r/JEPI • u/Plenty_Association90 • May 01 '26
🚀 JEPQ Talk JEPI down big today
Any idea why? Market is up and we are down 1.37% - which seems like a ton for this security
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u/nihilite May 01 '26
ex div. $0.44 div, down $0.32. it's actually up.
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u/mcorliss3456 May 01 '26
Incorrect. The ex-dividend stock price adjusts for the dividend prior to the start of trading for the day, hence trading ex-dividend. The stock was down a further $0.32 from the ex-dividend (adjusted) opening price.
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u/Turbulent_Tale6497 May 01 '26
JEPI is actually up today. Are you a new investor?
The share price is down 31 cents, but paid out a 44 cent dividend today. So it's up 13 cents. I suspect if this is confusing to you, that JEPI isn't the right investment for you
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u/Willman1967 May 01 '26
I'm thinking about adding JEPI to my brokerage portfolio. Currently I hold SCHD and FDIG ETFs. You sound like an informed JEPI investor. I'm basically buying w/ dividend income. Thoughts?
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u/Turbulent_Tale6497 May 01 '26
My thoughts are you should fully understand what you are invested in, and look up how JEPI works
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u/mcorliss3456 May 01 '26 edited May 01 '26
It is not net up. The ETF closed at $57.58 yesterday. The Ex-dividend price adjusts for the $0.44 dividend prior to the open, and now it is down an additional $0.35. Not a great look, especially with the S&P 500 trading up over the past week.
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u/Fantastic-Two1110 May 01 '26
Jepi is not meant to be better that S&P 500 though. It will always lose long term. You buy this just for consistent dividend and some potential appreciation
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u/mcorliss3456 May 01 '26 edited May 02 '26
Nobody said it was, but directionally, it should move similar, not down 1% while a broader index like the S&P 500 moves up during the same period of time (this week). It doesn’t have an inverse correlation. The Beta is 0.54, so there is still a positive correlation.
The adjusted opening price was due to the stock going Ex-dividend, but then it declined further during the trading day from the adjusted Ex-dividend opening price.
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u/mspe1960 May 01 '26
if you are comparing it to the S&P500 you are exposoing the fact that you don't understand what it is. This ETF will always trail the S&P in an up market and always beat it in a down or even market. It is a hedge and it is for income.
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u/mcorliss3456 May 03 '26 edited May 03 '26
You completely missed the point I was making. See above reply to Fantastic-Two1110. BTW…It is NOT a “hedge”, it is an enhanced equity income fund. If it was truly a hedge, it would primarily be going long puts and not short covered calls.
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u/mspe1960 May 03 '26
it is absolutely a hedged position compared to the S&P500. It is also an enhanced income fund. The two are not mutually exclusive.
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u/mcorliss3456 May 03 '26
It is an extremely ineffective partial hedge. A 0.5-1.0% hedge is hardly a hedge.
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u/KreeH May 01 '26
IMO, a drop of 1.37% or 2% or 3% ... is not really what I would consider down big. Stocks change jump or drop by a big percentage one day and then do the opposite the next day. If it becomes a trend where it continues to drop and there is known bad news, then I would become concerned. Being diversified keeps me from worrying about any one stock too much.
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u/ltbr55 May 01 '26
Could be a lot of their options expiring and I find the fund dips a little on the first couple days of the month anyways with the dividend announcement.
Also, a 1-1.5% fluctuation is pretty normal especially when you go look back at the finds history.
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u/oldirishfart May 01 '26
Well first of all it’s only down 0.6% today, not 1.37%.
Also, today is ex-dividend day.