Two of the most-searched dividend ETFs of the last three years sit right next to each other on JPMorgan's shelf: JEPI (JPMorgan Equity Premium Income) and JEPQ (JPMorgan Nasdaq Equity Premium Income). They use the same strategy — own a basket of stocks, write monthly covered calls on top — but they own different baskets, and that one difference reshapes everything else.
Side-by-side, live
These figures come straight from our nightly data pipeline, not from a fact sheet — so the yields, distributions and total returns below are the current ones.
Over the last 12 months JEPQ delivered a total return of +17.4% versus +8.0% for JEPI — that is price change plus every distribution actually paid. JEPI advertises a lower headline yield, but headline yield is not what landed in your account.
| Live metric | JEPI | JEPQ |
|---|---|---|
| 1-year total return | +8.0% | +17.4%win |
| Distribution yield | 8.02% | 11.46%higher |
| Paid per share (12mo) | $4.56 | $6.88higher |
| Share price change (1y) | -0.0% | +5.3%better |
| Expense ratio | 0.35% | 0.35% |
| Fund size | $45.3Bbigger | $44.3B |
| Pays | Monthly | Monthly |
The structural differences
| Metric | JEPI | JEPQ |
|---|---|---|
| Underlying index | Low-vol S&P 500 subset | Low-vol Nasdaq-100 subset |
| Holdings (approx) | ~130 names | ~80 names |
| Beta (vs S&P 500) | ~0.6 | ~0.8 |
| Best-fit use case | Defensive income | Tech-tilted income |
How the covered-call strategy works (60 seconds)
Both funds own a basket of stocks (≈ 130 names for JEPI; ≈ 80 for JEPQ). Each month the manager sells out-of-the-money call options on a portion of the portfolio (via equity-linked notes). The option premium is collected as cash and distributed to shareholders. If the market rips upward, some upside is capped by the sold calls; if the market drops or chops sideways, the premium income cushions the decline.
When to pick JEPI
- You want monthly income with smaller drawdowns than the S&P 500.
- You worry about a tech-led correction and don't want concentration in QQQ-style names.
- You're older, closer to retirement, or otherwise prioritising capital preservation.
When to pick JEPQ
- You want the higher yield and accept the higher volatility.
- You have an existing position-overweight toward defensives and need tech-side income exposure.
- You're younger and can ride the bigger swings.
The case for owning both
Many DiviDrip users hold a 50/50 or 60/40 (JEPI/JEPQ) split. The pair's correlation is high but not 1.0; during the 2022 Nasdaq drawdown JEPI fell about half as much as JEPQ, and during the 2023 tech rally JEPQ outpaced JEPI by 10+ percentage points. Owning both smooths the income curve.
Compare them live in the app
Open DiviDrip, search JEPI, click the row to open the Stock Modal, then tap the Compare button and pick JEPQ as slot B. The Compare modal overlays both yield histories on the same chart, marks the crossovers with diamonds, and flashes a skew warning if one fund's peak yield is more than 3× the other. The Log toggle is useful here because JEPQ's peak distribution months tower over JEPI's — linear scale can compress JEPI's line.
FAQ
- What is the main difference between JEPI and JEPQ?
- JEPI tracks low-volatility S&P 500 names; JEPQ tracks Nasdaq-100 names. Both write covered calls to generate income. JEPQ runs hotter — higher yield, higher volatility, more upside in tech rallies. JEPI is calmer — lower yield, lower drawdowns, less correlation with tech.
- Which has the higher dividend yield, JEPI or JEPQ?
- Historically JEPQ has paid a higher trailing-twelve-month yield (roughly 9-11%) than JEPI (roughly 7-9%). The premium reflects the higher implied volatility of the Nasdaq-100 vs the S&P 500 — covered-call writers get paid more for selling vol when there is more vol to sell.
- Are JEPI and JEPQ dividends qualified or ordinary?
- A meaningful portion of both funds' distributions are NOT qualified — the call-option income flows through as ordinary income, taxed at your full marginal rate. The equity-component dividends embedded in the holdings remain qualified. The exact qualified percentage is reported on each year's 1099-DIV. If you hold JEPI/JEPQ in a Roth or traditional IRA, the distinction is moot.
- Can I own both JEPI and JEPQ?
- Yes — many income-focused investors split allocation between them. JEPI gives you the S&P 500 income flow, JEPQ gives you the Nasdaq income flow. They are correlated but not identical, and during tech-led drawdowns you will be glad you owned JEPI; during tech rallies you will be glad you owned JEPQ.
- Will JEPI / JEPQ keep paying double-digit yields forever?
- No. Covered-call ETF yields are tied to implied volatility (the VIX for JEPI, the VXN for JEPQ). When markets are calm and vol collapses, option premiums shrink and distributions fall. Both funds explicitly state distribution amounts vary month-to-month. Plan for 5-8% as a conservative long-run base case.
Disclaimer: This is not investment advice. Yields, holdings, and expense ratios can change; always check the fund's latest factsheet at JPMorgan and the live numbers in DiviDrip before buying.