IWM vs JEPQ: iShares Russell 2000 ETF vs JPMorgan Nasdaq Equity Premium Income ETF Comparison
Compare IWM (iShares Russell 2000 ETF) and JEPQ (JPMorgan Nasdaq Equity Premium Income ETF) by expense ratio, dividend yield, holdings, and more.
Key Differences
- 1Expense ratio: IWM 0.19% vs JEPQ 0.35% (IWM is 0.16%p cheaper)
- 2Dividend yield: JEPQ 9.5% vs IWM 1.24%
- 3Category: IWM is Small Cap, JEPQ is Income / Covered Call
- 4Holdings: IWM 1,990 vs JEPQ 95
- 5Issuer: IWM (BlackRock(iShares)) vs JEPQ (JPMorgan)
Conclusion
IWM and JEPQ each have different strengths, so the choice depends on your investment objectives. Choose the one with lower fees if cost is a priority, or the one with higher yield if income is your goal.
| Category | IWM | JEPQ |
|---|---|---|
| Fund Name | iShares Russell 2000 ETF | JPMorgan Nasdaq Equity Premium Income ETF |
| Current Price | ... | ... |
| Category | Small Cap | Income / Covered Call |
| Expense Ratio | 0.19% | 0.35% |
| Dividend Yield | 1.24% | 9.5% |
| Holdings | 1990 | 95 |
IWM Top Holdings
- 1. Super Micro Computer
- 2. MicroStrategy
- 3. Comfort Systems
JEPQ Top Holdings
- 1. Apple
- 2. Microsoft
- 3. Amazon
- 4. Nvidia
- 5. Meta
IWM Features
- •Small-cap specialized
- •Growth potential
- •Tracks the Russell 2000
- •High volatility
JEPQ Features
- •Monthly dividends
- •Nasdaq 100 covered call
- •High income
- •Technology stock exposure
Pros & Cons
IWM
Advantages
- ✓ Captures small-cap growth
- ✓ Benefits from economic recovery
- ✓ M&A premium
Disadvantages
- ⚠ High volatility
- ⚠ Liquidity risk
- ⚠ Economically sensitive
JEPQ
Advantages
- ✓ High dividend income
- ✓ Monthly dividend payments
- ✓ Technology stock investing
Disadvantages
- ⚠ Limited upside
- ⚠ Tech stock concentration
- ⚠ Complex structure
Investment Strategy
Best For: IWM
Allocate 10-20% of total portfolio; adjust based on business cycle
Best For: JEPQ
High dividend income strategy; diversify with JEPI; use in retirement accounts
Detailed Analysis
IWM (iShares Russell 2000 ETF) and JEPQ (JPMorgan Nasdaq Equity Premium Income ETF) They belong to different categories — Small Cap and Income / Covered Call — representing distinct investment areas. IWM: iShares Russell 2000 ETF (IWM) is an exchange-traded fund that provides investors with exposure to small-capitalization companies. It carries an expense ratio of 0.19%. The fund offers a dividend yield of approximately 1.24%. The portfolio holds 1990 securities. With an expense ratio of 0.19% and dividend yield of 1.24%, its top holdings include Super Micro Computer, MicroStrategy, Comfort Systems. Key features include Small-cap specialized, Growth potential, with Captures small-cap growth being a major advantage. JEPQ: JPMorgan Nasdaq Equity Premium Income ETF (JEPQ) is an exchange-traded fund that provides investors with exposure to income generation through covered call and option strategies. It carries an expense ratio of 0.35%. The fund offers a dividend yield of approximately 9.50%. The portfolio holds 95 securities. With an expense ratio of 0.35% and dividend yield of 9.5%, top holdings include Apple, Microsoft, Amazon. Notable features are Monthly dividends, Nasdaq 100 covered call, with High dividend income as a core strength. In terms of expense ratio, IWM is 0.16%p cheaper, which can lead to significant cost savings through compounding over long-term investment. Over 20 years with a $100,000 investment, this difference can amount to thousands of dollars.
Investment Recommendation
IWM is suitable for Allocate 10-20% of total portfolio; adjust based on business cycle, while JEPQ is suitable for High dividend income strategy; diversify with JEPI; use in retirement accounts. Since they are in different categories, holding both can provide portfolio diversification benefits. Adjust the allocation based on your risk tolerance and investment horizon. For beginners, we recommend a core-satellite strategy: choose a low-cost, well-diversified ETF as your core holding, and allocate the rest to satellite positions.
Key Summary
Both IWM and JEPQ are excellent ETFs for their respective investment objectives. The key is to choose based on your investment goals, time horizon, and risk tolerance. Rather than focusing on a single metric (dividend yield, fees, etc.), evaluate from a holistic portfolio perspective. Use our rebalancing calculator to easily determine the optimal asset allocation including both ETFs.
IWM vs JEPQ Investment Guide
Both IWM and JEPQ are popular US ETFs, but they differ in investment strategy and portfolio role. IWM has an expense ratio of 0.19%, while JEPQ charges 0.35%, giving IWM a cost advantage. In terms of dividend yield, IWM offers 1.24% while JEPQ offers 9.5%, making JEPQ the better choice for income investors.
When choosing between the two, consider your investment goals, time horizon, and risk tolerance. If long-term growth is your priority, favor the ETF with lower fees and broader diversification. If you need steady cash flow, the higher-yielding ETF may be more suitable. You can also hold both in your portfolio for a complementary approach.
Regardless of which ETF you choose, maintaining your target allocation through regular rebalancing is key to long-term performance. Review your portfolio quarterly or semi-annually, and adjust if weights have drifted significantly. Our rebalancing calculator can automatically determine the buy/sell quantities for each holding.
5 Things to Check When Comparing ETFs
Expense Ratio: Even a 0.1% difference in fees can translate to thousands of dollars over long-term investing. When two ETFs track a similar index, the lower-cost option has the edge.
Tracking Index & Holdings: Even ETFs in the same category may track different indices. Review the top holdings and sector weights to find the best fit for your investment goals.
Dividend Policy: Compare dividend frequency (monthly vs quarterly), yield, and dividend growth rate. Monthly dividend ETFs may be preferable if you need regular cash flow.
Trading Volume & Liquidity: Sufficient daily trading volume ensures you can buy and sell at fair prices. Low-volume ETFs may have wider bid-ask spreads, increasing your trading costs.
Portfolio Role: Determine whether the ETF serves as a core or satellite holding in your portfolio, and size your position accordingly.