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REDDIT

When dividend yield exceeds portfolio credit line interest

S
May 19, 2026 · 03:53

If you were going to accept the volatility of covered call ETFs like JEPI and JEPQ with yields around 9-10% because you were willing to hold long term through dips (7-10 years), and could also borrow against that same portfolio at less than 5%, can I leverage the approximate 4% differential by repeatedly borrowing just to feed back in to the same funds? Or otherwise exploit that differential?