Quick Read
CD rates crashed to 1.68% nationally, but JEPI generates monthly covered-call income and VYM has returned 26% over the past year.
JAAA holds AAA-rated CLO tranches with floating-rate coupons, delivering near-zero stock correlation and minimal volatility at just 0.20% in fees.
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Two years ago, your bank was practically begging for your money at 5%. Now the renewal notice lands with a thud: the national 12-month CD average sits at just 1.68%, down from a recent peak of 1.76% in August 2025. The recent Fed policy can be to blame. The central bank cut its target range down to 3.75% and has held it there since December 10, 2025. If you want your cash to keep working, three ETFs deserve a look: the JPMorgan Equity Premium Income ETF (NYSEARCA:JEPI), the Janus Henderson AAA CLO ETF (NYSEARCA:JAAA), and the Vanguard High Dividend Yield ETF (NYSEARCA:VYM).
Why Your Renewal Offer Feels Like an Insult
The math comes down to pure policy. Banks price CDs off the Fed funds rate, and the Fed cut three times last fall before pausing. Meanwhile, the 10-year Treasury is yielding 4.63%, which tells you the market still rewards investors who can accept a little duration or credit risk. The CD ladder that felt bulletproof in 2024 now looks less appealing.
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JEPI: A Monthly Paycheck From Blue-Chip Stocks
JEPI blends a portfolio of large-cap U.S. stocks with a covered-call overlay, selling upside on the S&P 500 to convert equity volatility into cash. Its top holdings read like a defensive quality list: Broadcom at 1.8%, Ross Stores and Amazon at 1.7% each, alongside Apple, Alphabet, Nvidia, and AbbVie. Distributions arrive monthly, and over the trailing year JEPI has paid $4.58022 per share against a current price of $57.51. The expense ratio of 0.35% means you keep $996.50 of every $1,000 working for you. Total return has not been shabby either: the fund is up 11.46% over the past year. The catch: when stocks advance sharply higher, the call overlay caps your gains.
JAAA: Floating-Rate Income That Ignores the Stock Market
JAAA owns AAA-rated tranches of collateralized loan obligations, the safest slice of a floating-rate structure. Because coupons reset with short-term rates, price volatility is tiny and correlation to stocks is near zero. Top positions include OCP CLO Ltd at 1.04%, Octagon Investment Partners 51 at 1.01%, and KKR CLO 35 at 1.01%, spread across dozens of managers. The expense ratio is 0.20%. Distributions are monthly and reflect the environment: JAAA paid $2.487981 per share over the trailing 12 months, with the latest August payment at $0.199366. Payments have stepped down from 2024’s $0.25 to $0.28 range as the Fed cut, which is the trade-off with floating-rate paper. Total return has been steady, up 4.87% over the past year.
