Average Daily Volume
6.86M
Fund Overview
The JPMorgan Nasdaq Equity Premium Income ETF (JEPQ) is an actively managed exchange-traded fund that seeks to provide investors with income and capital appreciation by investing in a portfolio of Nasdaq-100 Index (NDX) stocks while selling call options to generate additional income. The fund combines equity exposure to large-cap growth stocks with an options overlay strategy, aiming to deliver a higher yield than traditional equity investments. JEPQ is designed for investors seeking income generation with lower volatility compared to a pure equity strategy, making it suitable for those with a moderate risk tolerance.
- Asset Class
-
Equity
- Industry
-
N/A
- Annual Dividend Rate
-
- Smart Beta
-
No
- Leveraged / Inverse
-
N/A / No
- Dividend Quality - Yield
-
- 11.43 %
- Currency Hedged
-
No
- Portfolio Turnover
-
N/A
- Dividend Date
-
Why Invest in the JEPQ ETF?
Potential Benefits
- Generates monthly income through a combination of equity holdings and call option premiums.
- Offers exposure to high-growth Nasdaq-100 stocks while mitigating downside risk with an options overlay.
- Actively managed to optimize income generation and capital appreciation in varying market conditions.
- Lower volatility compared to a pure equity investment in the Nasdaq-100 Index.
- Diversified holdings reduce single-stock risk while maintaining sector exposure.
Potential Risks
- Limited upside potential due to the call option strategy capping gains during strong bull markets.
- Active management may lead to higher expense ratios compared to passive ETFs.
- Options trading involves additional risks, including counterparty risk and market volatility.
- Performance may lag in rapidly rising markets where call options are exercised.
- Dividend payments are not guaranteed and may vary based on option premiums and market conditions.
RSI data unavailable or insufficient history.
Monthly Returns (%)
| Year |
Jan |
Feb |
Mar |
Apr |
May |
Jun |
Jul |
Aug |
Sep |
Oct |
Nov |
Dec |
| 2026 |
+2.3%
|
-1.6%
|
-3.5%
|
+7.8%
|
+4.2%
|
+1.4%
|
-4.2%
|
+4.6%
|
+2.9%
|
+0.9%
|
-
|
-
|
| 2025 |
+1.9%
|
-1.8%
|
-6.7%
|
+0.2%
|
+3.7%
|
+4.6%
|
+2.2%
|
+1.9%
|
+4.1%
|
+3.5%
|
+0.3%
|
+0.8%
|
| 2024 |
+3.0%
|
+4.3%
|
+2.5%
|
-3.3%
|
+5.0%
|
+3.3%
|
-2.5%
|
+1.5%
|
+2.7%
|
+0.4%
|
+5.5%
|
+0.4%
|
| 2023 |
+6.2%
|
-0.8%
|
+7.0%
|
+2.5%
|
+4.3%
|
+3.1%
|
+3.0%
|
-0.1%
|
-3.3%
|
-0.8%
|
+7.7%
|
+3.0%
|
| 2022 |
-
|
-
|
-
|
-
|
-
|
-6.3%
|
+8.2%
|
-5.1%
|
-8.8%
|
+4.5%
|
+5.2%
|
-6.1%
|
< -5%
-5% to -2%
-2% to 0%
0%
0% to +2%
+2% to +5%
> +5%
Top Holdings (by weight)
| Symbol |
Company Name |
Weight |
|
MSFT
|
MICROSOFT CORP |
6.9 % |
|
AAPL
|
APPLE INC |
6.7 % |
|
NVDA
|
NVIDIA CORP |
6.3 % |
|
AMZN
|
AMAZON.COM INC |
4.9 % |
|
GOOG
|
ALPHABET INC CLASS C |
4.1 % |
|
META
|
META PLATFORMS INC CLASS A |
3.2 % |
|
AVGO
|
BROADCOM INC |
3.0 % |
|
NFLX
|
NETFLIX INC |
2.6 % |
|
MJGXX
|
JPMORGAN US GOVERNMENT MMKT MORGAN |
2.2 % |
|
TSLA
|
TESLA INC |
2.0 % |
Top 10 holdings shown, out of 93 total holdings.
Related ETFs: JEPQ vs Peers
Comparison highlights key differences on cost, coverage, and focus within sector ETFs.
Investment Strategy
JEPQ employs an active management strategy, investing primarily in stocks included in the Nasdaq-100 Index while selling call options on the index or individual holdings. The fund's managers select equities based on fundamental analysis and market conditions, aiming to balance growth potential with income generation. The options strategy typically involves writing out-of-the-money calls, which provides premium income while allowing for some capital appreciation. The fund rebalances its holdings and option positions regularly, with the exact frequency determined by market opportunities and the managers' outlook.
Frequently Asked Questions
How often does JEPQ pay dividends?
JEPQ pays dividends monthly, with distributions consisting of option premiums and any dividends from the underlying stocks.
Does JEPQ own all Nasdaq-100 stocks?
No, JEPQ is actively managed and typically holds a selection of Nasdaq-100 stocks rather than all components, allowing for strategic positioning.
What percentage of the portfolio is allocated to options?
The options overlay typically covers a portion (but not all) of the equity exposure, with exact percentages varying based on market conditions and manager discretion.
How does JEPQ perform in bear markets?
While not immune to losses, the options income and selective stock picking aim to provide some downside protection compared to the full Nasdaq-100 Index during market declines.
Industry Overview
The JPMorgan Nasdaq Equity Premium Income ETF (JEPQ) operates in the covered call ETF space, a popular strategy for income-focused investors. Covered call ETFs like JEPQ combine equity exposure with options writing to generate additional income, often appealing to retirees or those seeking yield in a low-interest-rate environment. The Nasdaq-100 Index, which JEPQ's equity component tracks, is heavily weighted toward technology and growth stocks, offering exposure to innovative companies while the options overlay aims to reduce volatility. This strategy is particularly relevant in uncertain markets where investors prioritize income and downside protection.
Alternative Comparison
Compared to QYLD, which writes at-the-money calls on the full Nasdaq-100 Index, JEPQ's active management allows for more flexibility in stock selection and option strike prices. Unlike XYLD (which covers the S&P 500) or RYLD (focused on the Russell 2000), JEPQ specifically targets Nasdaq-100 stocks, offering more concentrated tech exposure. JEPQ's sister fund JEPI uses a different approach with ELNs (equity-linked notes) rather than direct options writing, making JEPQ potentially more transparent in its strategy for options-savvy investors.
Issuer Overview
JPMorgan Chase & Co., the issuer of JEPQ, is one of the largest and most established financial institutions globally, with a strong track record in asset management. The firm's ETFs often leverage its extensive research capabilities and active management expertise. JPMorgan's ETF lineup includes a range of income-focused and alternative strategy funds, with JEPQ being part of its premium income series alongside JEPI (JPMorgan Equity Premium Income ETF).
Conclusion
JEPQ offers a compelling solution for investors seeking Nasdaq-100 exposure with enhanced income potential and reduced volatility. Its combination of equity ownership and options writing may appeal to those looking to balance growth and income in their portfolios. While the strategy caps some upside potential, it provides a smoother return profile than pure equity investments, particularly useful in sideways or moderately bullish markets. As with all options-based strategies, investors should understand the trade-offs between income generation and capital appreciation potential.
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