How to invest in the extremely popular SCHD and JEPI ETFs?
ETFs are extremely popular among investors. Especially because of their low cost and DCA option. The classic choice of retail investors used to be an ETF linked to a US index. But now two others are gaining in popularity.
The $SCHD+0.9% and $JEPI+0.6% ETFs bring an enticing combination of stability and growth for investors. A mix of stocks with long-term high dividends allows for the generation of stable income. They also have capital growth potential that has historically been comparable to the broad market. Both ETFs have a proven manager and a long, successful history. They provide diversification and solid performance without depending on individual titles. The very low costs then allow investors to receive a substantial portion of the appreciation.
$SCHDwhich+0.9%is known for its low fees and focus on minimizing investor costs. The fund manager fee is only 0.06%. This is one of the lowest fees among similar ETFs. Thus, the investor largely benefits from the performance of the fund's underlying stocks.
Capital Structure
Valuation / Dividends
Capital Eff. / Margins
$JEPI+0.6% and has similarly low fees. The fund manager fee is 0.5%, which is again well below the average of other ETFs. Because of the low expenses, a substantial portion of the returns reach investors without being devalued by fees.
Another expense is trading fees. Usually around 0.5% of the traded amount, which is absorbed by the trading platform (broker). However, even here the fees are no higher than for trading other investments. Combined with the low fund manager fees, SCHD and JEPI thus achieve the highest cost efficiency of comparable ETFs.
Capital Structure
Valuation / Dividends
Capital Eff. / Margins
SCHD and JEPI are available to long-term investors who can benefit from their combination of dividends and capital growth when investing for 5 to 30 years. They satisfy the need for regular stable income without limiting growth potential.
In short, SCHD and JEPI provide a well-balanced solution for investors seeking stable income and solid capital appreciation from the stock market. Their long track record of success and low costs allow for good returns at relatively low risk. The combination of yield and stability is the key to their popularity in the market.
Buying ETFs
This is a bit of a problem. We all know that buying US ETFs is a bit tricky. European investors aren't completely favored by the law, so you can't officially buy most US ETFs. And because they are more actively managed funds, you can't find a "copy" with a European domicile, like you can with the classic original $SPY+0.5% and the European version $IUSA.L.
But there are several alternatives. And I'd be happy to discuss other possibilities in the comments, as the reality is often different and tracking something down is quite problematic. The first of the alternatives is buying through a US broker - TastyWorks, for example.
The second option is buying through a regular broker. You can find $SCHD+0.9% at a significant number of them. But most of the time it will be in the form of a CFD, which is not ideal. The JEPI offer is then even more limited at brokers.
CFD stands for Contract for Difference. These are over-the-counter derivatives that allow you to speculate on asset price movements without physically owning them. The investor contracts with the broker to pay out the difference in the price of the underlying asset between the opening and closing of the position. When the price of the asset rises, the investor receives a payment from the broker; when the price falls, the investor pays the broker.
CFDs thus allow you to gain exposure to stocks, commodities, currencies, indices and other assets with significantly less capital than physically owning them. This allows the investor to control the investment at par without having to commit funds equal to the full price of the underlying asset.
At the same time, however, there is a significant disadvantage in that a CFD is not a security and so the benefits and exemptions do not apply.
A third option, according to several sources on the internet, is to buy through more 'mainstream' intermediaries. The purchase of SCHD and JEPI should be offered by Komerční banka, which also has investment services. It allows the purchase of a wide range of ETFs including these. Requires the establishment of an investment account.
Oh, and then Fio bank - Another large domestic bank offering investment services including online ETF trading. You can set up an investment account and the terms are similar to KB. Then there is also Patria Finance.
Do you invest in JEPI or SCHD? How? Share with other investors!
Disclaimer: This is in no way an investment recommendation. It is purely my summary and analysis based on data from the internet and other sources. Investing in financial markets is risky and everyone should invest based on their own decision. I am just an amateur sharing my opinions.