##  [# Investors Pivot to JEPQ as Returns Outpace JEPI](/sections/features/investors-pivot-jepq-returns-outpace-jepi) 

 

# Investors Pivot to JEPQ as Returns Outpace JEPI

 

 

With JEPQ doubling JEPI’s year-to-date returns, investors are shifting toward the Nasdaq-focused income fund.



 

 

 

 

 [![sumit](/sites/default/files/styles/author_image_icon/public/2023-03/Sumit_0.png?itok=SO-7S5SH "sumit")](/authors/sumit-roy) 

[By Sumit Roy ](/authors/sumit-roy)

 Dec 10, 2025

 Edited by: ETF.com Staff

 

 

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The [**JPMorgan Nasdaq Equity Premium Income ETF (JEPQ)**](/JEPQ) is closing in on its older sibling, the [**JPMorgan Equity Premium Income ETF (JEPI)**](/JEPI), after a year of heavy inflows and stronger performance.  
  
Since January, JEPQ has pulled in $9.6 billion, more than double the $4.4 billion that JEPI has gathered. JEPI remains the largest actively managed ETF in the U.S. with $41 billion in assets, but JEPQ has climbed to $32.2 billion, making it the fourth-largest active ETF.   
  
JEPI has risen modestly from $37 billion in AUM at the start of the year, while JEPQ has surged from $20.8 billion.

## Performance and Strategy

JEPQ has benefited from both strong inflows and better performance. On a total return basis, JEPQ is up 16% this year, more than double JEPI’s 7.7% gain.   
  
Both are still trailing their benchmarks, though JEPQ is lagging less. JEPI’s 7.7% return compares with an 18.6% gain for the S&amp;P 500; JEPQ’s 15.6% rise stands against a 23.5% increase for the Nasdaq-100.  
  
![](/sites/default/files/inline-images/JEPI.png)  
  
Both funds are part of the rapidly expanding category of option-overlay ETFs that generate cash by selling calls. These strategies trade away part of their upside in exchange for option premiums that can be paid out to shareholders.  
  
JEPI implements a covered-call approach on the S&amp;P 500 using equity-linked notes (ELNs), which can account for up to 20% of the portfolio. The remainder is invested in a basket of low-volatility, value-leaning U.S. stocks, with ESG screens sometimes influencing security selection.  
  
JEPQ applies a similar structure to the Nasdaq-100, using ELNs to replicate a Nasdaq-based covered call strategy and distributing the resulting premiums monthly.

 
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## Yields Remain the Big Draw

Yield is a major draw for these ETFs. JEPI currently advertises a 30-day SEC yield of 8.2%, while JEPQ is at 11.5%. Investors have been willing to tolerate benchmark underperformance in exchange for those high monthly payouts, though the trade-off shows up clearly when looking at inception-to-date returns.  
  
Since launching in May 2022, JEPQ has gained 75%, trailing the 101% return of the [**Invesco QQQ Trust (QQQ)**](/QQQ). JEPI, which debuted in May 2020, has returned 85%, well behind the 151% gain for the [**Vanguard S&amp;P 500 ETF (VOO)**](/VOO).  
  
Despite the underperformance, demand for steady payouts has kept the flows coming.



 

 

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 [ Sumit Roy Senior ETF Analyst ](/authors/sumit-roy) 

 

 

  Sumit Roy is the senior ETF analyst for etf.com and author of (Don't) Invest Like a Pro. He creates a variety of content for the platform, including…   [View Bio](/authors/sumit-roy)

 



 

 


 Related Topics  [Covered Call](http://www.etf.com/topics/covered-calls) 

 [Equity](http://www.etf.com/topics/equity)