JEPQ ETF

High-yield funds can be risky. In a perfect world, every ultra-generous dividend yield would be a direct result of strong businesses generating lots of excess cash profits.

The equilibrium level for maximized yield and minimized dividend cut has decreased over the past couple of quarters with many top picks experiencing notable yield compressions. The outlook for high-yield strategies does not look that great either. Hence, investors have to increasingly consider ways to enhance their portfolios and obtain less interest rate correlated yields.

JEPQ delivers a 9% monthly yield, combined with lower volatility and long-term income growth, making it a core component of my high-yield portfolio for 2025. JEPQ harnesses Nasdaq's volatility through Exchange-Linked Notes (ELNs) and active stock selection to provide steady monthly income, reducing downside risk while capturing upside potential. Since its inception, JEPQ has delivered 26% lower volatility than the Nasdaq and beaten the S&P 500.

The JPMorgan Nasdaq Equity Premium ETF (JEPQ) and Nasdaq 100 Covered Call ETF (QYLD) funds offer some of the biggest yields in the United States. JEPQ yields 9.30%, while the QYLD yields 11.46%, much higher than what the Nasdaq 100 index offers.

I love generating passive income. I currently use that income to make more income-generating investments.

JEPQ is an option income ETF based on Nasdaq-100 like portfolio, offers one of the best income sources, with market beating total performance since its inception. The Invesco QQQ Trust ETF excels in growth and diversification over the best innovation companies, forming a crucial base for reliable and future-proofing income. QQQ's market (both stock and option) size and liquidity make JEPQ a highly dependable choice for income investors.

I issue a "strong sell" rating for JEPQ, despite its high-yield allure, due to significant underperformance and inefficiencies in its investment strategy. JPMorgan Nasdaq Equity Premium Income ETF's approach to options selling, while competitive and different from traditional strategies, does not generate enough income to fulfill its promised distributions. The fund is already relying on new investor inflows, which risks NAV erosion and unsustainable returns in bear markets.

The JPMorgan Nasdaq Equity Premium Income ETF (JEPQ -0.51%) is one of the most exciting ways for retail investors to access a high-yield strategy that also provides exposure to some of the leading technology companies, like Nvidia. It's an intriguing option that genuinely offers investors something different in the world of high-yield investing.

JEPQ is a highly popular ETF due to its strong performance since inception and attractive ~10% annualized yield with monthly payouts. However, I do not think that it makes sense to buy JEPQ in the vast majority of cases. I share the only time I think that it makes sense to buy JEPQ.