JPMorgan Nasdaq Equity Premium Income ETF (JEPQ)
NASDAQ (NMS) NASDAQ (NMS) Primary 
This Simple Dividend ETF Could Turn $1,000 a Month Into More Than $232,000
The JPMorgan Nasdaq Equity Premium Income ETF (JEPQ 0.22%) is one of the market's most interesting monthly income-paying exchange-traded funds (ETFs). Its management aims to generate relatively low-volatility returns and a consistent monthly income for investors through a simple strategy that captures the upside from equities but avoids some potential pitfalls of high-yield investing.
JEPQ vs JEPI: Are these boomer candy ETFs good buys in 2025?
The JPMorgan Equity Premium Income ETF (JEPI) and the JPMorgan Nasdaq Equity Premium Income ETF (JEPQ) are some of the biggest boomer candy funds, thanks to their high dividend returns. JEPI has a dividend yield of 9.5%, while JEPQ yields 9.53%, higher than most dividend funds and US government bonds.
Baby Boomers: The Only 3 ETFs You Need to Own for Passive Income and Growth Through Retirement
If you're already retired or just thinking about it, one of the last things you want to worry about is income.
JEPQ: No Longer That Attractive
I am downgrading JEPQ to a Hold due to other NASDAQ 100 income funds offering a mixture of better tax advantages, more consistent distributions, and stronger total returns. JEPQ's distributions are mostly taxed as ordinary income, unlike funds like QQQI and GPIQ, which use tax-loss harvesting to offer more tax-efficient returns via ROC and section 1256. The introduction of 0DTE funds has also provided alternatives that yield more and show stronger ability to capture upside in the NASDAQ 100.
JEPQ Vs. JEPI: Why We Now Prefer JEPQ
Dividend payouts play a central role for both JEPQ and JEPI and their potential return. Currently, JEPQ yields higher than JEPI, which is what I would expect. What caught my attention is that JEPQ also yields higher than its own historical average (by 9%) while JEPI yields 17% lower than its historical average.
JEPQ: How To Get The Least Out Of The Nasdaq By Seeking Income, Finding Underperformance
JEPQ underperforms by almost 3% annually due to its income-chasing strategy, which detracts from the total return. Dividends and specialty income do not enhance retirement income or mitigate the sequence of returns risk; total return and risk level are paramount. Covered call strategies, like those in the Global X NASDAQ 100 Covered Call ETF, drastically reduce returns, robbing future gains for present income.
JEPQ: Like The Sector Exposures, Dislike The Equity Linked Notes
JEPQ has more favorable sectoral exposures in a growing risk-on mood for 2025. When rates are increasingly pointing more toward a risk-on mood, JEPQ vs SPY overweights to growth areas in technology and semiconductors are favorable. And JEPQ's underweights to banks vs SPY help avoid NIM compression headwinds as rates fall.
High-Yield JEPQ For 2025
JPMorgan Nasdaq Equity Premium Income ETF (JEPQ) offers a strong yield and upside potential, making it attractive for income and total return investors. JEPQ's strategy of selling covered calls on tech stocks like Apple generates significant cash flow, enabling high dividend yields. Compared to other covered call ETFs, JEPQ has delivered solid price appreciation and outperformed due to less aggressive call writing and fundamental analysis.
If I Could Buy Only 1 ETF in 2025, This Would Be It
Exchange-traded funds (ETFs) are great additions to any portfolio. I use them to gain exposure to market segments where I don't have a lot of expertise or where it's easier to invest in an ETF than to actively manage that part of my portfolio.
Why High-Yielding JEPQ Will Likely Beat The Nasdaq In 2025
JEPQ has underperformed the Nasdaq 100 over the past two years. However, I think it is a good candidate to outperform in 2025. I detail why it will likely beat the Nasdaq 100 in 2025.
JEPQ: I Am Super Bullish Heading Into Earnings Yielding Over 10%
I believe the S&P 500 can reach 7,100 by year-end, driven by Fed rate cuts and potential declines in oil prices. JEPQ is my top pick for a hybrid investment, offering both income and capital appreciation, outperforming peers with a 24.53% total return in 2024. Despite risks tied to its concentrated holdings in the Magnificent Seven, JEPQ's strategy is well-positioned for 2025, benefiting from lower interest rates and pro-growth policies.
JEPQ Vs. QDVO: QDVO Likely To Outpace JEPQ In The Long Run
QDVO and JEPQ are both rated as Buys; QDVO is expected to outperform long-term, but JEPQ offers higher income at around 10%. QDVO's active management and tactical covered call strategy offer potential for higher returns as a large portion of its portfolio is uncapped. QDVO's 95% ROC distributions make it more tax-efficient for taxable accounts compared to JEPQ's ordinary income distributions.
