JEPQ vs QQQ: Monthly Income vs Full Nasdaq Growth
JEPQ and QQQ both start from the Nasdaq-100. JEPQ sells covered calls on top of it to turn that portfolio into roughly 9% monthly income, which caps its upside. QQQ keeps the full growth. Two different jobs.
JEPQ (JPMorgan Nasdaq Equity Premium Income ETF) and QQQ (Invesco QQQ Trust) are not competing versions of the same idea. QQQ holds the Nasdaq-100 and gives you its full return, up and down, at 0.20%. JEPQ holds a similar equity basket but sells call options against it, converting future upside into monthly cash. That produces a headline yield recently above 9%, versus QQQ's 0.6%, at a cost of 0.35%. The tradeoff is structural: in a strong Nasdaq rally the calls cap JEPQ's gains, so its total return typically trails QQQ when tech runs, while its income holds steadier when the market is flat or falling. There is also a tax wrinkle: much of JEPQ's distribution is options premium taxed as ordinary income, so the yield on the statement and the yield kept after taxes are different numbers, and the gap widens at higher brackets. JEPQ suits investors who want current income from Nasdaq exposure and accept a capped upside; QQQ suits investors focused on long-term growth who do not need the cash now.
Whether the lower-cost fund suits your situation depends on your existing holdings, account type, tax situation, and how you use each fund. This is a cost comparison, not a personalized recommendation.
Both funds trade commission-free at every major brokerage. Where to buy them →
📋 JEPQ vs QQQ: Key Facts Side by Side
| Metric | JEPQ | QQQ |
|---|---|---|
| Fund Name | JPMorgan Nasdaq Equity Premium Income ETF | Invesco QQQ Trust |
| Issuer | JPMorgan | Invesco |
| Tracks Index | Nasdaq-100 + covered calls | Nasdaq-100 |
| Expense Ratio | 0.35% | 0.20% ✓ |
| Cost per $10K/yr | $35.00 | $20.00 |
| AUM | $42.2B | $489.0B |
| Holdings | 100 | 101 |
| Inception | 2022 | 1999 |
| 1-Year Return | +5.37% | +20.60% |
| 3-Year Return | +20.01% | +25.52% |
| 5-Year Return | — | +14.74% |
| Dividend Yield | 10.84% | 0.42% |
| Holdings Overlap | See holdings overlap → | |
| Avg Bid-Ask Spread | 0.02% | 0.00% |
Expense ratio, AUM, and returns updated Sep 22, 2026 from ETF BFF database. Returns are annualised. Not investment advice.
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📊 JEPQ vs QQQ: Annualised Returns
Annualised returns (trailing, price-based). Past performance does not guarantee future results.
🎯 Which Fund Fits Which Investor?
- already use JPMorgan and prefer staying within one fund family
- want the lowest fees: saves ~$15/yr per $10K vs JEPQ
- want tech-heavy large-cap growth exposure via Nasdaq-100
💰 What the Fee Difference Actually Costs
Adjust the numbers for your situation. This models each fund's expense ratio compounding against your balance over time.
Assumes a constant annual return reinvested, with each fund's expense ratio deducted yearly. Illustrative only; actual returns vary. Past performance does not guarantee future results.
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