JEPQ vs SCHD: JPMorgan Nasdaq Equity Premium Income ETF vs Schwab US Dividend Equity ETF Comparison
Compare JEPQ (JPMorgan Nasdaq Equity Premium Income ETF) and SCHD (Schwab US Dividend Equity ETF) by expense ratio, dividend yield, holdings, and more.
Key Differences
- 1Expense ratio: SCHD 0.06% vs JEPQ 0.35% (SCHD is 0.29%p cheaper)
- 2Dividend yield: JEPQ 9.5% vs SCHD 3.42%
- 3Category: JEPQ is Income / Covered Call, SCHD is Dividend ETFs
- 4Holdings: JEPQ 95 vs SCHD 104
- 5Issuer: JEPQ (JPMorgan) vs SCHD (Charles Schwab)
Conclusion
JEPQ and SCHD 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 | JEPQ | SCHD |
|---|---|---|
| Fund Name | JPMorgan Nasdaq Equity Premium Income ETF | Schwab US Dividend Equity ETF |
| Current Price | ... | ... |
| Category | Income / Covered Call | Dividend ETFs |
| Expense Ratio | 0.35% | 0.06% |
| Dividend Yield | 9.5% | 3.42% |
| Holdings | 95 | 104 |
JEPQ Top Holdings
- 1. Apple
- 2. Microsoft
- 3. Amazon
- 4. Nvidia
- 5. Meta
SCHD Top Holdings
- 1. Broadcom
- 2. Merck
- 3. Amgen
- 4. Home Depot
- 5. PepsiCo
JEPQ Features
- •Monthly dividends
- •Nasdaq 100 covered call
- •High income
- •Technology stock exposure
SCHD Features
- •High dividend yield
- •Low volatility
- •Quality large-cap focused
- •Quarterly dividends
Pros & Cons
JEPQ
Advantages
- ✓ High dividend income
- ✓ Monthly dividend payments
- ✓ Technology stock investing
Disadvantages
- ⚠ Limited upside
- ⚠ Tech stock concentration
- ⚠ Complex structure
SCHD
Advantages
- ✓ Stable dividend income
- ✓ Low expense ratio
- ✓ Superior company selection
Disadvantages
- ⚠ Lower returns vs. growth stocks
- ⚠ Weakness during rising rates
- ⚠ Sector concentration risk
Investment Strategy
Best For: JEPQ
High dividend income strategy; diversify with JEPI; use in retirement accounts
Best For: SCHD
Maintain target allocation through quarterly rebalancing; use dividend reinvestment strategy
Detailed Analysis
JEPQ (JPMorgan Nasdaq Equity Premium Income ETF) and SCHD (Schwab US Dividend Equity ETF) They belong to different categories — Income / Covered Call and Dividend ETFs — representing distinct investment areas. 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%, its top holdings include Apple, Microsoft, Amazon. Key features include Monthly dividends, Nasdaq 100 covered call, with High dividend income being a major advantage. SCHD: Schwab US Dividend Equity ETF (SCHD) is an exchange-traded fund that provides investors with exposure to dividend-paying equities. It carries an expense ratio of 0.06%. The fund offers a dividend yield of approximately 3.42%. The portfolio holds 104 securities. With an expense ratio of 0.06% and dividend yield of 3.42%, top holdings include Broadcom, Merck, Amgen. Notable features are High dividend yield, Low volatility, with Stable dividend income as a core strength. In terms of expense ratio, SCHD is 0.29%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
JEPQ is suitable for High dividend income strategy; diversify with JEPI; use in retirement accounts, while SCHD is suitable for Maintain target allocation through quarterly rebalancing; use dividend reinvestment strategy. 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 JEPQ and SCHD 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.
JEPQ vs SCHD Investment Guide
Both JEPQ and SCHD are popular US ETFs, but they differ in investment strategy and portfolio role. JEPQ has an expense ratio of 0.35%, while SCHD charges 0.06%, giving SCHD a cost advantage. In terms of dividend yield, JEPQ offers 9.5% while SCHD offers 3.42%, 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.