JEPI vs JEPQ

JEPI and JEPQ are built the same way. Each holds a stock portfolio and adds equity-linked notes that sell call options, and each pays out the option income every month. J.P. Morgan says both aim for monthly income with less volatility than their market.

The difference is the market underneath. JEPI holds a defensive mix of large U.S. companies and sells options on the S&P 500. JEPQ holds Nasdaq-100 companies, which lean heavily toward technology, and sells options on the Nasdaq-100.

JEPQ, and by a clear margin. As of Oct 13, 2026 it yielded about 11.30% against about 8.01% for JEPI. J.P. Morgan’s own 12-month rolling yields on September 24, 2026 were 11.56% for JEPQ and 8.04% for JEPI.

The gap has grown. From 2023 to 2025, JEPQ’s yearly payout per share rose from $5.0009 to $6.1227, about 22.4% more, while JEPI’s went from $4.6183 to $4.7198, about 2.2% more. In 2026 so far, JEPQ’s first eight payments are 15.7% above the same eight in 2025 and JEPI’s are 4.2% below.

Both pay monthly, with ex-dividend dates on the first business day of the month, or in the last days of December for the January payment.

Call options on a market that swings more are worth more, so selling them brings in more premium. The Nasdaq-100 moves more than the S&P 500, and JEPQ writes out-of-the-money Nasdaq-100 call options through its notes. That extra premium is the main reason its payout is higher than JEPI’s.

The trade-off is risk. A more volatile index can fall further, and the income can drop when markets calm down.

Over the three years to August 31, 2026, JEPQ returned 19.34% a year at net asset value and JEPI 9.51%. Over the last year it was 20.91% against 9.05%.

Both trailed the index they follow. The Nasdaq-100 returned 24.77% a year over those three years and the S&P 500 21.04%. Selling call options gives up part of the gains when stocks rise strongly, and that cost showed up in a rising market. This also answers why JEPI has looked weak lately: its steadier stock mix and option selling held it back while the S&P 500 rallied.

Many people weigh these against SCHD. SCHD yields less (about 3.17% as of Oct 13, 2026) but has raised its dividend by about 10.6% a year over the 10 years to 2025, and it pays quarterly. JEPI and JEPQ pay more now, monthly, but their payments change from month to month and have not grown steadily.

In short, JEPI and JEPQ suit people who want high income now, and SCHD suits people who want a smaller dividend that has grown over time.

JEPI — JEPI holds a defensive basket of U.S. stocks and sells equity-linked notes to generate options premium, paying a high monthly distribution. Its yield is well above the broad market, but much of the return comes from income rather than price appreciation.

JEPQ — JEPQ applies the same equity-premium-income strategy as JEPI but on a Nasdaq-100-oriented portfolio, writing options for a high monthly payout. It carries more technology exposure and typically a higher distribution than JEPI.

In practice the choice comes down to your goal. JEPI suits an investor who wants maximum current monthly income and accepts capped price growth, while JEPQ suits one who wants maximum current monthly income and accepts capped price growth. The two are not mutually exclusive — plenty of portfolios hold a growth-oriented fund and an income-oriented one together. What matters is matching each to its job and not judging a fund on its headline yield alone.

Rather than compare a single snapshot yield (which moves daily), open each calculator and enter current figures: the JEPI calculator and the JEPQ calculator. To compare long-term compounding head to head, run the same contributions through the dividend reinvestment calculator with each fund’s assumptions.