How do the dividend yields of JEPI and QYLD compare?

JEPI offers a dividend yield of 8.09%, whereas QYLD provides a higher yield of 11.50%. These figures represent the annual income relative to the share price. Investors seeking maximum current income might gravitate towards the higher yield, but it is crucial to understand the underlying sources. A higher yield often correlates with a specific strategy that involves writing covered call options, which can cap upside potential. Comparing these yields helps assess the income potential, but it does not account for total return, which includes capital appreciation or depreciation.

What is a covered call ETF?

A covered call ETF is a fund that holds a portfolio of stocks and sells call options against those holdings to generate additional income. This strategy aims to produce regular dividends for investors. However, it also limits the fund's upside potential during strong market rallies because the gains above the strike price of the sold calls are given up to the option buyer. Both JEPI and QYLD are examples of this category, utilising derivatives to enhance income, but they differ in the specific indices or methodologies they employ to construct their portfolios.

How do the expenses impact long-term returns?

The expense ratio is the annual fee charged by the fund to manage assets. JEPI has an expense ratio of 0.35%, which is relatively low for a derivative income strategy. In contrast, QYLD charges 0.60%. While the difference of 0.25 percentage points might seem small annually, it can compound over time, affecting net returns. For example, on a $10,000 investment, the fee difference is $25 per year before tax. Lower costs generally mean that more of the gross return is retained by the investor, all else being equal.

Are the holdings of JEPI and QYLD similar?

Yes, there is significant overlap in the top holdings of both funds. Both JEPI and QYLD include major technology companies such as MSFT, AAPL, META, AMZN, NVDA, and GOOGL in their top ten positions. However, the concentration levels differ. JEPI's holdings are more diversified, with no individual position exceeding 1.94% of the portfolio. QYLD is more concentrated, with top positions like NVDA at 8.54% and AAPL at 7.82%. This means QYLD is more sensitive to the performance of these specific tech giants compared to JEPI.

How has the Net Asset Value (NAV) of the funds grown?

JEPI has accumulated substantial net assets of $45.3 billion, indicating strong market participation and liquidity. On the other hand, QYLD has net assets of $8.5 billion. The significant difference in size can affect liquidity and trading ease for large investors, with JEPI generally offering better liquidity due to its larger scale. Larger asset bases can also provide more flexibility for fund managers to implement their strategies effectively, although both funds are well-established in the derivative income sector with considerable capital.

What are the key differences in the fund operational history?

JEPI was launched in May 2020, giving it a shorter operating history. In contrast, QYLD has been operating since December 2013. A longer track record allows investors to analyse how the fund performed through various market cycles, including bull and bear markets. QYLD's history provides more data points for assessing risk and return consistency. JEPI, being newer, has less historical data but has rapidly attracted significant assets. Investors should consider the availability of performance data when evaluating the reliability and predictability of each fund's strategy.

What is the risk of relying on dividend yield?

Relying solely on dividend yield can be misleading as it does not guarantee capital preservation. Both JEPI and QYLD are equity-based funds, meaning their share prices can decline. A high yield, such as QYLD's 11.50%, might partially result from a falling share price, not just high income generation. Additionally, dividend payouts can be cut if the fund's income from options and dividends decreases. Investors must consider total return, which combines income and capital gains/losses, rather than focusing exclusively on the yield percentage to get a true picture of performance.

Why does QYLD have a higher tech exposure?

QYLD tracks the Nasdaq 100 index, which is heavily weighted towards technology companies. This is reflected in its top holdings, where NVDA and AAPL alone comprise over 16% of assets. JEPI, while also holding tech stocks like MSFT and AAPL, uses a broader active strategy focused on lower volatility and income, resulting in less concentrated tech exposure. Investors in QYLD are therefore more directly exposed to the performance of the technology sector and the Nasdaq 100, whereas JEPI offers a more diversified approach across various sectors.

How does volatility affect covered call strategies?

Volatility impacts both the option premiums earned and the underlying stock prices. In highly volatile markets, option premiums tend to be higher, potentially increasing the income yield for funds like QYLD and JEPI. However, volatility can also lead to significant drawdowns in the underlying equity portfolio. The covered call strategy aims to mitigate some downside through the income received from selling options, but it does not protect against major losses. Investors should be aware that these funds are still subject to the risks associated with the equity market they are exposed to.

Which fund suits a maximum income goal?

QYLD is typically associated with investors seeking maximum current income, evidenced by its higher dividend yield of 11.50%. This appeal comes with the trade-off of capped upside and concentration in the Nasdaq 100. JEPI, with a yield of 8.09%, offers income with a potentially more balanced approach to risk, given its active management and larger asset base. Neither fund is inherently 'better', but QYLD's strategy is more explicitly focused on high income generation from a specific index, whereas JEPI seeks to blend income with capital preservation from a broader equity universe.

How do I interpret the sector weights?

Currently, specific sector weights are not available for either JEPI or QYLD in the provided data. This is a limitation for investors looking to precisely allocate sector risk. While we can see individual stock weights, a full sector breakdown would clarify exposure to technology, healthcare, or consumer discretionary. Without this data, investors must infer sector exposure from the top holdings. QYLD's concentration in tech suggests heavy sector skew, while JEPI's diversified list hints at broader allocation, but exact sector percentages remain unknown based on current information.

What is the difference between active and index-tracking?

JEPI is an actively managed fund, meaning its holdings and option strategies are decided by portfolio managers to meet income and volatility goals. The exact methodology is not fully transparent. QYLD is passive, systematically writing options on the Nasdaq 100 index. Active management allows for flexibility and potential outperformance but comes with manager risk. Passive strategies offer predictability and typically lower costs but strictly follow a benchmark. Understanding this distinction is key, as it affects how the fund reacts to market changes and the transparency of its investment rules.

JEPI vs QYLD

Two funds, one decision: we compare cost, performance and what each ETF actually holds in September 2026.

Compare JEPI (JPMorgan Equity Premium Income ETF) and QYLD (Global X Nasdaq 100 Covered Call ETF). This page examines expense ratios of 0.35% versus 0.60%, net assets of $45.3 billion versus $8.5 billion, dividend yields of 8.09% versus 11.50%, key holdings including MSFT, AAPL, and NVDA, and how each derivative income fund tracks its market. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

JEPI

Metric

QYLD

0.35%

Expense Ratio

0.60%

8.09%

Dividend Yield

11.50%

$45.26B

Net Assets

$8.48B

136

Holdings

104

May 20, 2020

Inception Date

Dec 12, 2013

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Index Tracked

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Derivative Income

Fund Category

Derivative Income

JEPI costs about $25.00 less per year for every $10,000 invested.

Shared Top Holdings

Holding	JEPI	QYLD
MSFTMicrosoft Corporation	1.94%	5.84%
AAPLApple Inc.	1.93%	7.82%
METAMeta Platforms, Inc.	1.91%	3.15%
AMZNAmazon.com, Inc.	1.87%	4.36%
NVDANVIDIA Corporation	1.87%	8.54%
GOOGLAlphabet Inc.	1.77%	3.27%

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Investment Analysis

JEPI

Pros

The fund features a relatively low expense ratio of 0.35 per cent compared to many covered call strategies.
It manages substantial net assets of $45.3 billion, indicating strong liquidity and market participation for investors.
The top holdings are highly diversified, with no individual position exceeding 1.94 per cent of the portfolio.

Considerations

The dividend yield of 8.09 per cent is lower than the 11.50 per cent offered by the alternative fund.
Since the fund launched in May 2020, it has a shorter operating history than older covered call products.
The specific index methodology is not available, limiting transparency on the quantitative rules governing the strategy.

QYLD

Pros

It delivers a high dividend yield of 11.50 per cent, appealing to investors seeking maximum current income.
The fund benefits from an operational history dating back to 2013, providing a longer track record for analysis.
It offers a more focused exposure to technology with NVDA and AAPL comprising over 16 per cent of assets.

Considerations

The expense ratio of 0.60 per cent is higher than the 0.35 per cent charged by the comparable fund.
The top ten holdings are concentrated with individual weights as high as 8.54 per cent, increasing single-stock risk.
Net assets of $8.5 billion are significantly smaller than the $45.3 billion managed by the alternative fund.

About JEPI and QYLD

JEPI (JEPI)

The JPMorgan Equity Premium Income ETF (JEPI) is designed to provide investors with a combination of potential income and moderate equity market exposure. It typically achieves this by holding a portfolio of US equity securities while using covered call options to generate additional premium income. The fund has a net asset value of USD 45.26 billion and currently holds 136 positions, focusing on large-capitalisation companies with lower volatility characteristics. With an expense ratio of 0.35%, it remains competitive within its sector. Investors often consider JEPI for its relatively high reported dividend yield of 8.09%, which is derived from both underlying stock dividends and option premiums. However, it is important to remember that the use of derivatives can cap upside potential during strong market rallies. As with any investment, values can rise and fall, and past yields are not guaranteed for the future. This product is generally suitable for those seeking income strategies within the equity market, subject to individual risk tolerance.

QYLD (QYLD)

The Global X Nasdaq 100 Covered Call ETF (QYLD) is a derivative income fund designed to generate regular distributions for investors. Rather than simply tracking the price of the Nasdaq 100, it employs a covered call strategy, holding the underlying index components while selling monthly call options against them. This approach aims to capture premium income, which is reflected in its current dividend yield of 11.50%. The fund holds 104 holdings and carries an expense ratio of 0.60%. While the strategy can provide attractive income, it may limit capital appreciation potential during strong market rallies, as gains are often capped by the sold options. Investors should note that values can fall as well as rise, and income distributions are not guaranteed.

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JEPI vs QYLD

Fund Snapshot