JEPQ vs SMH: JPMorgan Nasdaq Equity Premium Income ETF vs VanEck Semiconductor ETF Comparison
Compare JEPQ (JPMorgan Nasdaq Equity Premium Income ETF) and SMH (VanEck Semiconductor ETF) by expense ratio, dividend yield, holdings, and more.
Key Differences
- 1Dividend yield: JEPQ 9.5% vs SMH 0.5%
- 2Category: JEPQ is Income / Covered Call, SMH is Sector ETFs
- 3Holdings: JEPQ 95 vs SMH 26
- 4Issuer: JEPQ (JPMorgan) vs SMH (VanEck)
Conclusion
JEPQ has an overall advantage with higher dividend yield (9.5% vs 0.5%). However, SMH also offers Benefits from AI growth, making it worth considering depending on your portfolio goals.
| Category | JEPQ | SMH |
|---|---|---|
| Fund Name | JPMorgan Nasdaq Equity Premium Income ETF | VanEck Semiconductor ETF |
| Current Price | ... | ... |
| Category | Income / Covered Call | Sector ETFs |
| Expense Ratio | 0.35% | 0.35% |
| Dividend Yield | 9.5% | 0.5% |
| Holdings | 95 | 26 |
JEPQ Top Holdings
- 1. Apple
- 2. Microsoft
- 3. Amazon
- 4. Nvidia
- 5. Meta
SMH Top Holdings
- 1. Nvidia
- 2. TSMC
- 3. Broadcom
- 4. ASML
JEPQ Features
- •Monthly dividends
- •Nasdaq 100 covered call
- •High income
- •Technology stock exposure
SMH Features
- •Semiconductor investing
- •Benefits from AI
- •Concentrated portfolio
- •Global semiconductors
Pros & Cons
JEPQ
Advantages
- ✓ High dividend income
- ✓ Monthly dividend payments
- ✓ Technology stock investing
Disadvantages
- ⚠ Limited upside
- ⚠ Tech stock concentration
- ⚠ Complex structure
SMH
Advantages
- ✓ Benefits from AI growth
- ✓ Core semiconductor companies
- ✓ High growth rate
Disadvantages
- ⚠ Sector concentration risk
- ⚠ Cyclical volatility
- ⚠ High valuation
Investment Strategy
Best For: JEPQ
High dividend income strategy; diversify with JEPI; use in retirement accounts
Best For: SMH
Satellite strategy at 5-10%; alternative to SOXX
Detailed Analysis
JEPQ (JPMorgan Nasdaq Equity Premium Income ETF) and SMH (VanEck Semiconductor ETF) They belong to different categories — Income / Covered Call and Sector 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. SMH: VanEck Semiconductor ETF (SMH) is an exchange-traded fund that provides investors with exposure to specific industry sectors. It carries an expense ratio of 0.35%. The fund offers a dividend yield of approximately 0.50%. The portfolio holds 26 securities. With an expense ratio of 0.35% and dividend yield of 0.5%, top holdings include Nvidia, TSMC, Broadcom. Notable features are Semiconductor investing, Benefits from AI, with Benefits from AI growth as a core strength.
Investment Recommendation
JEPQ is suitable for High dividend income strategy; diversify with JEPI; use in retirement accounts, while SMH is suitable for Satellite strategy at 5-10%; alternative to SOXX. 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 SMH 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 SMH Investment Guide
Both JEPQ and SMH are popular US ETFs, but they differ in investment strategy and portfolio role. JEPQ has an expense ratio of 0.35%, while SMH charges 0.35%, Both ETFs share the same cost structure. In terms of dividend yield, JEPQ offers 9.5% while SMH offers 0.5%, 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.