JPMorgan's two monthly income funds. Similar strategy, different stocks: large-cap vs Nasdaq.
| Metric | JEPI | JEPQ | Winner |
|---|---|---|---|
| Dividend Yield | 7.93% | 11.96% | JEPQ |
| Expense Ratio | 0.35% | 0.35% | Tie |
| Assets Under Management | $45.3B | $44.3B | JEPI |
| Distribution Frequency | Monthly | Monthly | Tie |
| Inception Date | 2020 | 2022 | JEPI |
| Focus | Large-cap stocks | Nasdaq-100 stocks | Different |
| Top Holdings Universe | Large-cap S&P 500 leaders | Nasdaq-100 mega-cap tech | Different |
| 1-year total return | +6.6% | +19.5% | — |
| 3-year annualized return | +10.0% | +21.8% | — |
| 5-year annualized return | +7.8% | n/a | — |
Investors seeking high monthly income with lower volatility and broader diversification.
Tech-bullish investors seeking ultra-high monthly income who are comfortable with higher volatility.
Choose JEPI if: You prefer broader diversification across large-cap stocks, lower volatility, and a longer track record. The 7.93% monthly yield is still excellent while maintaining more balanced sector exposure.
Choose JEPQ if: You're bullish on technology, want maximum monthly income (11.96%), and are comfortable with higher concentration in tech stocks. The higher yield comes with more volatility.
Key Difference: Both use the same JPMorgan options overlay strategy. The main difference is the underlying portfolio - JEPI holds diversified large-caps while JEPQ focuses on Nasdaq-100 tech stocks. JEPQ's higher yield reflects both the options premium and tech sector characteristics.
Risk Consideration: JEPQ's heavy technology allocation means higher sensitivity to tech sector downturns. JEPI's broader diversification provides more stability during market volatility.
Option premiums rise with volatility, and the Nasdaq-100 is more volatile than the S&P 500. So JEPQ collects more premium than JEPI. That same volatility also means a rougher ride: JEPQ can fall much further in a technology sell-off, and it has to earn that income from a far narrower set of stocks.
JEPI's stock portfolio is built to be defensive, while JEPQ's tracks the growth-heavy Nasdaq-100. In growth-led years JEPQ tends to win clearly, as the return rows above show. In a downturn, or when value leads, JEPI's more defensive stocks should hold up better.
JEPQ, at 11.96% against 7.93% for JEPI. Both payouts change monthly with option premiums.
JEPI is the more defensive fund, built for lower volatility. Neither is safe in the sense of a bond: both can lose money.
Many investors do, for diversification between defensive and growth stocks. Both use options, so together they are still all one strategy. See covered call ETFs.
Mostly as ordinary income, so they are often held in an IRA or 401(k). See the tax guide.