Two of the market's most popular income ETFs compared side-by-side. See which one fits your yield strategy.
What this means: JEPQ is ratedTier 4 (Harvest)while TSLY is ratedTier 5 (Octane).JEPQ is structurally lower risk than TSLY.
| Metric | JEPQ | TSLY |
|---|---|---|
| Total Return (1Y) | 18.47% | -11.66% |
| NAV Change (1Y) | 6.84% | -26.02% |
| Max Drawdown | -23.48% | -43.83% |
| Beta | 0.85 | - |
* 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.
TSLY (YieldMax TSLA Option Income) is a high-risk synthetic income fund managed by YieldMax. It focuses on generating income through strategic holdings. With $1.1B in assets under management, this fund has been operational since its inception.
Strategy: Uses aggressive derivative strategies on single stocks to produce yields far above market averages, with corresponding volatility.
In the head-to-head battle of JEPQ vs TSLY, the choice depends on your specific goal. TSLY wins for Immediate Income with a 14.36% 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.
What is a Yield Trap? A yield trap occurs when a fund advertises an attractive headline yield (14.36% in TSLY's case), but that income is partially funded by Return of Capital (ROC) distributions rather than genuine earnings or realized gains. This means you're essentially receiving your own money back, while the fund's NAV erodes.
12-MONTH PERFORMANCE BREAKDOWN:
Why This Matters: For retirees withdrawing income, this creates a double-whammy effect:
⚖️ Verdict: TSLY exhibits classic yield trap characteristics. Income investors should allocate cautiously and consider pairing with capital-preserving assets (Tier 1-2 funds).
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
TSLY
Annual Yield: 14.36%
$1,196/mo
($14,358/year)
Frequency: weekly
Income Gap: TSLY generates $2,727/year more than JEPQ on the same $100k investment.
Over 20 years, that's $54,546 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
JEPQ (More Resilient)
Max Drawdown: -23.48%
-$23,480
Worst unrealized loss
TSLY (More Volatile)
Max Drawdown: -43.83%
-$43,830
Worst unrealized loss
Protection Value: JEPQ saved investors $20,350 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: JEPQ demonstrated superior downside protection, making it the better choice for retirees who cannot afford steep temporary losses.
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
TSLY (HIGHER COST)
1.040%
Annual expense ratio
20-YEAR FEE IMPACT SIMULATION ($100,000 INITIAL INVESTMENT)
The Hidden Cost of "Just 0.69%": That seemingly small difference of 0.690% annually becomes $13,800 in lost wealth over 20 years. Factor in compound growth, and you're giving up ~$36,870 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.