Two of the market's most popular income ETFs compared side-by-side. See which one fits your yield strategy.
What this means: Both JEPI and JEPQ fall intoTier 4: Harvest. This suggests they share a similar risk profile and volatility expectation.
| Metric | JEPI | JEPQ |
|---|---|---|
| Total Return (1Y) | 7.37% | 18.47% |
| NAV Change (1Y) | -1.38% | 6.84% |
| Max Drawdown | -14.35% | -23.48% |
| Beta | 0.65 | 0.85 |
* Returns include dividend reinvestment. Drawdown calculates peak-to-trough decline over trailing 12 months.
JEPI (JPMorgan Equity Premium Income) is a options-based income fund managed by JPMorgan. It tracks the S&P 500 index across approximately 130 positions. With $41.5B in assets under management, this fund has been operational since May 2020.
Strategy: Generates enhanced income through covered call options on equity holdings, trading upside potential for premium income.
JEPQ (JPMorgan Nasdaq Equity Premium) is a options-based income fund managed by JPMorgan. It tracks the Nasdaq-100 index across approximately 100 positions. With $32.5B in assets under management, this fund has been operational since May 2022.
Strategy: Generates enhanced income through covered call options on equity holdings, trading upside potential for premium income.
In the head-to-head battle of JEPI vs JEPQ, the choice depends on your specific goal. JEPQ wins for Immediate Income with a 11.63% yield. However, JEPQ is the better choice for Long-Term Growth due to superior total return performance.
Which fund is safer for retirement income? We analyze the yield sustainability and structural risk.
The Bottom Line Question: If you invest $100,000 today, how much cash will you actually receive each month? Here's the exact math:
JEPI
Annual Yield: 8.75%
$729/mo
($8,750/year)
Frequency: monthly
JEPQ
Annual Yield: 11.63%
$969/mo
($11,630/year)
Frequency: monthly
Income Gap: JEPQ generates $2,880/year more than JEPI on the same $100k investment.
Over 20 years, that's $57,610 in additional cash flow (before reinvestment).
Context Matters: Higher income doesn't always mean better investment. Review the "Yield Trap" and "Total Return" sections above—you want income that's sustainable, not just headline-grabbing.
Historical data reveals how these funds behave during market stress. JEPQ has delivered a superior Total Return of 18.47% over the past year.
What is Max Drawdown? Max drawdown measures the largest peak-to-trough decline in portfolio value during a specific period. Unlike NAV change (which only looks at start vs. end), max drawdown captures the worst moment of pain an investor experienced.
Real-World Scenario: $100,000 Investment
JEPI (More Resilient)
Max Drawdown: -14.35%
-$14,350
Worst unrealized loss
JEPQ (More Volatile)
Max Drawdown: -23.48%
-$23,480
Worst unrealized loss
Protection Value: JEPI saved investors $9,130 in drawdown severity on a $100k position.
Why This Matters More Than Total Return: During bear markets or corrections, investors with lower max drawdown are:
⚖️ Capital Preservation Winner: JEPI demonstrated superior downside protection, making it the better choice for retirees who cannot afford steep temporary losses.
What is Beta? Beta measures how much a fund moves relative to the broader market. A beta of 1.0 means it moves in lockstep with the market. Higher beta = more volatility = more risk.
JEPI EFFICIENCY SCORE
13.46%
Beta: 0.65 | Yield: 8.75%
JEPQ EFFICIENCY SCORE
13.68%
Beta: 0.85 | Yield: 11.63%
Winner: JEPQ generates 13.68% yield per unit of market risk, compared to JEPI's 13.46%.
Practical Application: For defensive portfolios (retirees, conservative investors), JEPQ delivers more income per "unit of stress." This makes it the superior choice for sleep-well-at-night income generation.
Every investor has a unique risk profile. Use our Portfolio Intelligence tool to see the impact of adding these ETFs to your holdings.