🤝 BFF Take
Same Covered Call Strategy — Choose Based on Your Stock Preference
JEPI (launched 2020) and JEPQ (launched 2022) are both actively managed covered call ETFs from JPMorgan that sell equity-linked notes to generate monthly income. Both charge 0.35% and typically yield 6–10% annually, depending on market volatility. The key difference is the underlying stock portfolio: JEPI holds a defensive selection of large-cap S&P 500 stocks, tilting toward lower-volatility names; JEPQ holds Nasdaq-100 stocks, which means more tech concentration and higher growth potential — but more downside risk. JEPI is more defensive; JEPQ is more aggressive. If you want income with a growth tilt and can stomach tech volatility, JEPQ. If you want income with lower drawdowns and a broad-market foundation, JEPI. Both are tools for income generation, not long-term wealth compounding — understand that the high yield comes at the cost of capped upside.
📋 Quick Takeaways
💰Equal cost — both charge 0.35%/yr (~$35/yr per $10K). High relative to passive ETFs, but typical for actively managed income funds.
🔀JEPI = S&P 500 base (defensive); JEPQ = Nasdaq-100 base (tech-heavy, higher growth & volatility)
⚠️High yield (6–10%) means capped upside — in strong bull markets, both will underperform a simple index fund
✓
Reviewed by a CFA® Charterholder · Data updated Jun 2026 · Educational only, not financial advice
JEPI
JPMorgan Equity Premium Income ETF
JEPQ
JPMorgan Nasdaq Equity Premium Income ETF
📋 JEPI vs JEPQ — Key Facts Side by Side
| Metric |
JEPI |
JEPQ |
| Fund Name |
JPMorgan Equity Premium Income ETF |
JPMorgan Nasdaq Equity Premium Income ETF |
| Issuer |
JPMorgan |
JPMorgan |
| Tracks Index |
Actively Managed |
Actively Managed (Nasdaq-focused) |
| Expense Ratio |
0.35% |
0.35% |
| Cost per $10K/yr |
$35.00 |
$35.00 |
| AUM |
$37B |
$18B |
| Holdings |
135 |
95 |
| Inception |
2020 |
2022 |
| 1-Year Return |
+8.20% |
+14.80% |
| 3-Year Return |
+6.10% |
— |
| 5-Year Return |
— |
— |
| Avg Bid-Ask Spread |
1.00% |
1.00% |
Data from ETF BFF database. Returns are annualised. Not investment advice.
📊 JEPI vs JEPQ — Annualised Returns
Annualised returns (trailing, price-based). Past performance does not guarantee future results.
🎯 Should You Buy JEPI or JEPQ?
Choose if...
JEPI
- You want broader diversification (135 holdings vs 95)
- You already use JPMorgan and prefer staying within their fund family
Choose if...
JEPQ
- You already use JPMorgan and prefer staying within their fund family
📧 Free Weekly Newsletter
Get smarter about ETFs — one concept a week, free forever
The ETF BFF newsletter breaks down one ETF concept per week — clear, jargon-free, and actually useful.
✅ You're in! Check your inbox for your first issue.
❓ JEPI vs JEPQ — Frequently Asked Questions
What is the difference between JEPI and JEPQ?
Both JEPI and JEPQ are actively managed covered call ETFs from JPMorgan that generate monthly income by selling equity-linked notes (ELNs). The key difference is the underlying portfolio: JEPI holds a defensive selection of S&P 500 stocks with a lower-volatility tilt, while JEPQ holds Nasdaq-100 stocks, which are more tech-heavy and growth-oriented. Both charge 0.35% and target similar yield ranges (6–10%), but JEPQ tends to offer higher income in volatile markets due to richer option premiums on Nasdaq stocks.
Is JEPI or JEPQ a better income ETF?
Neither is objectively "better" — they suit different risk profiles. JEPI is more suitable for income-focused investors who want lower volatility and a defensive portfolio foundation. JEPQ is better suited for investors who want higher income potential and are comfortable with Nasdaq-level tech concentration and larger drawdowns. In strong bull markets, both will underperform a plain index fund because the covered call strategy caps upside. In flat or slightly declining markets, both tend to outperform through income generation.
How much do JEPI and JEPQ pay in dividends?
JEPI and JEPQ both pay monthly distributions that vary based on market volatility and option premiums. JEPI typically yields 6–9% annually; JEPQ often yields 8–11%, with higher distributions when Nasdaq volatility is elevated. These are not guaranteed fixed payments — the distribution amount changes each month. High yields in calm markets may compress; yields may spike during volatile periods when option premiums are richer.
Are JEPI and JEPQ safe investments?
JEPI and JEPQ are not "safe" in the traditional sense — they hold equity (stock) portfolios that can lose significant value in market downturns, as both demonstrated during 2022's sell-off. They are less volatile than pure equity ETFs due to the income buffer from covered calls, but they are not bond-equivalent stability. Their high yields attract investors seeking income, but those yields come with equity risk and capped upside. They are appropriate as an income allocation within a diversified portfolio, not as a safe cash alternative.
New to ETF investing? See answers to the most common ETF questions →
📄 JEPI & JEPQ Fact Sheets
ℹ️ Data shown is for educational purposes and may not reflect the most current figures. Returns are trailing price-based and exclude dividend reinvestment. Past performance does not guarantee future results. ETF BFF is not a licensed financial advisor — this is not personalized financial advice.