A popular exchange traded fund with a double-digit cash yield is attracting even more cash in 2023, showing that investors are still hungry for income even as markets have rebounded in recent weeks. A Feb. 8 note from JPMorgan’s quantitative and derivatives strategy team showed funds the with the largest net orders from retail traders last week, and the JPMorgan Equity Premium Income ETF (JEPI) was the sixth ETF on the list. The fund trailed only behind broad index funds like the Invesco QQQ Trust and risk-on offerings like the Ark Innovation ETF . JEPI has captured $2.8 billion in net flows this year, according to FactSet. The ETF has $20.3 billion in assets under management. A key attraction for the fund is its yield, which surpasses even some junk bond products. JEPI had a 30-day SEC yield of more than 11%, as of the end of January, according to the fund’s website, and its 12-month dividend yield at the end of 2022 was also above 11%. The fund has an actively managed portfolio of stocks that lean toward more defensive and dividend-yielding stocks, while also selling call options on a monthly basis on the S & P 500. Those qualities helped make the fund extremely popular in 2022, as markets fell and investors rotated into dividend-paying stocks as a way to offset inflation. The fund has attracted more than $14 billion of net inflows over the past year. But investors should probably not count on that 11% yield staying around that level for years to come. A document on the fund’s website explains that, under normal market conditions, the portfolio managers expect to see 1% to 2% yield from dividends and 5% to 8% from the options strategy. Additionally, the fund underperformed the S & P 500 in 2021, and has a total return of just over 1% so far this year. And while selling the call options give the fund additional income, the strategy means that a strong month for the broader market can end up hurting JEPI. The equity portion of the portfolio could also prove to be a drag on the fund if January’s rebound in growth stocks has some staying power. A commentary on the fund’s website suggests that the management team was cautious heading into this year. “While the economy teeters on the edge of recession, we remain balanced and continue to monitor incremental risks that could represent headwinds for U.S. equities. Through the volatility, we continue to focus on high conviction stocks and take advantage of market dislocations for compelling stock-selection opportunities,” the Dec. 31 commentary said.