What if you invested monthly in a Covered-call ETF (JEPI) for 5 years?
This calculates the result of investing a fixed amount monthly into JEPI, a monthly-distribution covered-call strategy, over 5 years using actual price data. It shows the structural traits of income focus and capped upside alongside maximum drawdown and time underwater.
Investment conditions
Asset · JEPI (US Covered-call ETF)
Method · Recurring monthly investment
Period · 2021-07-01 ~ 2026-07-01
Amount · $222 / month
As of · 2026-07-01
Key metrics
These results do not reflect taxes. Based on historical data.
Risk & recovery
As important as returns. This service does not hide maximum drawdown or loss periods.
Maximum drawdown (MDD)
-10.6%
Largest drop from peak
Longest loss period
3months
Months in loss: 9
Recovery period
3months
Growth over time
Invested principal (dashed) and portfolio value (solid). Values below match the calculation.
Total invested $13,556 → Final value $16,595 (+22.4%), Maximum drawdown (MDD) -10.6%
Why this period and asset
JEPI holds quality stocks while selling call options and distributing the premiums as monthly income, a covered-call (option-premium) strategy ETF. Listed in 2020, it quickly became known among investors seeking monthly income. This 5-year window (2021-2026) includes the 2021 peak, the 2022 rate-hike decline, and the subsequent recovery. Covered-call structures cushion part of the loss in declines via option premiums but cap the upside through call selling in rising markets.
Interpreting the result
The core of a covered-call ETF is a trade-off: cap the upside, take the income (premium). In declines the premium can cushion part of the drawdown, but it does not prevent sharp drops, and in strong rallies it tends to lag the index. Investing monthly and reinvesting the monthly distributions steadily accumulates shares. Still, a high distribution rate does not mean safety, so within these 5 years you should check how deep the maximum drawdown was and what the time underwater and recovery period looked like, alongside the distribution rate and return.
Caveats & limits
Monthly distributions are subject to dividend tax (e.g., 15% US withholding) and local taxes, and taxes are not reflected in this calculation. Covered-call ETFs tend to have higher expense ratios than plain index ETFs, and USD/KRW exchange-rate moves also change the outcome. A high distribution rate may be the price of returning some principal or giving up upside. Past performance does not guarantee future results, and this page is not a recommendation to buy.
Data sources & limits
- Price data source: Yahoo Finance / FinanceDataReader
- Collected on: 2026-07-23
- Effective trading date: 2026-07-01
- Price basis: Adjusted close (reflects dividends and stock splits)
- Trading fees and taxes are not reflected — figures are pre-tax.
- Based on historical data; does not guarantee future returns.
Frequently asked questions
Does this result include the monthly distributions?
It treats returns on a total-return basis with distributions reinvested. Because taxes are withheld when actually received, after-tax proceeds may be lower than the figure shown.
How are the monthly distributions taxed?
Taxes are not reflected in this calculation. US distributions are typically withheld with possible local tax, so a high-distribution fund like JEPI feels the tax impact relatively more.
How does it compare with a growth ETF?
In strong rallies a capped-upside covered call tends to lag growth, while in declines the premium can cushion part of the drawdown. Use the compare feature to view the same window side by side, including maximum drawdown.
Related scenarios
📋 Results are based on historical data; past returns do not guarantee future returns.
📋 This service is provided for educational purposes to help you understand investing, not as investment advice.