What is the difference in expense ratios between these two ETFs?

JEPQ has an expense ratio of 0.35%, whereas SCHD charges 0.06%. This represents a 0.29 percentage point difference. While JEPQ's fee remains relatively low, SCHD is exceptionally cost-efficient. The expense ratio is deducted from the fund's assets, impacting net returns. For beginners, this distinction is crucial. A lower fee does not guarantee higher performance, but it does mean less drag on potential long-term growth. Understanding this cost difference helps investors assess the net economic impact of holding each fund.

How do the primary investment strategies of these funds differ?

JEPQ is categorised as a derivative income fund, focusing on generating premium income through Nasdaq exposure and covered call strategies. SCHD is a large-value fund that tracks companies with a history of paying dividends and strong fundamentals. The core distinction lies in their approach: JEPQ aims for high current income via financial instruments and tech exposure, while SCHD seeks long-term capital growth and sustainable dividend payments. They target entirely different mechanisms for wealth accumulation and income generation within the equity market.

Why is fund size and liquidity important for retail investors?

JEPQ has net assets of $43.0 billion, while SCHD holds $112.8 billion. Larger fund sizes generally provide better liquidity, meaning investors can buy or sell shares more easily without significantly affecting the share price. While both funds are massive, SCHD is substantially larger. This scale offers a safety net during high trading volumes. The difference in AUM is a key structural element to compare, as it often influences bid-ask spreads and overall marketability of the exchange-traded fund units.

Which stocks are listed in the top 10 holdings of JEPQ?

JEPQ's top ten holdings, as listed, are: NVDA at 7.26%, AAPL at 6.62%, MSFT at 5.07%, GOOG at 4.83%, MU at 4.80%, AMZN at 3.84%, AMD at 3.64%, META at 2.75%, TSLA at 2.05%, and AVGO at 1.99%. These companies are heavily weighted towards technology. While JEPQ may also use derivatives, these equity positions form the basis of its listed portfolio. The index tracked is not available.

Which stocks make up the largest positions in SCHD?

SCHD's top ten holdings are: MRK at 4.89%, ABT at 4.48%, AMGN at 4.28%, KO at 4.27%, CVX at 4.25%, COP at 4.08%, PG at 4.02%, VZ at 3.95%, UNH at 3.80%, and HD at 3.69%. This basket consists mainly of established companies in healthcare, consumer staples, and energy. Unlike JEPQ, SCHD's top stocks are less concentrated, with the highest weight below 5%. The index tracked is not available.

Are the high dividend yields comparable, and what are the figures?

The yields differ significantly. JEPQ reports a dividend yield of 11.07%, reflecting its premium income strategy. SCHD has a yield of 3.11%, typical for a traditional dividend growth ETF. Beginners should note that a higher yield is not inherently superior; it may come with different risk profiles, such as capital appreciation potential versus income distribution. Both funds distribute their respective yields, but the underlying mechanisms and sustainability expectations vary between the Nasdaq income approach and the large-value strategy.

How do the inception dates of the funds impact historical analysis?

JEPQ was established on May 3, 2022, providing a track record of under four years as of late 2025. SCHD was launched on October 20, 2011, offering over a decade of performance history. The short lifespan of JEPQ limits long-term analysis and data points for comparison. SCHD's longer history allows investors to review its performance across more diverse market cycles, whereas JEPQ is still in its relative early stages.

Do these two funds have any overlapping top 10 holdings?

Based on the top 10 holdings listed for each fund, there are zero shared companies between JEPQ and SCHD. JEPQ's list is populated by mega-cap technology firms like NVIDIA and Apple. SCHD's list is dominated by legacy industrial and healthcare companies like Merck and AbbVie. This lack of overlap suggests the two ETFs provide distinct portfolio diversification and do not serve as direct substitutes for holding specific equities.

Which fund has a shorter track record, and why does it matter?

JEPQ has a shorter track record, with an inception date of May 3, 2022. SCHD was launched on October 20, 2011. The limited history of JEPQ makes it more difficult to assess its performance in various prolonged market conditions. The longer history of SCHD means it has been tested through multiple distinct market events, whereas JEPQ's relatively recent launch is a factor investors should consider when evaluating the stability of the strategy.

Is there available information regarding the specific index tracked by either ETF?

No. For both JEPQ and SCHD, the provided fund data indicates that the index tracked is 'not available'. Without this specific information, we cannot detail the exact methodology, selection criteria, or weightings. Investors would need to consult specific fund prospectuses to find this data.

How do the sector allocations compare for these two funds?

The fund data does not specify the exact sector weights for JEPQ or SCHD, listing them both as 'not available'. However, an analysis of the top 10 holdings gives insight into their dominant sectors. JEPQ's listed top holdings suggest a heavy concentration in Information Technology and Communication Services. SCHD's top 10 holdings point towards exposure in Healthcare, Energy, and Consumer Staples. Without official sector weights, we rely on the top holdings to infer the dominant areas.

What should beginners consider when comparing income versus growth ETFs?

This page provides educational content, not financial advice. When comparing income strategies, such as the one used by JEPQ, against dividend growth strategies like SCHD, beginners should consider the trade-off between current cash flow and potential long-term capital appreciation. A fund with an 11.07% yield might prioritise distributing premium income, while a fund with a 3.11% yield might retain more earnings to compound share price growth.

JEPQ vs SCHD

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

Compare JPMorgan Nasdaq Equity Premium Income ETF and US Dividend Equity ETF Schwab. Review fees, holdings, dividends, and how each fund tracks its market. JEPQ charges 0.35% with an 11.07% yield, while SCHD charges 0.06% with a 3.11% yield. Both are large, with JEPQ at $43.0 billion and SCHD at $112.8 billion. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

JEPQ

Metric

SCHD

0.35%

Expense Ratio

0.06%

11.07%

Dividend Yield

3.11%

$43.02B

Net Assets

$112.77B

110

Holdings

102

May 3, 2022

Inception Date

Oct 20, 2011

–

Index Tracked

–

Derivative Income

Fund Category

Large Value

SCHD costs about $29.00 less per year for every $10,000 invested.

Shared Top Holdings

These funds do not share any of their top holdings.

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Investment Analysis

JEPQ

Pros

JEPQ charges a moderate expense ratio of 0.35%, offering a relatively affordable entry point compared with actively managed covered-call strategies.
It generates a very high dividend yield of 11.07%, providing substantial cash income to investors from its Nasdaq-focused premium income approach.
With $43.0 billion in assets, the fund benefits from significant scale, enhancing liquidity and supporting efficient trading for its Nasdaq holdings.

Considerations

The index tracked is not available, limiting transparency about how the fund benchmarks or replicates its Nasdaq equity premium income exposure.
Concentration in a few mega-cap tech stocks, such as NVDA and AAPL, may expose investors to heightened sector-specific volatility.
Since its inception in May 2022, the fund’s relatively short track record makes long-term performance comparisons difficult.

SCHD

Pros

SCHD features a low expense ratio of 0.06%, making it a cost-efficient choice for investors seeking large-value US dividend exposure.
The fund’s net assets of $112.8 billion provide robust liquidity and stability, supporting efficient trading and scale advantages for investors.
With an inception date of October 2011, SCHD has a long track record of investing in quality US dividend growth stocks.

Considerations

The index tracked is not available, leaving investors without direct knowledge of the benchmark methodology guiding its large value portfolio.
Despite quality holdings, the fund’s dividend yield of 3.11% may not satisfy income-focused investors seeking a higher cash flow.
Diversification across sectors may be perceived as limited, though the fund holds a mix of top stocks in consumer staples, energy, and healthcare.

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About JEPQ and SCHD

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.

SCHD (SCHD)

SCHD (Schwab US Dividend Equity ETF) is an exchange‑traded fund that aims to provide exposure to high-quality U.S. companies that have a history of paying dividends. Managed by Charles Schwab, the ETF screens for firms with stable earnings, reasonable payout ratios and consistent dividend records, concentrating on large‑cap names across a range of sectors. Investors often use SCHD for income and as a core holding to capture dividend yield with the diversification and liquidity of an ETF. It is designed to be a low‑cost, transparent vehicle, though dividends and share prices can fall and past performance is not a guarantee of future results. Suitable for investors seeking income and long‑term total return, it may not fit those focused solely on capital growth or who require guarantees. As with any investment, consider costs, tax treatment and how it fits your wider portfolio before investing.

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JEPQ vs SCHD

Fund Snapshot