What is the difference in expense ratios between JEPQ and QYLD?

JEPQ has an expense ratio of 0.35%, while QYLD's is 0.60%. This means JEPQ costs 0.25 percentage points less to hold annually. Over time, lower fees can enhance net returns by reducing the drag on performance. While both funds are in the derivative income category, investors might notice the cost efficiency difference, especially over longer holding periods. However, fee structure alone does not determine overall suitability; other factors like yield and strategy must also be considered.

Do JEPQ and QYLD track specific indices?

According to the provided data, the specific index tracked by both JEPQ and QYLD is not available. Despite this, both are categorised as Derivative Income ETFs focused on Nasdaq-related exposures. JEPQ uses a covered call strategy on a Nasdaq equity portfolio, while QYLD specifically applies covered calls to the Nasdaq 100 holdings. Without explicit index tracking details, investors should focus on the stated underlying strategies and holdings composition rather than assumed index replication.

How do covered call ETFs generate income?

Both JEPQ and QYLD generate income primarily through option premiums. They hold a portfolio of equities and sell call options against these holdings. The premiums received from selling these options are distributed to investors as dividends. This strategy can provide high yields but often caps the upside potential of the underlying stocks during strong rallies. Consequently, income depends heavily on volatility levels, as higher premiums are collected when implied volatility is greater.

Which fund has a higher dividend yield?

QYLD offers a dividend yield of 11.50%, compared to JEPQ's 11.07%. While QYLD's yield is slightly higher, the difference is marginal. Both funds distribute income derived from option premiums rather than solely from corporate dividends. It is important to remember that yields are not guaranteed and can fluctuate based on market conditions. Higher yields may also reflect different tax treatments or varying levels of risk associated with the underlying option strategy.

How significant is the overlap in top holdings?

There is substantial overlap in the top holdings of JEPQ and QYLD. Seven stocks appear in both top-10 lists: NVDA, AAPL, MSFT, GOOG, MU, AMZN, and AMD. This indicates that both funds share similar exposure to major technology and semiconductor companies. However, the exact weighting differs; for instance, NVDA comprises 7.26% of JEPQ versus 8.54% of QYLD. This high degree of overlap suggests comparable underlying equity baskets despite the different fund structures.

Which fund is newer, and why does it matter?

JEPQ is the newer fund, with an inception date of May 3, 2022, whereas QYLD launched much earlier on December 12, 2013. The longer operational history of QYLD provides more data for analysing performance across various market cycles. In contrast, JEPQ’s shorter track record means less historical evidence is available for assessing its long-term resilience and income consistency. Investors often consider the amount of historical data when evaluating the reliability of a fund’s strategy.

How do asset sizes compare between the two funds?

JEPQ is significantly larger, with net assets of $43.0 billion, compared to QYLD’s $8.5 billion. A larger asset base generally supports better liquidity, resulting in tighter bid-ask spreads and easier trading, especially for larger transactions. While QYLD’s size is still robust enough for adequate trading volumes, JEPQ’s scale offers an advantage during periods of market volatility. Asset size is a practical consideration for investors who value ease of entry and exit.

Do sector weights affect risk in these ETFs?

Sector weight data is not available for either JEPQ or QYLD in the provided context. Without this information, assessing diversification and concentration risk is difficult. However, given their top holdings, both funds likely have heavy exposure to the technology and communication services sectors. Investors should be aware that covered call strategies do not eliminate market risk; a downturn in these concentrated sectors would impact both the equity value and the option premium income.

Which investing goal is JEPQ typically associated with?

JEPQ is often associated with investors seeking a balance of high current income and potential moderate capital appreciation. Its lower expense ratio and large scale may appeal to those prioritising cost efficiency and liquidity. The strategy aims to provide premium income while retaining some upside exposure through its equity selection. It serves as a tool for generating income within a Nasdaq-focused allocation, without guaranteeing performance or suitability for all financial goals.

What educational disclaimer applies to this comparison?

This content is for educational purposes only and does not constitute financial advice. Figures are based on data from Yahoo Finance fetched in September 2026 and are subject to change. Investing in ETFs involves risks, including the loss of capital. The performance of covered call strategies like JEPQ and QYLD depends on market conditions, volatility, and tax laws. Readers should conduct their own research and consult a qualified financial professional before making investment decisions.

JEPQ vs QYLD

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

Compare the JPMorgan Nasdaq Equity Premium Income ETF (JEPQ) and the Global X Nasdaq 100 Covered Call ETF (QYLD). This page reviews fees, holdings, dividends and how each fund tracks its market. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

JEPQ

Metric

QYLD

0.35%

Expense Ratio

0.60%

11.07%

Dividend Yield

11.50%

$43.02B

Net Assets

$8.48B

110

Holdings

104

May 3, 2022

Inception Date

Dec 12, 2013

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Index Tracked

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Derivative Income

Fund Category

Derivative Income

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

Shared Top Holdings

Holding	JEPQ	QYLD
NVDANVIDIA Corporation	7.26%	8.54%
AAPLApple Inc.	6.62%	7.82%
MSFTMicrosoft Corporation	5.07%	5.84%
GOOGAlphabet Inc.	4.83%	3.02%
MUMicron Technology, Inc.	4.80%	5.05%
AMZNAmazon.com, Inc.	3.84%	4.36%
AMDAdvanced Micro Devices, Inc.	3.64%	4.02%
METAMeta Platforms, Inc.	2.75%	3.15%
TSLATesla, Inc.	2.05%	3.05%

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Investment Analysis

JEPQ

Pros

JPMorgan’s established reputation enhances investor confidence in the fund's operational integrity and management practices.
An expense ratio of 0.35% is lower than QYLD, making the fund relatively more cost-efficient for long-term investors.
The fund manages $43 billion in assets, providing strong liquidity and a lower risk of fund closure due to scale.

Considerations

The fund is still in its early stages, having launched in May 2022, which offers limited data on long-term performance.
Like its peer, it has no sector weights available, which hampers the assessment of its true diversification and risk exposure.
A high yield of 11.07% relies on derivative income, which may not be tax-efficient and can come at the cost of equity appreciation.

QYLD

Pros

With an inception date of December 2013, the fund has a longer operational history, offering more data for performance analysis.
An asset base of $8.5 billion is robust, supporting adequate trading volumes and reducing the risk of large bid-ask spreads.
The fund’s strategy is well-defined, providing consistent, high distributions by selling options against its Nasdaq 100 holdings.

Considerations

The expense ratio of 0.60% is higher than JEPQ, which creates a greater drag on overall net returns.
The fund’s smaller size compared to JEPQ could make it marginally less liquid during periods of significant market volatility.
Yields depend heavily on option premiums, which can shrink in calm markets and are often subject to less favourable tax treatment.

About JEPQ and QYLD

JEPQ (JEPQ)

The JPMorgan Nasdaq Equity Premium Income ETF (JEPQ) is an exchange-traded fund designed to generate monthly income while retaining growth potential from the Nasdaq 100 index. Rather than simply replicating the index, JEPQ primarily holds large-cap Nasdaq stocks but uses a strategy involving the sale of call options to produce premium income. This approach aims to offer investors a high-yield dividend stream, which can be attractive for those seeking regular cash flow. However, it is important to note that this strategy may cap potential upside during periods of strong market rallies. As with any investment involving derivatives and equity exposure, values can fluctuate, and income payouts are not guaranteed. It suits investors looking for income generation but requires an understanding of the trade-off between immediate yield and long-term capital appreciation.

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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JEPQ vs QYLD

Fund Snapshot