JEPQ’s 7% yield and 17% one-year return surpass JEPI’s 8% gain amid higher Nasdaq-100 volatility and AI concentration risks.
JPMorgan Nasdaq Equity Premium Income ETF (JEPQ) has delivered a 17% one-year return and 7% yield, nearly doubling the 8% gain of its S&P 500-focused counterpart, JEPI. The performance gap stems from JEPQ’s Nasdaq-100 exposure, where higher implied volatility generates larger option premiums for monthly distributions.
Both ETFs employ a similar strategy: holding a defensive equity sleeve and selling out-of-the-money covered calls to enhance income. However, JEPI’s low-beta S&P 500 tilt contrasts with JEPQ’s tech-heavy Nasdaq-100 concentration, amplifying returns but increasing risk. The 10-year Treasury yield at 4.69% has pressured income ETFs, though JEPI may benefit if mega-cap tech leadership rotates.
The Federal Reserve has maintained the fed funds rate at 3.75% since December 11, 2025, following cuts from 4.5% last summer. The 10-year yield has risen by roughly 28 basis points, influencing income-focused investment strategies for the remainder of 2026.