip Morris International:\u00a04.5%<\/p>\n

HDV has, not surprisingly, underperformed the S&P 500 over the past decade due to its limited exposure to megacap tech. But it’s beating the index by five percentage points so far in 2026.<\/p>\n

The two sectors that will drive performance going forward are consumer staples and energy, which combine for 45% of the fund’s holdings. That makes the ETF potentially exposed to volatility in the energy sector. ExxonMobil<\/a> and Chevron have yields of 2.8% and 3.8%, respectively, but the pair, which accounts for nearly 15% of the portfolio, could fluctuate depending on what happens in the Middle East.<\/p>\n

JPMorgan Equity Premium Income ETF<\/p>\n

The JPMorgan Equity Premium Income ETF is an actively managed fund holding more than 100 lower-volatility S&P 500 stocks. That is combined with a series of equity-linked notes (ELNs) that form a covered call strategy to generate monthly income. The income mostly comes from options premiums. The fund’s top five holdings (based on portfolio weight) are currently:<\/p>\n

Ross Stores:\u00a01.8%
\nApple: 1.7%
\nHowmet Aerospace:\u00a01.7%
\nAbbVie: 1.7%
\nNvidia:\u00a01.7%<\/p>\n

As we saw in 2022, JEPI’s low-volatility tilt provides some downside protection but can lag badly in bull markets. Since the beginning of 2023, JEPI has returned just 34% compared to the Vanguard S&P 500 ETF’s\u00a0103% cumulative return.<\/p>\n

\"JPMorgan<\/p>\n

JPMorgan Equity Premium Income ETF<\/p>\n

Today’s Change<\/p>\n

(0.81%) $0.45<\/p>\n

Current Price<\/p>\n

$55.80<\/p>\n

Key Data Points<\/p>\n

Day’s Range<\/p>\n

$55.17 – $55.89<\/p>\n

52wk Range<\/p>\n

$55.10 – $59.90<\/p>\n

Volume<\/p>\n

10.6K<\/p>\n

Because the yield is heavily dependent on S&P 500 volatility, the yield tends to rise when the market is rallying. That means investors can lose income even as fund performance lags. Many covered-call ETFs have this problem, so your opinion on the JPMorgan Equity Premium Income ETF<\/a> should largely depend on where you believe the stock market is heading.<\/p>\n

Overall, the iShares Core High Dividend ETF<\/a> is the better choice for retirement investors. The current 2.9% yield has historically been much more stable. Plus, since it’s an all-equity portfolio, you fully participate in market upside when stocks are rallying.<\/p>\n

David Dierking<\/a> has positions in Apple. The Motley Fool has positions in and recommends AbbVie, Apple, Chevron, Howmet Aerospace, Nvidia, and Vanguard S&P 500 ETF. The Motley Fool recommends Johnson & Johnson and Philip Morris International. The Motley Fool has a disclosure policy<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"In 2022, the JPMorgan Equity Premium Income ETF (JEPI +0.81%) consistently yielded well over 10% and paid multiple…\n","protected":false},"author":2,"featured_media":470044,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[138,246,111,139,69,244,245],"class_list":["post-470043","post","type-post","status-publish","format-standard","has-post-thumbnail","category-personal-finance","tag-business","tag-finance","tag-new-zealand","tag-newzealand","tag-nz","tag-personal-finance","tag-personalfinance"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/470043","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=470043"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/470043\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/470044"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=470043"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=470043"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=470043"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}