JPMorgan ETFs: Earn $10K Passive Income Annually

Exchange-traded funds (ETFs) have revolutionized investing by providing instant diversification that beats the risks of individual stock-picking while offering straightforward wealth-building pathways. JPMorgan Chase, one of the world’s largest financial institutions, has positioned itself at the forefront of this movement with a lineup of income-focused ETFs designed specifically for passive income generation. These funds combine low costs, broad market exposure, and reliable payouts, creating solid choices for investors aiming to build steady income streams without the volatility of individual securities.

For retirees and long-term planners, achieving $10,000 in annual dividends might seem daunting, but through disciplined saving and strategic ETF selection, this goal becomes mathematically achievable. The magic lies in compounding – where consistent contributions and reinvested dividends can transform manageable monthly investments into life-changing sums over 15-20 years. JPMorgan’s three standout ETFs – JEPI, JEPQ, and JDIV – each offer distinct pathways to this $10,000 annual income target, catering to different risk tolerances and market outlooks while leveraging the firm’s extensive financial expertise.

The JPMorgan Equity Premium Income ETF (JEPI) has gained significant traction since its 2020 launch by blending stock market returns with enhanced income generation. The fund holds approximately 130 large-cap U.S. stocks, focusing on low-volatility names in sectors like technology and healthcare. What distinguishes JEPI is its sophisticated covered call strategy: the fund systematically sells out-of-the-money call options on the S&P 500 index, generating premium income that funds its monthly dividend distributions.

This approach delivers a compelling trailing 12-month yield of 7.2%, substantially above the S&P 500’s average dividend yield, while maintaining cost efficiency with an expense ratio of just 0.35%. With assets under management exceeding $40 billion, JEPI has earned strong investor trust. Year-to-date through October 2025, the fund has returned approximately 5.1%, slightly lagging the broader market due to its defensive orientation but excelling during market downturns. To generate $10,000 annually from JEPI, investors need approximately $139,500 invested – calculated as $10,000 divided by the 7.17% yield.

For context, an investor starting from zero could reach this target in under 15 years by contributing $500 monthly and reinvesting dividends at a 7% annual growth rate. JEPI particularly suits conservative investors seeking market exposure without enduring the full volatility ride, making it an ideal core holding for income-focused portfolios.

The JPMorgan Nasdaq Equity Premium Income ETF (JEPQ) offers investors the best of both worlds: exposure to technology’s growth potential combined with substantial income generation. Launched in 2022, JEPQ invests in the Nasdaq-100 index’s top holdings, including technology giants Microsoft (MSFT), Apple (AAPL), and Nvidia (NVDA), while overlaying a covered call strategy on the Nasdaq-100 itself. This dual approach generates extra cash flow from option premiums, distributed to investors through monthly dividends.

JEPQ’s trailing yield stands at an impressive 9.45%, driven by the Nasdaq’s growth-oriented stocks and the substantial premiums from its options strategy. Matching JEPI’s expense ratio at 0.35%, JEPQ has seen assets under management surge to over $30 billion amid ongoing technology sector enthusiasm. Performance-wise, the fund has delivered 10.1% returns year-to-date, capturing much of the artificial intelligence boom while cushioning market drops through its income generation.

Remarkably, achieving $10,000 in annual income requires only about $106,000 invested in JEPQ, representing the lowest entry point among the three funds due to its higher yield. However, the concentrated tech focus means greater volatility, with the fund exhibiting a beta around 0.85 compared to the Nasdaq’s 1.0. JEPQ ideally serves growth-oriented investors comfortable with sector concentration but seeking yields that significantly outpace traditional bonds or dividend stocks.

For investors prioritizing dividend reliability and global diversification, the JPMorgan Dividend Leaders ETF (JDIV) offers a straightforward approach to consistent income generation. The fund targets companies with strong dividend track records worldwide, selecting from the MSCI ACWI Index while emphasizing firms that consistently grow or sustain payouts relative to their peers. JDIV’s portfolio spans approximately 100 stocks, including U.S. stalwarts like Procter & Gamble (PG) and international names from Europe and Asia, providing true global diversification.

JDIV offers a more conservative trailing yield of 1.69% with a slightly higher expense ratio of 0.47%. Despite having only $7.9 million in assets under management – significantly smaller than its JPMorgan siblings – the fund has demonstrated impressive performance, delivering 18.4% returns year-to-date by blending income stability with capital appreciation. However, generating $10,000 annually requires a substantial investment of nearly $592,000, reflecting the fund’s conservative yield approach.

Where JDIV truly shines is in reliability: over 80% of its holdings have raised dividends for a decade or more, providing exceptional income stability. By contributing $1,500 monthly, investors can reach the $10,000 annual income goal in under 20 years. The fund serves as a perfect vehicle for international exposure without currency complications, as it hedges against foreign exchange risks, making it particularly attractive for investors seeking global dividend growth with reduced volatility.

The journey to $10,000 in annual passive income through JPMorgan ETFs demonstrates that different strategies suit different investor profiles and timelines. While JEPQ offers the most efficient path with the lowest capital requirement, it carries higher sector concentration risk. JEPI provides balanced market exposure with solid income generation, while JDIV offers global diversification and dividend stability at the cost of higher initial investment.

Successful implementation involves understanding one’s risk tolerance, time horizon, and income needs. Conservative investors might favor JEPI’s balanced approach, while technology enthusiasts could allocate to JEPQ for higher yield potential. JDIV serves as an excellent diversifier for those seeking international exposure and dividend growth history. Many investors might benefit from blending these funds to create a balanced income portfolio that leverages the strengths of each strategy while mitigating individual risks.

Ultimately, these JPMorgan ETFs underscore a fundamental investing truth: disciplined saving combined with strategic fund selection can transform ambitious income goals into achievable realities. Through the power of compounding and consistent contributions, investors can systematically build toward financial independence, turning today’s investments into tomorrow’s reliable income streams regardless of market conditions.