Two of the market's most popular income ETFs compared side-by-side. See which one fits your yield strategy.
What this means: Both JEPQ and TLTW fall intoTier 4: Harvest. This suggests they share a similar risk profile and volatility expectation.
| Metric | JEPQ | TLTW |
|---|---|---|
| Total Return (1Y) | 18.47% | 0.00% |
| NAV Change (1Y) | 6.84% | 0.00% |
| Max Drawdown | -23.48% | -18.50% |
| Beta | 0.85 | 0.90 |
* Returns include dividend reinvestment. Drawdown calculates peak-to-trough decline over trailing 12 months.
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.
TLTW (iShares 20+ Year Treasury Bond Buywrite Strategy ETF) is a options-based income fund managed by iShares. It tracks the 20+ Year Treasury index across approximately 40 positions. With $1.7B in assets under management, this fund has been operational since May 2023.
Strategy: Generates enhanced income through covered call options on equity holdings, trading upside potential for premium income.
In the head-to-head battle of JEPQ vs TLTW, 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:
JEPQ
Annual Yield: 11.63%
$969/mo
($11,630/year)
Frequency: monthly
TLTW
Annual Yield: 9.91%
$825/mo
($9,905/year)
Frequency: monthly
Income Gap: JEPQ generates $1,725/year more than TLTW on the same $100k investment.
Over 20 years, that's $34,503 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
TLTW (More Resilient)
Max Drawdown: -18.50%
-$18,500
Worst unrealized loss
JEPQ (More Volatile)
Max Drawdown: -23.48%
-$23,480
Worst unrealized loss
Protection Value: TLTW saved investors $4,980 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: TLTW 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.
JEPQ EFFICIENCY SCORE
13.68%
Beta: 0.85 | Yield: 11.63%
TLTW EFFICIENCY SCORE
11.01%
Beta: 0.90 | Yield: 9.91%
Winner: JEPQ generates 13.68% yield per unit of market risk, compared to TLTW's 11.01%.
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.
What is an Expense Ratio? The annual fee charged by the fund, expressed as a percentage of assets. It's deducted daily from the fund's NAV, making it invisible to most investors—but it compounds over time.
JEPQ (LOWER COST)
0.350%
Annual expense ratio
TLTW (HIGHER COST)
0.990%
Annual expense ratio
20-YEAR FEE IMPACT SIMULATION ($100,000 INITIAL INVESTMENT)
The Hidden Cost of "Just 0.64%": That seemingly small difference of 0.640% annually becomes $12,800 in lost wealth over 20 years. Factor in compound growth, and you're giving up ~$34,350 in potential portfolio value.
💡 Cost Efficiency Winner: JEPQ is the clear winner for long-term buy-and-hold investors. Lower fees mean more capital compounds in YOUR account, not the fund manager's.
Every investor has a unique risk profile. Use our Portfolio Intelligence tool to see the impact of adding these ETFs to your holdings.