The four largest Nasdaq-100 income funds trailed the stocks by 0.9 to 5.8 percentage points
The four largest Nasdaq-100 option-income funds trailed by 0.9 to 5.8 percentage points in the year through October 1, 2026, against a 23.6% return for the Invesco fund that holds the Nasdaq-100.
Key takeaways
In the twelve months through Thursday, October 1, 2026, the four largest Nasdaq-100 option-income funds trailed the stocks they sell calls on, by 0.9 to 5.8 percentage points. QQQ, the Invesco fund that holds the Nasdaq-100, returned 23.6%. Those figures count the monthly checks as reinvested.
The four largest all trailed QQQ
These funds hold stocks tied to that index and sell call options against them. The buyer of a call pays a premium, and that premium is the monthly check. If the stocks climb past a set price, the fund gives up the gain above it.
The S&P 500 fund, SPY, returned 15.5% over the same year. The four largest beat that, and still trailed the Nasdaq-100 stocks.
The category holds $80.4 billion across 31 funds. JPMorgan's Nasdaq premium-income fund, JEPQ, holds $44.2 billion of that, more than half.
JEPQ holds more than the other three large funds combined
It holds stocks drawn mainly from the Nasdaq-100 and sells calls above the index's level. It seeks a smoother ride than the Nasdaq-100.
It returned 19.4%, 4.2 percentage points behind QQQ.
Global X's covered-call fund, QYLD, holds the Nasdaq-100 stocks and sells a call each month at the index's current level, on the whole portfolio. It returned 22.7%, 0.9 percentage points behind QQQ.
Goldman Sachs's Nasdaq-100 premium-income fund, GPIQ, holds Nasdaq-100 stocks, sells calls, and seeks to keep a share of a rising market. It returned 21.6%. Over the twelve months, the fund that sells away the most upside beat the one built to keep more of a rise.
NEOS's Nasdaq-100 high-income fund, QQQI, holds the index's stocks and sells calls against them. It returned 17.8% and trailed by 5.8 percentage points, the widest gap of the four.
Global X also runs a half-covered fund, QYLG, with $179 million, selling calls on about half the portfolio. It returned 23.5%, a tenth of a percentage point behind QQQ, and it trailed by 2.9 percentage points in 2026.
The gap was wider in 2026 than over the full twelve months, for each of the four. From Wednesday, October 1, 2025 to Wednesday, December 31, 2025, QQQ returned 2.0%. Nearly all of its gain came after that.
Over that same stretch, QYLD returned 6.7%. It beat QQQ through December 31. In 2026 it trailed by 6.2 percentage points, while GPIQ returned 17.9% and QYLD returned 15.0%.
The capital behind the next check
Those returns count the checks as reinvested. A holder who spent them still had the cash. The money left in the fund, which is what the next checks are drawn from, rose 6.3% in JEPQ and 2.4% in QQQI, against 23.0% in QQQ.
After the drop, one fund came out ahead
October 2025 was jumpy, and the index still rose. Nasdaq said a renewed U.S.-China trade dispute briefly pushed a Nasdaq-100 volatility index toward 30 on Thursday, October 16, 2025, from below a five-year average of around 24. It also said the Nasdaq-100 finished October up 4.8%.
From the close on Wednesday, October 29, 2025, to the close on Monday, March 30, 2026, QQQ fell 12%. Nasdaq said the Nasdaq-100 fell 4.9% in March, amid the Iran war, higher oil prices and rising inflation expectations.
From that March close to October 1, QQQ returned 33.2%.
On Wednesday, September 16, 2026, the Federal Reserve raised its target range for short-term rates by a quarter of a percentage point, to 3.75% to 4%.
QYLD returned 0.6% on the way down, then 18.1% on the way up. The other three fell and then lagged the rebound: JEPQ by a 5.1% drop and a 21.6% rise, GPIQ by 8.1% and 26.6%, and QQQI by 8.5% and 24.1%.
JEPQ fell less than GPIQ and, taken together, still finished further behind QQQ, because it kept less of the rebound.
In the four weeks to that October 29 close, QYLD returned 3.3% and QQQ returned 5.4%. That is where the twelve-month gap opened.
From the October 29 close, QYLD came out ahead of the stocks, and the other three large funds did not.
ETFs in this story
Frequently asked questions
How far did the largest Nasdaq-100 income funds trail QQQ?
In the year through October 1, 2026, with checks reinvested, they trailed QQQ's 23.6% return by 0.9 percentage points (QYLD) to 5.8 percentage points (QQQI).
Why do these funds give up some of the index's gains?
They sell call options on their stocks, and the premium from those calls pays the monthly check, but the fund gives up any gain above a set price.
Did the income funds beat the S&P 500?
Yes, all four beat the 15.5% return of the S&P 500 fund SPY over the same year, even though they trailed the Nasdaq-100 stocks.
How much did the money left in the funds grow when the checks weren't reinvested?
The capital left in the fund rose 6.3% in JEPQ and 2.4% in QQQI, against 23.0% in QQQ.
