JEPI vs JEPQ: JPMorgan Equity Premium Income ETF vs JPMorgan Nasdaq Equity Premium Income ETF Comparison
Compare JEPI (JPMorgan Equity Premium Income ETF) and JEPQ (JPMorgan Nasdaq Equity Premium Income ETF) by expense ratio, dividend yield, holdings, and more.
Key Differences
- 1Dividend yield: JEPQ 9.5% vs JEPI 7.28%
- 2Holdings: JEPI 130 vs JEPQ 95
Conclusion
JEPI 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 | JEPI | JEPQ |
|---|---|---|
| Fund Name | JPMorgan Equity Premium Income ETF | JPMorgan Nasdaq Equity Premium Income ETF |
| Current Price | ... | ... |
| Category | Income / Covered Call | Income / Covered Call |
| Expense Ratio | 0.35% | 0.35% |
| Dividend Yield | 7.28% | 9.5% |
| Holdings | 130 | 95 |
JEPI Top Holdings
- 1. Microsoft
- 2. Amazon
- 3. Progressive
- 4. Mastercard
- 5. Meta
JEPQ Top Holdings
- 1. Apple
- 2. Microsoft
- 3. Amazon
- 4. Nvidia
- 5. Meta
JEPI Features
- •Monthly dividends
- •Covered call strategy
- •Reduced volatility
- •High income
JEPQ Features
- •Monthly dividends
- •Nasdaq 100 covered call
- •High income
- •Technology stock exposure
Pros & Cons
JEPI
Advantages
- ✓ Monthly dividend payments
- ✓ Stable returns
- ✓ Bear market defense
Disadvantages
- ⚠ Limited upside
- ⚠ Complex structure
- ⚠ Tax issues
JEPQ
Advantages
- ✓ High dividend income
- ✓ Monthly dividend payments
- ✓ Technology stock investing
Disadvantages
- ⚠ Limited upside
- ⚠ Tech stock concentration
- ⚠ Complex structure
Investment Strategy
Best For: JEPI
Income-focused portfolio; retirement account usage recommended
Best For: JEPQ
High dividend income strategy; diversify with JEPI; use in retirement accounts
Detailed Analysis
JEPI (JPMorgan Equity Premium Income ETF) and JEPQ (JPMorgan Nasdaq Equity Premium Income ETF) Both belong to the Income / Covered Call category, covering a similar investment area but with different strategies. JEPI: JPMorgan Equity Premium Income ETF (JEPI) 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 7.28%. The portfolio holds 130 securities. With an expense ratio of 0.35% and dividend yield of 7.28%, its top holdings include Microsoft, Amazon, Progressive. Key features include Monthly dividends, Covered call strategy, with Monthly dividend payments 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.
Investment Recommendation
JEPI is suitable for Income-focused portfolio; retirement account usage recommended, while JEPQ is suitable for High dividend income strategy; diversify with JEPI; use in retirement accounts. Since both ETFs are in the same category, choosing one for your portfolio is more efficient. Base your decision on expense ratio, liquidity, and issuer preference. 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 JEPI 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.
JEPI vs JEPQ Investment Guide
Both JEPI and JEPQ are popular US ETFs, but they differ in investment strategy and portfolio role. JEPI has an expense ratio of 0.35%, while JEPQ charges 0.35%, Both ETFs share the same cost structure. In terms of dividend yield, JEPI offers 7.28% 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.